Running the Cash Flow report

The Cash Flow report shows the actual movement of money in and out of your business during a specified period. It is organized into three main sections: operating activities, investing activities, and financing activities. This report helps you understand your liquidity and whether your business is generating or consuming cash.

Before you start

• You need accounting or reporting access (or higher permission level).
• Your chart of accounts must be set up with cash and cash equivalents accounts.
• You should know the period for which you want to see cash flow (e.g., this month, this quarter, year-to-date).

Steps

1. Navigate to Reports and locate the reports menu. Open in Usystems

2. Look for the Financial Statements section and select Cash Flow.

3. Set the From Date and To Date for the period you want to analyze. Cash Flow is typically run for a month, quarter, or year.

4. (Optional) Choose the Cash Flow Method:

   • Direct Method — lists actual cash receipts and cash payments.
   • Indirect Method — starts with net income and adjusts for non-cash items.

5. (Optional) Use filters to show only specific cash flow categories (Operating, Investing, Financing) or leave all selected.

6. Click Run Report or Generate to display the Cash Flow.

7. The report will show cash inflows and outflows organized by activity type, with a net increase or decrease in cash at the bottom.

Accounting impact

The Cash Flow report does not affect your accounting records—it is an analytical tool. It shows:

• Operating cash flow: cash generated or used by normal business operations.
• Investing cash flow: cash from buying or selling assets.
• Financing cash flow: cash from loans, owner contributions, or dividends.
• Net change in cash: the total increase or decrease in your cash balance.

Tips & common mistakes

• A negative operating cash flow combined with positive net income suggests you may have a liquidity problem even if your business is profitable.
• Run the Cash Flow report monthly to monitor your cash position and plan for cash shortages.
• The Cash Flow report is especially important for small businesses and startups that may have limited cash reserves.