Management Reporting | Cash Flow
Cash flow, live from the ledger.
Operating, investing and financing flows generated from the ledger rather than rebuilt in a spreadsheet each quarter. Direct and indirect methods are both supported and both reconcile to bank movements, and any line drills to the receipts and payments underneath it.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Both methods | The same underlying transactions | Direct and indirect, each reconciling to the other and to the bank |
| Bank reconciliation | Statement movements | The statement ties to the cash flow, so the closing figure is not an assertion |
| Classification | Transactions as posted | Operating, investing and financing assigned from the transaction, not by hand |
| Non-cash items | Depreciation, accruals, provisions | Identified and adjusted, with each adjustment traceable |
| Currency effects | Multi-currency balances | Translation effect on cash shown separately rather than folded into operating |
| Comparatives | Prior periods | Presented alongside, from the same generation |
| Drill-through | Any line | The receipts and payments composing it |
-
Both methods
- Input
- The same underlying transactions
- Output
- Direct and indirect, each reconciling to the other and to the bank
-
Bank reconciliation
- Input
- Statement movements
- Output
- The statement ties to the cash flow, so the closing figure is not an assertion
-
Classification
- Input
- Transactions as posted
- Output
- Operating, investing and financing assigned from the transaction, not by hand
-
Non-cash items
- Input
- Depreciation, accruals, provisions
- Output
- Identified and adjusted, with each adjustment traceable
-
Currency effects
- Input
- Multi-currency balances
- Output
- Translation effect on cash shown separately rather than folded into operating
-
Comparatives
- Input
- Prior periods
- Output
- Presented alongside, from the same generation
-
Drill-through
- Input
- Any line
- Output
- The receipts and payments composing it
Cash Flow Statement FAQ
What buyers ask.
Why support the direct method at all?
Because it is more useful to operators, even where the indirect method is what gets filed. Seeing actual cash received from customers and paid to suppliers answers questions that a reconciliation from net income does not.
Does it tie to the bank?
Yes, and that is the check that matters. A cash flow statement that does not reconcile to bank movements is a derivation nobody should trust, and the reconciliation is shown rather than assumed.
How are non-cash items handled?
Identified from the transactions and adjusted, with each adjustment traceable to what produced it. This is where hand-built statements most often go wrong, because the adjustments get carried forward from last quarter without being re-derived.
What about foreign currency?
The translation effect on cash is shown separately rather than absorbed into operating flows, which is where it tends to hide and distort the operating number.
Can our auditor use this directly?
That is the intent. Every line drills to its transactions and the workings are retained with the period, which is most of what gets asked for.
See your cash flow build from your ledger.
Connect your books, free. Both methods generate from what you have posted and reconcile to your bank.