Skip to main content

Original text


Powered by Google TranslateTranslate
Powered by Google TranslateTranslate
3-Year Cash Flow Statement
>
May 28, 2023
Rating
Woman sitting at table with laptop reviewing finances as she talks on her cellphone
Download Template

A cash flow statement shows the money going into and coming out of your business. Every business should have a cash flow statement projecting 12 months out. However, in some cases you may also need a 3-year cash flow statement.

What’s in a 3-Year Cash Flow Statement?

This 3-year cash flow statement includes detailed cash flow projections and a Summary View page that sums up total cash in and cash out for each month. It’s easy to modify the template to fit your business needs.

The 3-year cash flow statement includes:

  • Cash received. This may include income from sales, loan proceeds, or interest income. If your business is a startup and has already made some sales or received orders, you can estimate when you will actually get paid.
  • Cash paid out. This may include inventory and other purchases, payroll, rent, utilities, taxes, loan payments, and more.

How to Use a 3-Year Cash Flow Statement

The 12-month cash flow statement is a useful tool for managing your business’s budget on an ongoing basis. If you’re writing a business plan, seeking financing or otherwise doing long-term planning, you’ll want to create a 3-year cash flow statement to help you make projections.

You can use this 3-year cash flow template to test various "what if" scenarios. How will an increase or decrease in sales affect your cash flow? How will hiring employees affect your cash flow? What expenses can you reduce to free up more cash?

By using the 3-year cash flow statement to project cash flow going forward, you can identify times when cash is likely to be low. This will help you figure out how much money you need to seek from lenders or investors to maintain positive cash flow while still achieving your business goals.

You can learn more about how to manage cash flow in SCORE’s free webinar “Mastering Control of Your Cash Flow.”

Do you need help creating or fine-tuning your 3-year cash flow statement? Connect with a SCORE mentor online or in your community to get free, personalized advice.

SHARE THIS ARTICLE
Young male entrepreneur reviewing finance reports in home space
12 Month Cash Flow Statement
A cash flow statement tracks how much your business makes and spends. Here you'll find a template to project your cash flow for the next 12 months.
CONNECT
1165 Herndon Parkway, Suite 100
}
Herndon, VA 20170
1-800-634-0245

Copyright © 2023 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

In partnership with
Jump back to top