Flow is the best way to get to grips with 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!
- - - - - -
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