Cash flow is the élan vital of your business. Fortunately, keeping up with it is easy with PLANDISC’s fully customizable planning tool. Any business of any size can design and build a 12 month financial planning cycle with PLANDISC to track and manage their organization’s fiscal health.
Components of a Cash Flow Statement
A cash flow statement is comprised of a business’ balance sheet and revenue statements. Your focus when creating a cash flow statement should be, not only the sources of cash flow, but the operating costs and investment costs as well. Trackable actions are anything that has or will result in the receipt of cash, called inflows, and actions that result from spending that cash, called outflows. Every action, whether it is an inflow or outflow, can be tracked on PLANDISC.
How to Create the Cash Flow PLANDISC
Create a Circular Template that has a 12-month planning cycle. Divide your businesses cash flow statements into three sections. With PLANDISC, designating sections can easily be achieved by creating a circle for each category on the interior of your circular template. Each section, or circle, can be color coded for ease of use. One section, or circle, should be dedicated to cash flow that is the result of operating activities. These activities could include things like the collections of cash from sales and payment of related expenses. Secondly, devote a section to cash flow from investments. These activities include the sale or purchase of your business’s assets. Because the PLANDISC has an embedded calendar, these factors can be scheduled on the PLANDISC and labeled projection if required. Now create a circle that is dedicated to cash flow that results from financing activities. Financial activities affect the size and configuration of the overall financial structure of the organization over time and these may include the repayment of principal on the business mortgage.
A description from each category can be entered onto the front of your Circular Template of PLANDISC and accompanying files can be attached to the particular section. At a glance, anyone in the operation who has access to the PLANDISC can easily see and track both positive and negative changes in the organization’s financial state. Projections can be recorded and comparisons can be made when the actual results arrive.
The Value of a Circular Template’s Cash Flow Statement
Circular Template will not perform the calculations needed to complete your cash flow statement. However, when base line descriptions and results are entered onto the PLANDISC, they immediately provide organization leaders and others with access to the disc, a visual representation of their organization’s financial health. Attaching relevant files to the disk means that interested parties have the data that made up the results at the fingertips. The value of Circular Template’s visual aid is the ability to get a snapshot of the businesses historical status, present status and projected status anytime you need it.