Cash Flow
Overview
Below is a clear, business‑focused explanation of the Cash Flow report in Dafater.
Cash Flow Report – Business Overview
What Business Information This Report Provides
The Cash Flow report shows how cash moves in and out of your business during a selected period. It explains: - Where cash is coming from (customer receipts, loans, investments, asset sales) - Where cash is going (supplier payments, salaries, expenses, loan repayments) - The net change in cash balance over time
Unlike profit reports, this report focuses strictly on actual cash movement, not accounting profit. It answers a critical question for management:
“Do we have enough cash to run the business and meet our obligations?”
When and Why to Use This Report
You should use the Cash Flow report when: - Monitoring liquidity and day‑to‑day cash health - Planning payments, payroll, and expenses - Reviewing financial stability before making major decisions - Preparing for management reviews, audits, or financing discussions - Comparing operational performance across periods
It is especially important during: - Rapid business growth - Tight cash conditions - High investment or loan activity - Seasonal fluctuations
Key Sections and What They Mean for Business
The report is typically grouped into three main sections:
1. Operating Activities
Shows cash generated or used by core business operations. - Customer payments - Supplier payments - Employee salaries - Operating expenses
Business meaning:
Positive operating cash flow means the business can sustain itself from normal operations.
2. Investing Activities
Shows cash related to long‑term assets. - Purchase or sale of equipment - Investments or asset disposals
Business meaning:
Negative cash flow here usually indicates business expansion or asset investment.
3. Financing Activities
Shows cash related to funding the business. - Loans taken or repaid - Capital introduced by owners - Dividends or drawings
Business meaning:
Helps assess dependence on external funding and debt management.
Important Columns and Their Business Meaning
Account / Activity
Indicates the source or use of cash.Inflow
Actual cash received during the period.Outflow
Actual cash paid during the period.Net Cash Flow
Difference between inflow and outflow, showing whether cash increased or decreased.Opening Balance
Cash available at the start of the period.Closing Balance
Cash available at the end of the period — critical for short‑term planning.
Available Filters and Their Business Purpose
Company
Analyze cash flow for a specific legal entity.From Date / To Date
Review cash flow for a month, quarter, or year.Account / Cash or Bank Account
Focus on specific cash or bank balances.Finance Book (if applicable)
Separate statutory and management reporting views.
These filters help management zoom in on the right time period or business unit for better decision‑making.
How to Interpret the Results for Business Decisions
Positive Operating Cash Flow
Indicates a healthy, self‑sustaining business.Consistent Negative Operating Cash Flow
Signals risk, even if profits appear positive.High Financing Inflows
May indicate reliance on loans or external funding.Low Closing Cash Balance
Warns of potential payment delays or liquidity stress.
Use the report to decide: - Whether to delay expenses or investments - If additional funding is required - When to accelerate customer collections - Whether cost controls are needed
Common Use Cases and Scenarios
- Monthly cash review by finance teams
- Cash planning before payroll or supplier payments
- Board and management reporting
- Loan or investor discussions
- Comparing actual cash flow against budgets
- Evaluating business sustainability during expansion
Summary
The Cash Flow report in Dafater is a vital management tool that shows the real financial strength of the business. It helps leaders move beyond profit figures and make informed decisions based on actual cash availability, ensuring smooth operations and long‑term stability.
Report Information
- Module: Accounts
- Related DocType: GL Entry
- Report Type: Script Report
- Standard: Yes