{"id":16197,"date":"2024-06-10T13:21:20","date_gmt":"2024-06-10T07:51:20","guid":{"rendered":"https:\/\/www.invoicera.com\/blog\/?p=16197"},"modified":"2025-08-18T17:24:13","modified_gmt":"2025-08-18T11:54:13","slug":"10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances","status":"publish","type":"post","link":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/","title":{"rendered":"10 Steps to Prepare a Cash Flow Statement"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#How_To_Create_A_Balanced_Cash_Flow_Statement_Model\" >How To Create A Balanced Cash Flow Statement Model?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#What_Are_The_Steps_For_Creating_a_Model_Cash_Flow_Statement\" >What Are The Steps For Creating a Model Cash Flow Statement\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#Closing_Thoughts\" >Closing Thoughts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">You have come to the correct spot if you are looking for information on creating a cash flow statement model. A cash flow statement mimics the flow of funds into and out of your business to give you a more realistic picture of your current financial situation and the possibility of future changes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even though cash flow statements are usually simple to understand, their capacity to convey correct information can be significantly diminished by a few common misconceptions about how they should be created and used. See below to understand how a cash flow statement looks like:<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-23544 size-large\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/06\/Cash-flow-statement-724x1024.webp\" alt=\"Cash flow statement\" width=\"640\" height=\"905\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/06\/Cash-flow-statement-724x1024.webp 724w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/06\/Cash-flow-statement-212x300.webp 212w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/06\/Cash-flow-statement-768x1086.webp 768w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/06\/Cash-flow-statement-1086x1536.webp 1086w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/06\/Cash-flow-statement.webp 1414w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Initially, how many hours did you spend staring at the cash flow statement with your head in your hands? It takes a lot of time and effort, mainly if you must perform all the computations yourself. It is exasperating and causes a headache.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By following these ten tips, prepare a <\/span><b>cash flow<\/b><span style=\"font-weight: 400;\"> statement model that balances.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_To_Create_A_Balanced_Cash_Flow_Statement_Model\"><\/span><b>How To Create A Balanced Cash Flow Statement Model?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>A. Organize cash flow categories<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Effective <a href=\"https:\/\/www.invoicera.com\/blog\/business-operations\/cash-flow-statement\/\">cash flow statements<\/a> resemble a well-organized filing system. They categorize monetary activities into distinct sections, clarifying income, operational expenses, investments, and financing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think of it as compartmentalizing your finances for better understanding. This organization allows for a clear snapshot of how money moves in and out of your business, ensuring a comprehensive view of your financial health.<\/span><\/p>\n<h3><b>B. Take help from reliable data sources<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Professionals in finance depend on dependable data to generate accurate reports, just as chefs use premium ingredients to produce mouthwatering dishes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using trustworthy financial data sources, such as loan documentation, spending reports, and sales records, improves the integrity of the cash flow statement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Minimizing errors that could cause misunderstandings or mistakes establishes the foundation for financially stable decision-making.<\/span><\/p>\n<div class=\"upd-cusbanner\">\n    <div class=\"cta-title\">Struggling To Maintain A Balanced Cash Flow Statement?<\/div>\n    <p class=\"heading\">Optimize Cash Flow Management With Invoicera<\/p>\n    <div class=\"ctasec\">\n    <a href=\"javascript:void(0);\" onclick=\"calendlyCTA()\" class=\"bkdemo whitecta\">Book A Demo<\/a>\n    <a class=\"bkdemo\" href=\"javascript:void(0);\" \n    onclick=\"document.getElementById('formPopup-su').style.display='block'\">Get A Free Trial<\/a>\t\n    <\/div>\n    <\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_The_Steps_For_Creating_a_Model_Cash_Flow_Statement\"><\/span><b>What Are The Steps For Creating a Model Cash Flow Statement\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><strong>1. Prepare A Trial Balance<\/strong><\/h3>\n<p><strong> <a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Prepare-a-Trial-Balance.png.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-16200\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Prepare-a-Trial-Balance.png.webp\" alt=\"Prepare a Trial Balance\" width=\"602\" height=\"355\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Prepare-a-Trial-Balance.png.webp 602w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Prepare-a-Trial-Balance.png-300x177.webp 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Do a trial balance on your financial statements before building your cash flow statement model. Simply use a pen and paper; no fancy equipment is required. This is an essential step for three reasons:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It ensures that your trial balance is balanced.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You will better understand which accounts are created when (and why) by writing out all of your journal entries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019ll start getting familiar with your balance sheet and income statement formats.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Some businesses have self-balancing cash flow statements, so they don&#8217;t require a trial balance. Put otherwise, money coming in equals money going out. Nevertheless, creating a cash flow statement is worthwhile if you discover that your current one doesn&#8217;t balance.<\/span><\/p>\n<h3><strong>2. List All Assets and Liabilities<\/strong><\/h3>\n<p><a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image6.jpg.webp\"><img decoding=\"async\" class=\"aligncenter wp-image-20186 size-full\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image6.jpg.webp\" alt=\"assests-and-liabilities-invoicera\" width=\"1200\" height=\"612\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image6.jpg.webp 1200w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image6.jpg-300x153.webp 300w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image6.jpg-768x392.webp 768w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image6.jpg-1024x522.webp 1024w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Liabilities include debt due immediately (accounts payable) and long-term commitments like leases or insurance contracts that must be paid later. Accounts receivable and inventory are examples of assets. The primary purpose of most cash flow statements is to track the monthly inflows and outflows of cash for a business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Make sure you have them listed. Find out the details of any loan you took out or an item on your balance sheet that you need clarification on, then note it down.<\/span><\/p>\n<p>\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n<p><strong>Also Read: <a href=\"https:\/\/www.invoicera.com\/blog\/business-operations\/7-proven-strategies-to-increase-cash-flow-with-passive-income\/\">7 Proven Strategies to Increase Cash Flow with Passive Income<\/a><\/strong><\/p>\n<p>\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n<h3><strong>3. Calculate the Net Working Capital<\/strong><\/h3>\n<p><strong> <a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-the-Net-Working-Capital.png.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-16202\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-the-Net-Working-Capital.png.webp\" alt=\"Calculate the Net Working Capital\" width=\"602\" height=\"309\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-the-Net-Working-Capital.png.webp 602w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-the-Net-Working-Capital.png-300x154.webp 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Your cash flow statement model&#8217;s net-working capital column is computed by deducting current liabilities from current assets. Generally, <a href=\"https:\/\/www.invoicera.com\/financial-management\/ar-ap\" target=\"_blank\" rel=\"noopener\">accounts payable &amp; receivables<\/a>, inventories, and fixed assets should be included while determining net working capital. Although current assets are anticipated to surpass current liabilities, businesses may have negative net working capital if their commitments exceed their short-term holdings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The net working capital is negative if there are more obligations than assets. It can indicate that your business has many accounts payable, overstock, or unpaid suppliers. It can also suggest that your products sell better, so your business needs to make more money. Alternatively, it might result from poor cash flow or a sizable asset loss caused by a natural disaster or theft. Any of these problems can seriously harm your business and threaten its viability.<\/span><\/p>\n<h3><strong>4. Calculate the Current Ratio and Quick Ratio<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">First, your model should include calculations for the current and quick ratios. By comparing current assets to current liabilities, the current ratio evaluates liquidity and shows how well-positioned a company is to pay its <a href=\"https:\/\/www.dotdotloans.co.uk\/short-term-loans\/\" target=\"_blank\" rel=\"noopener\">short-term loan<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Divide current assets by current liabilities to get the current ratio. The outcome is contrasted with past performance or industry norms. Big businesses frequently have larger ratios than smaller ones since they usually have more cash.<\/span><\/p>\n<p><a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image3.jpg.webp\"><img decoding=\"async\" class=\"aligncenter wp-image-20187 size-full\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image3.jpg.webp\" alt=\"current-ratio-formula\" width=\"800\" height=\"348\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image3.jpg.webp 800w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image3.jpg-300x131.webp 300w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image3.jpg-768x334.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The current ratios of two companies- A and B, are calculated as given below for FY 21:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Company<\/b><\/td>\n<td><b>Current Assets<\/b><\/td>\n<td><b>Current Liabilities<\/b><\/td>\n<td><b>Current Ratio<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">A<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$130 billion<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$100 billion<\/span><\/td>\n<td><span style=\"font-weight: 400;\">130\/100=1.30<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">B<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$100 billion<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$110 billion<\/span><\/td>\n<td><span style=\"font-weight: 400;\">100\/110= 0.90<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">It implies that for every $1 of current debt, \u2018A\u2019 had 130 cents to pay for its debts. Similarly, \u2018B\u2019 had 90 cents available to pay each dollar of current debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Quick Ratio looks similar, but it\u2019s slightly more conservative. It splits current assets into liabilities and short-term debt. This might be interpreted as a measure of the speed at which a business could use its liquid assets to settle its short-term debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Quick Ratio comes in handy when you know if a business can fulfill some of its commitments immediately, even if it can only pay some in full.<\/span><\/p>\n<p><a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image8.jpg.webp\"><img decoding=\"async\" class=\"aligncenter wp-image-20188 size-full\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image8.jpg.webp\" alt=\"quick-ratio-formula\" width=\"800\" height=\"348\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image8.jpg.webp 800w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image8.jpg-300x131.webp 300w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2024\/03\/image8.jpg-768x334.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">For example:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The quick ratios of two companies- P and Q, are calculated as given below for FY 21:<\/span><b>\u00a0<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Company<\/b><\/td>\n<td><b>Quick Assets<\/b><\/td>\n<td><b>Current Liabilities<\/b><\/td>\n<td><b>Quick Ratio<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">P<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$15,000 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$35,000 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15000\/33000=0.42<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Q<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$40,000 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$42,000 million<\/span><\/td>\n<td><span style=\"font-weight: 400;\">100\/110= 0.95<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">With a quick ratio of 0.95, the company \u2018Q\u2019 is better positioned to cover its current liabilities than \u2018P,\u2019 with a quick ratio well below 1, at 0.42.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A lower Quick Ratio suggests that there needs to be more liquidity available. Like the Current Ratio, it also gives you an idea of how easily a company can access its liquid assets to meet obligations and whether or not they are using those resources efficiently enough.<\/span><\/p>\n<h3><strong>5. Calculate EBIT before adjustments<\/strong><\/h3>\n<p><strong> <a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-EBIT-before-adjustments.png.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-16205\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-EBIT-before-adjustments.png.webp\" alt=\"Calculate EBIT before adjustments\" width=\"602\" height=\"304\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-EBIT-before-adjustments.png.webp 602w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Calculate-EBIT-before-adjustments.png-300x151.webp 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">My favorite metrics for assessing financial performance are earnings before interest and taxes, or EBIT. Before making changes, it&#8217;s a simple way to gauge how operations are going for your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s learn to calculate EBIT for any organization-<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Assume that &#8216;XYZ&#8217; is a healthcare company, and we possess the following financial data from its previous fiscal year:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">$12,000,000 in revenue<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Product Cost: $4,000,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Revenue &#8211; Cost of Goods Sold = Gross Profit<\/span><\/p>\n<p><span style=\"font-weight: 400;\">$12,00,000 &#8211; $4,00,000 = $8,00,000 is the gross profit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Total Revenue: $8,000,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before deducting overhead costs, the gross profit for &#8220;XYZ&#8221; is $8,000,000. The company had the following overhead expenses listed as administrative, general, and sales expenses:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overhead Expenses= Sales + General + Administrative: $4,00,000<\/span><\/p>\n<h4><b>The EBIT is calculated as:<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">EBIT equals Gross Profit &#8211; Overhead Expenses, or $8,000,000 &#8211; $4,000,000, or $4,000,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">$4,000,000 in EBIT<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Entrepreneurs can assess a company&#8217;s profitability and financial standing by computing EBIT, which helps them decide whether to invest in new ventures or grow their business. EBIT analysis can also assist business owners in evaluating the performance of their companies and pinpointing opportunities for increased revenue.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Register to use the automated <a href=\"https:\/\/www.invoicera.com\/blog\/product\/best-free-online-invoice-generator-invoicera\/\" target=\"_blank\" rel=\"noopener\">online invoice generator<\/a> of the most significant credit note management software to help you manage your cash flow more efficiently.<\/span><\/p>\n<h3><b>Examine your work and make any necessary corrections.<\/b><\/h3>\n<p><iframe loading=\"lazy\" title=\"Importance of Cash flow management\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/hBipWLF104M?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">Your three-year cash flow statement model needs to be balanced after calculating it. You should next review how you conducted your forecasts for the following categories: operations, finance, sales, and marketing. You may need to correct these inputs. If that\u2019s not the case, then something in your inputs changed drastically between your base year and forecast year (perhaps an employee left or became ill).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Make corrections where necessary, but be sure that those changes do not fundamentally change other parts of your financial model (such as business structure). Also, confirm that your accounting is still accurate; even small mistakes can cause models not to balance.<\/span><\/p>\n<p>\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014\u2014<\/p>\n<h3><b>7. Read Cash Flow Analysis For Clues About Future Performance<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Read-Cash-Flow-Analysis-For-Clues-About-Future-Performance.png.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-16207\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Read-Cash-Flow-Analysis-For-Clues-About-Future-Performance.png.webp\" alt=\"Read Cash Flow Analysis For Clues About Future Performance\" width=\"602\" height=\"351\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Read-Cash-Flow-Analysis-For-Clues-About-Future-Performance.png.webp 602w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Read-Cash-Flow-Analysis-For-Clues-About-Future-Performance.png-300x175.webp 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Although it is impossible to predict future outcomes ideally based on previous performance, patterns and problems that will impact future outcomes can be identified. Cash flow may assist in identifying costs (such as unpaid invoices) that could otherwise go unreported until they become liabilities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another example is identifying cash inflows from one-time events (e.g., over-billing from old clients) that are masking negative operating trends within your business. Whatever your industry or business model, take advantage of<\/span><b> <\/b>cash flow management software <span style=\"font-weight: 400;\">tools like <\/span><b>Invoicera<\/b><span style=\"font-weight: 400;\"> for clues about what\u2019s going on with your performance\u2014both now and in the future.<\/span><\/p>\n<h3><b>8. Examine Cash Flows for Investing, Operating, Financing, and Operations<\/b><\/h3>\n<p><a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Go-Through-Cash-Flows-From-Operations-Investing-Financing-And-Operating.png.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-16208\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Go-Through-Cash-Flows-From-Operations-Investing-Financing-And-Operating.png.webp\" alt=\"Go Through Cash Flows From Operations, Investing, Financing, And Operating\" width=\"602\" height=\"301\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Go-Through-Cash-Flows-From-Operations-Investing-Financing-And-Operating.png.webp 602w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Go-Through-Cash-Flows-From-Operations-Investing-Financing-And-Operating.png-300x150.webp 300w\" sizes=\"(max-width: 602px) 100vw, 602px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">One of your primary responsibilities when creating a cash flow statement is balancing your monthly opening and closing balances. This implies that all inflows and outflows should be balanced on both sides of your cash flow statement whenever they are recorded.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, many things can trip you up when recording these flows and make your statements unbalanced. For a <\/span><b>cash flow <\/b><span style=\"font-weight: 400;\">statement model to accurately depict real-world events, you must ensure that it remains evenly balanced from beginning to end.<\/span><\/p>\n<h3><b>9. Don\u2019t Create An Income Statement With a Negative Net Income<\/b><\/h3>\n<p><strong> <a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Dont-create-an-income-statement-with-negative-net-income.png.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-16209\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Dont-create-an-income-statement-with-negative-net-income.png.webp\" alt=\"Don\u2019t create an income statement with negative net income\" width=\"598\" height=\"350\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Dont-create-an-income-statement-with-negative-net-income.png.webp 598w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Dont-create-an-income-statement-with-negative-net-income.png-300x176.webp 300w\" sizes=\"(max-width: 598px) 100vw, 598px\" \/><\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">A balanced <\/span>cash flow statement is only as valuable as its starting point and will provide no value for your business if it contains negative net income. So, before you set out to create a cash flow statement, ensure you already have net income; otherwise, your results will need to be more accurate and correct.<\/p>\n<p>If you have a negative net income, create an income statement with a positive net income before making your cash flow statement. Once you have a positive net income, your cash flow<span style=\"font-weight: 400;\"> model will be relevant and reliable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take the sales revenue and deduct operating expenditures to get net income. Then, add non-cash components to get the total profit. After that, everything will be set up for you to create a solid cash flow statement model that fairly depicts the state of your company&#8217;s finances.<\/span><\/p>\n<h3><b>10. Adjust For Any Large Non-Cash Transactions<\/b><\/h3>\n<p><a href=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Adjust-for-any-large-non-cash-transactions.png.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-16210\" src=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Adjust-for-any-large-non-cash-transactions.png.webp\" alt=\"Adjust for any large non-cash transactions\" width=\"719\" height=\"467\" srcset=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Adjust-for-any-large-non-cash-transactions.png.webp 719w, https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/Adjust-for-any-large-non-cash-transactions.png-300x195.webp 300w\" sizes=\"(max-width: 719px) 100vw, 719px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Many businesses merely participate in non-cash transactions, including borrowing money through credit lines, rather than having significant cash inflows or outflows. When preparing your model, account for these types of transactions. Consider balancing debits and credits by adjusting any additional income received with expenses paid using assets or equity. For example, if your firm borrowed $50,000 from its line of credit and spent $25,000 towards equipment (an asset), add that transaction to your CFSM as an adverse <\/span>cash flow <span style=\"font-weight: 400;\">event.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In most CFSMs, you\u2019ll need to adjust for non-cash transactions. Adjusting your CFSM in such a way will ensure that it more accurately represents how much cash your business needs from an operational perspective. The debit and credit balance should equal zero before using your CFSM as a working model.<\/span><\/p>\n<div class=\"upd-cusbanner\">\n    <div class=\"cta-title\">Ready to give it a try?<\/div>\n    <p class=\"heading\"> Check out the best financial software for your business here.<\/p>\n    <div class=\"ctasec\">\n    <a href=\"javascript:void(0);\" onclick=\"calendlyCTA()\" class=\"bkdemo whitecta\">Book A Demo<\/a>\n    <a class=\"bkdemo\" href=\"javascript:void(0);\" \n    onclick=\"document.getElementById('formPopup-su').style.display='block'\">Get A Free Trial<\/a>\t\n    <\/div>\n    <\/div>\n<h2><span class=\"ez-toc-section\" id=\"Closing_Thoughts\"><\/span><strong>Closing Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So, ten accurate methods exist for preparing a<\/span> cash flow<span style=\"font-weight: 400;\"> statement that balances. With the correct tools, creating a cash flow statement is possible, even though it may appear overwhelming. Additionally, if you&#8217;re looking for a quicker way to finish the task, think about utilizing cash flow software. Using this helpful application, you don&#8217;t need an accounting degree to build and monitor your company&#8217;s cash flow.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><b>FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Ques. How often should a cash flow statement be prepared?<br \/>\n<\/b><span style=\"font-weight: 400;\">Ans. The cash flow statement prepared may be either monthly, quarterly, or annual, depending on the business&#8217;s requirements. However, preparing them monthly for most businesses is optimal in order to monitor possible tendencies in cash flow and correct them if necessary.<\/span><\/p>\n<p><b>Ques. What are some common mistakes to avoid when preparing a cash flow statement?<br \/>\n<\/b><span style=\"font-weight: 400;\">Ans. Here are some mistakes that should be avoided while preparing a cash flow statement:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lacking reconciliation between the cash flow statement and the income statement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Neglecting non-cash-oriented values<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exclusion of seasonal effects on cash flow<\/span><\/li>\n<\/ul>\n<p><b>Ques. How can cash flow management software like Invoicera help my business?<br \/>\n<\/b><span style=\"font-weight: 400;\">Ans: Cash flow management software makes it easier for businesses to manage their finances efficiently by\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automating the tracking of cash inflows and outflows<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Generating real-time reports<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offering insights into cash flow trends<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Introduction You have come to the correct spot if you are looking for information on creating a cash flow statement model. A cash flow statement mimics the flow of funds into and out of your business to give you a more realistic picture of your current financial situation and the possibility of future changes. Even [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":16198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1978],"tags":[68],"industrie":[],"feature":[],"class_list":["post-16197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-management","tag-cash-flow"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>10 Steps to Prepare a Cash Flow Statement | Invoicera<\/title>\n<meta name=\"description\" content=\"Learn how to prepare an accurate cash flow statement with our step-by-step guide. Track your business&#039;s financial health and make informed decisions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top Ways to Prepare a Cash Flow Statement Model That Actually Balances\" \/>\n<meta property=\"og:description\" content=\"Preparing cash flow statement is a daunting task. Try using cash flow software. It can easily create and track your company\u2019s cash flow.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/\" \/>\n<meta property=\"og:site_name\" content=\"Invoicera Blog |\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Invoicera\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-06-10T07:51:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-18T11:54:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"602\" \/>\n\t<meta property=\"og:image:height\" content=\"301\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Kabir Arora\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Top Ways to Prepare a Cash Flow Statement Model That Actually Balances\" \/>\n<meta name=\"twitter:description\" content=\"Preparing cash flow statement is a daunting task. Try using cash flow software. It can easily create and track your company\u2019s cash flow.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp\" \/>\n<meta name=\"twitter:creator\" content=\"@invoicera\" \/>\n<meta name=\"twitter:site\" content=\"@invoicera\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kabir Arora\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"10 Steps to Prepare a Cash Flow Statement | Invoicera","description":"Learn how to prepare an accurate cash flow statement with our step-by-step guide. Track your business's financial health and make informed decisions.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/","og_locale":"en_US","og_type":"article","og_title":"Top Ways to Prepare a Cash Flow Statement Model That Actually Balances","og_description":"Preparing cash flow statement is a daunting task. Try using cash flow software. It can easily create and track your company\u2019s cash flow.","og_url":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/","og_site_name":"Invoicera Blog |","article_publisher":"https:\/\/www.facebook.com\/Invoicera\/","article_published_time":"2024-06-10T07:51:20+00:00","article_modified_time":"2025-08-18T11:54:13+00:00","og_image":[{"width":602,"height":301,"url":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp","type":"image\/webp"}],"author":"Kabir Arora","twitter_card":"summary_large_image","twitter_title":"Top Ways to Prepare a Cash Flow Statement Model That Actually Balances","twitter_description":"Preparing cash flow statement is a daunting task. Try using cash flow software. It can easily create and track your company\u2019s cash flow.","twitter_image":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp","twitter_creator":"@invoicera","twitter_site":"@invoicera","twitter_misc":{"Written by":"Kabir Arora","Est. reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#article","isPartOf":{"@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/"},"author":{"name":"Kabir Arora","@id":"https:\/\/www.invoicera.com\/blog\/#\/schema\/person\/77f311f6a16e9253a0f059a73833d56e"},"headline":"10 Steps to Prepare a Cash Flow Statement","datePublished":"2024-06-10T07:51:20+00:00","dateModified":"2025-08-18T11:54:13+00:00","mainEntityOfPage":{"@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/"},"wordCount":2097,"commentCount":0,"publisher":{"@id":"https:\/\/www.invoicera.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#primaryimage"},"thumbnailUrl":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp","keywords":["Cash Flow"],"articleSection":["Financial Management"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/","url":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/","name":"10 Steps to Prepare a Cash Flow Statement | Invoicera","isPartOf":{"@id":"https:\/\/www.invoicera.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#primaryimage"},"image":{"@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#primaryimage"},"thumbnailUrl":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp","datePublished":"2024-06-10T07:51:20+00:00","dateModified":"2025-08-18T11:54:13+00:00","description":"Learn how to prepare an accurate cash flow statement with our step-by-step guide. Track your business's financial health and make informed decisions.","breadcrumb":{"@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#primaryimage","url":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp","contentUrl":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2022\/03\/10-Ways-to-Prepare-a-Cash-Flow-Statement-Model-That-Actually-Balances.png.webp","width":602,"height":301,"caption":"10 Ways to Prepare a Cash Flow Statement Model That Actually Balances"},{"@type":"BreadcrumbList","@id":"https:\/\/www.invoicera.com\/blog\/financial-management\/10-ways-to-prepare-a-cash-flow-statement-model-that-actually-balances\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.invoicera.com\/blog\/"},{"@type":"ListItem","position":2,"name":"10 Steps to Prepare a Cash Flow Statement"}]},{"@type":"WebSite","@id":"https:\/\/www.invoicera.com\/blog\/#website","url":"https:\/\/www.invoicera.com\/blog\/","name":"Invoicera Blog","description":"Insights on Invoicing and Billing Solutions","publisher":{"@id":"https:\/\/www.invoicera.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.invoicera.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.invoicera.com\/blog\/#organization","name":"Invoicera","url":"https:\/\/www.invoicera.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.invoicera.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2012\/10\/logo.png.webp","contentUrl":"https:\/\/www.invoicera.com\/blog\/wp-content\/uploads\/2012\/10\/logo.png.webp","width":209,"height":50,"caption":"Invoicera"},"image":{"@id":"https:\/\/www.invoicera.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Invoicera\/","https:\/\/x.com\/invoicera"]},{"@type":"Person","@id":"https:\/\/www.invoicera.com\/blog\/#\/schema\/person\/77f311f6a16e9253a0f059a73833d56e","name":"Kabir Arora","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.invoicera.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/75b75749da6f92c68be77b458a08cc9a2c98292edf328276951be69f4de8493b?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/75b75749da6f92c68be77b458a08cc9a2c98292edf328276951be69f4de8493b?s=96&r=g","caption":"Kabir Arora"},"sameAs":["https:\/\/www.linkedin.com\/in\/kabir-arora-4167828b\/"],"url":"https:\/\/www.invoicera.com\/blog\/author\/kabir-arora\/"}]}},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/posts\/16197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/comments?post=16197"}],"version-history":[{"count":6,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/posts\/16197\/revisions"}],"predecessor-version":[{"id":25594,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/posts\/16197\/revisions\/25594"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/media\/16198"}],"wp:attachment":[{"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/media?parent=16197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/categories?post=16197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/tags?post=16197"},{"taxonomy":"industrie","embeddable":true,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/industrie?post=16197"},{"taxonomy":"feature","embeddable":true,"href":"https:\/\/www.invoicera.com\/blog\/wp-json\/wp\/v2\/feature?post=16197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}