In our last blog post we spoke about 3 ways to improve your business' cash flow, but how do you know if it worked? The simple answer is to create a cash flow report also known as a "cash flow statement". The cash flow statement is a part of the 3 financial statements issued by a business and displays the cash flows in and out of a company.

It looks at three main areas that create cash and spend cash:

Operations
- Operations is the calculation of cash generated from products and services and cash spent on core business operations.
Investments
- Investments is the calculation of money spent on equipment, assets and investments and also includes the money gained from investing.
Financing
- Financing is the calculation of debt, loans or dividends.

To learn more about the cash flow statement, check out this video by investopedia. [Investopedia Cash Flow Statement Video]

So, how do you create a cash flow statement?

Most businesses will request their cash flow statement from their accounts department or bookkeeper but if you don't have either of those we can still help.

Quickbooks provides a free cash flow statement template, which will save you tons of time and frustration. In the template Quickbooks provides a six step process to completing the report accurately and in no time at all. Go here to download the template: [Quickbooks Free Cash Flow Statement Template]

Are you looking for ways to improve your business' cash flow? We can show you three practical ways to improve your cash flow here. Find Out More

If you are unsure about anything simply leave a comment or contact us, we are always happy to help.