How to Make a Cash Flow [VIDEO]

Excel Spreadsheets

 For those who have not seen, we are posting today the video-talk about cash flow!

How to Make a Cash Flow [VIDEO] 1

Cash Flow Statement

Very good afternoon to all, I am Rafael Avila, one of the members of LUZ, and I'll be with you today in the online talk that we will talk about the cash flow, and we will try to uncomplicate a little, demystify the cash flow , so the name of the talk is cash flow without mysteries, and today I hope I can add to you some of the practical knowledge that we use in the Light and has already used in hundreds of entrepreneurs, entrepreneurs and micro-enterprises.

Before entering the talk properly, I wanted to give excellent news to everyone who is watching now, all of you who are watching will win the digital book "Financial Indicators". We had made that promise on Facebook, if we reached 200 enrolled in our Hangout we were going to make this disclosure, we managed to get more than 200 subscribers, it was almost 300 in total, and, well, it's you who get along , all of you who are watching will win this book directly in the email you registered to watch our hangout.

And, we're going to start now by talking a bit of cash flow, itself. Cash flow is a relatively simple thing, but a lot of people get complicated, a lot of people are afraid, and few people do well, which is why it is one of the subjects that we are going to address here, will go directly into it.

In a very brief way, cash flow is the amount of cash that goes into and out of a business in a given period of time. You can make a cash flow for a year, for a month, for a week, or for as long as you want. The great truth is that there is no right answer to anything in this life and we have the same fact for the financial of your company. So if you would rather do a more detailed analysis, every day, you can do this detailed analysis. If you'd rather do a little more thorough analysis, every month, you can too.

As I said, there is no absolute truth, here in LUZ, for example, we do a weekly and monthly analysis, so every week we review our financial indicators and once a month we have a global meeting where we give a look deeper into all of our goals and what we need to do next month or not. The important thing is to know that you need the cash flow if you want to control the financial health of your company.

So let's continue, and if we know that we need to make a cash flow for the company to work well, we also know that it is essential to have a basic structure, something that you can look at and talk about, my cash flow goes through these four points and going through these four points I can get an overall overall analysis of it.

So here we have four essential points, the first one is the chart of accounts, the second is the launches, basically any company has a launch of revenues and expenses, which we will explain a little better later, and also accounts for payable and cash flow, and finally, indicators and charts. In the end, you need to know that regardless of what you do, there are some complicators that almost everyone who works with the financier, or a lot of people who work with the financier, and does not like much, does, which is what people even complicate the cash flow.

Basically we raised six points here: lack of knowledge of some financial terms, so you may be thinking, "po, I manage my company, but I do not know what is the chart of accounts, or do not even know if my company has a chart of accounts. " If you have this ignorance, most likely you will have a greater difficulty, which will generate perhaps a little poorer analysis or even you throw your financial pro side and not understand how your reality is in the day-to- day.

Another very important point that many people complicate is the custom of dealing with numbers. So I guess since we've been little, we're growing, and the vast majority of people start to create that aversion to numbers, "Oh, math is hard, I do not like it very much." Well, nowadays, you do not need math for almost anything when it comes to financial. If you have an easy-to-use tool, you can do it all without any math knowledge.

How to Make a Cash Flow [VIDEO] 1

Finally, you will still have other points, such as: very detailed financial, which generates a very great complexity and this ends up hampering even the reality of your day to day, poorly performed financial processes or some complexes too, you can have a very large spend with launch time and stuff like that, and you may also have little time spent analyzing, which is one of the big financial problems in general, you have people who have a very large time spent on do launch and you have few people who spend more time doing analysis. Well, basically these are the main complications of the financial and if you are not paying attention to these items, you will most likely experience this difficulty and your cash flow will not go very well, and it will probably be a mystery to you as well.

So the number one learning we take from this first step of global understanding of cash flow is that the success of finance is very much in the analysis. So everything we've said that's important will culminate in a well-done analysis, and if you have a well-done analysis you can certainly think of action plans, measures of direction, financial pro of your company getting better and better. So you can, through a thorough analysis, understand that your business is going to be at a loss, it's going to be red in two months. Knowing this, you can have a measure of direction, generate more sales efforts, for example, the cost reduction and so on. Without analysis you can not target your financial. This is our number one learning today, and perhaps the most important one by the end of the talk.

Knowing that this is the most important learning, for you to simplify your life you need to think of ways to simplify your control, so if you control your finances with a spreadsheet, a system, a notebook, no matter how you do it , you need to simplify, and with this simplification you will be able to do very well in this analysis of indicators and graphs, especially. So when we are talking about analysis, we will always enter some of the indicators that are essential for any company's financial, for example, the profitability of your company, we will get into it soon, and graphics that will make a lot easier, more practical to see how your company is at any given moment.

Well, now that we know about these essential and fundamental factors of a well-done cash flow, we can already go into the simplification of finances, how you can think of making everything simpler. The first point is by the chart of accounts, this is a word, an expression, which few people know, many have perhaps heard of but do not have much notion of what this is, in fact, in their day-to- day, than it represents.

So basically, just to explain, chart of accounts are the classifications you give each entry and exit that your company has. So for each item of revenue or expense that your business generates, that item has to fit into a larger group of accounts, and that group of accounts is called a chart of accounts. I will enter into a specification of the LIGHT itself so that you understand better.

So many systems, or the spreadsheet cash flow, that we have here in LUZ, already comes with suggestions of chart of accounts. Obviously, every company has its chart of accounts, and what makes the most sense for you will be right. Then, if possible, you should study some examples, talk to your accountant to know what chart of accounts is going to be yours. Looking at the example of the Light we will perceive precisely in this matter of simplification or not, that you can have several levels within your chart of accounts. So a great account of any company is the revenue account. This revenue account can be divided into revenues from product sales, revenue from sales of services, and we might even have put here non-operating revenues, which are the financial revenues that a business can have. In addition, you can go down one level even more, your revenue from selling products can become a revenue from selling digital tools, which is what we do here in LUZ. These digital tools you can go down one level more, can be self-consulting, spreadsheets, digital books, online courses, and so on. And by going into the case of spreadsheets, you can still go one level further for financial spreadsheets, and if you still wanted to, you could go down one level for cash flow spreadsheet, for example.

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Now I ask you, is it worth all the detail I just mentioned? I say no, so here in LIGHT we are fans of the simplification of objective and simple things, which is why in our chart of accounts we only go down to the sale of digital tools. All other items we do different analyzes, obviously, to know how many sheets we sold, but in terms of the financial, we do not do this analysis, we have a more global analysis that we will know within sales revenue of products if we sold digital tools, if we sold something else, and within the revenue from selling services if we sold consulting, online courses, e-company talk, and so on.

So within that logic, chart of accounts it has to have, at most, 2 levels, this is the ideal, this is what we indicate for it to be very simple and easy to use. Other than that, you can have other types of analysis as well and we'll present an example of a two-level chart of accounts at the end of the talk.

Continuing with the simplification of your financial we will have the receipts, payments and the cash flow. Basically for you to simplify these items, inside receipts, for example, it is only you to define the ways you receive the payments, usually in cash, check, bank deposit, bank slip and credit or debit card, are the simplest and most any company does.

Within payments it is only you take notion that there are going to be these five ways, too, that you will most likely use and that if you are to pay account every day, you will end up wasting time then you can choose two days of the month, for example, to make all payments.

This will allow you to better program your life and the finances of your company, thus avoiding cash flow problems and the like, and in addition, you have a simplification of the cash flow where you can see your financial result, if you have done very well this financial analysis and simplification, and all this you see through an online system or a spreadsheet, then for you to simplify your cash flow has a tool that already does the calculations automatically for you, give answers after a fill. So you do not break your head or waste a lot of time with mathematical calculations and so on, a good spreadsheet can deliver this to you.

Now that we have understood this, we go to another point that was as important as this one of simplification, which is the part of analysis. So if we know that the cash flow is important for the financial health of our company, and we need to know exactly how it is and for us to do it well in our day-to-day life we ​​need to simplify and analyze, we have to delve a bit more into how to analyze.

And there I put here four items, which are essential items of financial analysis. First of them are the revenues and expenses, so basically, when we talk about revenues and expenses you need to check every month whether there is a standard or average in your company. So if you have, for example, an average bill of $ 50.000,00 per month and you have a month that you earned $ 20.000,00, did something different happen that month so he would have been so off the curve that he had so out of the norm or the average you have, or it really is a seasonal thing, it is something that your market in that month, every year happens the same way, and so on.

So if you can think of your income and expenses and have a daily, continuous analysis of your income and expenses items, you will consequently have more time to make that control, more time for you to understand if there is anything out there of its standard. Just as if you have some non-standard point up, you need to understand why that recipe exploded that month, it was very good and so on.

Once you do the analysis of your income and expenses, another very good item is your monthly and accumulated balance. Then the whole company, after all, will have their money reserve. Then you can have cash reserve R $ 1.000,00, R $ 0,00, may be at the loss, may be due, or may have R $ 50.000,00. And according to the progress of the year, with the period of analysis you make of your cash flow, you may have a depreciation, you may have a fall in the value of that accumulated, or you may have an addition of it. The ideal is to always have an addition, which indicates your company's profit, but also, at the same time, you can increasingly look for ways to invest that money knowing how much you have there in front of you, how much you will be able to spend.

So within this reality, the monthly balance will always be your profit and loss and your accumulated balance how much you have in cash. In that sense profit can increase your cash and the loss will reduce your cash from one month to the next, you need to have a deep analysis of it. And, of course, it's cool that you always seek a cash accumulation for the most difficult months, but also know how to balance this for you to invest in your own press, your growth and so on.

We have a third point, that of profitability, so, basically, profitability is the calculation that will show what percentage of profit is left after all expenses are taken out of your gross revenue, and so this will tell you how much your business is profitable at the end of the month. We put here that you need to look for percentages above 10%, but it is always important to keep in mind that every market is a market, every business is a business, and since we know that each business is a different business from it, it can be that your profit margin does not exceed 2%, in those cases when you have a low profit margin it is important you win on the scale.

So it's always good to have this view of what your profit is down here, why you will know in the example here that if you earn real 100 per month, and you spend 98 real, that is, only 2 remains for profit, There is very little money left over. This may be an indicator that you need to reduce variable costs of your production or service delivery, or you may have very high fixed costs, your variable cost is low, but you are producing too much to pay for these fixed costs. Maybe you can think of another way to reorganize your cost structure.

So this analysis of profitability is another super important analysis when we talk about cash flow and financial analysis, and finally we will have analysis of the graphs that may be the most telling to everyone who is a little lay, that there you see the graph if you have an indicator that is off the curve, that it is different, you can see in a super visual and practical way.

So, basically, the charts will allow you to analyze any trends, so if you have any tendency of your income is growing month by month, if your expenses are growing or not, and so on. So you can have these growth or fall trends, and it will also help you identify points off the curve. If you understand what the distribution of each of these items is, you can easily get a better understanding of your finances. An item here is also nice to mention is that if you have some software or a spreadsheet that helps you in this automatic generation of graphics, it is important that they also think about the sub-accounts.

So you can have an analysis if your revenue is rising or falling month by month, you can have an analysis within that revenue if you have a higher percentage of revenue from sales of products or services, and this also applies to your expenses .

Now that I've basically talked about everything that's essential to a cash flow spreadsheet and how to use cash flow within your company, I wanted to show you an example of a tool from LUZ that, in our opinion here , encompasses, embraces all these items for you to have a notion. If you do not use it, than what a tool needs to have and what you need within the financial one you look at.

So I'm going to open here our spreadsheet cash flow, this is our cash flow spreadsheet version 2.0, it's a new version that we are releasing today and I wanted to present to you. So basically in all our 2.0 spreadsheets we have an initial tab where you can navigate the spreadsheet. So as I had promised to you, look what a chart of accounts looks like. In a chart of accounts structure you will always have analysis of the revenue generating items for your company like revenue from product sales, revenue from selling services, and items that generate expenses for your company like full marketing expenses and operating expenses.

As I said, here we only have two levels of chart of accounts, level one that is the revenue with sale of products, and a level below that we can put here books, handouts, keychains that undo yourself, this is just an example. So within your reality, assuming you were a bakery, you also need to think about what items you have to sell products, for example dairy products, the baking part and so on, and always thinking about how to group these items.

I'm talking about grouping, for those who do not understand, just to make it clear, we have several strategy consulting services, which can be strategic planning service, business modeling, business acceleration. All of these items are within the larger strategic consulting item, which is a group of revenues with service sales.

I'll show you how to use this in practice, so any spreadsheet or cash flow you have both the chart of accounts and the posting tab. In our case we have 12 release tabs, you click here automatically, and you already go to this releases tab, and here you will do all the launches of your company. Assuming I had a sale of a strategic planning service, I go there add this item inside my financial, today is 18 day so on 18 day I sold a strategic planning service, and then I'll frame it inside an item of the chart of accounts.

In this case, as I already told you, strategic consulting is a revenue from selling services, this here generated for my company R $ 5.000,00 and this amount I already received, then paid. This is automatically updated with the balance that we take into account in the company, the worksheet already generates this automatically, it also generates a daily vision, so on 18 day people won R $ 5.000,00 in revenue and had no expenses, generating a total of $ 5.000,0 of profit on that day, and already generates here also the totals of the month, this one was a profitable month for the company although the accumulated one was worse than the one already was seeing.

Okay, I made a launch in the month of February. I could come here to make a launch in the month of November, make a launch in any month. After you do the postings, any worksheets that pay dearly, and our worksheet is like this, it will generate for you all other data automatically. So here we have accounts payable data, which is how much the company owes, we have accounts receivable data, which is how much the company needs to receive, and this is all encompassing in the cash flow part.

How to Make a Cash Flow [VIDEO] 3

So basically we will have here in the cash flow part what were the actual revenues of the company, which go month by month showing, what were the actual expenses and what was the profit by month-to-month loss. This all has conditional formatting so I can show you which were the best months and the worst months, this helps in the visualization. This also generates an accumulated amount, an automatic profitability calculation and you have here in another table accounts receivable and accounts payable.

What is the difference between the actual revenue and expense of accounts receivable and payable? Basically real income and expense that has already entered your account, which you already have, and the accounts receivable and payable is what you owe or what someone owes you and you are still going to receive. This all, within our worksheet, generates some automatic responses that will tell you what to do and how to do within your reality. So if you have a comparison of real recipes with actual expenses in the month of January, here we already have an automatic answer telling you that you had a loss and that if you had a loss it is good for you to worry about some things.

Automatically you also have a comparison answer accounts receivable and payable, and this is telling you that "beauty, you have enough account yet to receive and that you have not yet received", maybe this is an indicator for you to chase after your debtors and collect what they owe you or should have paid that month or are still going to pay, and that's it, you have automatic answers.

Once you have this analysis of your cash flow, you only have to leave the graph tab where you will have a more complete financial analysis and here for this more complete financial analysis, we will have a chart that takes real revenues and real expenses and gives you your real profit, so you can see here in a very visual way that you are making a profit month by month, that you are having positive months, except for January and February. You can also see here that the company that we are analyzing does not have a standard, it fluctuates a lot with positive months and not-so-positive months like that, with very high expenses and relatively low expenses from one month to the next . This can be a feature of the business or it can be a person who is mismanaging the business.

Based on this analysis of the graphs, you can make better decisions and think better for your company. You also have a comparative analysis of accounts receivable and payable, which in our case is positive since you have more accounts receivable than payable, you have a need and cash analysis and how much you have accumulated in your company , then you realize that if all projections are realigned by the end of the year, the company will have R $ 18.300,00 accumulated, which is a relatively good value in this case that we are analyzing, and you will have variable expenses, expenses detailed earnings statistics so you can get a comprehensive analysis.

Basically this is the spreadsheet, and if you are thinking of any tool to control your financial, cash flow, it must, or in a very desirable way, need to have these items. It needs to have the chart of accounts, it needs to have a release tab, where you can do it in a simple way and follow these releases, you need to know how your accounts pay and receive, and obviously, maybe the most importantly, your actual cash flow that is how much you actually have in cash and what you can do about it.

This is our 2.0 cash flow spreadsheet, I'm going back here for the presentation and I hope she has clarified a lot of these points on how to do this cash flow analysis and how to streamline your cash flow. We believe that it is extremely simple and objective and this has to be the bias, the reality of any financial, simple and objective. If it is not that way you will most likely spend more time filling in and doing operational work than doing strategic work, which is smarter than that of analysis and decision-making for improvement for your business.

From there, we come to some essential conclusions for any cash flow to be positive, to be good. First is

simplify whenever possible, do not make gigantic, multilevel account plan, this is no good. If you are a small business owner do not use balance sheets, this is something you can leave behind in your computer without any problem, because it is mandatory at the end of the year, but you do not have to have the work to do it.
It's cool that you use a control tool, we in LIGHT strongly indicate our 2.0 Cash Flow Worksheet, but if you like some other tool, some software or something is also very valuable, the only thing you can not do is want to control your financial in the notebook, this will generate many difficulties.
Analyze whenever possible, and you can always do it. So, analyze your financial data, revenue, expenses, profitability.
And finally, always take advantage of ready graphics, automatic graphics, which is what will give you a more global vision and that will allow you, if you do, other employees of your company, other people who work with you, your partners, friends understand how your company is in a super fast and easy way.
And the best tool we tell you is the 2.0 version of our cash flow spreadsheet. If you now come into the you will find this worksheet available for sale, we are doing this release today, right now, we just put it up.
It's a great worksheet, it's very cool, several new features compared to our old one for those who already know. And especially today, for you who are here, we will give a super discount, a super promotion of 30% that will be valid only until midnight today * (Promotion closed). So if you're thinking, it's good to think fast. The coupon code that we have released is the one on the "fc123" screen. This coupon code is only valid today, remembering, and just enter the link I just said:, for you to get the spreadsheet. I believe it's worth it and that it's time for you to start professionalizing your finances, and to make everything ready for next year, after all, no company can be successful for long if it does not. is minimally organized in the financial question.

I hope you have helped, I hope you have enjoyed the lecture, I hope you have understood a little more of the cash flow and the importance of it for any company and if you have any doubts, any doubts yourself, it's just you me send an email, and I'll already make my email available to you here on the screen and what I can help will be a huge pleasure.

Just to finish, I wanted to make it clear and show you that we have a new policy of always bringing interesting topics in free online lectures to you, and we will have a new one in the week that will talk about tactics for your sales funnel. So there are a lot of people who work with services or who have a sales funnel already structured, but who can not work it well. So next week, on 27 on November ** at four o'clock, we're going to do this new on-line talk about tactics for your sales funnel, and we'll already make the link available to you within the channel itself. Hangout *** For those who have interest already can register, you can start signing up and next week we meet again.

And lastly, I just wanted to remind those who came in the middle, for those who came in the middle of the Hangout, I said at the beginning but I'll repeat, we'll make the digital book available Financial indicators for everyone who participated in this Hangout, we will do that because we promised within our facebook that if we had a number bigger than 200 registered, and we almost reached three hundred, we would make it available.

We will always make similar promotions for the coming weeks, so for you who like to enjoy some free quality items that can help your business day-to-day, stay connected, subscribe to our talks, participate here with people that we are going to do more things and next week I'll be back.

As I had also promised my email is here on the screen: [email protected] , I hope that if someone has a question, send me by email, if you want you can send it directly here on the Hangout channel that we answer there directly in the chat, and any other question is just contact me.

Thank you very much for your attention, for the time you had here with us and I hope that we have added a little more in your business day to day. A big hug and see you next week!

Cash Flow Worksheet in Excel

Excel Spreadsheets


  1. Leandro, a question, what to do with the difference of pennies? How to toss them in a stream? Example: I daily buy 300 eggs at 2,98 each, only that, every time I go to the supermarket paid with a five note, therefore they give me back the change in the value of 2,00 round. At the end of the day, I will have 6,00 missing in the box, how to justify this difference? Oh, and on the note is registered 2,98 each egg.


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