MANAGEMENT

Detailed explanation-1: -The cash flow statement should be prepared on a monthly basis during the first year, on a quarterly basis for the second year, and annually for the third year. The following 17 items are listed in the order they need to appear on your cash flow statement: Cash refers to cash on hand in the business.

Detailed explanation-2: -The primary aim of the monthly cash flow report is to present an overview of the financial activity experienced throughout the month. Organizations rely on monthly cash flow statements to closely monitor cash inflows and outflows. Typical users of the cash flow report are CFOs, controllers, and accountants.

Detailed explanation-3: -“Cash flow” refers to the money that moves both in and out of your business each month. It’s one of the strongest indicators of the financial health of your business.

Detailed explanation-4: -The cash flow statement is a solid measure of a company’s strength, profitability, and future outlook of a company. The importance of the cash flow statement is that it measures the cash inflows or cash outflows during the given period of time. This knowledge informs the company’s short-and long-term planning.