Taking Your Financial Reports to the Next Level with Management Reporter – Statement of Cash Flows (6 of 8)

The sixth report in the “Taking your Financial Reports to the Next Level with Management Reporter” series is the “Statement of Cash Flows.” There are often multiple financial or strategic opportunities available to a company, but not a lot of cash for those opportunities.  The need for sufficient cash to cover operating expenses needs to be balanced against opportunities to pay off debt or to make operating investments. The Statement of Cash Flows report helps in evaluating past operations and in planning future investing and financing activities.

 

This video contains how to create a Statement of Cash Flows report for your business.

[embed]https://www.youtube.com/watch?v=Ao3vszC6k7U&feature=youtu.be[/embed]

In summary, the key features included in the “Statement of Cash Flows" report were:

• Account modifier in the Row Definition to return beginning balance or year-to-date amounts for the cash accounts rows
• Non-Printing rows and columns used for calculations
• Advanced cell placement for calculating the beginning cash balance

 

Links to other posts in this series: 

• Quarterly Revenue by Business Unit - Are we making a profit?
• Weekly Material Usage - Are we being efficient?
• Budget to Target - Are we hitting targets?
• Postings Audit - Are we entering transaction accurately?
• Statement of Cash Flow - Are we making the right investments?
• Quarterly Tax Form - Are we getting the data needed for taxes?
• Financial Matrix - How are we performing?

Comments

• Anonymous
  May 28, 2013
  In order to have 100% correct amounts in the sections for Investing and Financing activities, create two accounts for each long term asset and liability account and equity accounts. For example, Purchase of fixed assets, Disposal of fixed assets, Increase in long term loan, Payoff of long term loan. Then any corrections and adjustment to these accounts will be reflected in the net change. You would eliminate looking at only debits or credits. We see just enough adjustments to these types of accounts that the Statement of Cash Flows won't be quite correct when just depending on debits and credits.

• Anonymous
  June 27, 2013
  How do you account for the Dividends Paid account when it is classed as a Equity Account with a "normal debit" balance?  Because it is an Equity Account, it is untouched by the year end close and must be closed to retained earnings via Journal Entry in the following year.  This causes Period 1 and our year end cashflow to be out of balance by the dividends paid in the prior year due to the manual journal entry.

• Anonymous
  December 19, 2014
  You have brilliant ideas! I am sure am going to apply those to my own business!