Now Track your Finance through Cash Flow Management! ~ CEDRUS WEALTH PARTNERS

Cash Flow Statement, a term which you have often come across in your finance related stuff. It shows the inflow and outflow records of your entity whether it be business or household. We have already discussed on Cash Flow Management in our previous blog, so let’s try to implement the term in real life.

How does Cash Flow work?

Cedrus Wealth Partners, seek to provide a more holistic approach to your hard earned money and less emphasis is given on product-specific approach- unlike the traditional financial intermediaries. We are here today to give you a short description of how cash flow statement works. You can use this method to simplify your finance and can make your own cash flow statement.

Now let’s take a look at a textbook example of a business cash flow statement:

Inflows
Wages	30000
Interest Income	200
Total Inflow		30200
Outflow
Mortgage	10000
Car Payment	5000
Car Maintenance	2500
Groceries	2000
Dining Out	1500
Utilities	3500
Clothes	3000
Books	300
Entertainment	1000
Miscellaneous	2000
Total Outflows		30800
Net Cash Flow		-800

You might also notice that this cash flow statement is just showing net wages, rather than listing net wages and further reducing the amount with commensurate outflow insurance, premiums, and taxes. Your amount of net pay is what matters, not on how you arrive at that number.

Back to the example, you probably noticed that you have a negative cash flow. But that's not all to it. There’s always non-recurring items which people fail to include.

Suppose,

You won a scholarship of 10000
You bought a loan of 15000
You sold some products online for 5000
You refurbish your home for 13000
Lent money to a friend 10000

Now, give a look at the cash flow statement:

Cash Flow - Regular Activities		-800
Irregular Activity
Irregular Inflows
Won Scholarship	10000
Loan	15000
Sold Products Online	5000
Total Irregular Inflows		30000
Irregular Outflows
Refurbished Home	13000
Lent money	10000
Total Irregular Outflow		23000
Cash Flow - Irregular Activities		7000
Net Cash Flow		6200

Now you can see after adding each and every single detail of finance which occurred with you over the month changed the whole scenario of cash flow statement. Now you are in a positive flow.

Using this method you can predict your future cash flow just by sitting on the couch. The important point to keep in mind is to separate the regular and irregular activities. We, Cedrus Wealth Partners are happy to help you and if you have any problem related to finance we are there to help you.

Phone No.: +9120-25512163/62

Visit our site at www.cedruswealth.com