Some of these expenses, and revenue is not incurred or earned as cash in the year. The income statement shows the profit and loss profile of the company, taking into consideration revenue made and expenses incurred due to the producing, marketing, administration and ultimately the selling of the products for the past 1 year of reporting. Here is a sample cash flow statement of the parent company of our favorite Ramen store Ajisen Ramen This shows the cash flows from in and out of the business in 3 main categoriesįor me, I pay particular attention to the income statement and cash flow statement when I am assessing business to put my wealth in, when prospecting for stocks to purchase. This shows the current financial strength of the business This shows on an accrual basis, the profit and loss of the business If your net cash flow is negative, there are some personal money management problem there that you need to resolve.Ĭompanies doing business needs to publish financial reports indicating their performances of their business in numbers.

If your net cash flow is positive, its a good situation to be in. This refers to the aggregate of your cash inflow minus cash outflow. This refers to cash that flows from your assets to another party’s accounts Reimbursements from your employers, friends who you lend money to.Cash flow from your savings deposit, stocks, bonds, business and properties.Income you earn from your job, your side hustles like tuition, weekend job.This refers to cash that flows from another party to your assets There are 3 sub terms you need to be aware of: Usually it is from one entity’s asset to another entity’s asset. Notice they are always moving from one place to another place. There will be a cash in flow from the business account of the stock’s underlying business to your bank savings account A stock you own pays you a cash dividend.VISA and Mastercard will mediate a cash flow from your bank account to Zalora’s merchant account. You use a debit card to pay for the dress. You decide to buy a dress from online store Zalora.The remainder of your salary will be a cash inflow from your employer’s company bank account to your savings account The CPF portion of cash flow will flow from your employer’s company bank account to CPF. There is a CPF Government Forced Saving and the remainder is your take home disposable income. Cash flow tells us where the cash is moving to. This means the cash will move from one place to another place. The difference between cash and cash flow is the word flow. It is liquid money that belongs to you, that you intentionally keep it in your bank savings account under your possession, that you can tap when you need it. You may in the past think that when someone talks about cash flow and cash they are the same thing.Ĭash is an asset. What is Cash Flow and how is it different from Cash

Tools that can help you track your Cash Flow on the Fly and show your Cash Flow Status on Demand.

How can you create your Personal Cash Flow Statement.

Why your Personal Cash Flow Statement is Important.

What is the Personal Cash Flow Statement.

It also provides you with an opportunity to re-allocate your cash flow to bring your money in alignment with your goals in life. A personal cash flow statement can provide clarity in your life, and serves as a personal review whether you are managing your life well.

Family cashflow