A cash flow statement is a financial report that shows the impact of operating, investing, and financing activities on the company’s cash and cash equivalents during a specific period. It helps you understand the company's cash flow and assess its ability to generate and use cash for operations, investments, and financing, supporting more accurate financial decisions.
Preparing the Cash Flow Statement
This process is completed through three main steps:
1- Selecting Balance Sheet Accounts Linked to Cash Flows
Go to the “Accounting” module.
Open the “Cash Flow Setup” page.
Select “Assets” then click on “▶”.
Select “Liabilities” then click on “▶”.
Select “Owners Equity” then click on “▶”.
2- Creating Cash Flow Sections
Set sections to “Please Select”.
Click on “🖉”.
Enter the section name “Adjusted Net Profit”.
Make sure the field “Display order: 1” is selected.
Click on “Save”.
Create another section named “Operating Activities” using the same previous steps.
Set “Display order: 2”.
Set the section total name to “Cash Flow from Operating Activities”.
Click on “Save”.
Create another section named “Investing Activities”.
Set “Display order: 3”.
Set the section total name to “Cash Flow from Investing Activities”.
Click on “Save”.
Create another section named “Financing Activities”.
Set “Display order: 4”.
Set the section total name to “Cash Flow from Financing Activities”.
Click on “Save”.
Reload the page.
3- Directing Accounts to the Created Sections
Click on “+” next to “Assets”.
Select “Operating Activities” next to “Current Assets”.
Click on “Update Changes”.
Click on the “+” next to “Current Assets”.
Select “Please select item” next to both “Cash in Treasury” and “Cash in Banks”.
Click on “Update Changes”.
Click on “+” next to “Liabilities”.
Select “Operating Activities” next to “Current Liabilities”.
Click on “Update Changes”.
Select "Investing Activities" in front of "Fixed Assets," excluding accumulated depreciation, if their accounts are assigned to the fixed asset's node.
Click on “Update Changes”.
Next to “Equity”, select “Financing Activities”.
Click on “Update Changes”.
Notes:
Make sure that all transactions are posted before operating the cash flow statement to ensure accurate results in the report.
You can ensure that the settings are correct by comparing net cash flow with the cash and bank account balances in the “General Ledger” for the same period (Trial balance of).
If you encounter any challenges or have questions during these processes, you can contact our technical support team, who are ready to assist you at any time.