The cash flow statement shows how cash actually moved in and out of your business — separate from profits. A profitable business can still run out of cash without this view.
Three sections of cash flow
- Operating Activities — Cash from day-to-day business (invoices collected, expenses paid)
- Investing Activities — Cash spent on or received from assets (equipment purchase, asset sales)
- Financing Activities — Cash from loans, repayments, or owner withdrawals
Generating the cash flow report
1
Go to Reports → Cash Flow Statement.
2
Select your date range (monthly or custom period).
3
Choose Indirect Method (most common) or Direct Method if your accountant requires it.
4
Click Generate. Review each section and drill down by clicking any line item.
💡Tip: Watch your Net Change in Cash line every month. If it's consistently negative while you're profitable, you likely have a receivables collection problem — customers are paying too slowly.
âš ï¸Note: Cash flow and profit are different. You can be profitable but cash-poor if customers don't pay on time. Chase overdue invoices regularly.