Statement of Cash Flows

The Cash Flow Statement shows how cash actually moved in and out of your business over a period. Unlike the Profit & Loss — which records income when invoiced and expenses when billed — the Cash Flow Statement shows when money was actually received or paid.

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How to View the Cash Flow Statement

1. Go to Reports
2. Select Statement of Cash Flows
3. Choose your date range
4. The report loads automatically

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Report Structure

The report is divided into three sections:

1. Operating Activities

Cash generated from your core business operations — net profit adjusted for non-cash items and working capital changes.

2. Investing Activities

Cash spent on or received from long-term assets — purchases of equipment, property, or investments.

3. Financing Activities

Cash from owners or lenders, and repayments — share capital contributions, loans taken, and loan repayments.

OPERATING ACTIVITIES
  Net Profit                              AED  48,000
  Adjustments (non-cash)                 AED  (2,000)
─────────────────────────────────────────────────────
  Net Cash from Operations               AED  46,000

INVESTING ACTIVITIES
  Purchase of Equipment                  AED (15,000)
─────────────────────────────────────────────────────
  Net Cash from Investing                AED (15,000)

FINANCING ACTIVITIES
  Loan Received                          AED  20,000
─────────────────────────────────────────────────────
  Net Cash from Financing                AED  20,000

─────────────────────────────────────────────────────
NET CHANGE IN CASH                       AED  51,000
Cash at Beginning of Period              AED  10,000
CASH AT END OF PERIOD                    AED  61,000

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P&L vs Cash Flow — Key Difference

	Profit & Loss	Cash Flow
Basis	Accrual — records when invoiced/billed	Cash — records when money moves
Shows	Profitability	Liquidity
Use for	Are we making money?	Can we pay our bills?

A business can be profitable on paper but cash-poor if customers are slow to pay. The Cash Flow Statement exposes this gap.

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Frequently Asked Questions

Why is my net profit different from my cash movement?
Because profit is accrual-based. You may have invoiced clients (income on P&L) but not yet received payment (no cash impact). The Cash Flow Statement reconciles these differences.

My business is profitable but I'm running out of cash — why?
Common causes: slow-paying customers (check Receivable Ageing), large capital purchases (Investing section), or loan repayments (Financing section).

What period should I run this for?
Monthly to track liquidity trends, quarterly or annually for financial review.