QB Desktop Cash Flow Statement Issues: Detailed Guide

Are you getting inaccurate cash flow statements in QuickBooks Desktop? Don’t worry! The present guide will help you effectively understand the cash flow statement in QB and explain the processes to rectify cash flow statement issues.

The Cash flow statement is a fundamental accounting tool that helps in understanding the financial strength of the business enterprise. QuickBooks allows users to effectively manage cash flow statements. However, problems can arise in QB and suddenly prevent users from getting valid cash flow statements.

The present blog post includes a detailed description of cash flow statements and valid troubleshooting strategies to fix cash flow statement glitches.

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Understanding Cash Flow Statements in Accounting 

The cash flow statement is a fundamental concept in accounting. It helps users track and manage financial strength of the enterprise over a given time period. Typically, the cash flow statement reflects the amount of cash inflow and cash outflow over a selected time period.

You can use the cash flow statement to measure the amount of funds at your disposal at any given moment. Thus, the cash flow statement helps users measure their ability to pay their suppliers over a relevant time period.

In general, the cash flow statement of an enterprise is divided into the following three sections:

Operating Activities: This section includes cash inflow from various activities, such as the sale of products & services, dividends, interest receipts, etc. Cash outflow in this section refers to payroll costs, supplier payments, etc.

Investing Activities: Cash inflow in this section means the sale of business assets, payment from loans granted by the business, etc. Cash outflow means capital equipment purchase and loans, etc.

Financing Activities: Cash inflow here means borrowed money and proceeds from the sale of securities. Cash outflow indicates debt and dividend servicing. 

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Generating Cash Flow Statements in QuickBooks

It is easy to generate and track cash flow statements in QuickBooks. Users regularly enter all income and expenses in the QB Desktop software, and the cash flow statement is effectively generated using the same information. Here’s how you can correctly generate the cash flow statement:

Reach ‘Reports’ in the QB menu and search for ‘Statement of Cash Flows’ in the search field.

Click the ‘Statement of Cash Flows’ option and utilize the ‘Customize’ option to modify the settings.

You can set the desired time range using the ‘Report Period’ option after which you can tap ‘Run Report’ to obtain the cash flow statement.

Problems Related to QuickBooks Cash Flow Statement

Sometimes, you may discover that the cash flow statement is not correct. This technical situation occurs due to the following factors:

 Incorrect account classification (Assets, Liabilities, Equity) can often lead to discrepancies in the cash flow statement. 

The inclusion of non-cash transactions and invalid journal entries can cause problems in the cash flow statement.

Problems can occur due to improper inventory classification and an invalid date range selected for the cash flow statement.

Eradicating Cash Flow Statement Troubles in QuickBooks

You can eliminate cash flow statement troubles in QuickBooks using the following strategies:

Review each account and run the detailed financial reports to ensure correct account classification in the cash flow statement.

Enter a valid time range and eliminate inaccurate journal entries manually to fix these problems.

You can ensure correct inventory details and reconcile your bank-related accounts (such as undeposited checks) to overcome these issues.

In conclusion, generating and managing a valid cash flow statement is crucial for QuickBooks users. You must adopt all the points discussed above to manage your business’s cash flow statement accurately. For more help and information, dial +1(800)-217-0394 to contact our A2 Cloud Hosting services Team.

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