Preserving the financial health and even the profitability of a business is crucial. It depends on the ability of its promoter to carefully control the inflow and outflow of money from its general treasury. Performing such task manually, especially when you are understaffed, proves to be a daunting task. To help you focus on the basics such as the service you offer, NexoPOS created a feature that automatically and accurately reports on your general treasury activity: The cash flow report. Thus, the understanding of this report will be the subject of our tutorial.

Cash flow report overview

On the strictly accounting side, the cash flow analyzes the balance of income and expenditure over a given period. In terms of revenue, it’s the result of sales realized, services rendered or even donations received by the company. Since the expenses are generally related to the exploitation (Electricity, rent, taxes, wages of the employees …).

And at the end of a period of one month, for example, you have the balance that happens to be the difference between the revenue realized and the expenditure made. Generally, the cash flow report covers one year. As you can see, this report can be seen as the barometer of your business activity.

NexoPOS, therefore, has functionality that meets all the characteristics mentioned above. Now, to access it, you must follow this path on your dashboard: Reports> Cash Flow. When you click on the “Cash flow” sub-menu, you’ll briefly see a window showing the loading of the report data.

How the cash flow report works

By default, the results displayed are those of the year outstanding. But you have the opportunity to view the results from previous years. For this, it’s sufficient to indicate the year on the field (1) provided for this purpose. Then click on the “View report” button. In addition, you have the possibility to print the report by clicking on the button “Print”.

On the table (2) of the results proper, you have on the header a line indicating the different months of the year. Then two intermediate lines indicating the entries (Incomes) and the exits (Spending) money. Finally, a line indicating the final balance (Incomes – Spending). In addition, the last column of the table gives the annual summary in terms of revenue, expenditure, and balance. Also, note that this balance may be negative. As is the case in our fictional example. Indeed no entry was made in March. But there are expenses of $ 11480.

It’s important to note that the expenses created in NexoPOS’s “Expenses” menu are taken into account in the cash flow of this table.

Thank you for reading. We hope this tutorial will help you understand the importance and operation of the cash flow report. So, if you have any questions about this tutorial, please let us know by commenting on the post.