Dictionary / Cash-Flow Statement
What does Cash-Flow Statement mean in accounting?
Quick definition
Cash & bankingA statement of cash income and outgo between two given dates, its components often identified with items appearing in balance sheets and income statements. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
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Examples
A profitable month that still used cash
You run a cabinet shop. On April 4 you close March and print the income statement: $12,400 of profit. A kitchen client still owes $18,500 from a March 22 install, and on March 11 you paid an equipment supplier $9,200 for a used CNC. Run the cash-flow statement for March 1–31: operating cash is short of profit because accounts receivable rose, and the CNC is cash outgo tied to a balance sheet asset, not a March expense. Use that report when you need cash in and out for the dates, not just profit.
A checking recap is not the statement
You run a screen-print shop. On July 8, the bank asks for a cash-flow statement with the Q2 financials. You send a June 30 checking recap: opening $22,400, deposits and withdrawals, closing $19,100. That is a cash statement, a periodic on-hand report, not a cash-flow statement. Print the formal report of cash income and outgo for April 1 through June 30 from QuickBooks Online; its lines should identify to the income statement and balance sheet you already closed. Send that with the rest of the package.
Why it matters
A cash-flow statement is the formal report of cash in and cash out between two dates, with lines that usually identify to income statement and balance sheet items. You print it after a close: every month if you watch cash as a statement, and a few times a year when a lender or CPA wants the full package. Skip it and a profitable period can still leave checking short, because unpaid invoices, inventory buys, loan draws, and asset purchases do not hit profit the way they hit cash. This is not cash flow (tracing an item through the books), not a daily cash statement of cash on hand, and not changes in financial position (the older working capital sources-and-uses report).
Further reading
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What is Cash-Flow Statement in bookkeeping?
A statement of cash income and outgo between two given dates, its components often identified with items appearing in balance sheets and income statements.
When should I use Cash-Flow Statement?
Use Cash-Flow Statement when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Cash-Flow Statement?
Cash-Flow Statement is used for cash-flow statement entries, while C&F covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.