A cash flow statement from our financial model templates Whilst your P&L includes all your business’ revenues and expenses in a given period, the cash flow statement records all cash inflows and outflows over that same period. As you might already know, they are: the profit-and-loss (“P&L”, also referred to as “income statement”), balance sheet and cash flow statement. The cash flow statement is one of the 3 financial statements of any business. In other words, a cash flow forecast simply is the projection of a business’ cash flow statement. Let’s dive in! What is a cash flow forecast?Ī cash flow forecast is a document (often in the form of a spreadsheet such as Excel or Google Sheets) whereby one estimates the flow of cash (cash in and out) of a business over a specific period of time. In this article we will discuss the latter option: how you can create a rock-solid cash flow forecast for your startup yourself. There are a number of options available to you: use a financial model template, a software, hire an expert or do it yourself. Whether you want to understand what’s your breakeven, your valuation or simply create a budget for your business plan, preparing a cash flow forecast for your startup is key.
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