Cash Flow Overview
| Description | This article helps you navigate through Forwardly’s cash flow area. |
| Objective | At the end of this article, you should understand the cash flow area well. |
| Estimated reading time | 2-3 minutes |
Introduction to Forwardly Cash Flow
Cash flow is one of the most essential financial parameters in financial accounting. In this article, we will understand Forwardly’s Cash Flow area, where a company can quickly look into a business’s past, present, and forecasted cash flow.
| Tip: The Cash Flow screen may seem overwhelming at first sight; however, once you have understood the various parts of the screen, it is more manageable than it seems. |
Forwardly utilizes information pulled directly from your connected accounting software system; once imported, it highlights insights such as the Cash Flow Ratio, Days Cash on Hand, Outstanding Invoices & Bills, and more.
Exploring the Cash Flow Area
In the middle of the Cash Flow area, the Actual & Projected Cash Flow graph shows an interactive graph of a business’s cash flow based on collected data and our system forecasts.
| Tip: Explore the Payments module to see all outstanding bills, and request instant payments from your clients. |
In the Actual & Projected Cash Flow section, the date range can be set anywhere from one year in the past to one year in the future, along with an associated frequency, with valid frequency values being Daily, Weekly, and Monthly.
Below the Actual & Projected Cash Flow graph, you can see the Cash Flow Table. Here, the cash flow data is segregated into Opening Balance, Cash In, Cash Out, and Closing Balance. The Cash In and Cash Out sections are further broken down based either on the Chart of Accounts from your connected accounting software or manual entries.
Top Inflow and Top Outflow
The Top Inflow and Top Outflow areas allow you to toggle between highlighting the top five Chart of Accounts responsible for money coming in or money leaving a business.
Conclusion
The Cash Flow area has many functions that allow businesses to review their cash flow. Use it to analyze potential future financial performance and stay on top of upcoming financial challenges.