# Read the cash flow statement

Review cash movements using the direct or indirect method for a selected period.

Canonical: https://demo.qixcount.com/help/reports/cash-flow-statement

Who can do this: Owners, or people with *View financial reports*

Where: Reports, then Cash flow

The cash flow statement groups changes in recorded cash into operating, investing and financing activities. You need **View financial reports** permission, or owner access.

## Choose dates and a method

1. In General, open **Reports**. In Nonprofit, use **Other reports** under **Nonprofit**, **Reports**, or the shared **Reports** group when shown.
2. Select **Cash flow**.
3. Enter **From Date**.
4. Enter **To Date**.
5. Select **Method**.
6. Select **Generate**.

The initial range runs from the current fiscal year's start through today. Both boundary dates are included.

**Indirect Method** starts with the income statement's net income and adjusts it for recorded noncash expenses and changes in current operating assets and liabilities. **Direct Method** groups posted transactions involving cash accounts by their other account entries.

These methods change the presentation of cash activity. They do not switch your books to cash-basis accounting.

![Cash flow statement with date range, method and activity totals](https://demo.qixcount.com/images/help/reports-cash-flow.webp)

## Read the figures

| Label | Meaning in this report |
| --- | --- |
| **Beginning Cash** | Selected cash-account balances before the starting date. |
| **Operating** | Operating cash inflows minus outflows, or net income plus the indirect adjustments. |
| **Investing** | Cash activity classified to investing accounts, such as non-current assets. |
| **Financing** | Cash activity classified to financing accounts, such as equity and long-term debt. |
| **Net Change** | Operating, investing and financing totals added together. |
| **Ending Cash** | Selected cash-account balances through the ending date. |

General selects asset accounts using cash or bank subtypes and certain account names and codes, including inactive accounts. Nonprofit selects active accounts. The result can differ from a single bank account's balance. Account settings also affect how activity is classified.

When a posted journal combines cash with debit and credit entries in different cash flow sections, those section amounts appear gross: the inflows and outflows are shown separately. Net cash remains correct. A review note counts these journals and names up to five by reference, or by date and description when no reference exists. Use the general ledger to review their classification.

If **Reconciliation Difference** appears, the recorded ending cash differs from beginning cash plus the calculated change. The report shows this difference; generating it does not adjust the books.

## What happens next

Use **Compare With** to select **Previous Period** or **Same Period Last Year**, then generate again. Select **Analyze** to request Qix's explanation of the displayed scope.

Use the [general ledger](https://demo.qixcount.com/help/reports/general-ledger) to inspect the accounts behind an amount, or [export and print](https://demo.qixcount.com/help/reports/export-and-print-reports) the statement.