The cash flow statement shows if a business is bringing in cash or losing cash over time. With cash being the lifeblood of business, knowing if cash is moving into the business or out of the business is critical.
You can use the cash flow statement to calculate cash runway – the amount of time that a business can stay in operation if it continues to lose money at its current pace. Cash flow statements are an important part of a business plan as lenders will look for positive cash flow as part of their overall lending criteria. Lenders will want to see that you have positive cash flow.
Download the BDC guide to taking control of your cash flow. This guide explains the 3 key elements of cash flow, how to improve your cash conversion cycle, how to use a cash flow planner and how to collect your outstanding bills quicker.
Enroll in the free BDC 25-minute e-learning course – Managing Cash flow. Complete the exercises and activities contained in this course and you will be well on your way to managing your business cash flow.
Futurpreneur Canada has developed a cash flow template business owners can use for start-up and financing purposes. The downloadable template comes with short, video tutorials.
As an added bonus, if you are a youth (18-39) immigrant entrepreneur, you can use this template as part of your application for funding from the Futurpreneur Newcomer Program.