Understanding the Cash Flow Statement Report
The Cash Flow Statement report provides an overview of how cash has moved in and out of your business during a specific period. It's designed to help you understand your company's liquidity by tracking net income alongside changes in current assets and liabilities, as well as bank balances. This report is essential for assessing your company's financial health, liquidity, and ability to meet its financial obligations.
How to Generate the Cash Flow Statement Report
To run the Cash Flow Statement report, follow these steps:
Navigate to the Reports section.
Select Cash Flow Statement from the list of available reports, under the Accounting category.
You'll then be prompted to set the following parameters:
Start Date: Specify the beginning date of the period you wish to analyze.
End Date: Specify the ending date of the period you wish to analyze.
Company: Select "All Companies" (default) to include data from all companies or choose a specific company from the dropdown menu.
Show Net Income Breakdown: Select "No" (default) to view summarized net income, or "Yes" to display a detailed breakdown.
Building: Select "All Buildings" (default) or choose a specific building from the dropdown menu to filter the report by building.
Report Details
Once generated, the Cash Flow Statement report will provide you with:
Net Income: The total profit or loss during the specified period.
Changes in Current Assets and Liabilities: Details of increases or decreases in accounts such as receivables, payables, inventory, and other current accounts.
Beginning Bank Balance: The cash balance at the start of the reporting period.
Ending Bank Balance: The cash balance at the end of the reporting period.
Regularly reviewing your Cash Flow Statement will assist in making informed decisions regarding budgeting, investing, and managing company operations effectively.
