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Business Cash Flow Statement

June 25, 2017
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What it is and why it’s important to small business owners.


A Cash Flow Statement is a financial report that details the amount of cash and cash equivalents that enter and exit a company over a specified time period. The Cash Flow Statement is broken up into operating, investing and financing activities.

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How it is Used

A Cash Flow Statement is used to understand how a company spends its money and where this money comes from. It is determined by three main components of what the cash is used for: operations, investing and financing.

Operating activities’ inflows and outflows of cash show how much cash is generated based on a company’s services or products.

Investing activities are those activities in which cash is used for equipment, assets, or investments.

Financing activities relate to any changes in debt, loans, and dividends that were made with cash.

Additional Information

The Balance Sheet, Income Statement, Statement of Retained Earnings and Cash Flow Statement are all interrelated. These four financial statements are prepared in the following order: Income Statement, Statement of Retained Earnings, Balance Sheet and Cash Flow Statement. The Cash Flow Statement for a period of time should equal the cash increase or decrease between the last and current balance sheet of time periods.

For more information on how financial metrics on the Cash Flow Statement can affect your business, try our free cash flow solution, CashSage.

About the Author


Raleigh, N.C.-based Sageworks, a leading provider of lending, credit risk, and portfolio risk software that enables banks and credit unions to efficiently grow and improve the borrower experience, was founded in 1998. Using its platform, Sageworks analyzed over 11.5 million loans, aggregated the corresponding loan data, and created the largest

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About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

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