Cashflow statement

1

Hi,

I read somewhere that a cashflow statement for Manager is under construction. Is there any tentative date?

It would be useful to have it divided by Tracking Codes

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3

it will be nice, Manager can support Cashflow statement in custom format

4

Now that account codes are alphanumeric you can do this in a semi-automatic way through trial balance and excel. You had tags in account codes and you do the cash flow statement in excel through sum.if

6

Added to the latest version (21.2.12). Both direct and indirect methods are supported.

7

This is the most awesome addition to this software since I started using it in June 2017.

My first question was going to be, how to designate the type of activity, but then I discovered it can be done in the balance sheet chart of accounts.

Thanks for this magnificent addition to the program.

8

I need to investigate further, but the two methods produce different results for cash at the end of the period. And neither agrees with the balance sheet.

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9

@Tut no need to investigate further. If you can upload .manager business demonstrating the issue, that’s enough for me.

10

Thanks @lubos, I think that it is a big step forward.

To make it functional may I suggest to:

  1. Add subgroups for the accounts under operative, financing etc etc. This can be also achieved through the use of the existing groups of the CoA or with custom subgroups (I would suggest the first one).
  2. Add the possibility to collapse groups and/or subgroups.

I’m suggesting these because, with large chart of accounts, this report, right now is unreadable and so not very useful.

11

Is there a guide for this? I don’t understand the differences between indirect and direct. In addition, it would be good to have it explained how to use the cashflow report as I presume it’s used to project available funds in each month which is what I really need? Understanding the purpose and use of the cashflow statement is vital for non accountants like me.

12

Please read this topic:

Indirect Method Definition.

13

A cashflow statement is a report detailing how the cash balances were effected by income, expenses and movememts in balance sheet items.

It reports on past events and periods.

Nothing in Manager gives a forecast of future cash flows or income.

14

Basically the indirect method uses increases and decreases in balance sheet line items to modify the operating section of the cash flow statement from the P&L (accrual flows) to calculate the net cash flow of the period.

15

Thanks. I will have a look at the guide this evening when I finish work today.

What is purpose of seeing how cash balances were affected by income, expenses etc in the past. By present time it’s too late to do anything about it.

For me, what I would be trying to achieve is to ensure that I have adequate funds in each month for whatever expenses or inventory purchases I need to make. So future recording is what I need. The past for me would be irrelevant as it would be too late to make changes to spending patterns obviously.

16

Accounting is concerned about recording the position and status of companies accurately.

Management Accounting deals with future planning, budgeting and forecasting. This is not usually done using accounting software such as Manager.

Most small companies would use a spreadsheet to do this

17

No, there is no Guide. This and your other questions are not relevant to Manager, per se. They are basic accounting questions and can be answered by any of the accounting instruction resources on the web. Think of this new financial statement as an enhanced version of the Receipts and Payments Summary (which used to be called the Cash Flow Summary), but in a format preferred by accountants.

18

I tested the Cash Flow Statement Using the indirect method, but the result is wrong.
the “Cash at the end of the period” not equal the cash at the end of the period in the balance sheet.
unless you consider that the money in the bank is not cash.
But the Cash Flow Statement assumes that the cash is referring to the cash money and cash in the bank accounts.

19

In my case the direct method is wrong and the indirect is right. I think that it is still WIP. I hope @lubos will also add sub groups because right now, with my long CoA it is also unreadable.

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20

@Davide, have you tried any cash flow statements with comparative columns? I discovered that, for the indirect method, a subset of accounts was duplicated. I could not identify any pattern in which accounts were duplicated, and many were accounts with no balances or entries for the defined periods. But the number of duplications for the particular subset of accounts seemed to correlate with the number of comparative columns.

I have businesses in which:

  • Balance sheet, indirect method CFS, and direct method CFS all match
  • None of the above match
  • Indirect method CFS matches balance sheet, but direct method CFS is different
21

I will have a look later or more probably, tomorrow.

I had a quick glance this afternoon at my accounts in one business using the indirect method, but couldn’t understand what was going in the list of income/expense accounts which showed a lot of entries in the report.

22

Very busy day at work. Tomorrow I’ll have more time, given also that I have indirect cash flow from the previous semester calculated manually. I will crosscheck them to see discrepancies.