Cash Flow Statement
This helps you figure out the net difference between cash coming in from all sources, less cash going out. If the results are negative you have a deficit (like, say, the US government). There is a saying: "cash is king," which can probably mean different things in different settings. But in terms of cash flow, it means that you need to have enough money coming in regularly to pay your bills. If you have a big sum of money coming in soon (from say a grant or a commission), you might be rich when that money arrives, but if you can't pay your bills between now and then, you have a cash flow problem.
The financial statement that is usually used to track this is called a Cash Flow Statement (clever name, huh?). It follows a formal format for a company or not for profit. An individual could follow a formal format as well, or be less formal... so long as the statement shows regularly when cash is coming in, when it's getting spent, and whether there's any left over.
Tools for you:
Below are a two tools for you to use to help figure out your cash flow situation. The cash flow worksheet is an interactive (excel) document for mapping out cash flow over a certain time frame (in this case one month). The income and expense worksheet is good for helping figure out your monthly budget. You'll see the two are closely related.
The financial statement that is usually used to track this is called a Cash Flow Statement (clever name, huh?). It follows a formal format for a company or not for profit. An individual could follow a formal format as well, or be less formal... so long as the statement shows regularly when cash is coming in, when it's getting spent, and whether there's any left over.
Tools for you:
Below are a two tools for you to use to help figure out your cash flow situation. The cash flow worksheet is an interactive (excel) document for mapping out cash flow over a certain time frame (in this case one month). The income and expense worksheet is good for helping figure out your monthly budget. You'll see the two are closely related.
| cash_flow_worksheet.xls |
| income_expense_worksheet.jpg |
