Cash Flow Statement and How to Match It with Accounts
To view the Cash Flow Statement and read its details, follow these steps:
- From the main menu, click on “Reports.”
- Select “Accounting Reports.”
- From the “Accounting Reports” page, click on the “Cash Flow Report.”
The report will open in a new page, where you can apply filters and review the following items:
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Date Range: To specify the time range you want the report to cover.
- Branch: To select the branch you want to view separately, in case there are multiple branches.
Note: Use the “Customize” button to show or hide accounts inside the report.
Then, the detailed report data will appear as follows:
- Cash Flow from Operations:
Net Income: Represents profits or losses after deducting all expenses and revenues. (To match: from Reports → Accounting Reports → Income Statement).
Depreciation Expense: A non-cash expense added back to net income since it does not represent an actual cash outflow. (To match: from Reports → Accounting Reports → Assets).
Increase in Accounts Receivable: Indicates that the company has extended more credit to its customers, resulting in a cash outflow (decrease in liquidity). (To match: from Clients → Clients Reports → Clients Balances).
Increase in Accounts Payable: Indicates that the company has delayed payments to suppliers, which provides a cash inflow. (To match: from Reports → Purchase Reports → Supplier Balances).
Increase in Inventory: Purchasing additional inventory consumes cash, showing as a cash outflow.
Total Cash Flow from Operations: Net result of all operational items.
- Cash Flow from Investments: In this section, you can review cash movements related to the purchase or sale of long-term assets, which include:
Cash Received from Asset Sales: Cash inflow from selling fixed assets or investments.
Cash Spent on Asset Purchases: Cash outflow from acquiring new assets.
Total Cash Flow from Investments: Net result of all investment activities.
- Cash Flow from Finance
Increase in Common Stock: Cash inflow from issuing or selling new shares. (Match: Reports → Ledger Report → Capital Account)
Total Cash Flow from Financing: Net result of all financing activities.
Total Change in Cash Flow
Net change in cash after combining flows from operations, investments, and financing.