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no Cash Flow Statement - a free document template from Bedin.no The purpose of the service is to make it easier to start and run a business in Norway. Note: This document is of a general nature. The contents must be adapted to the

Notes on Preparation
Note: You may want to print this information to use as reference later. To delete these

instructions, click the border of this text box and then press the DELETE key.
Note: In the "Twelve Month Cash Flow" sheet, enter amounts only in the 'white' cells.

Cells with a light blue colour are calculated automatically. Refer back to your Budget (Profit & Loss Projection). Line-by-line ask yourself when you should expect cash to come and go. You have already done a sales projection, now you must predict when you will actually collect from customers. On the expense side, you have previously projected expenses; now predict when you will actually have to write the check to pay those bills. Most items will be the same as on the Profit & Loss Projection. Rent and utility bills, for instance, are usually paid in the month they are incurred. Other items will differ from the Profit & Loss view. Insurance and some types of taxes, for example, may actually be payable quarterly or semiannually, even though you recognize them as monthly expenses. Just try to make the Cash Flow as realistic as you can line by line. The payoff for you will be an ability to manage and forecast working capital needs. Change the category labels in the left column as needed to fit your accounting system. Note that lines for 'Loan principal payment' through 'Owners' Withdrawal' are for items that always are different on the Cash Flow than on the Profit & Loss. Loan Principal Payment, Capital Purchases, and Owner's Draw simply do not, by the rules of accounting, show up on the Profit & Loss Projection. They do, however, definitely take cash out of the business, and so need to be included in your Cash plan. On the other hand, you will not find Depreciation on the Cash Flow because you never write a check for Depreciation. Cash from Loans Received and Owners' Injections go in the "Loan/ other cash inj." row. The "Pre-Startup" column is for cash outlays prior to the time covered by the Cash Flow. It is intended primarily for new business startups or major expansion projects where a great deal of cash must go out before operations commence. The bottom section, "ESSENTIAL OPERATING DATA", is not actually part of the Cash model, but it allows you to track items which have a heavy impact on cash. The Cash Flow Projection is the best way to forecast working capital needs. Begin with the amount of Cash on Hand you expect to have. Project all the Receipts and Paid Outs for the year. If CASH POSITION gets dangerously low or negative, you will need to pump in more cash to keep the operation afloat. Many profitable businesses have gone under because they could not pay the bills while waiting for money to flow in. Your creditors do not care about profit; they want to be paid with cash. Cash is the financial lifeblood of your business.

GUIDELINES
GENERAL
Definition: A cash flow projection is a forecast of cash funds a business anticipates receiving and paying out throughout the course of a given time span, and the anticipated cash position at specific times during the period being projected. [For the purpose of this projection, cash funds are defined as cash, cheques, or money order, paid out or received.] Objective: The purpose of preparing a cash flow projection is to determine shortages or excesses in cash from that necessary to operate the business. If cash shortages are revealed in the project, financial plans must be altered to provide more cash until a proper cash flow balance is obtained. For example, more owner cash, loans, increased selling prices of products, or less credit sales to customers will provide more cash to the business. Ways to reduce the amount of cash paid out includes having less inventory, reducing purchases of equipment or other fixed assets, or eliminating some operating expenses. If excesses of cash are revealed, it might indicated excessive borrowing or idle money that could be used more effectively. The objective is to finally develop a plan which, if followed, will provide a well-managed flow of cash. The Spreadsheet: The cash flow projection worksheet in this file provides a systematic method of recording estimates of cash receipts and expenditures, which can be compared with actual receipts and expenditures as they become known. The entries listed in the spreadsheet will not necessarily apply to every business, and some entries may not be included which would be pertinent to specific businesses. It is suggested, therefore, that you adapt the spreadsheet to your business, with appropriate changes in the entries as required. Before the cash flow projection can be completed and a pricing structure established, it is necessary to know or to estimate various elements of the business, for example: - What are the direct costs of the product or services per unit? - What are the monthly or yearly costs of the operation? - What is the sales price per unit of the product or service? Determine that the pricing structure provides this business with reasonable breakeven goals [including a reasonable net profit] when conservative sales goals are met. - What are the available sources of cash, other than income from sales; for example, loans, equity capital, rent, or other sources? Procedure: Most of the entries for the cash flow spreadsheet are self-explanatory; however, the following suggestions are offered to simplify the procedure: a) If this is a new business, or an existing business undergoing significant changes or alterations, the cash flow part of the column marked "Pre-start-up Position" should be completed. [Fill in appropriate blanks only.] Costs involved here are, for example, rent, telephone, and utilities deposits before the business is actually open. Other items might be equipment purchases, alterations, the owner's cash injection, and cash from loans received before actual operations begin. b) Next fill in the pre-start-up position of the essential operating data [non-cash flow information], where applicable. c) Complete the spreadsheet t considering the proposed contents for each entry, given in the notes provided in the worksheet.

Analysis
a) The cash position at the end of each month should be adequate to meet the cash requirements for the following month. If too little cash, then additional cash will have to be injected or cash paid out must be reduced. If there is too much cash on hand, this money is not working for your business. b) The cash flow projection, the profit and loss projection, the breakeven analysis, and good cost control information are tools which, if used properly, will be useful in making decisions that can increase profits to insure success. c) The projection becomes more useful when the estimated information can be compared with actual information as

c) The projection becomes more useful when the estimated information can be compared with actual information as it develops. It is important to follow through and complete the actual columns as the information becomes available. Utilise the cash flow projection to assist in setting new goals and planning operations for more profit. A suggested way to do this is to enter actual cash receipt amounts and cash paid out amounts in the actual spreadsheet included in this file.

These guidelines are adapted from a similar cash flow projection spreadsheet published by the site businesslink.gov.uk

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Cash Flow (12 months)

Pre-Startup 1. Cash on Hand (beginning of month) Jan 07 0 Feb 07 0 Mar 07 0 Apr 07 0

Enter Company Name Here

May 07 0 Jun 07 0 Jul 07 0 Aug 07 0 Sep 07 0 Oct 07

Fiscal Year Begins:

Nov 07 0 0 Dec 07 0

Jan 07
Total (end of year) 0

2.
a) b) b) 3. 4.

INCOME
Cash Sales Other income (credit accounts) Loan / other cash injections TOTAL CASH RECEIPTS Total Cash Available (before cash out) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5.
a)

CASH PAID OUT

Purchases (goods for sale) Purchases (specify) Purchases (specify) b) d) e) f) g) h) i) j) k) l) Wages (exact withdrawal) Holiday pay Tax deduction (on wages) Payroll tax External services Supplies (office & oper.) Repairs & maintenance Marketing, advertising Car, delivery & travel Accounting & legal

m) Rent n) o) p) q) r) s) t) Telephone, postal expenses Utilities Insurance Taxes (real estate, etc.) Interest VAT Other expenses (specify) Other (specify) Other (specify) u) Miscellaneous SUBTOTAL v) Loan down payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0

w) Capital purchase (specify) x) y) z) 6. 7. Other startup costs Reserve and/or Escrow Owners' Withdrawal TOTAL CASH PAID OUT Cash Position (end of month) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

ESSENTIAL OPERATING DATA (non cash flow information)

Sales Volume Accounts Receivable Bad Debt (end of month) Inventory on hand (eom) Accounts Payable (eom) Depreciation

Cash flow Chart

Cash Flow (12 Months)

0 Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07

-1

-1

-1

-1

Cash Position (end of month)

TOTAL CASH RECEIPTS

TOTAL CASH PAID OUT

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