Business Plan Cash-Flow Statement: Total Funds In

The cash-flow statement tracks every single dollar as it comes into your small business — and not a second before. You can’t show the revenue on sales, for example, until you actually have the payment in hand. Following are the income sources that the cash-flow statement tracks:

  • Receipts on sales: The money you take in from the sales of your products or services show up in this section, but only after they’re deposited in the bank. Billing a customer may be enough to generate a revenue entry on your income statement, but you can’t include the amount on your cash-flow statement until you have a deposit slip to show for it.

  • Dividend and interest income: Any interest you make on your business bank accounts or any earnings from your investment portfolio appear in this section — if the payments come in during the statement period.

  • Invested capital: If your company receives funding from investors, on the date the money reaches your business, it’s entered here on your cash-flow statement.

The Broad Street Emporium cash-flow statement shows that the gift store took in $740,000 cash last year. That number synchs with entries on the company’s income statement and balance sheet.

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Here’s how it works: The income statement shows gross income of $729,000 and income from dividends and interest of $3,000.

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Plus, the balance sheet shows that the company also received $5,000 of investment capital from its owners. (This money is reflected in the entry for invested capital, which went from $195,000 the previous year to $200,000 last year.)

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Additionally, the company collected $3,000 in outstanding accounts receivable last year (shown on the balance sheet as a reduction in accounts receivable from $18,000 to $15,000). Together, these funds total $740,000, exactly as indicated by the cash-flow statement. Ta-da!

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