Cash flow

To help you know the financial position of your company – and monitor the cash coming into and going out of your business – you can use the cash flow statement.

You can also use the cash flow forecast to estimate how much money your business will have, or need, at any point in the future, helping you to plan ahead. The forecast shows your expected cash flow in and cash flow out based on when invoices are due to be paid, credit notes due to be refunded and any recurring income or expenses due in the period you specify.

When running a forecast, you can also add manual adjustments to include values that might not already be accounted for. For example, you may want to apply for a loan, but first want to see how your predicted cash flow will change if you add this value to your accounts. If you add a manual adjustment, this is only used for the cash flow forecast and the values aren’t added to your ledgers.

What the cash flow statement and forecast show

The values calculated for the cash flow statement are from payments and receipts already paid or received. The values on the forecast, are based on when payments and receipts are due to be paid or received.

Opening Balance This is the net value of money in and out less any liability at the date before you’re running the cash flow statement or forecast for.
Cash Flow In This includes the total value of your:

  • Customer receipts

  • Supplier refunds

  • Other income

  • Bank transfers and deposits
    Cash Flow Out This includes the total value of your:

    • Supplier payments

    • Customer refunds

    • Other expenses

    • Bank transfers
      Closing Balance The total cash flow in less the total cash flow out.
      Liability to offset If you have any VAT liability for this period, it appears here and is based on being on the Standard VAT scheme. If the VAT period isn’t closed, this is an estimate.
      NET Balance The closing balance less any VAT liability for this period. Or if you can reclaim VAT this period, this is added to the closing balance.

      To produce a cash flow statement

      • 1. Go to Reporting, then click More then click Cash Flow Statement.
      • 2. Enter the dates you want to view the cash flow statement for, in the From and To boxes.
      • 3. Click the Bank account finder button , then select the bank accounts you want to view the statement for.

      The balance, cash flow in and cash flow out appear on the chart. You can choose which of these appear on the chart by clicking the relevant option from the bottom of the chart. To zoom in on a particular date range, highlight the relevant period on the chart.

      • 4. To save or print the report, click Export then choose one of the following:
      • CSV – Depending on your internet browser, the file automatically downloads to your Downloads folder or you’re prompted to save the file. Browse to where you want to save the file then click Save.
      • PDF – The PDF opens in a new window or tab. Open your browser’s File menu then choose to print or save the report.
      • 5. To view a more detailed cash flow statement, click View Detailed Breakdown.

      The detailed report shows the individual transactions that make up the values on the report. You can also print or save this report by repeating the step above.

      • 6. To return to the Cash Flow Statement report, click back on your internet browser menu.

      To produce a cash flow forecast

      • 1. Go to Reporting, then click More then click Cash Flow Forecast.
      • 2. Enter the dates you want to view the cash flow forecast for, in the From and To boxes.
      • 3. Click the bank account finder button , then select the bank accounts you want to view the statement for.

      The balance, cash flow in and cash flow out appear on the chart. You can choose which of these appear on the chart by clicking the relevant option. To zoom in on a particular date range, highlight the relevant period on the chart. Click the Reset zoom link to return to the default view.

      • 4. If required, click Manual Adjustments for the relevant option, enter the information and click Save.

      Adjustments are only used for the purpose of the forecast, they don’t update your ledgers. Any adjustments entered prior to the from date are included in your opening balance.

      • 5. If you have any payroll costs you want to enter, click Payroll costs for forecast period, enter the relevant information then click Save.

      Payroll costs are only used for the forecast and aren’t added to your ledgers.

      • 6. To save or print the report, click Export then choose one of the following:
      • CSV – Depending on your Internet browser, the file automatically downloads to your Downloads folder or you’re prompted to save the file. If prompted, browse to where you want to save the file then click Save.
      • PDF – The PDF opens in a new window or tab. Open your browser File menu then choose to print or save the report.
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      • 7. To view a more detailed cash flow statement, click Detailed Breakdown then click Detailed.

      The detailed report shows the individual transactions that make up the values on the report. If required, you can print or save this report by repeating the step above. To return to the report, click back from your browser menu bar.

      • 8. To return to the Cash Flow Forecast report, click Back on your internet browser menu.
      • 9. To view outstanding transactions prior to the date you’re running the cash flow forecast for, click Detailed Breakdown then click View Prior Transactions.

      This report shows outstanding invoices that need to be paid or credit notes that need to be refunded. You can print or save this report by repeating step 5.

      • 10. To return to the Cash Flow Forecast report, click back on your internet browser menu.