It gives you more information about where cash has come from or gone out of the business. How you are using cash over time.

Why you need this report

While the Profit & Loss shows you how much money you’ve spent and earned, it doesn’t tell you about how well you have paid or collected the cash for these activities. The cash flow statement shows the precise amount of cash you’ll have for that time period.

Predict gives you more

It’s one of the 3 core reports used in funding or investing applications. By using Predict you won’t be reliant on this report as you have daily calculated and more useful information in the Home screen, but we recommend you use it to keep an eye on the net cash flow (the net cash amount) that is predicted to come in and leave your business. Is it increasing or decreasing over time?

A quick rundown of what’s in the Predicted cash flow statement

Cash from business activities: grouped by P&L account category, so that you can at a glance see the cash impact from each account. This is cash earned or spent in the course of your regular business operations

Cash from financing and investing: is where you’ll find cash flows in and out from loans, funding, purchasing equipment, investing in other businesses etc

Starting balance: cash in the bank on the the first day of the month

Cash in: cash in for that period

Cash out: cash out for that period

Net cash balance: cash in - cash out

Closing balance: cash in the bank on the last day of of the month.

Note: Predict uses the direct method of preparing a predicted cash flow statement (if you are ever asked).

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