How Do You Prepare A Statement Of Cash Flow?
Financial statements are integral to determining the financial health of any business. One such financial statement is the statement of cash flow. If you are a small businessman bent on keeping your business in top shape, preparing a statement cash flow is one of the skills you must acquire. Essentially, a statement of cash flow is a document that lists all cash flows into and out of the business during a certain accounting period. An annual statement of cash flow is a must for any business. However, it can also be prepared on a monthly or on quarterly basis. For a small business, it is advisable to prepare statement of cash flows as frequently as possible. Thus, a monthly statement of cash flow is ideal for a small business. A statement of cash flow can either be a single page or a multiple page document, depending on the time period of reporting. Regardless of the page count, a statement of cash flow is usually broken down into three sections: cash flows from operating activities, ca
