

The 12-month cash flow statement is one of the three fundamental financial statements for a business. (The other two are the balance statement and the profit and loss statement.)
Like a checking account statement, the cash flow statement shows the money going into and out of your business. You'll include a cash flow statement in the financial section of your business plan.
The cash flow statement includes:
Subtract cash paid out from cash received, and you have your cash position for the end of the month.
For new and growing business owners, every dollar counts. Cash flow problems are a common cause of small business failure. Reviewing the company's cash flow statement regularly can help entrepreneurs avoid this fate. New and established business owners can use a cash flow projection to anticipate working capital needs and plan for upcoming expenses.
Do you need help with your cash flow statement? Connect with a SCORE mentor online or in your community for free, personalized advice.
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