Cash Flow Worksheet

There are a variety of ways a cash flow forecast can be structured. To gain the optimum benefit, it is recommended that it be structured to show only cash received from operating revenue, and the proceeds from sales of company assets, if appropriate, in the revenues portion of the worksheet.

On occasion a template will show a slot for proceeds of a term loan in this section; this may, however, take away from the value of the cash flow as an indicator of the business’ operating performance and of the cash flow’s ability to clearly show the real amount of working capital needs. If a fixed term loan amount is treated as revenue to the business, the balances carried forward each month cannot accurately reflect how the business is earning money (unless the reader takes the additional step of subtracting the loan proceeds from the equation).

Your general format should allow a column along the left side of the page for the account headings, then two side by side vertical columns for each month of the year, beginning from the month you plan to open (e.g. the first dual column might be labelled April Planned and April Actual etc.). From there, the cash flow worksheet breaks into three distinctive sections. The first section (at the top left portion of the worksheet, starting below and to the left of the month names) is headed Cash Revenues (or Cash In). The second section, just below it, is headed Cash Disbursements (or Cash Out). The final section, below that, is headed Summary of Cash Flow.

	1	2	3	4	5	6	7	8	9	10	11	12	Total
Cash In
Cash sales	200	100	300	200	200	200	500	500	500	200	200	200	3300
Receivable collection	1000	1500	2000	1000	1000	1000	1000	1500	2000	2000	2000	2000	18000
Sale of fixed assets	0	0	0	0	5000	0	0	0	0	0	0	0	5000
Subtotal	1200	1600	2300	1200	6200	1200	1500	2000	2500	2200	2200	2200	26300

Cash Out
Supply purchases	(200)	(6000)	(200)	(200)	(200)	(200)	(5000)	(200)	(200)	(200)	(200)	(200)	(13000)
Payroll	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(2400)
Rent	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(200)	(2400)
Management wages	(100)	(100)	(100)	(100)	(100)	(100)	(100)	(100)	(100)	(100)	(100)	(100)	(1200)
Utilities	(50)	(50)	(50)	(50)	(50)	(50)	(50)	(50)	(50)	(50)	(50)	(50)	(600)
Subtotal	(750)	(6550	(750)	(750)	(750)	(750)	(5550)	(750)	(750)	(750)	(750)	(750)	(19600)

Open Cash	0	450	(4500)	(2950)	(2500)	2950	3400	(650)	600	2350	3800	5250
Cash In	1200	1600	2300	1200	6200	1200	1500	2000	2500	2200	2200	2200
Cash Out	(750)	(6550)	(750)	(750)	(750)	(750)	(5550)	(750)	(750)	(750)	(750)	(750)
Close Cash Surplus (Deficit)	450	(4500)	(2950)	(2500)	2950	3400	(650)	600	2350	3800	5250	6700	6700

In this example, even though at the end of the year there is cash surplus, in month’s 2, 3, 4 and 7 have cash deficits. Financing will be necessary for those months. If the business is unable to obtain financing for whatever reason, then the business needs to consider other options, such as delaying certain expenditures in these months or having the shareholders provide sufficient cash.

A Chartered Accountant can help your business design a cash flow budgeting system. Contact Keith Anderson CA at (780) 447-5830 if you need advice.