Cash Flow Statement

Track the movement of cash through your business. Shows where cash came from and where it went.

Overview

The Cash Flow Statement shows actual cash movements (money in and out of bank accounts) over a period. Unlike the Profit & Loss, it only includes transactions where cash actually moved.

Cash vs Profit

A business can be profitable but run out of cash.

Report sections

Operating Activities

Cash from your main business operations:

Cash In

• Customer payments (invoices paid)
• Cash sales
• Interest received
• Other operating receipts

Cash Out

• Supplier payments (bills paid)
• Employee wages paid
• Operating expenses paid
• Interest paid

Net Cash from Operations

• Positive = Operations generating cash
• Negative = Operations using cash

Investing Activities

Cash from buying or selling long-term assets:

Cash In

• Sale of equipment
• Sale of investments

Cash Out

• Purchase of equipment
• Purchase of vehicles
• Investment purchases

Net Cash from Investing

• Usually negative (buying assets)
• Positive when selling major assets

Financing Activities

Cash from funding sources:

Cash In

• Owner contributions
• Loan proceeds received
• Share capital issued

Cash Out

• Owner drawings
• Loan repayments
• Dividend payments

Net Cash from Financing

• Positive = raising funds
• Negative = paying back or distributing

Net Increase/Decrease in Cash

Sum of all three sections:

• Positive = Cash balance increased
• Negative = Cash balance decreased

Opening and closing cash

Verification: Opening + Net Change = Closing

Generating the report

Step 1: Set date range

• Select period to analyse
• Common periods: This Month, This Quarter, This Financial Year

Step 2: Click Generate Report

Cash Flow is always on cash basis (by definition).

Understanding the layout

Report structure

CASH FLOW STATEMENT
For period: 01/07/2025 to 30/09/2025

CASH FLOWS FROM OPERATING ACTIVITIES
────────────────────────────────────────
Cash received from customers          $45,200
Cash paid to suppliers               -$28,500
Cash paid for operating expenses      -$8,200
Interest received                        $150
Interest paid                           -$300

Net cash from operating activities     $8,350

CASH FLOWS FROM INVESTING ACTIVITIES
────────────────────────────────────────
Purchase of equipment                 -$5,000
Proceeds from asset sales                $0

Net cash from investing activities    -$5,000

CASH FLOWS FROM FINANCING ACTIVITIES
────────────────────────────────────────
Owner contributions                      $2,000
Loan repayments                       -$1,500
Owner drawings                        -$3,000

Net cash from financing activities    -$2,500

════════════════════════════════════════
NET INCREASE/(DECREASE) IN CASH          $850

Cash at beginning of period           $12,500
Cash at end of period                 $13,350

Stat cards (top)

Summary cards show:

• Opening Cash — Bank balance at start
• Net Change — Overall increase or decrease
• Closing Cash — Bank balance at end

Interpreting cash flow

Healthy patterns

Strong operations:

• Net cash from operations is positive and growing
• Operating cash covers investing needs

Investment:

• Negative investing (buying assets for growth)
• Offset by positive operations

Sustainable financing:

• Financing cash used for repayments, not survival
• Not relying on owner injections to survive

Warning patterns

Trouble signs:

• Operating cash negative (losing cash on core business)
• Reliance on financing to pay operations
• Operating cash declining trend

Investigate if:

• Operations negative while P&L shows profit
• Cash declining despite profit
• Financing inflows needed to pay suppliers

Common scenarios

Growing business

Operations:     +$10,000 (positive)
Investing:      -$15,000 (buying equipment)
Financing:      +$8,000  (loan for expansion)
────────────────────────
Net:            +$3,000  (cash growing)

Analysis: Healthy growth — operations funding investment with some external financing.

Struggling business

Operations:     -$5,000  (losing cash)
Investing:      $0       (no investment)
Financing:      +$5,000  (owner putting in money)
────────────────────────
Net:            $0       (breaking even)

Analysis: Concerning — operations not generating cash, dependent on owner funding.

Mature profitable business

Operations:     +$20,000 (strong operations)
Investing:      -$2,000  (maintenance only)
Financing:      -$8,000  (paying loans/dividends)
────────────────────────
Net:            +$10,000 (building cash)

Analysis: Healthy mature business — operations fund growth, debt repayment, and cash building.

Exporting

CSV export

1. Generate the report
2. Click Export → CSV
3. File downloads as Cash_Flow_YYYY-MM-DD.csv

Best practices

Monthly monitoring

• Review cash flow monthly
• Watch for trends in operating cash
• Compare to P&L to understand timing differences

Quarterly analysis

• Analyse each section’s trend
• Check if operations cash is stable or declining
• Verify financing needs

Cash planning

Use cash flow to:

• Predict cash needs
• Plan for large purchases
• Schedule loan repayments
• Time owner drawings

AU-specific notes

BAS and cash flow

• GST payments appear in operating activities (outflow)
• GST refunds appear in operating activities (inflow)
• GST doesn’t affect net profit but affects cash

Tax planning

• Tax payments appear in operating activities
• Plan for quarterly PAYG instalments
• Budget for annual tax liability

EOFY review

Before June 30:

• Review annual cash flow
• Ensure cash position supports tax payments
• Plan for any EOFY distributions

Comparison to P&L

Why they differ

Reconciliation

Timing differences:

• P&L includes all invoices/bills in period
• Cash flow only when actually paid
• Gap = Accounts Receivable + Payable movement

Troubleshooting

Operating cash doesn’t match P&L profit

Normal difference:

• P&L profit includes unpaid invoices
• Cash flow only shows payments received
• Difference = change in Receivables + Payables

Large unexplained difference:

• Check for misclassified transactions
• Review loan treatment
• Verify non-cash items

Cash balance doesn’t match bank

• Cash Flow uses journal entries
• Verify bank reconciliation is current
• Check for unreconciled transactions

Financing activities missing

• Owner contributions should appear
• Loan proceeds and repayments
• Drawings (not expenses)

Negative operating cash

• Review customer payment delays
• Check supplier payment timing
• Compare to P&L — if P&L positive, investigate timing

Related pages

• Profit & Loss — Revenue and expenses
• Balance Sheet — Assets and liabilities
• Bank Reconciliation — Matching cash to bank
• Aged Receivables — Unpaid invoices affecting cash

Last updated: February 24, 2026