Cash Flow Statement & Executive Summary

Where the Cash Actually Went

Profit and cash are not the same thing — a business can be profitable on paper while running out of cash (e.g. if customers are slow to pay). The Cash Flow Statement (Accounting > Reporting > Cash Flow) explains the difference.

The Three Activity Groups

• Operating Activities – cash from normal business operations, starting from Net Profit and adjusting for non-cash items and changes in receivables/payables/inventory.
• Investing Activities – cash spent on or received from fixed assets and investments.
• Financing Activities – cash from loans, owner contributions, or distributions.

Opening Cash + Net Cash from all three groups = Closing Cash, which should tie exactly to your actual bank balances at the report date.

Executive Summary

Go to Accounting > Reporting > Executive Summary for a single condensed page aimed at non-accountants: revenue, profitability, cash, and a handful of key ratios, each with a period-over-period comparison — the report to hand an owner or board member who doesn't need (or want) the full Balance Sheet/P&L detail.