What is Cash Flow Management?
Simply put, cash flow is the money going in and out of a business. Think payments, expenses, invoicing, etc. Cash flow management is the careful tracking and analysis of these transactions. There’s no dispute that finances are best tracked in a spreadsheet. You could track cash flow in a static spreadsheet, but this will require a lot of manual work and manipulation when what you really want is a system that will make visualizing and reporting financial data a breeze.
Use Spreadsheets To Manage Cash Flow
At Sheetgo, we are committed to developing applicable solutions for your business. We don’t just provide you with our spreadsheet enhancing add-on, and leave you to it, we provide you with the same real-life solutions that we use ourselves! We created a cash flow template to use as the main tool for managing finances day to day. The Sheetgo Cash Flow Template for Google Sheets is not just a static template with pretty fonts and colors. It’s a dynamic, automated cash flow management system based on Google Sheets. Our system includes an Accounts Payable spreadsheet and an Accounts Receivable spreadsheet which are connected using Sheetgo to a third Cash Flow spreadsheet. These three spreadsheets are connected using the Sheetgo add-on to automatically update the data that flows between them. Take a look at the diagram below to understand how our system works:
Follow the steps in this simple tutorial to have a single tab in your cash flow sheet that summarizes monthly revenue and costs which are then summed to your monthly cash movement and bank balance. This information is included in a simple graphic that allows you to see these variables daily and can easily be included in a Google Site portal or report for management and investors.
Let’s Get Started
Step 1. Install the Cash Flow TemplateSheetgo is an add-on for Google Sheets which enables your spreadsheets to “talk to each other”. Using the Sheetgo add-on allows you to make connections between any kind of spreadsheets stored in your Google Drive. Installing Sheetgo is necessary to make this system work. Click here to install the template. You will be asked to log in with your Google account as the spreadsheets will be created and saved into your Google Drive. Your Sheetgo account will automatically be created after the Google login.
Step 2. Install the Sheetgo add-on
Install the add-on directly from the Cash Flow spreadsheet by clicking the add-ons button in the navigation menu, then click the Get add-ons button. A window will pop up for you to browse. Type “Sheetgo” in the search box. Click the Free button to get the add-on, and you are ready to start using Sheetgo!
Step 3. Configure the Cash Flow Template
Each of the 3 spreadsheets have an instructions tab that will explain step by step the process to fill in and configure the template. You’ll need to have your finances handy to fill out the accounts payable and accounts receivable templates with your revenue and expenses from the past few months. Once filled out you will then connect to the cash flow spreadsheet using Sheetgo.
Let’s Break Down the Contents of the Spreadsheets:
Payments (Accounts Payable)
Receipts (Accounts Receivable)
Cash Flow (Master Sheet)
- Cash Flow Analysis
- Monthly Cash Flow Chart
- Receivables Analysis
- Payables Analysis
Your “Cash Flow” spreadsheet will have seven tabs on the lower left corner: Instructions, Cash Flow Analysis, Monthly Cash Flow Chart, Receivables Analysis, Payables Analysis, Receipts, and Payments. The Instructions sheet provides you with a step-by-step guide to configure your cash flow template. On the Cash Flow Analysis tab, you can find a Cash Flow Monitor that visualizes your cash balance on a monthly basis. In the next tab, this Cash Flow monitor is visualized as a chart. The Receivables and Payables Analysis tabs separately analyze your Payments and Receipts per product/service. Finally, you have the Receipts and Payments tabs that are the connections created between your separate Receipts and Payments spreadsheets and the Cash Flow Master Sheet, using Sheetgo.
You’ve configured your Google Sheets Cash Flow template. Feel free to adapt it as you see fit to meet the needs of your business. If you have had difficulties making this template work, please chat with us using the bubble on the right below and we will be happy to assist you with setting it up. 🙂