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Creating a business plan for your beauty salon presents the perfect opportunity for you to create a functioning cash flow statement (sometimes called the statement of cash flows). This will allow you to make key decisions about cash flow going forward. Creating the Cash Flow Statement It is highly recommended to start with an Excel template or financial model example of some kind for your salon’s cash flow statement. It need not be an model specifically tailored towards a beauty salon, but should be for a similar business (i.e., one that makes revenues through services and product sales, pays rent for a location, etc) so that minimal customization is required. Starting with a template can save a great deal of time in the creation of the statement. Three Sections of a Cash Flow Statement This will describe cash inflows and outflows in three areas: operating activities, investing activities, and financing activities. Operating activities include cash brought in from customers in the...