Cash Flow

The Cash Flow statement explains why the bank balance moved when the profit figure says something different. BRAccount uses the indirect method: it starts from net profit, adds back non-cash charges such as depreciation, adjusts for the change in debtors, creditors and stock to get operating cash, then lists investing activities (fixed assets bought or sold) and financing activities (share capital and loans). Each section is mapped from GL Entry using the account types in the chart, so a wrongly typed account lands in the wrong section. A Nepali business that pays suppliers late while chasing customers will see profit on paper but negative operating cash here.

Net cash change = Operating (Net profit + Depreciation +/- working capital changes) + Investing + Financing; equals closing cash minus opening cash

1. 01Go to Financial Reports > Cash Flow.
2. 02Set Company, Fiscal Year 2083-2084 and Periodicity Yearly; tick Include Default Book Entries.
3. 03Read Cash Flow from Operations: net profit plus Rs 1,235.54 monthly depreciation, less the growth in debtors.
4. 04Read Cash Flow from Investing: Rs 1,40,000 spent on furniture and the Dell laptop shows as an outflow.
5. 05Read Cash Flow from Financing: the Rs 25,00,000 share capital received shows as an inflow.
6. 06Check the Net Change in Cash against the movement in the Cash and bank accounts on the Balance Sheet.
7. 07If a line looks wrong, fix the Account Type on the account in Accounts Setup > Chart of Accounts and rerun.

Open when profit looks fine but the bank balance feels tight. Shows where the cash actually went.

Financing shows Rs 25,00,000 share capital received; investing shows Rs 1,40,000 of furniture and a laptop added as fixed assets.