The statement of cash flows is a financial statement that lists the assets, liabilities, and equity of an organization. It is very essential for every organization as it provides details about the past, present and future cash flow of the organization. The statement of cash flows is prepared by an accountant or a CPA. The size of an organization usually has a significant impact on the statement of cash flows. The size of an organization can be either small or large and in cases of medium_size organizations, it often gets difficult to understand the cash flow statement format and calculate the correct value.
Cash flow statement templates are readily available online in many websites. Free templates are also available on the internet. These templates simplify the task of preparing a financial statement of an organization. If you are planning to use the statement of cash flows template Australia then it is always recommended to use the template that suits your requirement.
The first thing that one should look for in a template is the contact information of the accountant or the CPA. In this way one would be able to update the information if there is any new information. The next important part of the statement would be the format of the letter that would be used for submitting the form. The standard format of a statement of cash flows looks like this:
The reference number should be written following the blank line in the statement of cash flows. Reference number would be required to determine the source of the balance. The reference number should be unique for each financial statement. In Australia the reference number would be zero based on the balance sheet. This would mean that if the balance sheet had zero dollars then the reference number would also be zero.
The second thing that one should look for in a template is the debit and credit reference which is required in order to fill in the details. The format of the line should be written as follows: debit references are written as follows: Balance _ debit. Credit references are written as follows: Balance _ credit. Once you have completed filling in these details the rest of the statement of cash flows should be completed in the same manner. It is advisable to print out the entire form and keep it ready so that you can refer to it whenever you need.
If you are looking for a template for a business plan that can be downloaded from the Internet then it would not contain any blank fields. In order to complete the financial statement properly then you need to modify the information provided to customize it according to the requirements of the Australian Taxation Office. A template that does not suit your business would be useless as it would not be able to reflect the requirements of the Australian tax law.
You should also ensure that the form contains the basic information required by the Australian tax law. If you want your business to file an income statement as well then you should include the information regarding the source of the capital. This would help you to understand the mode of expenditure and income for your business. This statement also includes information relating to the cost of goods sold. The information regarding these costs should be included in the statement of cash flows form and they should be specified as per the standard rules mentioned.
The last point to look for while downloading a template from the Internet is that the template should also provide for an audit trail and a reconciliation trail. These would help you understand what exactly is happening within your business when you are using the financial statement template. If you have been using the template for the past one year then you would not have to worry about the audit trail and the reconciliation because the template provides for this already.
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