The article helps you create and understand Cash Flow Forecast report and Statement of Cash Flows report in QuickBooks Desktop.
Forecasting allows you to make predictions about future revenue and cash flow, as well as assess 'what if' scenarios to help you make better decisions for your business. A forecast can be created from scratch or from actual data from the previous fiscal year. A forecast is uniquely identified by its fiscal year, and if desired, further identified by Customer:Job or Class.
The Cash Flow Forecast report helps you forecast how much cash you'll have by projecting your cash inflows, cash disbursements, and bank account balances on a week by week basis.
To create the report, go to the Reports menu, select Company & Financial then click Cash Flow Forecast.
The following are displayed on the report. To see a list of transactions that make up an amount, double click the amount.
The Cash Flow Projector is not auto refreshing. If a bill was unpaid when the Cash Flow Projector was initially run, it will still show up even after it was paid. Follow the steps below to resolve the issue.
Note: This solution may delete the current cash flow projection.
If the bank balance showing in the Cash Flow Projector is different from the bank balance showing in the Chart of Account, you need to check the system date and look for bank transactions dated in the future. The Cash Flow Projector reflects the balance of the account as of today's date.
To check system date:
To check for future dated transactions:
Important: Forecasting reports will not pull data from memorized transactions, only from transactions that have already been entered into QuickBooks Desktop.
The Statement of Cash Flows report is a major financial statement used to track the flow of working capital into and out of a business during an accounting period.
To run the report, go to the Reports menu, select Company & Financial then click Statement of Cash Flows.
Important: You cannot filter the Cash Flow report by Class. If you are tracking different business units (BU) by class and you need a Statement of Cash Flows for each BU, you might consider using a separate data file for each business unit.
Five areas are calculated depending on how you have set up your company.
Each account in your Chart of Accounts has a default classification for the Statement of Cash Flows a/k/a as the Cash Flow report. These classifications are:
Each Balance Sheet (B/S) account is assigned to a classification but QuickBooks Desktop enables you to change the account's classification.
Each Profit & Loss (P&L) account is NOT assigned to a classification because they are brought into the Cash Flow report via the Net Income entry. However, non-cash expenses and income need to be reconciled because they do not affect the cash balance. A common example in Depreciation. Since Depreciation, a P&L account, is offset to Accumulated Depreciation, a B/S account, you do not need to reclassify Depreciation to reconcile the Cash Flow report.
Consult your accounting professional and make a back up of your company file before reclassifying any account:
Only very rarely. You would want to reclassify a non-cash expense or income account if it is included in the Net Income and it is distorting the Ending Cash. Most non-cash accounts are already offset to a balance sheet account that is included in the Cash Flow report so that the Ending Cash is not distorted:
Ending cash is the sum of your Beginning Cash, Net Income for the report range and Reconciliations for Operating Activities, Investing Activities, and Financing Activities. There are several reason why the ending cash may not be what you expect it to be. The solution to your issue depends on its root cause.