Statement of Cash Flows

A cash flow report is a mixture of totals from both the Profit & Loss Statement and the Balance Sheet.
With the income statement you only see the income and expenses and with the balance sheet you only see assets, liabilities and equity…
…but with the cash flow report you see everything from those two reports combined into one report which shows you exactly what happens to all the money flowing through your business.
This statement, like the Profit and Loss Statement, is like a video clip of what happened over a period of time (usually a month, a quarter, or a year) in the business. The Statement of Cash Flows concentrates specifically on what happened to the cash in the business over that specific period of time.

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