Monitor and analyze your business cash flows with precision using our comprehensive cash flow template
✓ Free to download · ✓ Excel 2016+ and Google Sheets · ✓ Custom version in 24h
Profitable businesses run out of cash. This statement separates operating, investing and financing flows and reconciles to the closing bank balance, so the difference between profit and cash is explicit rather than mysterious.
The actual columns, with sample rows
| A | B | C | D | E | F |
|---|---|---|---|---|---|
| 1 | Line | Jan | Feb | Mar | Q1 |
| 2 | Net profit | 42,100 | 38,400 | 51,900 | 132,400 |
| 3 | + Depreciation | 6,200 | 6,200 | 6,200 | 18,600 |
| 4 | − Δ Receivables | -31,800 | -12,400 | -44,200 | -88,400 |
| 5 | = Operating cash | 16,500 | 32,200 | 13,900 | 62,600 |
Why each one is written the way it is
=NetProfit+Depreciation-ChangeInAR-ChangeInInventory+ChangeInAP
The indirect method in one line: profit adjusted for non-cash items and working-capital movements. Every term is a named cell so the statement reads as the accounting identity it is.
=[@[AR closing]]-[@[AR opening]]
Change in receivables. Growing receivables consume cash even while revenue and profit rise, which is the mechanism behind most profitable-but-broke situations.
=OpeningCash+OperatingCash+InvestingCash+FinancingCash
Closing cash. If this does not equal the bank statement, something in the period is wrong — the template flags it rather than letting it pass.
=IF(ABS(ClosingCash-BankBalance)>1,"⚠ Does not reconcile","OK")
The reconciliation check. A cash flow statement that does not tie to the bank is not a cash flow statement.
A worked example with real numbers
A B2B services firm reported €132k of profit in Q1 and had €70k less in the bank than at the start. The statement made it plain: €88k of the profit was sitting in receivables, most of it from two customers on 90-day terms. Nothing was wrong with the business — but the finding moved payment terms to 45 days on new contracts and prompted a facility that carried them through Q2.
Tab by tab
| Tab | Contents |
|---|---|
| Cash flow | The statement itself, monthly with quarterly totals. |
| Balance sheet | Opening and closing positions the movements are derived from. |
| P&L | Profit, the starting point of the indirect method. |
| Checks | Reconciliation against actual bank balances. |
| README | Direct versus indirect method and which inputs each needs. |
What is included, and what to look at next
Specific to this workbook, not generic
Indirect, for almost every small business, because it starts from figures your accounts already produce. The direct method requires categorising every cash receipt and payment, which is more work for a presentation difference.
Timing and non-cash items. Revenue is recognised when invoiced, not when paid; depreciation reduces profit without moving cash; and buying equipment moves cash without touching profit. The statement exists to show exactly those gaps.
Thirteen weeks in detail, twelve months in outline. Thirteen weeks is short enough to be accurate and long enough to act on — it is the standard horizon for a reason.
"This cash flow template has been invaluable for our business planning. The forecasting features help us stay ahead of potential cash crunches."