Bookkeeping Invoice Template
Gone are the days when not having the right data is acceptable. Part of the fundamental financial analysis of any company investment security or business project entails the computation of cash flows. This is typically done in a cash flow template Excel spreadsheet which is pre-built for the purpose. The reason for this is that this type of template is not a simple calculator you build on the fly with little effort. It requires a lot of thinking organizing the spreadsheets and formulas and some planning about how to model cash in and cash out for each potential investment.
In other words there is no cookie cutter approach because each potential investment has different profit and loss drivers. One of the first things to consider is what kind of data you have to work with in your cash flow template Excel spreadsheet. Ideally you re looking for accurate monthly data including income statement items like revenue and operating expenses and balance sheet items like equipment purchases and cash from financing activities. If you have a longer time frame you can go with quarterly periods but annual tends to be too long. After all how can you predict what is going to happen beyond 5 years with any accuracy unless you re valuing an annuity? Next how much detail do you need in your cash flow template Excel spreadsheet at the individual line item level? Is cash from financing sufficient or do you need equity financing debt financing interest earned etc.
Most Popular This Week
Bonus Tip: Stick with Conventions I mentioned before that the buttons on the hard-to-use spreadsheet were square. If you look at just about any website using a button the ratio of width to height falls roughly in the range 2:1 to about 5:1. Sizes too far outside this range look a bit strange and are not as readily identifiable as buttons. Hyperlinks that you create in Excel can be formatted any colour you like but unless there is a good reason stick with the well-known blue and underlined as in ExcelProductivityTips. The spreadsheet templates that used to ship with Excel were formatted with light yellow for areas of data entry and light green for results. Some people still use this convention.
The use of color in your spreadsheet is an extremely important consideration. Color can help emphasize particularly important data and separate it from the rest of your information. Spreadsheets that feature a lot of accounting data often use red to show failing areas and green to signify profiting ones. Choose your color schemes wisely as you do not want to obscure the data presented in the cells. Black type on a dark burgundy background would not make for easy reading just as white type on a fuscia background would not make for a pleasant experience either. Try pastels as they are easier on the eyes and allow for an easy read.