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What To Include In A Cash Flow Report

By April 4, 2018April 16th, 2018Blogs

Evaluating your cash flow over the last few months can help every business prepare for the future. But what exactly should you include in a cash flow report? There are several features we think you should include to help your business flourish!

Coleman & Co can create a cash flow report and forecasts for all small business throughout Lisburn. Our team are happy to offer guidance and advice regarding all our services.

Use Cash Flow Statements

Obviously, to create your cash flow report, you will have to use your cash flow statements from the previous month. However, to get a good overview of the progress your business is making or any problems that have occurred, you should be using several different cash flow statements to create the best possible report.

Having analysis of your business’ financial performance over a larger time period allows you to identify problems and opportunities. Although one cash flow statement will show the profit, revenue and costs for one month, it will not give you an overview of performance. Whether you choose to complete cash flow reports on a regular basis for comparison or use several cash flow statements in each report, this will give you the best chance to improve your business.

If your business’ profit has decreased in recent months, you should know changes have to be made. Problems will occur if your business does not prepare for the future or look at errors that have led to a profit decrease.

View Different Departments

All stakeholders and business owners want a detailed report of where money is actually being generated. If your cash flow report is too simple, the information you require to evaluate the business is not available. Instead, you should include where all money throughout the business is being made and spent.

You will be able to complete further analysis into which sections of your business help create the most profit. If one department spends too much or makes too little, this can be a concern. Identifying the problem and making a change is the best option for your business and ensures the optimum profit is created for your company.

Including this in a cash flow report could help you decide to invest less money into one department. You should always be looking for the best way to improve your revenue whilst keeping costs to a minimal.

Include All Costs

Every expense must be included in your cash flow report, no matter what your business is paying for! Recording all expenses should be done, whether this is for tax purposes or to show owners and stakeholders. All expenses should be considered to see where you could cut down on costs and where unnecessary payments are made.

If running costs or one-time payments are cutting into your profit, finding a suitable way to reduce this could significantly benefit your business. Whether this is staff rewards, office renovations or new equipment, you should be looking at every expense.

Cash Flow Forecasting

Using detailed cash flow reports of your previous months in trading can help you prepare for the future easily. By evaluating previous expenses and revenue, you can make an accurate forecast of what profit you will make in the future. You can also make changes to your current expenses, looking at what areas you should be reducing your costs.

Once a forecast is created, this can then be compared against your actual business performance. If the forecast is inaccurate, you can identify what problems occurred and again what changes need to be made in your next cash flow report.

A forecast is essential to target what direction your business is heading and what you would like to achieve next.

Contact Us

Every small business should be creating a cash flow report for their financial performance. If you would like advice from our team or require our cash flow services, do not hesitate to contact us. Coleman & Co are happy to help any business in Lisburn and discuss any requirements you have. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

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