How does Flow interpret my data?

How does Flow work?

 

Flow is a fantastic tool to help you get to grips with your cash flow, but that can be tricky if you can’t trust the details, figures and insights that Flow is generating for you!

That’s where this guide comes in: we are going to breakdown the key metrics, calculations and rules that govern how Flow interprets your data.

And don’t worry, you wont need to have an accounting qualification to understand this stuff, we’ll keep it as jargon-free as possible!

 

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General Flow rules

 

There are some consistent rules across Flow for certain figures and metrics, let’s break them down;  

 

  • Customer invoices that result in cash coming into the business are referred to as invoices 
  • Supplier invoices are referred to as bills
  • Invoices dated in the future and draft invoices are excluded from our calculations 
  • Average payment days - is a metric used across Flow, unless stated otherwise this looks at invoices paid in the last 90 days and takes the average of the difference between the issue and final payment date
  • All Flow values are based on the organisations base currency as set in the cloud accounting suite, so if Xero is set up to use USD we will also use it
  • Flow uses localisation for dates, so dates will display in the correct format for your region

 

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How does Flow deal with credit notes?

 

Flow fully incorporates credit notes into its metrics. If we ever tell you what an invoice is worth, or how much is due to be paid, this will factor in the value of any attached credit notes.

If the invoice has been fully paid off by credit notes, then we will exclude it from all calculations so there is no unwanted impact on calculations such as average invoice value.

 

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Want to learn more?

 

We have a range of guides and videos to help answer all of your Flow questions! Continue getting to know Flow by clicking here.

 

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