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MelissaSF
August 18, 2021
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Ending cash on Cash Flow report does not match ending Cash on Balance Sheet

  • August 18, 2021
  • 2 replies
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Shouldn't the ending Cash on the Cash Flow Statement always equal the ending cash on the Balance Sheet assuming the dates are the same?

 

Mine aren't matching.

 

Here's what I've already tried/checked.

  • I've checked to make sure reports are running as Accrual and not Cash.
  • I verified I'm using the same dates.
  • I rebuilt the data.
  • When I run the Balance Sheet for several Months (Jan-Jul) and compare against monthly Cash Flow reports, the ending cash for Feb doesn't match but then it matches for Mar - Jun and doesn't match in July. Off by different amounts.
  • If I run both the Cash Flow and Balance Sheet as ALL dates the cash balances do not match

 

I'm must be missing something. Any suggestions would be appreciated.

 

Thanks

Best answer by BigRedConsulting

- The Cash Flow's ending cash balance is not really an account balance, but instead a calculated amount based on how accounts are configured for the report in your preferences.

- The Balance Sheet has no line item for "cash".

 

What numbers are you comparing?

 

I don't usually pay any attention to this report, but in order to process your question I ran it and at first it came up with a nonsense number for cash on hand: way too high. 

 

I have only one bank account in use with a balance and also undeposited funds, and I figured those were the only two accounts that = cash from QB POV.

 

So, I checked out the preferences for this report and found one or two newer equity accounts that had no selection. Once I chose a category for them then the two reports matched exactly.

 

To review and update your settings for the cash flow report, go to Edit | Preferences | Reports & Graphs | Company Preferences and click the Classify Cash button.

 

Then make sure that all of your Balance Sheet accounts, from the top of the list down to the last Equity account (perhaps that will be Retained Earning) are set to one of the three categories and that none of your Profit & Loss accounts are selected (except for rare cases).

 

Then, very likely, the sum or your bank and undeposited funds account balances - as of the report date - will be the same as the "Cash at end of period" at the bottom of the cash flow report.

 

 

 

 

2 replies

AlexV
AlexV
August 18, 2021

Hi MelissaSF!

 

Thanks for posting again here. Let me assist you in running financial reports.

 

The main difference between the Statement of Cashflow and Balance Sheet is that the balance sheet shows not just the equity, but also the company's assets and liabilities while the cash flow statement records the cash activities.

 

Aside from the balance sheet, you'll want to pull up the profit and loss report to also get a detailed view of the income and expenses. Go to the Reports menu, then Company & Financial, and select Profit & Loss Detail. You can compare this to the two reports you mentioned.

 

Please check this link: Track your cash flow in QuickBooks Desktop. This will explain more on how to track cash flow and the reports needed to see how much you’ve made.

 

I'll be here if you need more help. Thanks!

BigRedConsulting
BigRedConsultingAnswer
August 19, 2021

- The Cash Flow's ending cash balance is not really an account balance, but instead a calculated amount based on how accounts are configured for the report in your preferences.

- The Balance Sheet has no line item for "cash".

 

What numbers are you comparing?

 

I don't usually pay any attention to this report, but in order to process your question I ran it and at first it came up with a nonsense number for cash on hand: way too high. 

 

I have only one bank account in use with a balance and also undeposited funds, and I figured those were the only two accounts that = cash from QB POV.

 

So, I checked out the preferences for this report and found one or two newer equity accounts that had no selection. Once I chose a category for them then the two reports matched exactly.

 

To review and update your settings for the cash flow report, go to Edit | Preferences | Reports & Graphs | Company Preferences and click the Classify Cash button.

 

Then make sure that all of your Balance Sheet accounts, from the top of the list down to the last Equity account (perhaps that will be Retained Earning) are set to one of the three categories and that none of your Profit & Loss accounts are selected (except for rare cases).

 

Then, very likely, the sum or your bank and undeposited funds account balances - as of the report date - will be the same as the "Cash at end of period" at the bottom of the cash flow report.

 

 

 

 

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