If you’re writing a business plan, seeking financing or otherwise doing long-term planning, you’ll want to create a 3-year cash flow statement to help you make projections and identify times when cash may be low. The 12-month cash flow statement is a valuable tool for continuously managing your business’s budget. This may include inventory, other purchases, payroll, rent, utilities, taxes and loan payments. If your business is a startup and has already made some sales or received orders, you can estimate when you will get paid. It is usually a good idea to include several blank lines throughout the form (line 5 for example), so that the statement can be tailored to meet your needs. This may include income from sales, loan proceeds or interest income. It’s easy to modify the template to fit your business needs. This 3-year cash flow statement includes detailed projections and a Summary View page summarizing monthly cash in and out. For example, the Janu-ary projected total cash inflow of 7,100 (line 16) is less than the total cash outflow of 10,200. However, you may also need a 3-year cash flow statement in some cases. Cash Flow Projection for Operating Loan Determination Risk Management E-519 RM5-7.0 02-09 A cash flow statement can be simply de-scribed as a record of the dollars coming in and. It considers all incoming and outgoing cash, as. Every business should have a cash flow statement projecting 12 months out. A cash flow forecast or cash flow projection is an important tool businesses use to predict future cash flow. This includes your sales revenue, interest income, grants, loans.

A cash flow statement shows the money going into and out of your business. The next step is to estimate how much cash your business will receive in the projection period.

Cash flow projection example