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Using Cash Flow reporting to get a handle on where your money is coming and going (O/T)

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Your Bank Statement shows the incoming and outgoing of your cash, but what it does not show is how the money was spent; for example for on Operations, Financing, or Investing?

  •  Operating Activities show how much cash is generated in the day to day delivery of products and services.
  •  Financing Activities show how much cash was generated by debt or equity financing. (Or, the flows between the organization and the folds who help finance the organization through debt or equity.
  • Investing Activities details how much cash the entity made and used in making investments in other entities, such as the purchase of stocks, bonds, or other entities.

Assigning the proper General Ledger ”Types” to each account number will allow you to run the Cash Flow Statement each period, and see exactly where the cash inflows and outflows for any particular period or year are being used.

Want to get a real handle on where your money is coming and going? Set up and run the Cash Flow Statements and see.

About Lillian Aaron

Lillian Aaron is inspired by small and mid-sized businesses. She understands the challenges they face and the tenacity required to build strong, growing organizations. Since 1983, Lillian has worked with businesses as a business process consultant helping them implement and support leading-edge products that drive efficiency and profitability for diverse clients. Her friendly, one-on-one consulting style helps business owners and managers feel at ease when adopting and learning new technology systems.

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