Hello. I am confused by how/why QuickBooks is handling my Statement of Cash Flows. As an example:I am running a statement of cash flows for June. On June 1st an Invoice of $350 was entered into Quickbooks. It was booked against accounts receivable. This invoice was paid on June 10th. My June statement of Cash flows considers BOTH events and they net each other out, thus it does not show a $350 cash event at all. This is not how I understand the statement of cash flows should work. The entering of the invoice is not a cash event and should not be reflected, just the payment, when the cash was received should be reflected. Otherwise, what is the point? My SOCF does not actually represent cash flows if it shows all these accrual events as well as through they are cash events. Is this normal?

Question

Statement of Cash Flows shows NON-Cash transactions.

Forum|Forum|1 year ago
July 8, 2024
2 replies
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Hello. I am confused by how/why QuickBooks is handling my Statement of Cash Flows.

As an example:

I am running a statement of cash flows for June.
On June 1st an Invoice of $350 was entered into Quickbooks. It was booked against accounts receivable.
This invoice was paid on June 10th.
My June statement of Cash flows considers BOTH events and they net each other out, thus it does not show a $350 cash event at all.

This is not how I understand the statement of cash flows should work. The entering of the invoice is not a cash event and should not be reflected, just the payment, when the cash was received should be reflected.

Otherwise, what is the point? My SOCF does not actually represent cash flows if it shows all these accrual events as well as through they are cash events.

Is this normal?

QuickBooks Desktop

Tori B

Hi there, @pintadrew.

Thanks for reaching out to the QuickBooks Community for support. I hope you're enjoying the day so far.

The statement of cash flows helps a business owner understand the differences between net income and the activity in the cash account.

To ensure that the correct data is included in the report, you'll need to make sure that the summary report basis is assigned to Cash.

Here's how:

Click the Reports menu at the top. Then, choose Company & Financial and select Statement of Cash Flows.
Tap on the Classify Cash button located in the upper right corner.
Choose the Company Preferences tab. Then, choose the Cash radio button on the Summary Report basis.
Hit OK.

For additional information on how you can personalize the font and style of the report to show the date that you want to view, you can click this article: Customize reports in QuickBooks Desktop.

If you're still having issues with the report, I recommend reaching out to our Technical Support Team. This way, one of our agents can review your account in a secure environment and investigate the report further. You can use the link I'm including below to connect with our team directly.

QuickBooks Desktop Support

Here are some additional guides that provide more information about the statement of cash flow report:

Please let me know if there is anything else I can assist you with. Take care and have a great day!

P

pintadrewAuthor

I do not have a "Classify Cash" button in the upper right corner. Would you know why?

Rainflurry

@pintadrew

I’m not 100% but I believe they removed that feature last year in QBO.

Rainflurry

@pintadrew

QB is handling that transaction properly. Your SOCF starts with net income which includes the invoice amount of $350. It then removes it as of the invoice date because you haven't received the cash, it then adds it back as of the date paid. Therefore, you have $350 (net income) - $350 (invoice not paid on accrual basis) + $350 (invoice paid) = $350 cash flow.