What is a Cash Flow Worksheet?

A cash flow worksheet works by organizing cash activity into three key categories:

• Operating activities: day-to-day revenue and expenses, like fees, grants, payroll, and utilities.
• Investing activities: purchases or sales of long-term assets.
• Financing activities: inflows from issuing debt or outflows from paying principal and interest.

The worksheet totals these movements to show whether cash is increasing or decreasing during the selected timeframe. 

This visibility helps finance teams monitor liquidity and plan for upcoming needs.

How to Prepare a Cash Flow Worksheet

Preparing a cash flow worksheet typically involves these steps:

1. Gather Data: Collect information from bank statements, accounting records, and forecasts.
2. List Inflows: Record expected cash coming in, such as revenues, grants, or loan proceeds.
3. List Outflows: Document anticipated expenses like salaries, capital projects, or debt service.
4. Calculate Net Cash Flow: Subtract total outflows from total inflows to see if you end with a surplus or deficit.
5. Review and Adjust: Use the results to identify timing gaps or funding needs, and adjust plans accordingly.

A worksheet can be as simple as a spreadsheet template or built into treasury software that automates data collection and reporting.