For small businesses a healthy cashflow is crucial. That’s why the statement of cash flows report is so useful.
It shows you the money…where it came from, and where it went.
While the Profit & Loss (or Income Statement) can tell you if you’ve made a profit it may include income and expenditure that hasn’t been paid yet, or that isn’t in the form of cash, like deprecation.
The statement of cashflows only looks at cash and groups the money going in and going out into useful categories so you can better understand the health of your cashflow.
For more information about turning this on in XERO, please contact Maurie on 0418 573 667