The cash flow statement
Generate the cash flow statement by the indirect method from two fiscal years, then complete the investing and financing activities.
The cash flow statement is built by the indirect method by comparing two years: the current year and the prior year. Both trial balances must therefore be imported into TeeTax.
- 1Make sure the client's prior year holds its trial balance.
- 2In Financial statements, open the Cash flow section.
- 3Operating activities are computed automatically (net income, amortization, working capital changes).
- 4For investing and financing (asset acquisitions, loans, dividends), click the suggested lines and enter the amounts: these movements call for your judgment and are not guessed.
- 5Check that the change in cash ties to the balance sheet: the displayed difference must be zero.
The cash flow statement requires the Pro plan or higher.