The Statement of Cashflows Software Update will be released Next Week.

Last month we added a new group of reports to Calxa, featuring a Profit & Loss, Balance Sheet and Trial Balance report. While you can always run these reports from your accounting software, this allows you to include them in a Report Bundle and keep your formatting consistent. Next week we’ll add the Statement of Cashflows report – something that will delight the accountants amongst you.

The Statement of Cashflows is a Financial Statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents. Which then breaks the analysis down to operating, investing, and financing activities. Essentially, the cashflow statement is concerned with the flow of cash in and out of the business.

Remember though, that the Statement of Cashflows is looking at past history and so is different to the Cashflow Forecast which looks forward to predict the future. The Statement of Cashflows is required by those organisations that need to report using Accounting Standards and is often used by accountants to guage the financial health of any organisation.

We’ve tried to keep the setup of this report as simple as possible, however, it requires classifying each of your accounts to be either operating, investing or financing activities – as well as exclusions (such as depreciation and amortisation). The process on how to run a Statement of Cashflows is well documented in our Help Centre but feel free to contact our Customer Support team if you have any questions.