Cash flow statement

Purpose

  • See where cash came from and where it went for the year: operating, investing, and financing.
  • KinraSoft builds this from profit and from movements on the balance sheet. It is not the cash-book listing.

Menu path


Assistant

  • No cash-flow wizard. Ask “how to print the cash flow statement” for this chapter.
  • Can I pay this and how much cash answer cash on hand today. They do not print this statement. See Ask the books.

Before you start

  • Profit and loss, the trial balance, and the balance sheet are worth trusting first: opening balances generated, stock value entered, depreciation posted.
  • Bank and cash accounts are marked as bank/cash on the chart of accounts. The statement’s closing cash is those accounts.
  • A retained-earnings account exists (same requirement as the balance sheet).

Print the cash flow statement

  • Financial Report → Cash Flow Statement.
  • Choose Report Period: This Year, or This Year vs Last Year.
  • Set Date (as-at for the year).
  • Optional Financial Year to use a closed year. See Year-end closing.
  • Optional Project.
  • Click Search.
  • Expand All / Collapse All.
  • Print PDF or Export To Excel.

What the sections include

  • The statement is the indirect form.
  • Cash flows from operating activities — Net profit before tax; Adjustments for non-cash items (depreciation, interest expense, gain on disposal of equipment); Changes in working capital (accrued expenses, payables, receivables, inventory, other current assets, other current liabilities); Interest paid; Net cash from operating activities.
  • Cash flows from investing activities — Purchase/(disposal) of fixed assets; Net cash from investing activities.
  • Cash flows from financing activities — Capital introduced/(drawings); Proceeds/(repayment) of borrowings; Net cash from financing activities.
  • Closing block — Net increase/(decrease) in cash; Cash at beginning of period; Cash at end of period (calculated); Cash at end of period (per ledger); Reconciliation difference.
  • Cash at end of period (per ledger) is the bank and cash balance on the books. Calculated is opening cash plus the three sections. Reconciliation difference is ledger cash minus calculated cash.
  • Net profit on this report includes the stock adjustment from Maintain Stock Value. A rise in debtors or stock uses cash. A rise in creditors provides cash. Those working-capital lines are balance-sheet movements, not extra journals. See Maintain Stock Value.

Cash flow and the cash book

  • Which cheque, receipt, or transfer? Cash Book Listing and Ledger Report on the bank account.
  • Does the bank statement match the books? Bank Reconciliation.
  • Did profit turn into cash this year? This statement.
  • Can I pay a bill today? Can I pay this, or Money in bank on the dashboard.
  • Entering a cash-book payment changes both the cash book and, after you refresh, this statement. This screen does not record the payment.

If something goes wrong

  • Reconciliation difference is not zero. Check stock value, a missing bank special account on the chart of accounts, and that debtors, creditors, and fixed assets on the balance sheet match the sub-ledgers. Then Search again.
  • Closing cash does not match the bank box on the dashboard. Both should be bank and cash accounts. Confirm the account is a bank/cash special account, and that Project is cleared if the dashboard is the whole company.
  • Investing or financing looks empty. Those lines follow fixed assets, capital, and loans on the chart. A purchase coded to an expense stays in operating profit, not in fixed assets.
  • You wanted each receipt listed. Use the cash book or the bank ledger.

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