welcome to the Fits small business
quickbooks online training course in
this lesson we're going to cover how to
run a statement of cash flows in
quickbooks online so follow along with
me login to your quickbooks online
account now or click the link below for
a free 30-day trial of quickbooks online
you can also click this link to access
our full quickbooks online course and
other helpful resources let's get
started the statement of cash flows
shows the flow of cash within the
business including where it came from
and how it was spent during a specific
time period depending on the type of
transaction cash flow is categorized
into three types of activities operating
activities investing activities and
financing activities operating
activities shows how much cash was
generated from operations which make up
the day-to-day running of the business
investing activities shows how much cash
was generated from assets purchased for
the business such as equipment
regardless of whether the transaction
was paid in cash or financed it would
appear under investing activities in
addition any portion that was financed
will also appear under financing
activities financing activities shows
the cash that has come in or gone out of
the company for the purpose of financing
all of the other business activities for
example any funds invested in the
business by the owner and any loans
would show up in this section cash flow
is essential to stay in business
if you don't have enough cash to meet
your obligations and to reinvest then
you won't be in business very long and
know how to run a profit and loss
statement lesson we discussed the
importance of reviewing your income and
expenses and looking for trends that can
give you insight into the contributing
factors to your bottom line and then how
to run a balance sheet lesson we
discussed how that report will provide
you with the net worth of your business
as of a point in time however these two
reports alone cannot tell you everything
that you need to know to make good
business decisions you need all three
reports the profit and loss statement
the balance sheet and the statement of
cash flows to give you a complete
picture of the health of your business
to demonstrate the components of the
cash flow statement we will take a look
at the cash
statement for a fictitious company paul's
plumbing as we discussed previously
there are three sections of the cash
flow statement as shown here by the
three red boxes there are also several
different terms you need to understand
net income this figure will directly
come from the bottom line of your profit
and loss statement the net income here
is two thousand ninety one dollars and
fifty three cents net cash provided by
operating activities
this section is comprised of the net
cash inflow and outflow of the
day-to-day business operations for pause
plumbing this includes any cash
generated from the sale of plumbing
products and services net cash provided
by operating activities is seven
thousand six hundred eleven dollars and
73 cents as indicated here in item two
net cash provided by investing
activities this section is comprised of
the net cash inflow and outflow of any
investments made in the business paul
purchased a truck to use in his business
so that purchase is listed here as a
cash outflow item of ten thousand
dollars net cash provided by financing
activities this section is comprised of
the net cash inflow and outflow of any
type of financing that supports the
business operations in this example paul
financed a truck so the amount of the
loan that he took to purchase the truck
is listed in this section as a cash
inflow item net cash provided by
financing activities is twelve thousand
two hundred fifty five dollars and
ninety nine cents here in item number
four net cash increase for the period is
nine thousand eight hundred sixty seven
dollars and seventy two cents as
indicated in item number five it is a
total of all three activities operating
activities investing activities and the
financing activities cash at the end of
the period this is going to be the total
of cash at the beginning of the period
in this example that was five thousand
five hundred dollars plus the net cash
increase that we just discussed of nine
thousand eight sixty seven seventy two
that gives us a total of cash at the
the period of 15,000 367 72 let's go
ahead and go into QuickBooks and Roenick
statement of cash flows from the home
screen you want to go ahead and click on
the reports menu on the left hand side
from this screen you want to make sure
that you are on the all reports tab and
then you want to scroll down and locate
the link that's a statement of cash
flows from this screen we've got several
options similar to what we saw with our
balance sheet report and our profit and
loss statement so the first button is
the print button which allows you to
print a hard copy of the report the
email option allows you to email this
report to anyone that you would like to
review it for example your CPA or tax
professional the export button if you
click the arrow to the right you have
the option to export this report to
excel the customize button this feature
allows you to customize a number of
areas of the report this includes
general areas of the report as you can
see here you can customize the rows and
columns lists the numbers and how
they're formatted and the header and
footer information here the next thing
you'd want to do is determine the time
period that you'd like to run the
statement of cash flows for so you can
select from the drop-down the preset
transaction dates or QuickBooks has or
you can actually enter a specific
timeframe here in this particular box
once you make your selections be sure to
click the run report button and you've
got your statement of cash flows now
that you have a better understanding of
what the statement of cash flows will
tell you about your business and how to
create one in QuickBooks Online there
are a few things you should implement as
soon as possible as you now know the
statement of cash flows pulls several
key numbers from both the profit and
loss statement and the balance sheet
therefore it is very important that the
following have taken place before you
run a statement of cash flows first be
sure QuickBooks is up to date with all
income and expenses second reconcile all
bank and credit card accounts third be
sure to resolve any discussion
is found in your review of the profit
and loss statement and the balance sheet
report for more information on the
profit and loss statement and balance
sheet view our other lessons by clicking
this link here make sure all assets and
liabilities have been recorded in
QuickBooks and finally review your
statement of cash flows on a monthly
basis that wraps up the lesson on how to
run a statement of cash flows and
quickbooks online to access our full
quickbooks online course or any of the
other lessons in this series click this
link you can also find a link below this
video for a free 30-day trial of
quickbooks online if you have feedback
about this course or if you have any
questions please leave a comment below
also don't forget to subscribe