Businesses across the U.S. are experiencing significant changes as the COVID-19 crisis continues to affect day-to-day operations. At ARB, we recognize that every business has unique financial tracking needs, and these needs elevate and evolve during times of economic uncertainty.
We have included a spreadsheet below for public use. This tool, designed specifically to target the liquidity needs of small businesses, has three tabs: Cash Flow, Debt Service, and Labor Costs. As the applicable data is entered, these tabs work in tandem through formulas to assist your business with projecting cash flow, forecasting for deficits, managing shortfalls, assessing liquidity needs, and determining your ability and need to borrow.
Using the 13-Week Cash Flow Analysis Spreadsheet
Please note that all gray and blue cells contain formulas. As data is added to the appropriate input cells, the gray cells will auto-populate. All blue cells pull totals from other spreadsheet tabs to auto-populate as the appropriate input data is added across spreadsheet tabs. The spreadsheet should be updated weekly. For ease of use, there’s no need to quarter monthly bills across 4 weeks. Enter monthly expenses only in the week in which they are paid.
Tab 1: Cash Flow – This tab requires data input of your cash flow from operating activities, including a breakdown of cash receipts and cash disbursements, as well as data input of your cash flow from non-operating activities by category, such as proceeds from property sales and investments, certain loan credits and repayments, owner capital contributions, as well as owner distributions. In addition, there is a section beneath the Ending Cash Flow Balance for use in assessing your need and ability to borrow additional capital.
Tab 2: Debt Service – To accurately sum your Debt Service, utilize this tab to list each loan and its respective principal and interest amounts. The weekly sum will auto-populate the Debt Service (P&I) line item under Non-Operating Activities on the Cash Flow tab.
Tab 3: Labor Costs – To accurately sum your Labor Costs, utilize this tab to break down your labor costs by the categories provided. The weekly sum will auto-populate the Labor & Related Costs line item under the Cash Disbursements section of Operating Activities on the Cash Flow tab.
At ARB, it’s our goal to keep our clients equipped with the best financial and tax resources, services, and guidance. We’re here to help our clients through every stage of financial need, which includes times of business growth and times of economic uncertainty. Please contact us for additional information, or with any questions about this resource or related matters.
by David Jean, CPA