How does Kontuly's Statement of Cash Flows work?
Kontuly's Statement of Cash Flows (in the sidebar as Cash Flow) shows where your cash came from and where it went over a period, grouped into operating, investing and financing activities. It explains why profit and your bank balance move differently.
What's on it?
- Cash flows from operating activities: Receipts from customers, Interest and other income received, Payments to suppliers and employees, Interest and other costs paid, and Net GST received (paid).
- Cash flows from investing activities: Purchase of property, plant and equipment and Proceeds from sale of assets.
- Cash flows from financing activities: Proceeds from borrowings, Repayment of borrowings, Capital contributed by owners and Drawings and distributions.
Then Net increase in cash held (or decrease), Cash at the beginning of the period and Cash at the end of the period.
What counts as cash?
Every account marked as a bank or cash account in the Chart of Accounts. Credit cards marked this way net off. Transfers between your own accounts are left out.
Why is a line in the wrong section?
Each movement is placed by the Report group of the account the money came from or went to. For example, an equipment purchase shows under investing only if the equipment account is a Non-current asset, and a loan under financing only if it's a Non-current liability. Tidy report groups give a tidy cash flow.
Summary or detail?
Set View to Detail to list the accounts behind each line, with links to the General Ledger, or Summary for one figure per line.
For what's coming, rather than what's happened, see the Cash Flow Forecast.
Related questions
- Why doesn't my Profit and Loss match my bank balance in Kontuly?Profit and cash are different. Kontuly's Profit and Loss counts invoices and bills, not loan repayments, drawings, equipment or GST. Here's how to see why.
- How does the Cash Flow Forecast work in Kontuly?Kontuly's Cash Flow Forecast projects your bank balance for 13 weeks from unpaid invoices, approved bills and recurring templates, by due date.
- How does the chart of accounts work in Kontuly?Kontuly's chart of accounts sorts every dollar into accounts by type and report group. What a new business starts with and how it shapes your reports.
More about accounts and reports
- How do I add, edit or archive an account in Kontuly?Add a new account in Kontuly's Chart of Accounts, change its code, name or GST code, or archive one you don't use. What can't change once it's used.
- How do I post a manual journal in Kontuly?Post a manual journal in Kontuly for adjustments with no invoice or bank line, such as accruals, depreciation or corrections. Debits must equal credits.
- How do I void or reverse a journal in Kontuly?Void a manual journal in Kontuly to post a reversing entry on the same date. Which journals must be corrected elsewhere, and what blocks a void.
- How do I lock a period after lodging a BAS in Kontuly?Set the lock date in Kontuly's Settings so nothing dated on or before it can be posted, changed or voided, protecting a lodged BAS or a finished year.
- Do I need to do a year-end close in Kontuly?No year-end close is needed in Kontuly. Last year's profit moves into retained earnings automatically. What to do at year end instead.