The cash flow statement module provides an analysis of the cash flows of an entity over a number of accounting periods, showing how changes in income statement and balance sheet accounts affect cash and cash equivalents.
The module collects cash inflows and outflows from modules within the operational, working capital, assets, capital, and corporate taxation module areas, and links out the change in cash held during each period to the balance sheet. The module also links out cash flow available for dividends to the ordinary equity module (which is used to determine dividends declared) and cash flow available to equity, cash flow available to capital providers and tax paid to the valuation modules.
- Cash Flow Forecasts
Microsoft Dynamics D365 Business Central provides ways to predict the cashflows for future by using and analyzing the data from previous years. This helps the organizations to compare the cashflows and analyze the data more efficiently. Additionally, the cashflow forecast helps the companies in better understanding of the cashflow position and forecasting it based on the historical information.
Chart of Cash Flow Accounts
Chart of Cash Flow accounts is the summary of information including where the data is being pulled from. Microsoft Dynamics D365 Business central allows the businesses to choose from the general ledger accounts the ones that impact the cash flows. This is a key feature in helping company to personalize their cashflow forecast by prioritizing the accounts from the general ledger.
Cash Flow Revenues
With addition to chart of cashflow accounts, Microsoft dynamics 365 Business Central also provides options to segregate the revenue accounts such as income and Sales. This helps to focus solely on those and get a better picture of revenue cash flow for the specific time period. Additionally, this also helps the company to analyze the cash flow position of the revenue accounts and to take appropriate steps in the future.
Cash Flow Expenses
Similar to the cash flow Revenue, MSD365 BC also allows you to get cash flow expenses by selecting the expense accounts only. The cash flow expense provides the true analysis of the cash used for the expenses. Also, it helps to organization on managing their expenses and cash outflow for the future.
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