Cash flow statements are important in any business. It shows the flow of cash in and out of your practice and is useful in seeing a realistic and relevant picture of your cash balance for a specific period (usually monthly).
Keeping an up-to-date cash flow statement is helpful in short-term planning for your practice in regards to cash. For example, if you know that a lot of expenses fall in August based on your cash flow statement, you can put in a savings plan in the months leading up to August. You’ll be able to allocate a realistic amount of savings funds as you can see on paper how it can affect next month’s cash balance.
About This Template
This is a Monthly Cash Flow Statement Template in spreadsheet.
To start using the template, follow these steps:
- Edit the months. This spreadsheet starts in June. Change it to the current month. (Tip: Once you put in the first month (e.g. “Jan”), hover over the cell in the bottom-right corner until your cursor turns into a + sign. Hold and drag to the end of the row.
- Repeat for all month rows.
- Put in your Opening Balance (Cell B5). This is the cash you’re starting with – I.e. how much is currently in your business.
- In the Incoming section (Rows 9 & 10), put in your monthly revenue – from sessions and other revenue streams.
- In the Outgoing section, (Rows 16-35), put in your monthly expenses per category. You can add your own expense types in Rows 33-35.
- The rest will auto-populate.
Cash Balance means the cash you have left in your practice after expenses for this current month – I.e. Revenue minus Expenses.
Closing Balance means the cash balance for the current month plus your opening balance. For each month, this equals the next month’s Opening Balance.