The new Cash Flows screen allows for the reconciliation of all cash flows that have flowed in and out of the business and the generation of the Cash Flow Statement.
|On the sidebar, navigate to Reports
|Next, select Cash Flow [Beta]
|Finally, select the Reporting tab.
The Cash Flows screen will display a live version of the statement of cash flows.
- The start and end date can be adjusted for the Cash flow statement, either by using one of the presets under 'Current Period' or by entering the date manually.
- This allows for the selection of multiple comparison periods.
- The cash flow labels allow for accounts to be labelled under the following labels:
- Operating activities
- Investment Activities
- Financing Activities
- Generate Report will produce a PDF copy of the Statement Of Cash Flows. This report can also be generated in the reports screen, under the financial reports.
- The blue list symbol next to each value will open a small pop-up, allowing adjustments to be entered and access to the transactions posted to that label in the transaction list. This will mark an asterisk next to the number to indicate that an adjustment was entered.
- If the system cannot reconcile the net amounts, a warning will be displayed.
Accounts will only appear in the Statement of Cash Flows if the transaction in the transaction list has a 60400/bank account included.
This will open another pop-up, where custom labels can be added for each activity type.
These labels can be edited by clicking the pencil symbol, or deleted by selecting the trash can icon.
When the System is unable to reconcile the Net Increase/Decrease in Cash Held in the cash flow statement, it is likely due to labels not being set up in the Cash Flow Labels.
1. Click the Cash Flow Labels button in the top right of the screen to open the pop-up.
2. Locate an account that does not have a label set. If custom accounts have been created, then these will most likely not have labels attached.
Open the drop-down and select the activity type for the account.
Then allocate the specific label for that account and whether the label is affected by debits and/or credits to the account.
In this example's case, the loan will be repaid, click the plus symbol after the debits/credits field to add a second label for the account for any debit amounts.
Select the label, and then click the button to save the changes.
The system will update the Statement of Cash Flows with the account, which should result in the Net amount reconciling.