Cash Flow Statement Format in Excel for Construction Company

If you are searching for the solution or some special tricks to create a cash flow statement format in Excel for a construction company then you have landed in the right place. I will share quick steps and a free cash flow statement format template in Excel for a construction company. This article will show you each and every step with proper illustrations so, you can easily apply them for your purpose. Let’s get into the main part of the article.

What Is Cash Flow Statement?

The cash flow statement is the summary of the cash movement that is received or paid by the company. It measures the company’s efficiency in managing the cash to pay the loans, operating expenses, and investments, etc. It’s one of the main parts of financial statements along with the Balance Sheet and Income Statement.

Components of Cash Flow Statement

There are 3 main components of a cash flow statement. These are:

👉 Operating Activity:

It includes all cash movements involved in the operations of the company. So, it includes:

Sales income
Account Receivable
Purchase of Inventory
Administrative Expense
Salary & Wages
Interest Paid on Loans
Income Tax Paid
Depreciation

👉 Investment Activity:

It includes the cash used in investment activities. It can increase the cash by selling assets and decrease it by buying more assets. Also, the company can invest more to merge with another company or buy another company’s share to make the acquisition. There will be included in the investment cash flow. In addition, there are some more categories like:

Property or Machinery sold
Principal of Loans
Investment Securities Sold
Property or Machinery Bought
Loans Given
Investment Securities Purchased

👉 Financial Activity:

The cash comes from investors or is used to pay dividends to the stakeholders, payments of repurchases in the financing activities. Along with these, there are some more items of financing activities which are:

Stock Issuance
Borrowings
Repurchase of Treasury Stock
Loans Repayments
Dividends from securities

Create Cash Flow Statement Format in Excel for Construction Company: 5 Steps

In this section, I will show you the easy steps to create a Cash Flow Statement format in Excel for a construction company on Windows operating system. You will find detailed explanations of methods and formulas here. I have used Microsoft 365 version here. But you can use any other versions as of your availability. If any methods don’t work in your version then leave us a comment.

📌 Step 1: Create a Template Layout

First, create a layout to allocate the cash flow items into 3 different categories of operations, investment activity, and financial activity. Also, allocate cells to insert the date and opening balance and to calculate Net cash flow, Closing balance.

📌 Step 2: Calculate Net Cash Flow of Operations

After that, insert the cash flow for operations items with value. You can receive cash from clients or many other sources, and cash is paid for many reasons like inventory, salary, administrative expense, interest, expense, etc. You have to insert the paid cash values in negative form.
So, use the SUM Function to calculate the net cash flow. Insert this formula into cell C18:

=SUM(C8:C17)

📌 Step 3: Calculate Net Cash Flow of Investment Activity

Then, insert the cash flow of investment activity items with values. Here, the items relevant to the assets of the company will be listed like properties, machinery, loans, investment securities, etc.
After that, insert this formula into cell F14 to calculate the net cash flow of investment activity:

=SUM(C8:C17)

📌 Step 4. Calculate Net Cash Flow of Financial Activity

Lastly, insert the cash flow items related to the financial activity, And, the cash flow of financial activity will include the items related to the financial matters of the company like stock issuance, borrowings, dividends, etc.
Then, insert this formula into cell I13 to calculate the net cash flow of Financial Activity:

=SUM(I8:I12)

📌 Step 5: Calculate Net Cash Flow and Closing Balance

The final outcome of a cash flow statement is the net cash flow of the period and the closing balance.

To calculate the net cash flow, use this formula.

Net Cash Flow = Net Operations Cash + Net Investment Cash Activity + Net Financial Activity

So, paste the following formula into the cell F4 to calculate the net cash flow:

=C18+F14+I13

And the closing balance is the summation of the opening balance and the net cash flow. So, paste this formula into the cell F5:

=C5+F4

Finally, you have completed the cash flow statement for your construction company.

Things to Remember

You have to insert the outward cash flow in a negative format.
Convert all the cells containing the value to Accounting format.
Add or remove any items from the list as of your company’s need.

Download Sample Workbook

You can download the practice workbook from here:

Cash Flow Statements for Construction Company.xlsx

Conclusion

In this article, you have found how to create a cash flow statement format in Excel for a construction company. I hope you found this article helpful. Please, drop comments, suggestions, or queries if you have any in the comment section below.

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