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Understanding the Statement of Cash Flows report

The Statement of Cash Flows report:

  1. Is also known as the the Statement of Changes in Financial Position and as the Sources and Uses statement, meaing the Sources and Uses of cash..
     
  2. Designed according to Generally Accepted Accounting Principles (GAAP).
     
  3. Is one of four basic financial statements accepted by the Financial Accounting Standards Board (FASB) with the (1) Balance Sheet, (2)Profit & Loss and (3)Statement of Changes in Retained Earnings.
     
  4. Displays the change of a company's financial position over a period of time, calculated from the starting cash, adding changes from non-cash accounts, resulting in the ending cash.
     
Overview

Five areas are calculated depending on how you have set up your company:

  • Cash at the beginning of the period This is calculated by adding all the money the business possesses at the time, including bank account balances and any undeposited funds.
     
  • Net income The calculation is the same as an Accrual-based Profit and Loss report.
     
  • Activity for each balance sheet account during the period, except for bank and undeposited funds accounts This is done by adding each debit and credit for the account during the period. Balances are not carried forward from previous periods. This is identical to a Transaction Detail by Account report in QuickBooks, unless income and expense accounts have been assigned to the report. If income or expense accounts are assigned to the Statement of Cash Flows report, balance sheet activity will be adjusted accordingly.
     
  • Net cash increase for period This is done by adding net income and activity for each balance sheet account during the period.
     
  • Cash at the end of the period Calculated by adding cash at the beginning of the period to net cash increase.
     

To run the Statement of Cash Flows report:

  1. Select the Reports menu.
  2. Select Company & Financial, and then select Statement of Cash Flows.
     

Caveat: Please be aware that 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.

 

If this information does not answer your question, you can read discussions and post messages and questions relating to your issue on the Intuit QuickBooks Community site for free. You can contact an agent for additional guidance. Fees may apply.

KB ID# INF12413
7/30/2014 6:18:15 PM
PPRDQSSWS407 9102 Pro 2013 f6894e