What is my Statement of Cash Flows

Quite simply it shows the ins and outs of your cash for a given period. Let’s take a look at the types of Statements of Cash Flows our partners receive.

The green indicates cash coming in while the red shows cash going out. This provides a nice visual representation as to why your change in cash is not equal to your Net Income (Change in Net Assets). An example we did not touch on but is shown above is a change in Accounts Payable. You could receive a $1,000 invoice at the end of the month which would be reflected in the red of expenses but it would increase Accounts Payable which would be “added back” to configure your total cash flow for the period. In the above statement Accounts Payable decreased by $7,692 from the prior period which is why it is depicted in red, but the above example describes a situation where it would show in green.

Again, this statement is something we would quickly review with the monthly report video so that you have an understanding of your increase or decrease in cash.