Guide

Accounts management and bookkeeping

Last updated: 6 November 2017

Cash flow statements

If you're keeping accounts, you also need to have a cash flow statement.

A cash flow statement shows:

  • cash you expect to receive
  • what you think you'll pay out

It will show information about anything you spend cash on to run your business, including things like:

  • salaries
  • utilities
  • rent
  • materials
  • equipment

A cash flow statement shows how you expect your 'net cash' or 'net deficit' to accumulate over a period of time.

Your 'net cash' or 'net deficit' is – the value of the cash you expect to be paid minus the value of the cash you expect to pay out.

If you're creating financial accounts, your cash flow statement will show your cash performance of the past 12 months.

Creating a cash flow statement for management accounts gives you an opportunity to will look at your past performance, but also plan ahead and think about what your future cash performance might be.

Accounts management and bookkeeping
Cash flow statements