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finance-techcore
July 25, 2020
Question

Can quickbooks report cash flows using a "direct" method? To all CFOs !!! If it it can't - how do you guys see the info related to direct cash flows?

  • July 25, 2020
  • 1 reply
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    R
    RaymondJayO
    July 25, 2020

    I'll provide the steps on how to prepare a Statement of Cash Flows using a direct method, @finance-techcore. 

     

    Yes, we have a cash flow statement template that's ready for customization when using the direct method. We'll need to manually prepare it since QuickBooks Online (QBO) runs the said report on an accrual basis.

     

    First, let's gather and take note of all your cash amounts received and paid by your company. These will serve as your reference when filling out the spreadsheet below. Here are the examples: 

    • Cash collected from customers
    • Cash received from interest and/or dividends
    • Payments to employees
    • Payments to suppliers
    • Cash paid for interest and tax payments

     

    Second, let's download the cash flow statement template to manually prepare your report using the direct method. You can also run Profit & Loss and Balance Sheet on a cash basis for your other data references. From there, enter the applicable values in their respective cells. The total amounts will auto-populate based on the embedded formulas. You'll also get a sample cash flow statement to help guide you through the process, as seen in the screenshot below. 

     

    To learn more about the process above, check out this article: A Guide To Cash Flow Statements With Template (Direct Vs. Indirect Method). 

     

    Also, I recommend turning on the Cash Flow Dashboard Widget to get a clearer picture of money coming in and going out over the last 12 months. Just go to the Settings (gear) icon at the upper right and select QuickBooks Labs. Then, enable this feature and click Done. After that, you'll see this on the Dashboard menu. Here's what it looks like: 

     

    I'm here anytime you have other concerns. Take care always, @finance-techcore. 

    F
    finance-techcoreAuthor
    July 29, 2020

    Hi there!  

    thanks for the template. 

     

    Can QB do this for me automatically?  You have supplied me with a template but how do I get the info? For instance "cash received from customers" - where do I get this information?  

      AlcaeusF
      AlcaeusF
      July 29, 2020

      Thanks for getting back to us, @finance-techcore.

       

      Currently, the option to automatically let QuickBooks Online (QBO) pull up the cash flow statement template for you is not yet available. You need to download it manually and fill or enter the applicable values, as mentioned by my colleague above. Also, you can use the  Profit & Loss and Balance Sheet on a cash basis reports for your reference.

       

      I can see how having this option would be helpful for you and your business. Rest assured that I'll pass along your suggestion to our Product Developers. They're always looking for ideas to consider on how to improve QBO.

       

      In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features.

       

      Just in case, I'll add these articles for future reference:

       

       

      Reach out to me in the comment section below if you have any other issues or concerns. I'm more than willing to assist. Have a good one!

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