Every business wants to know its cash position. Where they have spent, from whom they have to receive cash and the available cash with them. This can be known by knowing the cash flow statement QuickBooks of the business. This article will give insights about what is cash flow? How to manage QuickBooks cash flow Statement?
Cash flow is a movement of cash in and out in the business. Cash inflows are sources of income that come to the business. Cash outflows are the expenses incurred by the business. It is categorized into three types of activities: operating, investing and financing.
A cash flow statement is thus a statement which shows the in and out of cash in the business. It keeps a track of the cash in the business. It also provides with insights about the company’s liquidity.
Cash flow is crucial for every business, whether small or big. Consistent cash flow is needed for the survival of the business.
It is easy to access the cash flow statement in QuickBooks. Before running the report in QuickBooks, one must do the following tasks:
After the QuickBooks is updated, QuickBooks is ready to run the cash flow statement. Here are the steps to run the report:
With QuickBooks, one can even forecast the cash flow with the help of QuickBooks cash flow projector. It allows users to perform scenario analysis and view projection without altering the data of the QuickBooks ledger. The steps of the same are as follows
Hope this would have helped in understanding cash flow and how to manage it in QuickBooks. If the users face any difficulty in running the cash flow statement they can get in touch with the QuickBooks online help desk number +1-877-221-952O.