This guide explains the Statement of Cash Flows report and configuring your general ledger accounts for accurate reporting. It is intended for advanced users.

The Statement of Cash Flows shows how cash moves through your business during a reporting period. It focuses on actual cash received and paid and helps you understand:

Where cash is coming from
How cash is being used
Whether operations are generating cash
How investing and financing activities impact cash balances

Understanding the Cash Flow Section

The accuracy of the Statement of Cash Flows depends on the Cash Flow Section field configuration. The value in the Cash Flow Section field determines where activity from that account is reported in the Statement of Cash Flows.

The following table lists example cash flow sections and their associated account types. Consult your company accounting department for your organization-specific account type.

Cash Flow Section	Account Types
Cash	Checking Accounts, Savings Accounts, Petty Cash, Undeposited Funds
Accounts Receivable	Accounts Receivable, Customer Receivables, Inter-Company Receivables
Prepaid Expenses	Prepaid Insurance, Prepaid Rent, Prepaid Service Contracts
Inventory	Raw Materials, Work in Process, Finished Goods, Merchandise Inventory
Depreciation and Amortization	Accumulated Depreciation, Accumulated Amortization
Fixed Assets	Buildings, Equipment, Vehicles, Furniture, Fixtures
Other Assets	Security Deposits, Long-Term Deposits, Miscellaneous Assets
Accounts Payable	Vendor Payables, Trade Payables
Accrued Expenses	Accrued Payroll, Accrued Taxes, Accrued Interest
Other Liabilities	Customer Deposits, Deferred Revenue, Sales Tax Payable
Financing Activity	Notes Payable, Lines of Credit, Long-Term Debt, Owner Equity Transactions
Income Statement	Revenue, Cost of Goods Sold, and Expense Accounts

Updating the Cash Flow Section for General Ledger Accounts

You can use the aACE Advanced Search to locate general ledger accounts that do not have a value in the Cash Flow Section field:

From the Main Menu, go to Accounting > GL Accounts.
Select the Search Options icon (), then select Go to Advanced Search.
Locate the Cash Flow Section field, then enter an asterisk (*).
The asterisk search operator tells aACE to search for general ledger accounts that have a value in the Cash Flow Section field.
In the Matching Records section, select Omit.
The Omit preference tells aACE to remove the general ledger accounts with values in the Cash Flow Section field from the list.
Select Perform Find.