Page Comparison

This page combines and summarizes the steps from multiple pages to demonstrate how you can add more information to your In Financial Statements, the Cash Flow statement is derived from the Profit and Loss statement . See the related pages (links on the right) for more detailed information.Suppose you want to view the earnings before interest, taxation and depreciation (EBITDA) in the Profit and Loss statement. You firstly need to add new groups to split out the interest, taxation and depreciation expenses from the operating expenses, and map the applicable accounts to those new groups. Next, you add a new calculation to determine the EBITDA value. You then need to move the new group and calculation to the position you want them display in the statement. As a result of adding the new group and calculation, you need to edit the existing Net Profitcalculation.

TipWatch this Academy video: Add a custom calculation to your Income Statement

amounts and movements in the Balance Sheet for the selected period. This method takes amounts in the Profit and Loss statement and movements in the Balance Sheet and maps them to the relevant Cash Flow groups, for example Operating, Investing and Financing activities. General ledger accounts can only be mapped to one group, which makes the direct method Cash Flow presentation easier to achieve.

Get familiar with the layout and contents

The Cash Flow statement contains the following items:

Groups	Operating	Displays the business trading activity. The relevant Profit and Loss accounts are displayed along with movements in working capital balance sheet accounts.
	Investing	Displays the investing activity of the business, such as CAPEX.
	Financing	Displays the financing activity of the business, such as the extension or repayment of loans.
Calculation row		The sum of the above three groups to calculate the net cash movement for the period.
Cash balance rows		There are two Balance rows, one for the cash at the start and the other for the cash at the end of the period. You can move these Balance rows around, but you cannot delete them.

Image Added

As with the other financial statements, you can add more groups and calculations, and reorder and rename the existing items. See examples below.

Manage the Cash Flow accounts

For completeness, all General Ledger accounts in the Cash Flow statement must be mapped to a Cash Flow group. Depending on your setup, the mapping might be done for you, in which case you should check it to ensure it is correct, as you might need to make some changes. Otherwise, you must map the accounts yourself. See Map accounts to a group.

You must specify the General Ledger accounts that are cash balances. These accounts are not mapped. The value of these accounts display in the cash balance rows in the statement. See Set the bank account in a Cash Flow statement and Common account mapping for Cash Flow statements.

Tip
The cash balances can equal your net debt (cash plus borrowings) Balance Sheet accounts, if you prefer to manage your business that way. You can have more than one setup, for example, one Cash Flow statement that displays your cash balances and another that displays your net debt balance. See Create a statement to learn how to create multiple statements.

When all the accounts are mapped correctly your Cash Flow statement should balance.

Example: Add a group for movements in Accounts Receivable

Suppose you want more visibility on how your Accounts Receivable are affecting your cashflow over the period. You can add a group for Accounts Receivable in your Cash Flow statement.

In the Statements window, click the

Profit and Loss statement in which you want to add the EBITDA row

Cash Flow statement (or if preferred, clone the Cash Flow statement and then click that to open it).
In the statement setup window, add

three groups, one for Interest, another for Taxation and the other for Depreciation.Drag the new groups up to sit below the Operating Expenses

a group for the movements in Accounts Receivable and drag it up to where you want it to be positioned, for example, just below the Operating group.
Edit the existing calculation to include reference the new group, then click Save.
Click the Accounts tab, then map the applicable accounts to the new

groups, then click Save.Back in

group.

Image Added

Example: Add subgroups for the accounts

Suppose you want to group your accounts into subgroups for easier analysis. You can add a dimension for the subgroups, then add that dimension as a level in your Cash Flow statement.

In the Statements window, click the

Profit and Loss statement again.

In the statement setup window, add a calculation for the EBITDA value. The formula is Gross Profit minus Operating Expenses.

Drag the new calculation up to sit below the Operating Expenses group, above the three new groups.

Edit the Net Profit calculation box to reflect the changes you made. The formula is now EBITDA plus any other revenue, minus the Interest, Taxation and Depreciation, minus any other expenses.

Click Save > Close > Close > Yes to rebuild the database.

Image Removed

Cash Flow statement (or if preferred, clone the Cash Flow statement and then click that to open it).
Create a new dimension for the subgroups.
Add the new dimension as a level in the statement grid.