Edmonton Bookkeeper: Difference between cash flow and funds flow statement

Edmonton Bookkeeper: Difference between cash flow and funds flow statement

Edmonton Accounting
How Can Businesses Manage Their Finance
November 12, 2017
Accountant in Edmonton
5 Bookkeeping Rules All Business Owners Should Follow
December 5, 2017
Show all

Edmonton Bookkeeper: Difference between cash flow and funds flow statement

Financial Audit

To know the financial position of your business, financial reporting is crucial. Both, cash flow and funds flow statements are the basics of financial reporting and financial management. One helps in assessing the cash position of your business, while the latter helps in understanding the sources and the applications of funds and shows the working capital of your business. You must know the difference between these two statements so that you can run your business efficiently and carry out financial management in the best way possible. Here are some major differentiating elements between cash flow statement and funds flow statement.

S.No Cash Flow Statement Funds Flow Statement
1 Cash flow statement is prepared based on your business’s cash and cash equivalents. Funds flow statement is prepared based on a broader concept – business’s working capital.
2 Cash flow statement is useful in understanding the short-term factors that affect the liquidity of your business. Funds flow statement is useful in understanding the long-range financial strategies.
3 Cash flow statement includes the inflows and the outflows of cash and cash equivalents every year. Funds flow statement includes the sources and the applications of funds and also the changes in your business’s financial position in different accounting years.
4 If you want to see the change in cash, you can either see a cash flow or funds flow statement. If you want to see the change in working capital, you can only find them in the funds flow statement.
5 The statement doesn’t include changes in any other element of working capital except cash. The statement includes the changes in all the aspects of working capital.
6 Cash flow statement is prepared in alignment with the cash basis of accounting. Funds flow statement is prepared in alignment with the accrual basis of accounting.
7 Short-term business financial planning and preparing cash budgeting are done with the help of a cash flow statement. Medium and long-term business financial planning and preparing capital budgeting are done with the help of a funds flow statement.
8 In a cash flow statement, changes in the current assets and current liabilities are shown in the statement itself. In a funds flow statement, changes in the current assets and current liabilities are shown through the changes in the working capital.
9 Cash flow statement ends annually with closing cash balance in the statement and cash in hand. Funds flow statement ends annually with either an increase or decrease in the working capital.

Now that you know the difference between these two statements, you will be able to analyze your business’s position of cash and funds better. For this purpose, it is important to have financial reporting for your firm. If you need any assistance to manage your funds, then consult a financial controller. Our experts will keep a regular record of all your business transactions and maintain your cash as well as funds flow records.

0 Comments

  1. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually stated it perfectly.
    http://canadianonlinepharmacynnm.com/
    king pharmacy
    canadian online pharmacy
    no prescription online pharmacy
    canada drugs

  2. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put, Thank you!
    http://canadianpharmaciescubarx.com/
    northwestpharmacy
    canadian online pharmacy
    visit poster’s website
    canadian pharcharmy

  3. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    With thanks. Fantastic information!
    https://nicktambone.com/
    best online pharmacy
    canada online pharmacies
    canadapharmacy
    canadian pharcharmy

  4. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You said it nicely.!
    http://canadianpharmacysilo.com/
    discount pharmaceuticals
    canada drugs
    mexican online pharmacies
    canada online pharmacies

  5. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Regards! A good amount of info.

    http://www.canadianpharmacymsn.com/
    best canadian online pharmacy
    online pharmacies canada
    web medical information
    canada pharmacy

  6. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Seriously quite a lot of very good information.
    http://canadianpharmaciesnnm.com/
    prescription drugs canada
    canadian pharmacies without an rx
    pharmacies near me
    canadian pharmaceuticals online

  7. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thanks. Plenty of content.

    http://www.canadianpharmacymsn.com/
    rx online
    canada pharmacy online
    get prescription online
    mexican pharmacies shipping to usa

  8. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You’ve made your point.
    http://canadianpharmacyntx.com/
    canada drug
    global pharmacy canada
    canada pharmacy
    canada drug

  9. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Great data. Regards.
    http://canadianpharmaciesnnm.com/
    online drugstore
    canada pharmacy online
    online canadian pharcharmy
    online pharmacies of canada

  10. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put, Thank you.
    http://canadianonlinepharmacynnm.com/
    international pharmacy
    online pharmacies canada
    pharmacy prices
    canadian drugs

  11. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You made your point!
    http://canadianpharmaciesnnm.com/
    canada drug prices
    canada drugs
    drugstore online
    canadian pharmacies online

  12. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Wow many of beneficial info.
    http://talahicc.com/
    web medical information
    canada drugs online
    visit poster’s website
    north west pharmacy canada

  13. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Many thanks! I like this.
    https://nicktambone.com/
    online pharmacy usa
    canada drug
    discount prescription drug
    mexican pharmacies shipping to usa

  14. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Good write ups. Appreciate it.
    http://canadianonlinepharmacynnm.com/
    buy prescription drugs online
    top rated canadian pharmacies online
    mexican pharmacy online medications
    london drugs canada

  15. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    With thanks! I value this.
    https://nicktambone.com/
    canada pharmacies online pharmacy
    canadian pharcharmy
    canada pharmacies
    online pharmacies of canada

  16. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Terrific material. Thank you.
    http://canadianpharmacysilo.com/
    mexican pharmacy online
    top rated canadian pharmacies online
    canadian prescriptions
    online pharmacies of canada

  17. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Fantastic material. Kudos.
    http://talahicc.com/
    international pharmacies that ship to the usa
    canadian pharmacy online
    drug stores near me
    north west pharmacy canada

  18. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Amazing loads of awesome knowledge.
    http://canadianonlinepharmacynnm.com/
    canadian prescription
    canada pharmaceutical online ordering
    king pharmacy
    global pharmacy canada

  19. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You revealed that exceptionally well.
    https://nicktambone.com/
    canadian pharmacy
    canadian pharmacies that ship to us
    online pharmacy without prescription
    canada drug

  20. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Whoa lots of superb info!
    http://www.canadianpharmacymsn.com/
    mail order pharmacy
    northwestpharmacy
    discount pharmacy
    canadian pharmacies without an rx

  21. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You stated that terrifically!
    http://www.canadianpharmacymsn.com/
    buy prescription drugs online
    canadian cialis
    drugs for sale
    canadian pharmaceuticals online

  22. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You said it nicely.!
    http://canadianpharmacymim.com/
    best online canadian pharcharmy
    north west pharmacy canada
    best online pharmacy stores
    canadian pharmacies online

  23. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Perfectly spoken genuinely! !
    https://nicktambone.com/
    the canadian pharmacy
    canadian online pharmacies
    canada pharmacies prescription drugs
    trust pharmacy canada

  24. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put. Thank you.
    http://www.canadianpharmacymsn.com/
    prescription drug price comparison
    aarp approved canadian online pharmacies
    online pharmacy no prescription needed
    canadian pharmacies that ship to us

  25. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You’ve made the point.
    http://canadianpharmaciescubarx.com/
    prescription pricing
    canadian pharmacies-24h
    canadian online pharmacies
    canadian pharmacies without an rx

  26. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Many thanks. I like it!
    http://canadianpharmacyntx.com/
    prescription drugs canada
    global pharmacy canada
    canadadrugs.com pharmacy
    canada drug

  27. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put. Cheers.
    http://canadianpharmacysilo.com/
    legitimate online pharmacies
    canadian pharmacy online
    canadian drug store
    canadian pharmacy

  28. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Regards, Useful stuff!
    http://canadianpharmaciescubarx.com/
    canadian pharmacy king
    canadian online pharmacy
    canadapharmacyonline.com
    canadian pharmacy

  29. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Truly loads of fantastic knowledge!
    http://www.canadianpharmacymsn.com/
    legitimate canadian mail order pharmacies
    canadian viagra
    drugstore online
    canadian pharmacies online

  30. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You have made your point.
    http://canadianpharmacymim.com/
    canadian pharmacy reviews
    canadian pharmacy online
    prescription drug assistance
    london drugs canada

  31. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put, Regards.
    http://www.canadianpharmacymsn.com/
    top rated online canadian pharmacies
    canada drugs
    canada pharmacy online
    north west pharmacy canada

  32. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Very good facts, Kudos.
    http://canadianpharmacyntx.com/
    canada pharmacies online
    canadian online pharmacy
    prescription online
    canadian drugs

  33. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thanks a lot, An abundance of stuff.

    http://canadianpharmacysilo.com/
    discount pharmacy online
    canadian pharmacies online
    prescription cost comparison
    canadian pharmacies online

  34. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thanks. I like it.
    http://canadianpharmacysilo.com/
    mexican pharmacy online
    online pharmacies canada
    canadian discount pharmacy
    canadian pharmacies-24h

  35. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Seriously loads of excellent facts.
    http://canadianpharmaciesnnm.com/
    canadian pharmacy uk delivery
    canadian pharmacies online
    canadian prescriptions
    canadian pharmacies online

  36. PatrickReura says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    This is nicely expressed! !
    http://canadianonlinepharmacynnm.com/
    online pharmacy no prescription
    canada pharmaceutical online ordering
    canada pharmacy online orders
    canadian pharmacies-24h

  37. ScottEtemi says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Incredible loads of great data!
    http://talahicc.com/
    walmart pharmacy price check
    global pharmacy canada
    walgreens pharmacy
    canadian pharmacies without an rx

  38. Peterbeire says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Regards. Lots of posts.

    http://www.canadianpharmacymsn.com
    canadian drug stores online
    northwest pharmacy
    prescription prices comparison
    canadian viagra

Leave a Reply

Your email address will not be published. Required fields are marked *