1. What Is a Cash Flow Template?
A cash flow template helps track the money entering and leaving your business. It includes:
- Incoming cash (sales, loans, investments)
- Outgoing cash (rent, salaries, utilities)
- Monthly balances
A simple cash flow template is essential for managing liquidity and planning for growth.
2. Why Use a Simple Cash Flow Template?
Key benefits include:
- Predicting short-term cash needs
- Avoiding overdrafts or missed payments
- Making informed business decisions
- Supporting loan or grant applications
Even small businesses benefit from this level of financial clarity.
3. What to Include in a Simple Cash Flow Template
Your template should have:
- Monthly columns (Jan–Dec)
- Opening balance for each month
- Cash inflows: sales, loans, grants, refunds
- Cash outflows: rent, wages, suppliers, marketing
- Net cash flow: inflows minus outflows
- Closing balance: what you have at the end of the month
4. How to Build a Cash Flow Template in Excel
Steps:
- Open Excel or Google Sheets
- Label rows for each income and expense type
- Use formulas to calculate totals and balances
- Highlight months with negative cash flow in red
- Update regularly for accuracy
5. Sample Income Rows
- Sales revenue
- Loan income
- Government grants
- Other income (e.g., refunds, asset sales)
6. Sample Expense Rows
- Rent or mortgage
- Staff salaries
- Inventory and supplies
- Utilities and phone bills
- Marketing and advertising
- Software and subscriptions
- Loan repayments
- Insurance
- Tax and VAT
7. Tips for Effective Cash Flow Management
- Forecast conservatively (underestimate income, overestimate costs)
- Review your cash flow weekly or monthly
- Plan for seasonal dips or high-expense months
- Build a cash reserve if possible
- Factor in VAT and tax deadlines
8. Common Mistakes to Avoid
- Ignoring delayed payments or late invoices
- Relying on unrealistic sales projections
- Forgetting annual or one-off expenses
- Not including loan interest or VAT obligations
9. When to Use Cash Flow Templates
Use them:
- When starting a business
- Before applying for funding
- To spot financial problems early
- When making major decisions (e.g., hiring, expansion)
10. Where to Get a Free Template
You can create your own or download free versions from:
- GOV.UK business support
- Microsoft Excel template gallery
- Google Sheets template library
- Local councils or Growth Hubs
- Business finance websites and accountants
Frequently Asked Questions
Q1: Do I need accounting software for cash flow?
No. A spreadsheet is sufficient for many small businesses and startups.
Q2: What’s the difference between profit and cash flow?
Profit is what’s left after expenses. Cash flow tracks real-time money movement—when you’re paid and when you pay out.
Q3: Can I use a cash flow template for personal finances?
Yes. Just adapt the categories to suit personal income and spending.
Q4: How often should I update my cash flow template?
Monthly at a minimum. Weekly is better during busy or uncertain periods.
Q5: Will lenders or investors ask for a cash flow forecast?
Yes. It’s a common requirement for business loans or funding applications.
Q6: Can I track VAT in a simple cash flow template?
Yes. Add VAT as a line item to manage payments and reclaims.
Conclusion
A simple cash flow template is one of the most practical tools a startup can use. With the right structure and regular updates, it helps you stay in control of your finances, avoid surprises, and make smarter business choices.