Spotlight: Statement of Cash Flows Report

November 2019    Tags: , , ,

The Statement of Cash Flows Report (Reports | Statement of Cash Flows) in GLS shows how the firm’s cash position has changed over a period of time. It shows the amount of cash earned from profit, where you received additional cash, and where your cash was spent. The report shows how much cash was provided or used by the following types of activities:

  • Operating Activities – Shows how much cash was provided by profit-making activities, such as the sale of goods and services.
  • Investing Activities – Shows how much cash was invested in assets such as equipment and furniture.
  • Financing Activities – Shows how much cash was provided by long-term liabilities and equity. These financing activities often include loans and investments by the owner. They also include any reductions in equity due to owner draws.

Accounts can be classified into the three sections via Account Setup. All Detail Balance Sheet Accounts, except for ones marked as a Bank Account and the Retained Earnings account, can be configured to display in one of the three designated sections. Bank Accounts are excluded because the purpose of this report is to calculate the cash amounts based on the other information. The Retained Earnings account is also excluded because the Net Income (the net change in Retained Earnings) displays at the beginning of the report as a starting point.

To classify accounts as operating, investing, or financing

  1. From the File menu, point to Open and select Chart of Accounts.
  2. Double-click the desired account.
  3. From the Report Options tab, in the Statement of Cash Flows Classification section, select the desired classification.
  4. Click Save.
  5. Repeat steps 2-4 for each account as needed.
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