Why Cash Flow Matters More Than Profit
A business can be profitable on paper but run out of cash. The Cash Flow Statement shows the actual movement of cash in and out of your business — making it one of the most important financial reports.
Accessing the Cash Flow Report
Go to Reports → Cash Flow Statement. Choose your reporting period and whether to view the Direct or Indirect method:
- Direct method: Lists actual cash received and paid (simpler to read)
- Indirect method: Starts from net income and adjusts for non-cash items (standard for accountants)
The Three Sections
1. Operating Activities
Cash from your core business operations:
- Cash received from customers (payments on invoices)
- Cash paid to suppliers and employees
- Tax payments made
- Interest received/paid
A healthy business should have positive cash flow from operations.
2. Investing Activities
Cash from buying/selling long-term assets:
- Purchase of equipment, vehicles, or property (negative = cash out)
- Sale of assets (positive = cash in)
- Investments in other companies
3. Financing Activities
Cash from debt and equity transactions:
- Business loans received (positive)
- Loan repayments (negative)
- Owner contributions (positive)
- Owner drawings or dividends (negative)
13-Week Cash Flow Forecast
Acculyt AI's Cash Flow Forecast projects your cash position 13 weeks into the future using:
- Unpaid invoices (expected payment dates based on client payment history)
- Upcoming bills and payroll
- Recurring subscriptions
- AI-predicted future sales based on historical patterns
Access this at Reports → Cash Flow Forecast. The forecast highlights any weeks where your cash balance is projected to go negative, giving you time to arrange financing or delay non-critical payments.