Written by Nils R. | Dec 14, 2020 8:00:00 AM
What is
a
Statement of Cash Flow for a Nonprofit Organization
? Trend-based Cash flow statements are considered key monthly financial reports and are used by CFOs and accountants to analyze trends in cash outflows and inflows. Some of the key functionality in this type of trend report is that it based on the month the user runs the report for, it will dynamically show the past 13 months. In other words, it is a rolling, trended statement of cash flows. The provided example is formatted as an indirect cash flow report. You find an example of this type of trend report below.
Purpose of
Statement of Cash Flow Nonprofits and associations use Statement of Cash Flow to monitor trends that affect the organization's cash position. When used as part of good business practices in a Financial Planning & Analysis (FP&A) department, an organization can improve its liquidity as well as reduce the chances that cash crunches occur.
Statement of Cash Flow
Example Here is an example of a Rolling 13 Month Statement of Cash Flow. [caption id="" align="alignnone" width="2560"]
Statement of Cash Flow Report Example for a Nonprofit Organization[/caption] You can find hundreds of additional examples
here
Who Uses This Type of
Trend report
? The typical users of this type of trend report are: Executives, CFOs, analysts and accountants.
Other
Trend report
s Often Used in Conjunction with
Statement of Cash Flow Progressive Financial Planning & Analysis (FP&A) departments sometimes use several different statement of cash flow, along with balance sheets, statement of activities, financial dashboards, budget and forecast models and other management and control tools.
Where Does the Data for Analysis Originate From? The Actual (historical transactions) data comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others. In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards? Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
