Managing the cash flow statement preparation is more important in business than ever. The financial expert at GLG Accounting helps to figure this out. Get Your Free Consultation Today. So You Can Have Us Handle the Cash Flow Statement Preparation.

1. Let us talk about the basics first
Cash Flow Statement Preparation is a process to document all cash related data. It is always good to start with; the
basics so let us provide you with some basic information about the cash flow statement.
By definition,
We can define it as a financial report prepared to provide detailed information about the cash that moved inwards to
or outwards from the respective company's account. This kind of report, suggest the company`s current position in
terms of cash or assets equivalent to cash.
So now, we know that the statement for cash flow is one kind of a financial statement just
like,
 The balance sheet
 Income Statement
 Statement of stockholders' equity
Parts of a Cash Flow Statement

2. There is a standard procedure for Cash Flow Statement Preparation. Throughout the world, each cash flow
statement comes with three mandatory or primary sections. The fourth section contains supplementary information,
and it comes on the optional basis. While as we have mentioned in the primary sections, and it’s not possible to
generate a report while lacking in any one of the three contents mentioned below,
(1) Operating activities
This section frames and declares all the inward or outward flow of cash that earned or consumed by a company
during a defined period for maintaining a normal operation. Here the word, “operations” includes all those activities
that a business performs to provide an end user with either a product or services. As an example, consider a
manufacturer operating a plant to prepare soap. Whatever money it is consuming or losing in different disciplines
like, purchasing of raw material, employees remunerations, electricity cost, maintenance cost, etc. will represent the
outward flow under the category of Operating activities. While on the other hand, the revenue it will generate by
selling soap in the market will represent the inward flow or earnings under the same category.
(2) Investing Activities
This section deals with the cash flow in term of sales or purchases made in terms of assets. As an example you can
consider, land, equipment, marketable securities, loans received back or supplied payments made for acquisitions
and cash earned through acquisition. It is the second primary section, which we take into consideration during the
Cash Flow Statement Preparation
(3) Financing activities
This section includes information about the payments made or cash received through financial instruments. Few
good examples of such instruments include bonds and shares. In terms of outflow, we can mention the dividends
paid to shareholder
What are the benefits?
You cash flow statement provides you with comprehensive insights about your business. In most countries of the
world, an entity engaged in business and some places, even the individuals are the law bound to maintain this report.
In case if you are running a corporation then your shareholders have every right to ask you about the details of cash
flow across the company`s treasure.
It is good to hire professionals.
It is not only good but an excellent thing to do. Cash Flow Statement Preparation services are vastly
available in the market. A professional with a better understanding knowledge of the subject can come up with an
inclusive and broad kind of report. Such a systematic and thorough report itself can provide you with a better
understanding of the impact of each of your mode which on the business.
Things to double check before hiring
While outsourcing any financial services, you should prefer relevant experience. You should never hand over such a
critical job to an inexperienced freelancer. Choosing professionals, oriented company will help you a lot in the
course of your Cash Flow Statement Preparation.
Address: 400 Central Ave, Suite 340B, Northfield, IL 60093, USA
Phone: (312) 754-9377

3. Referral: https://www.glgaccounting.com/cash-flow-analysis/