Run the statement
Open Reports, then Cash flow, set From and To and press Run. It is derived from the books, so Ties to the cash movement (1) appears, and Cash at end (3) is the total of your bank and cash accounts.
Read the three sections
- Operating activities: your daily business. It starts from net income, then adds or takes off what did not become cash. A rise in customer balances shows negative because the money has not arrived, and a rise in what you owe suppliers shows positive because you have not paid yet.
- Investing activities: buying or selling fixed assets.
- Financing activities: capital and loans.
Together they make the Net change in cash, added to Cash at start.
- Operating
- Investing
- Financing
- Cash at end
What to look for
- Net operating (2) is the key figure. If it stays negative month after month, the business is using up cash even when the income statement shows profit.
- Good profit with negative operating cash: usually slow collection or swelling stock.
- Cash rising through financing alone: the money came from owners or a loan, not from trading.
Press any line to open the account statement.
An account's subtype decides where it lands here. A bank account not set to Bank or Cash does not count as cash. Check it in Chart of accounts.
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