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In the latest release Ver 1.3.27, users can now generate cash flow statements with just a few simple setup steps.
In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.
- Operating activities include cash activities related to net income. For example, cash generated from the sale of goods (revenue) and cash paid for merchandise (expense) are operating activities because revenues and expenses are included in net income.
- Investing activities include cash activities related to noncurrent assets. Noncurrent assets include (1) long-term investments; (2) property, plant, and equipment; and (3) the principal amount of loans made to other entities. For example, cash generated from the sale of land and cash paid for an investment in another company are included in this category. (Note that interest received from loans is included in operating activities.)
- Financing activities include cash activities related to noncurrent liabilities and owners’ equity. Noncurrent liabilities and owners’ equity items include (1) the principal amount of long-term debt, (2) stock sales and repurchases, and (3) dividend payments. (Note that interest paid on long-term debt is included in operating activities.)
Before generating your cash flow statement report, you'll first need to classify your balance sheet accounts according to the 3 classifications.
First, head over to control panel
Next, select the Balance Sheet Account
You'll notice 'Requires classifications' message. Go ahead and click UPDATE where required.
Lastly, in the Classification for Cash Flow Statement, select the correct classification and save.
Note: All accounts MUST BE classified before the report can be generated.