Outflows of cash are important to track and plan for especially the one-time outflows that may be associated with starting up a new business or a new expansion. Ideally you will outline these in a table to better understand and budget for the total costs associated with running your business, as well as project out the reoccurring costs.

Cost of goods sold (COGS)

These are the direct costs associated with procuring the product you are selling. Be it the proportion of overhead costs, direct labour, and inventory costs. Or the cost of purchasing the inventory from someone else.

Operating expenses

Operating expenses are all expenses that are associated with the day-to-day operations, such as supplies, rent, marketing, salaries, and so on.

Financial expenses

Typically, you want to separate out the expenses associated with financing your business, which in most cases is the expense you pay towards interest.

Capital expenditure

These are things that you record for when you are purchasing new capital and long-term assets such as property and equipment.

Inflows and Start Up Costs

Financials Template