Statement of Cash Flows Form

A statement of cash flows form is a template that can be used to quickly create a financial document that highlights cashflow. Understanding cash flow for any given period of time is extremely beneficial because it can help you understand your financial health. A statement of cash flows is commonly used by businesses to give them the information they need to more accurately create other financial documents.

What is a statement of cash flows?

A statement of cash flow is a financial document used in conjunction with balance sheets and income statements. Companies will use these financial statements to create a complete financial report. The statement of cash flow will be used to demonstrate the cash generated by the company within a certain accounting period.  It also shows the cash position of the company at the end of the time period. This information will be used by investors and shareholders to determine the company’s profit margin and risk.

The term “cash” refers to both cash and cash equivalents, or assets that are easily convertible into cash.  A cash flow statement allows easy assessment of a business’ liquidity and solvency.

Cash flow comes from several different areas of income. Operating activities such as sales are typically the majority. The cash flow statement should also include income from investments, stocks, bond, dividends, and other activities. This information allows important parties such as investors, shareholders, and employees to see how well the company is performing. This allows them to make informed choices regarding stocks and investments.

Components of a cash flow statement template

A cash flow template will typically break cash inflows and cash outflows into three different categories: Operating, Investing, and Financing.  

  • Operating activities are a company’s day-to-day business activities.  This would include purchasing inventory, selling products, lawsuit settlements, payments to employees and suppliers, and fees and fines.  This is the default classification (anything that is not classified into investing and financing activities)
  • Investing activities are activities that involve the acquisition and disposal or long term assets.  This would include buying and selling property and equipment or lending money to others.
  • Financing activities involve changes in the size and compositions of equity and an entity’s borrowings.  This would include borrowing from creditors, issuing or repurchasing stocks, and paying cash dividends.

Typically, a small business owner who needs to create a cash flow statement will look at templates that are available online or through Microsoft Excel.

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Statement Of Cash Flows

Personal Financial Statement

Sample Statement of Cash Flows


Sample Statement of Cash Flows

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