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

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

This 3-year cash flow statement includes detailed projections and a Summary View page summarizing monthly cash in and out. 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 get paid.
• Cash paid out. This may include inventory, other purchases, payroll, rent, utilities, taxes and loan payments.

How to Use a 3-Year Cash Flow Statement

The 12-month cash flow statement is a valuable tool for continuously managing your business’s budget. 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 and identify times when cash may be low. This will help you determine how much money you need to seek from lenders or investors to maintain positive 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 for free, personalized advice.