Cash Flow Report

What is a cash flow report?

The cash and its equivalents flowing in and out of the company are summarized in a document known as cash flow report. The purpose of this report is to see the performance of the company when it comes to managing the cash.

How well the company is paying off the debt is also seen using a cash flow report. This report is usually prepared when a company must apply for the loan and it wants to prove that it is capable enough to return the money.


There is no specific format of the cash flow report. The way you want to structure the cash flow report completely depends on the needs of the business.

The cash flow report clearly demonstrates that shows deviation in balance sheet affects the cash flow and it will analyze the investment, finance and operation procedures. The report speaks about the cash flow and its related issues while on the other hand, it inspects all the balance sheet deviations. It determines the feasibility of business through analyzing the affordability of the company to pay the related bills on time. The International Accounting Standard that deals with cash flow statements. International Accounting Standard 7 (IAS 7)


When cash is utilized to purchase equipment’s, premises or some assets then it is termed as cash-out because cash is going out to purchase these items. But when some assets are sold then the incoming revenue is known as cash–in.


When the capital amount increases than cash increases while when the obligations are paid then the cash goes out referring to cash–outflow. Buying bonds will augment the cash in and pay interest to the finance will let the cash-out, thus reducing the cash.

A cash flow involves the following individuals

  • Accounts staff
  • Lenders or creditors, to provide a straightforward report of company income
  • Investors, to prove them that the company is not going in loss
  • The employee or contracted who want to ensure that the company can pay them according to and timely
  • Potential employees or contractors, who need to know whether the company will be able to afford compensation
  • Shareholders

To draw a composed cash flow report free templates are available online. They can be customized to sketch your own cash flow report. Fill in your details after downloading the cash flow template and print it as an evident document.

What is the purpose of using the cash flow report?

To see how well a company is performing all its operations, the cash flow reports are prepared. The business owner may want to know where the company is spending most of the cash. The cash flow report helps the investor know if the financial position of the company is strong

For preparing the cash flow report, the company takes the receipts for selling and purchasing the goods in consideration. Several other things are also considered such as payment of income tax, salary paid to employees, rent payments and other business expenses. If a company has to submit the cash flow report to investors, it should also include debt payment receipt, loans details etc.

Total revenue generated by the company in a particular period is calculated along with expenses. The difference between both parameters is calculated to determine the amount of cash flow.

The transactions conducted by the company are also considered. If the transaction includes the non-cash items, these items will be converted in the cash form.

About Template

The cash flow report template is a useful tool for all those people who want to save themselves from the hassle of doing a lot of things to create the cash flow report. This report template saves a lot of time of the user.


Cash flow report template

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Cash Flow Report Template

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