Calculator for Cash Flow: Track Your Money
Simplify finance with a cash flow calculator. See your business’s cash shifts, from opening balance to end-period insights, effortlessly!
Cash at Beginning of Period
So, you want to start on the right foot, right? The cash at the beginning is like checking how much money you’ve got before you start your business day. It’s your starting line.
Cash at End of Period
Fast forward to the end, and it’s like looking in your wallet again. If it feels lighter, it means you’ve had more fun (or expenses) than you planned for and might need to tighten up next time.
Received from Customers
Think of this as your favorite part: when customers pay you for what you’re awesome at. Every sale, every swipe—it all adds up!
Other Cash Receipts
And sometimes, you get a little extra! Maybe the bank gave you a bonus for saving or you got a grant. It’s like finding money in your jeans!
For Inventory
This is when you go shopping for your business, buying all the stuff you need to make what you sell. It’s all about restocking.
For Insurance
Paying for insurance might not be fun, but it’s like putting on your business’s safety belt. It’s all about staying protected.
For Payroll
Your team’s paycheck time! It’s rewarding their hard work and making sure the taxman gets his share too.
Other Payments
This is the nitty-gritty of running a shop. Rent, lights, those ads you put out—every check you write is part of the deal.
Interest Paid
Loans aren’t free, sadly. The interest you pay is like the rent on borrowed money. It’s a must-do if you’ve got loans.
Sale of Property
Selling something you own, like a piece of equipment or a patent, is a bit like a yard sale. You clear out and get cash in return.
Sale of Investments
If you’ve played the investment game and decide to cash in, it’s payday for you! It’s the return on your financial adventures.
Other Activity
There’s always a bit more money coming from somewhere, right? Investments paying off, dividends—it’s all good.
Capital Expenditures
When you buy big-ticket items that last a long time, like a new machine or a bigger space, it’s a big investment in your future.
Purchases
Buying more investments or bumping up the ones you have is like planting seeds for your business’s growth. It’s planning ahead.
Other Use
Sometimes you spend on odds and ends for your investments. It’s all part of growing your business empire.
New Borrowing
Need a cash boost? Taking out a new loan is like asking for a larger fuel tank—it’s more to use for growing big.
Stock Issuing
When you sell new pieces of your company as stock, it’s like inviting more people to your party and growing your support squad.
Capital Contributions
This is when you, or any of the business bosses, put in your own cash to pump up the business. It’s like watering your own garden.
Loan Repayments
Paying back loans, except for the interest, is like you’re climbing out of a hole. It’s tough, but it feels good to get closer to level ground.
Dividends Paid
Sharing profits with your shareholders through dividends is like giving a high-five. It’s sharing the love when times are good.
Other Distributions
And then, there’s the extra sharing—any cash you give out to other people who have a stake in your success. It’s part of being in it together.
Here is an example:
Let’s use “Java Jive,” our fictional coffee shop, as an example for a cash flow calculation.
At the start of the month, Java Jive’s bank account had $5,000. By month’s end, it dipped to $4,000, signaling a spend-over-earn scenario.
Sales from customers brought in $10,000, with an additional $500 from a loyalty program and a $1,000 grant. For inventory restocking, we spent $3,000, insurance was $500, and payroll costs totaled $6,000. Monthly utilities and marketing took another $2,000, and we paid $200 in loan interest.
We also sold an old display case for $300. No new investments or loans were made this month, and we didn’t issue any new stock. We’re solely reinvesting profits back into the business, which included a $500 payment towards our loan principal.
After running these numbers through a cash flow calculator, we clearly see Java Jive’s financial movements and can strategize for better results next month.
FAQ
What’s a cash flow statement anyway?
Imagine a diary, but instead of secrets, it’s keeping track of all the cash coming in and going out of your business. It’s a way to see if you’re making more money than you’re spending.
How often should I check my cash flow?
It’s like watering plants – do it regularly to keep healthy! Checking monthly is a good habit to make sure you’re not overspending.
Why do I have less money at the end of the month?
It could be like having a big party but not enough snacks. You might’ve spent more on stuff like supplies or ads than the cash you made from sales.
Where does the money from customer payments go?
Straight into your pocket! Well, your business’s pocket. It’s the cash from selling your goods or services, and it’s the main way your business makes money.
What if I get money that’s not from sales?
Think of it as a bonus! It could be from a loan you got, an investment you cashed in, or even a grant. It all helps to boost your cash.
Should I panic if I spent money on inventory?
Nope, no need for alarm! It’s like buying groceries; you need them to cook up what you sell. Just make sure you’re not buying more than you can sell.
What’s the deal with ‘other payments’ on my statement?
This is the cash you spend to keep the business running smoothly, like rent or electricity. It’s all part of the game.
Why do I need to record loan interest?
Because it’s part of what you’re spending to keep your business going. You need to keep track of it just like any other bill.
How important is it to track capital expenditures?
Super important! It’s like keeping receipts for the big stuff you buy that helps your business grow, like a new coffee machine or a delivery van.
Why should I care about dividends if I’m reinvesting everything back into the business?
Well, if you’re sharing profits with others like shareholders, it’s good to know how much. But if all the money’s going back into making your business even better, that’s great too! It’s all about knowing where every dollar is working.
Ready to Start?
Armed with this calculator, you’re in the driver’s seat of your cash flow management journey. You get to make the informed decisions about your money and your future. Let’s keep our cash flow straigh!