A construction project cash flow template excel is a document helps to create the daily, weekly, and monthly cash flow statement of a construction project.
So, it provides a preformatted sheet to fill in the update information of the business cash flows.
In this article, you can understand the basics of the construction cash flow statement and free download the excel templates.
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Table of Contents,
What is a Construction Project Cash Flow Template Excel?
A construction project cash flow spreadsheet is a document useful to create the construction project cash flow statement. A cash flow statement is one of the basic financial sheets of any business or project.
Further, it maintains the record of all the financial cash inflows and cash outflows for a particular time.
So, the net cash flow is calculated to reconcile the cash on hand at start and cash on hand plus accounts receivables at the end of the period.
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Importance of Construction Cash Flow Template Excel [XLS]
Cash flow is the most important and basic financial sheet of any project or business. The information received from the project cash flow template helps the account team to create the company balance sheet.
Moreover, cash flow is the backbone of any business. A business can only survive if it has a consistent cash flow. Only cash outflow will cause the project out of money.
So, the project would be able to perform its activities at all or planned pace. Further, the project managers monitor the cash inflows of a project to see manage the funds received from the investors.
Also, the construction cash flow Excel XLS helps the project managers to justify the use of money to investors. So, it enables project managers to request the release of more funds.
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Furthermore, project cash flow management is important to maintain the discipline of money management and transparency. Thus, the project managers monitor cash flow statement XLS on a daily, weekly, and monthly basis.
The construction project cash flow analysis helps the project managers to identify the held payments. So, the project managers can send reminders to investors for the release of funds on time.
Thus, the cash flow template Excel to maintain the smooth availability of funds for the construction project.
Also, project managers use a construction cash flow forecast template in the project planning stage to initiate planning the fund’s release timeline. This construction cash flow sample is presented to investors for understanding.
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Formats of Construction Cash Flow Statement in Excel
There are several formats to create a cash flow statement for a construction project. A simple project may use more than one format for different reasons.
Thus, the use of daily, weekly, and monthly project cash flow template XLS is very common in construction projects.
However, the construction cash flow forecast template is also used at a particular stage during project planning. Thus, the project managers use the following construction cash flow excel templates:
- Construction Project Cash Flow Sample
- Construction Project Cash Flow Calculator
- Cash Flow Analysis Template for Construction Project
- Construction Cash Flow Forecast Template
- Construction Project Cash Flow Template Excel XLS
Further, some project needs to use cash flow s-curve template excel spreadsheet in construction. As it helps the project managers to track the cash in and cash outflow along with the required cash for a specific period.
Construction Project Daily Cash Flow Statement Template
A daily construction cash flow template is important to monitor. As a construction project involves a lot of contractors.
Also, it requires tons of resources to perform even a single activity. So, daily monitoring of construction project cash flows is very important.
Thus, daily cash inflows and cash outflows of a construction project are managed using a daily cash flow template for a construction project.
Construction Monthly Cash Flow Plan Excel Template
A monthly cash flow plan for the construction project is mainly for investors. As it’s not viable for project managers to generate a request for fund release on a daily or weekly basis.
Thus, the project managers share the forecast of cash flows in the construction project progress report template. Also, construction project managers monitor the budget requirement every month.
So, the overall requirement of funds is calculated and deficit with cash on hand is requested from the investors to fulfill the requirement.
The project managers use a cash flow forecasting template to forecast the cash inflows and cash outflows for the specific period.
Components of Construction Project Cash Flow Spreadsheet
A cash flow statement in a construction project is pretty similar to the cash flow spreadsheet of any business or project.
So, it records all the cash inflows and cash outflow of a project on a daily, weekly, and monthly basis. It helps to find any disparity and also serves many other purposes.
There are the following main components of a cash flow template in excel for a construction project.
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The cash inflows of a project are the payments received from the customers or investors. So, the construction project cash inflow payments are contracted on a progress basis.
Thus, the client releases funds as the project progresses for the completion of work. Further, cash inflow is equal to cash receipts or income.
So, it includes everything such as cash sales, customer account collections, funds, tax, refund, and other cash receipts.
However, the clients and investors look at the value of actually performed on the construction site to release cash.
Cash outflows of a construction project involve the depletion of cash as expenditures to perform a certain activity.
At the very beginning the upfront cost, initial expenses, or startup cost is the necessary expenditures to start the project. It includes the cost of moving labor and equipment on the site.
Also, it includes the erection of field offices, fences, storage sheds, and site layout. Further, a project site also requires startup expenses for water, electricity, telephone, and sanitary arrangements for a temporary basis.
All the construction project costs are divided into different subheads. Startup expenses, operating expenses, utility expenses, payrolls, contractual expenses, and sub-contractual expenses are major heads of construction project expenditures.
Net Cash Flow
The project cash flow spreadsheet in construction project includes different findings for analysis. One of the findings of the project cash flow template excel is net cash flow.
It is calculated by subtracting the total cash outflows from the total cash inflows. So, the positive value of the net cash flow of the construction project indicates the expenditures are less than cash receipts for a particular period.
Similarly, the negative value of the net cash flow indicates that expenditures are more than cash receipts for a particular period.
Net Cash Flow = Total Cash Inflows – Total Cash Outflows
Cash on Hand or Starting Balance
Cash on hand is the amount available at the beginning of a specific period for the construction project. So, the beginning balance is important to include in the construction cash flow excel template.
Closing Balance or Closing Cash
The ultimate finding of the cash flow statement for any project is the closing balance of a project after a specific time. So, it includes net cash flows and starting cash on hand to calculate the closing balance.
Thus, the following formulas are helpful to calculate the closing balance and closing cash of a construction project.
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Closing or Ending Balance = Cash on hand + Cash inflows – Cash outflows
Monthly Closing = Beginning Balance + Total Accounts Receivable – Total Accounts Payable
Closing or Ending Balance = Cash on hand + Net Cash Flow
Free Download Construction Project Cash Flow Template Excel Samples
Templates Free Download provides the following templates to manage daily and monthly accounts of your construction business or project.
Construction Contractor Cash Flow Forecast Template
It is a very basic template to record and forecast the cashflows of construction contractors. It simply enlists total cash inflow for each month and cost of goods sold and other overhead expenses to calculate cash outflows.
Further, contractors can calculate the net cash flow by subtracting cash outflows from the cash inflows.
Finally, the contractor closing balance or cash in hand at the end of the month equates by adding net cash flow and account starting balance.
Simple Cash Flow Template
A simple cash flow template of a construction project helps to calculate the monthly net cash flow and closing balance of the month. Also, it compares the current period results with the previous period results.
Cash Inflows includes cash sales, accounts receivables, loans, tax refund, and other cash receipts. Similarly, the cash outflow breakup includes the cost of goods sold and several operating and non-operating expenditures.
Finally, the net cash flow and monthly closing KPIs are formulated for auto-calculation.
Daily Cash Flow Template
The daily cash flow template is pretty similar to a simple cash flow template. It includes all the KPIs such as cash inflows, cash outflows, cost of goods sold, operating expenditures, net cash flow, and monthly closing.
The daily cash flow spreadsheet Excel XLS allows the accountants to compare all cash flow parameters for each day of the month. However, it is only suitable for developing and small businesses.
Small businesses can compare their day to day performance to quickly make strategies for daily losses. Further, it is not feasible for large organizations to manage the daily cash flow sheet.
Monthly Cash Flow Template
The monthly cash flow template is an exact match of the daily cash flow template that differs in comparison to monthly results instead of daily.
Small businesses can use the monthly cash flow sheet for their business long term analysis. However, it is the best choice for large companies to manage their business accounts.
Construction Accounts Payable Spreadsheet
Business models work on different payment strategies. Also, these strategies may vary from supplier to supplier depending on the relationship. So, the accounts team has to maintain a record of all accounts payables.
Each supplier allows a set credit limit. Thus, the accounts team has to ensure the continuous cash flow of payments to stay below the credit limit.
Further, accounts can make a separate sheet for each supplier or a cumulative sheet for account reasons. Accounts payables spreadsheet is important to maintain for the monthly closing of the business.
Construction Accounts Receivables Spreadsheet
The function of the construction accounts receivables spreadsheet is exactly opposite to the accounts payables spreadsheet. It maintains a record of credit given to the customers.
Similarly, it has several uses in the creation of monthly accounts and credit limit management of customers.
Construction Balance Sheet Template
Although balance sheet is a part of accounts cash flow sheet. However, it is a sheet that uses a lot of information from cash flow and above explained spreadsheets.
The accounts team uses monthly closing balance and accounts receivables to calculate the total assets of a company. Similarly, the accounts payables are a part of the total liabilities of a company.
This sheet is important to analyze the stability of business in terms of total assets, total liabilities, and owners’ equity.
Frequently Asked Questions
There are many questions in the FAQ list of building construction project cash flow excel template [XLS]. However, the basic ones are:
The following steps are helpful to create cash flow projections in excel for a construction project.
1. Enter the starting balance. At the start, it’s the actual amount of cash on hand or bank account.
2. Estimate the cash inflows expected for the forecasting period.
3. Estimate the cash outflows expected for the forecasting period.
4. Subtract the cash outflows from cash inflows to calculate the net cash flow forecast.
5. Add the cash on hand in net cash flow to find the closing balance of the forecasting period.
The following steps are helpful to calculate the cash flow in excel for a construction project.
1. Enter the starting balance or cash on hand.
2. Enlist all the cash inflows and do a total.
3. Enlist all the cash outflows and do a total.
4. Subtract cash outflows from cash inflows to calculate net cash flow.
5. Add the net cash flow in starting balance to find the closing balance.
There are three main categories of cash flows for the construction project. Funds reception, starting expenses, and operating expenses.
The net cash flows are calculated by subtracting the total cash outflows from the total cash inflows. While the closing balance equates to net cash flows plus starting balance.
Finally, it was all about the “Construction Project Cash Flow Spreadsheet”. Please do share your feedback in the comments section and SUBSCRIBE us to learn more about Project Management.