A statement of cash flow is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents. It breaks the analysis down into operating, investing, and financing activities.
First, the report run is based on an accrual basis accounting method in QBO. It is hard-coded so you can not change it to cash basis method nor can it be edited for any preferences to classify cash like in QuickBooks desktop versions.
QBO also has the following three standard sections for the cash flow analysis.
- Operating
- Investing
- Financing
It shows the amount of cash earned from profit, where you received additional cash, and where your cash was spent. It uses all bank-type accounts from your chart of accounts. It also includes “undeposited funds account” from other current asset types.
The Statement of Cash Flow assumes that all activity through current assets and current liabilities are OPERATING ACTIVITIES. It also includes “accumulated depreciation” from fixed assets type.
Any entries that affect fixed assets (at original cost, less accumulated depreciation) are INVESTING ACTIVITIES. It also includes the “other assets” type.
Any entries that affect long-term liabilities and equity are FINANCING ACTIVITIES.
Here is how the standardized list of mappings for the different category types is assigned to a section of the Statement of Cash Flow in QuickBooks Online.
Here is a detail account list of Category Type (Account Type) for the Balance Sheet accounts from the chart of accounts sorted by Activities.
Investing Activities
| Category Type | |
|---|---|
| 1 | Fixed Assets (original cost) |
| 2 | Other Assets |
Financing Activities
| Category Type | |
|---|---|
| 1 | Long Term Liabilities |
| 2 | Equity |
Example of Statement of Cash Flow Report in QBO:
