Statement of cash flow is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to 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 be edited for any preferences to classify cash like in QuickBooks desktop versions.
In QBO, they also have the following three standard sections for the cash flow analysis.
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 assets type.
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 “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 type assigned to a section of the Statement of Cash Flow in QuickBooks Online.
|1||Fixed Assets (original cost)|
|1||Long Term Liabilities|
How do I retrieve a Statement of Cash Flow Report in QuickBooks Online?
To run a Statement of Cash Flow report:
From the home page screen
- Left blue navigation bar
- Choose Reports
- Go to report and type Statement of Cash Flow (search/magnifying glass)
You would normally run the following three standard financial reports on accrual basis:
- Profit and Loss (on accrual basis)
- Balance Sheet (on accrual basis)
- Statement of Cash Flow (default is accrual basis, no way to change it)
Net income line on cash flow comes from the Profit and Loss Report. In this example, Profit and Loss report is for Jan 1 through May 30, 2015 period. Net Loss from P&L is $188,569.84. It is negative minus sign on cash flow, because of loss position. If it is income, it will have positive figure.
All other figures are from the Balance Sheet accounts. It shows cash position changed for certain specific period (in this example from Jan 1 through May 30, 2015). At the bottom of cash flow, it will reflect beginning and ending of cash balance. Once again, cash balance will include all bank accounts plus undeposited funds.
Profit and Loss Report
Balance Sheet Report
In this example, Accounts Receivable went up by $32,392.05, from $46,073.24 on December 31, 2014 to $78,465.29 on May 30, 2015. To find out, how cash flow arrived at those figures, you will need to run a standard built-in Balance Sheet report and customize the report (see customize filter page below) to show changes in cash flow position from beginning (in this example ending balance on 12/31/2014, which is the same as beginning balance on 1/1/2015) to ending balance 5/30/2015.
Note: QuickBooks Online does not have a way to do cash flow forecasting at this time.