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How to Use a Cash Flow Template
What this template contains and who it is for
Read Instructions and work in Cash Flow Statement. It separates inflows and outflows, including operating and financing examples, and summarizes beginning and ending cash. Replace sample amounts and notes with records for your chosen month. Loan proceeds can be a cash inflow without being profit. Buying equipment is a cash outflow even when accounting expense recognition differs.
Worked example
Opening ₹10,000, receipts ₹25,000 and payments ₹18,000 give net cash flow ₹7,000 and ending cash ₹17,000. An uncollected ₹5,000 invoice should not be added as an actual receipt.
How to use FinBizTools
- Download the Cash Flow Template and save a dated working copy.
- Enter the verified beginning bank and cash balance.
- Replace inflow and outflow examples with amounts actually received or paid during the period.
- Compare the ending balance with statements and investigate unexplained differences. Use a separate copy for forecasts.
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Common mistakes and limitations
Do not count a transfer between two accounts you are consolidating as an external receipt and expense. Verify workbook formulas in your chosen spreadsheet application and retain original transaction evidence.
A walk-through of the Cash Flow Statement sheet
- Beginning cash and bank balance: the actual combined balance of your business bank accounts and cash on the first day of the month.
- Cash inflows: customer invoices collected, service and retainer fees received, short-term loans received, owner capital introduced, and interest, refunds or other receipts.
- Cash outflows: supplier payments, salaries, rent, utilities, taxes, marketing and other payments made during the month.
- Summary: total inflows, total outflows, net cash flow and ending cash balance, calculated automatically.
Each line has a notes column; use it to record the customer, supplier or reference so that you can trace the figure later.
Worked example: a freelance studio’s month
A design studio starts September with ₹42,000 in the bank. During the month it collects ₹85,000 from three clients and receives a ₹1,500 interest credit. It pays ₹30,000 in salaries to a part-time assistant, ₹12,000 rent, ₹4,500 for software subscriptions, ₹2,000 for internet and phone, ₹9,000 in GST and ₹6,000 for advertising. Total inflows are ₹86,500 and total outflows are ₹63,500, so net cash flow is ₹23,000 and the month ends with ₹65,000. The studio also has ₹40,000 of invoices that are unpaid; these are not entered as inflows, but noted separately so that the owner knows money is expected.
Reconciling with the bank statement
The ending balance should equal the real bank and cash balance on the last day of the month. If it does not:
- Check that the beginning balance matches the previous month’s statement.
- Tick every statement line against the template; look for missing bank charges, small UPI payments and refunds.
- Check for transfers between your own accounts, which should not be counted as income or expense.
- Look for amounts entered twice or with the wrong sign.
A difference of exactly the amount of one transaction usually points straight to the missing entry.
Using copies for a forecast
The template records one month at a time. To look ahead, save copies for the next two or three months, label them clearly as forecasts and enter the receipts and payments you expect, using realistic dates for when customers will actually pay. Carry each month’s ending balance forward as the next month’s beginning balance. If a forecast month ends with a negative balance, you have time to act: chase payments, delay discretionary spending or arrange finance. The cash-flow management guide explains forecasting in more detail.
Good habits
- Name files by month, such as
CashFlow-2026-09-actual.xlsxandCashFlow-2026-11-forecast.xlsx. - Update actuals weekly, not only at month-end.
- Keep loans and owner money on their own lines so they are not mistaken for sales.
- Set aside GST and tax payments in advance, since they are large, predictable outflows.
Frequently asked questions
Is the ending cash balance my profit?
No. Borrowing, owner funding, credit sales and asset purchases can make cash movement differ from profit.
Disclaimer
This guide is educational. Examples are illustrative, not financial, tax or legal advice. Verify important decisions and current requirements. Read the FinBizTools Disclaimer.