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mark366
May 27, 2024
Question

One of Five Property's Principal showing on Statement of Cash Flows

  • May 27, 2024
  • 1 reply
  • 0 views

Hello

I use QB desktop for a rental real estate business.  I'm trying to see how much cash I have at the end of the month.  When I run my statement of cash flow one (five total) of the properties has the Principal payment listed under "Investing Activities".  There are five properties total and this is the only one that has the principal payment listed on the statement of cash flows.  I checked the Chart of Accounts and it is a long term liability just like the others.  Any ideas what's going on?

 

Also one of the properties has the Escrow payment listed under "Operating Activities" while the other four are under "Investing Activities".

 

This is driving me a little crazy, any help would be appreciated.

Thanks!

1 reply

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Ethel_A12
May 27, 2024

I'll help you fix your cash flow statement in QuickBooks Desktop, @mark366.

 

The cash flow projection will be based on the type of account you select. The Cash Flow Statement will assume that all transactions involving current assets and liabilities pertain to operating activities. It will also account for the accumulated depreciation of fixed assets. 

 

In contrast, any transactions affecting fixed assets are classified as Investing activities. This category covers the disposal of long-term assets, as these transactions directly impact the cash flow.

 

Financing activities in a cash flow statement encompass transactions that provide funding for the business. These transactions affect long-term liabilities and equity.

 

I recommend running a Profit & Loss or a Balance Sheet report to verify the transactions and the accounts used since the Cash Flow statement only depends on how you record the payments received.

 

You can also consult an accountant to help you review if all the transactions are properly recorded. If you do not have one, you can find one using our Find a ProAdvisor portal here: https://quickbooks.intuit.com/au/find-a-proadvisor/.

 

Lastly, here is an article to guide you in tracking cash flows: Track your cash flow in QuickBooks Desktop.

 

Let me know if you have questions about the statement of cash flow in QuickBooks Desktop. I'm always here to help. Have a great day.

M
mark366Author
May 27, 2024

Thank you @Ethel_A12 for your response!

 

I ran the P&L and Balance Sheet statements.  P&L doesn't show principal payments or escrow, so not too helpful.  Balance Sheet shows all the Principal Payments under Long Term Liabilities grouped together, including the only one that is showing up under Investing Activities on the Cash Flow statement.  I've looked at the Chart of Accounts and the principal payments all seem to be set up the same way.  I don't understand why this one Principal payment is showing up on my Statement of Cash Flows.   The only thing I can think of is something is off with the accounts this Principal payment relates to regarding Cash Flow.  For example maybe because the building asset isn't set up correctly.

 

I used your link to search for an accountant that could help me, but there were no results.  Does that search function work?

 

Thanks Again!

S
SarahannC
May 27, 2024

I appreciate your prompt response and informing us that you have thoroughly reviewed your financial transactions and statements, mark366. I'll make sure to help you get an accountant to assist you further.

 

Yes. The search function works, but it's applicable to another region. In your case, you can visit this website to find the appropriate accountant for you. Here's how:

 

  1. Go to this link: Find a ProAdvisor.
  2. Make sure to fill in the required fields. Location, Service provided, Industry served, and Product supported.
  3. You'll automatically see the available accountants located near your area.

 

Seeking guidance from your accountant can streamline your financial workflows and ensure accuracy in reporting. 

 

I've got an article where you can get more details about the statement of cash flows: The three parts of a cash flow statement. 

 

If you have any other concerns or follow-up questions about QuickBooks reports, please post them below, and I'll be available to assist you.

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