Now that you’ve run the report and chosen the way you wish to receive the results, the next stage involves interpreting the data to get a clear picture of your construction company’s cash flow. An income statement will show you an influx of revenue and an outflow of payments over a chosen period. To gain deeper insight into annual profitability, contractors should run this statement at least monthly. The cash flow forecast shows you estimates of your incoming revenue for a certain period. Typically, you have a short-term forecast that gives you visibility into the near future and a long-term view that assists you with larger plans. Please note that this report type is currently only available in QuickBooks Desktop Edition, not QuickBooks Online Edition.

• The CFS should also be considered in unison with the other two financial statements (see below).
• QuickBooks Online with QuickBooks Payments integrates seamlessly with platforms like Shopify, BigCommerce, and similar web stores.
• Free cash flow takes into account cash flow from operations, and the cash required to pay for capital expenditures (CAPEX).
• A company can use a CFS to predict future cash flow, which helps with budgeting matters.
• Whether you are facing issues with the creation of the cash flow statement or its customization, our Dancing Numbers experts are always there to help you.
• This can help you keep track of your finances and might be important when wooing investors or asking for a small business loan.

Use QuickBooks free cash flow statement template to clarify your company’s position on cash. If you have any concerns about creating or understanding your cash flow statement and projections, work with a CPA or other knowledgeable financial specialists. Automate your cash flow statements with QuickBooks cash flow planner and take control of your cash flow. In order to fill out a cash flow statement, you will need your most recent income statement and balance sheet. This will make filling out a cash flow statement template much more simple. A statement of cash flows can break down your inflows and outflows every month or year to help you better understand your business’s spending habits.

A cash flow statement, along with the balance sheet and income statement, is one of the primary financial statements used to measure your company’s financial position. It tracks the inflow and outflow of cash from operating, investing, and financing activities during a given time period. The term “cash” refers to both cash and cash equivalents, which are assets readily convertible to cash. This financial statement provides relevant information to assess a business’ liquidity, quality of earnings, and solvency. A cash flow statement, along with the balance sheet and income statement, is one of the primary financial statements used to measure your company’s financial position. It tracks the cash inflow and cash outflow of cash from operating, investing, and financing activities during a given time period.

Statement of cash flows template

The statement also contains cash outflow records to help companies get a clear view of the revenues and expenses simultaneously for a period. A balance sheet is a statement of the assets, liabilities and equity of a business — essentially a snapshot of your business value at a specific point in time. Balance sheet items are calculated by subtracting your liabilities — what you owe — from your assets, cash or property — what you’re own or is owed to you.

Download this cash flow statement template no matter what type of business you have. It should be customized to include the specific types of cash flow activities that apply to your company. To fill out this spreadsheet, enter the applicable values in their respective cells. The total amounts automatically populate based on the embedded formulas.

What Is a Cash Flow Statement & Why It Is Important

Well-managed companies plan for capital expenditures, which may include investments in machinery, equipment, and other long-term assets. A chain of restaurants, for example, must eventually replace ovens, refrigerators, and furniture. The form 990 for nonprofits cost of replacement should be included in the restaurant chain’s annual budget. Utilizing reliable accounting software ensures that your finances are easy to reach and update so that you can maintain your focus on what matters most.

Why do You Need a Balance Sheet in QuickBooks

Yes, QuickBooks Online allows you to compare multiple periods on your cash flow report. When customizing the report, you can adjust the date range to include multiple periods you want to compare. Click Reports in the left menu bar and then click on the Business overview section. From there, you’ll find different types of reports—select Statement of Cash Flows. Here’s an example of the direct cash flow statement for the sample company ABC Corporation.

Customize the Report

This payment method could deter customers who want to pay off purchases over time. Users can make payments using their Venmo balance, bank account, debit cards, and credit cards. And in most cases, card payments deposit into your bank account quickly, so they can help improve your cash flow. But this type of payment method comes at a cost for small business owners. Your business statement of cash flows is the key most crucial, the least-used, and the poorest understood of the primary financial statements (P&L and balance sheet being the other two). Because many entrepreneurs use QuickBooks, we think its important to understand what  must happen to get the most accuracy from this key report.

With accounting software options like QuickBooks’ small-business products, detailed financial information about your business is always at your fingertips. Understanding your company’s cash flow is critical to maintaining a positive cash position. It’s important to identify the key cash drivers for your company’s operations, as well as understanding how the current period (i.e. month, quarter, or year) compares to a prior period. This template helps you outline those drivers by comparing the current and prior accounting periods in detail.

If you don’t know what the future holds, then you’ll have a hard time planning your investments and taking advantage of promising opportunities. Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Online. Utilize import, export, and delete services of Dancing Numbers software. You can print, email, or export your statement of cash flows by clicking the icons in the top right corner of the report. When you’re through customizing your statement of cash flows, hit the green Run Report button at the bottom of the Customize report screen.

QuickBooks free cash flow statement template with built in calculations is a great tool to help your business manage its cash flow. Once you start using our cash flow statement template you will be able to identify changes needed to improve cash inflows. This includes expansion, research and development, major purchases, or equipment upgrades.

An account is placed on the report when a checkmark is next to the account in one of the three fields, which represent each section of the report. Free cash flow (FCF) can be measured by examining the cash generated from operations. The filter option gives you the chance to view report data by customer, vendor, location, class, and product. If you are viewing cash flow over the last week, you might want to display columns by day. If you are viewing annual cash flow, you might select “Quarters” to compare cash flow in January – March vs. April – June.