{"id":14019,"date":"2024-12-23T06:46:38","date_gmt":"2024-12-23T06:46:38","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=14019"},"modified":"2025-12-23T02:09:57","modified_gmt":"2025-12-23T02:09:57","slug":"how-to-prepare-cash-flow-statement","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/how-to-prepare-cash-flow-statement\/","title":{"rendered":"Learn How to Prepare a Cash Flow Statement for Your Business"},"content":{"rendered":"<p>Cash flow statements, revenue reports, and balance sheets provide essential financial insights that influence organizational decision-making. While all three are valuable for evaluating a company\u2019s financial health, many business leaders consider cash flow statements to be the most crucial.<\/p>\n<p>For this reason, numerous companies rely on robust <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/top-accounting-software-philippines\/\"><span data-sheets-root=\"1\"><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/top-accounting-software-philippines\/\" target=\"_blank\" rel=\"noopener\">accounting platforms for Philippine businesses<\/a><\/span><\/a>\u00a0to manage their cash flow statements effectively. Business owners, managers, and stakeholders use cash flow statements to gain a deeper understanding of their organization\u2019s value and overall financial health, supporting informed decision making.<\/p>\n<p>Integrated accounting software can streamline and optimize this process. Regardless of your role, Ang pag-aaral kung paano ihanda at unawain ang mga pahayag sa pananalapi ay makakapagpahusay ng iyong pang-unawa sa mga operasyon ng iyong kumpanya at makakatulong sa pangmatagalang tagumpay nito.<\/p>\n<p><div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; *\/\r\n\t\t}\r\n\t}\r\n<\/style>\r\n\r\n<style>\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc > li > ul {padding-left: 20px;margin-bottom: 0;}\r\n\t#list_toc{height:max-content;transition:ease-in-out}\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc_float li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_float li a {padding:3px 7px}\r\n\t#list_toc_float li a {\r\n\t\tdisplay: block;\r\n\t\tcolor:#000;\r\n\t\tmargin-bottom: 10px;\r\n\t\ttransition:all 0.2s ease-in-out;\r\n\t\tfont-size:15px\r\n\t}\r\n\t#list_toc_float li{list-style:none;list-style-position:inside; margin-left:0;}\r\n\t#list_toc_float a:hover{color:#b1252d;}\r\n\t\r\n\t#list_toc_float li a{margin-bottom:0px}\r\n\t#toc_group_float{\r\n\t\tline-height: 24px;\r\n\t\tmax-height: calc(100vh - 100px);\r\n\t\toverflow: auto;\r\n\t\tz-index: 99;\r\n\t\tdisplay:none!important;\r\n\t\tbackground:#fff;\r\n\t\ttransition:all 0.5s linear\r\n\t}\r\n\t\r\n\t@media (min-width:1019px){\r\n\t\t#toc_group_float {\r\n\t\t\tdisplay:block!important;\r\n\t\t\t}\r\n\t\t\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width:768px){\r\n\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t \/* custom scrollbar style *\/\r\n::-webkit-scrollbar {\r\n    width: 7px;\r\n}\r\n::-webkit-scrollbar-track {\r\n    background: #d7a2a4;\r\n}\r\n::-webkit-scrollbar-thumb {\r\n    background: #b1252d;\r\n    border-radius: 15px;\r\n}\t\t\r\n\r\n<\/style>\r\n\r\n<script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n\t\t\/\/ Function to handle click on all <a> elements with href starting with #\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst targetId = this.getAttribute('href').substring(1);\r\n\t\t\tconst targetElement = document.getElementById(targetId);\r\n\r\n\t\t\tif (targetElement) {\r\n\t\t\t\tconst headerHeight = document.querySelector('#toc .header').offsetHeight;\r\n\t\t\t\tconst navbarHeight = document.getElementById('tdi_34') ? document.getElementById('tdi_34').offsetHeight : 0;\r\n\t\t\t\tconst windowHeight = window.innerHeight;\r\n\t\t\t\tconst targetOffset = targetElement.offsetTop;\r\n\t\t\t\tconst scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight) - navbarHeight - 40;\r\n\r\n\t\t\t\twindow.scrollTo({\r\n\t\t\t\t\ttop: scrollTo,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all <a> elements in toc-list and list-toc\r\n\t\tconst titleLinks = document.querySelectorAll('#toc-list a, #list_toc a');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n<\/script>\r\n\r\n<!-- ToC List for mobile -->\r\n<script>\r\n \/\/ Generate TOC based on headings\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  \/\/ Get the element that will contain the TOC\r\n  const tocList = document.getElementById('toc-list');\r\n\r\n  \/\/ Get the element with class 'td-post-content'\r\n  const article = document.querySelector('.td-post-content');\r\n\r\n  \/\/ Find all h2 elements within the article\r\n  const headers = article.getElementsByTagName('h2');\r\n\r\n  \/\/ Loop through the h2 elements and create a list item for each one\r\n  for (let i = 0; i < headers.length; i++) {\r\n    const header = headers[i];\r\n    const headerText = header.textContent;\r\n\/\/     const headerId = 'header-' + i;\r\n    const headerId = headerText\r\n    .toLowerCase()\r\n    .trim()\r\n    .replace(\/[^\\w\\s-]\/g, '')  \/\/ hapus tanda baca\r\n    .replace(\/\\s+\/g, '-'); \/\/ ganti spasi jadi \"-\"\r\n\r\n    \/\/ Set an ID for the header if it doesn't have one\r\n    header.setAttribute('id', headerId);\r\n\r\n    \/\/ Create a list item for the TOC\r\n    const listItem = document.createElement('li');\r\n\r\n    \/\/ Create a link for the list item\r\n    const link = document.createElement('a');\r\n    link.setAttribute('href', '#' + headerId);\r\n    link.textContent = headerText;\r\n\r\n    \/\/ Append the link to the list item\r\n    listItem.appendChild(link);\r\n\r\n    \/\/ Append the list item to the TOC list\r\n    tocList.appendChild(listItem);\r\n  }\r\n});\r\n\r\n\/\/ Keep height and placement of content using placeholder in place of TOC\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const placeholderToc = document.querySelector('#placeholder-toc');\r\n\r\n  function setPlaceholderHeight() {\r\n    placeholderToc.style.height = `${toc.offsetHeight}px`;\r\n  }\r\n\r\n  \/\/ Set the initial height of the placeholder\r\n  setPlaceholderHeight();\r\n\r\n  \/\/ Update the height on window resize\r\n  window.addEventListener('resize', setPlaceholderHeight);\r\n});\r\n  const tocTitle = document.querySelector('#toc-title');\r\n\r\n\/\/ Sticky TOC and update heading\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const footer = document.querySelector('.td-footer-template-wrap');\r\n  const tocParent = toc.parentElement;\r\n  const divTop = tocParent.getBoundingClientRect().top + window.pageYOffset;\r\n  const tocHeight = toc.offsetHeight;\r\n  const triggerPoint = divTop + tocHeight + 700;\r\n  const footerHeight = footer.offsetHeight;\r\n  const triggerFooterPoint = footer.getBoundingClientRect().top + window.pageYOffset - footerHeight - footerHeight - footerHeight;\r\n  const phtoc = document.querySelector('#placeholder-toc');\r\n  const headers = document.querySelectorAll('.td-post-content h2');\r\n  const navLinks = document.querySelectorAll('#toc-list a');\r\n\t\r\n\tconst panel2 = document.querySelector(\"#toc .list\");\r\n\tvar icon = document.querySelector(\".toc-icon\");\r\n\r\n  let activeLink = null; \/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n        toc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n        toc.style.backgroundColor = \"#FFF\";\r\n\t\tpanel2.style.height = '0px';\r\n\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t  if(window.innerWidth < 767){\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n       \t\t  toc.style.width = '150px'; \/\/ Set width to match the parent element\r\n\t\t  }\r\n      }\r\n      if (currentHeader) {\r\n        tocTitle.textContent = activeLink ? activeLink.textContent : \"\"; \/\/ Update title only if activeLink exists\r\n      }\r\n    } else {\r\n      toc.classList.remove('sticky');\r\n      phtoc.style.display = \"none\";\r\n      toc.style.width = 'unset'; \/\/ Reset to original width\r\n      toc.style.backgroundColor = \"#FFF\";\r\n      tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\tpanel2.style.height = panel2.scrollHeight + \"px\";\r\n\t\ticon.style.transform = \"rotate(180deg)\";\r\n    }\r\n  }\r\n\r\n    \/\/ Attach the scroll event listener to the window\r\n    window.addEventListener('scroll', handleScroll);\r\n\r\n    \/\/ Initial call to handleScroll to set the correct state on load\r\n    handleScroll();\r\n});\r\n\t\r\n\t\/\/ Open toggle TOC\r\n\t  document.addEventListener(\"DOMContentLoaded\", function() {\r\n\t\tvar tocHeader = document.querySelector(\"#toc .header\");\r\n\t\tvar toc = document.querySelector(\"#toc\");\r\n\t\tvar icon = document.querySelector(\".toc-icon\");\r\n\t\tconst tocTitle = document.querySelector('#toc-title');\r\n\t\tconst tocs = document.querySelector('#toc.sticky');\r\n \t\tconst tocParent = toc.parentElement;\t\t  \r\n\r\n\t\t  tocHeader.addEventListener(\"click\", function() {\r\n\t\t\tvar panel = this.nextElementSibling;\r\n\t\t\tif (panel.style.height !== '0px') { \/\/ Check if height is not 0px\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t\tif(window.innerWidth > 768){\r\n\t\t\t\t\tif(!toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = \"unset\";\r\n\t\t\t\t\t}\r\n\t\t\t\t\tif (toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = '${tocParent.offsetWidth}px';\r\n\t\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t\t}\r\n\t\t\t\t}\r\n\t\t\t\tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = \"unset\"; \/\/ Reset width\r\n\t\t\t\t}\r\n\t\t\t\ttoc.style.backgroundColor = \"#FFF1F1\";\r\n\t\t\t} else {\r\n\t\t\t  panel.style.height = panel.scrollHeight + \"px\";\r\n\t\t\t  icon.style.transform = \"rotate(0deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\t\t\ttoc.style.paddingBottom = '24px';\r\n\t\t\t \tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t}\r\n\t\t\t}\r\n\t\t  });\r\n\r\n\t\t  \/\/ Close TOC when a link inside it is clicked\r\n\t\t  var tocLinks = document.querySelectorAll(\"#toc .list a\");\r\n\t\t  tocLinks.forEach(function(link) {\r\n\t\t\tlink.addEventListener(\"click\", function() {\r\n\t\t\t  var panel = document.querySelector(\"#toc .list\");\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t});\r\n\t\t  });\r\n\t\t});\r\n\t\r\n\/\/ \tmake the heading at the center of the viewport\r\n\/\/ \tdocument.addEventListener('DOMContentLoaded', function() {\r\n\/\/     \/\/ Add click event listener to all links in the TOC list\r\n\/\/     document.querySelectorAll('#toc-list a').forEach(anchor => {\r\n\/\/         anchor.addEventListener('click', function (e) {\r\n\/\/             e.preventDefault(); 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background-color: #fffacd; border-radius: 25px 25px 25px 25px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 15px; border: none;\">\n<h3 style=\"margin-bottom: 10px;\"><span style=\"background-color: #990000; color: #ffffff; padding: 5px;\"><b>Key Takeaways<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"#a\">A cash flow statement<\/a> is an important financial tool that tracks cash movement within an organization.<\/li>\n<li><a href=\"#b\">Digital payments can improve business performance including<\/a> increasing the efficiency of financial processes while reducing costs, transactions should provide more comprehensive reconciliation details, aligned with the recipient&#8217;s preferred method.<\/li>\n<li>Software <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro<\/a> integrated accounting solutions can enhance your cash flow management and financial operations.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>What is a Cash Flow Statement?<\/strong><\/h2>\n<p><strong><span id=\"a\">A cash flow statement is an important financial tool that tracks cash movement within an organization.<\/span><\/strong> Along with the income statement and balance sheet, it is one of the three main financial statements and plays a key role in evaluating a company&#8217;s performance.<\/p>\n<p>This report is invaluable for making cash flow projections, thus allowing companies to make effective plans for the future. It outlines the sources of income and helps track cash inflows and outflows. Cash is typically generated from operating, investing, and financing activities.<\/p>\n<p>In addition, the cash flow statement details withdrawals, business expenses, and investments at a specific time. The insights gained from this report are crucial for management, helping make the right decisions to maintain smooth business operations.<\/p>\n<h2><strong>The Significance of Cash Flow Statements for Business Finances<\/strong><\/h2>\n<p>A company must consistently generate sufficient revenue to achieve success. Adequate funds allow it to repay loans, purchase goods, or make profitable investments. Conversely, a business needs more resources to meet its financial obligations to avoid bankruptcy. Below are some key benefits of utilizing a cash flow statement:<\/p>\n<h3>1. Details about spending<\/h3>\n<p>A cash flow statement provides an overview of the payments a company makes to its creditors. It also includes transactions that are recorded in cash but not reflected in other financial statements. These may include purchasing inventory, lending money to customers, or acquiring capital equipment.<\/p>\n<h3>2. It helps maintain the optimal level of cash on hand<\/h3>\n<p>The corporation needs to determine whether its cash reserves are sitting idle or if there is a shortage or surplus of funds. If there is excess cash, the business can invest in assets like shares or inventory. On the other hand, if there is a capital shortage, the corporation may need to borrow funds to continue operations.<\/p>\n<h3>3. Profits help companies grow by earning cash<\/h3>\n<p>Profits allow companies to grow by generating cash, which is essential for funding operations, investments, and future expansion. A positive cash flow ensures that the business has the necessary resources to cover expenses, invest in new opportunities, and maintain financial stability. Without adequate cash flow, even profitable companies may face challenges in meeting their obligations and sustaining growth.<\/p>\n<h3>4. Cash flow statements are useful for short-term planning<\/h3>\n<p>A successful corporation must have enough cash to cover upcoming bills. A financial manager can make important judgments by analyzing past cash flows. Foreseeing a cash deficit to pay off debts or setting a base to request bank credit are cash flow-based decisions.<\/p>\n<h2><strong>How to Manage Positive and Negative Cash Flow Statements Effectively?<\/strong><\/h2>\n<p>Positive cash flow occurs when the money coming into your business exceeds the money going out, which can be efficiently managed using integrated accounting software. This indicates that your expenses are lower than the cash generated from sources such as customers, loans, or asset sales.<\/p>\n<p>On the other hand, negative cash flow arises when your expenditures surpass your earnings, leading to a gradual depletion of cash reserves. Both positive and negative cash flow are essential components of <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/cash-flow-management\/\">cash flow management<\/a>, playing a critical role in maintaining financial stability.<\/p>\n<p>Since cash serves as the lifeblood of any business, having a robust strategy and reliable tools to manage your current cash flow and forecast future trends is vital for long-term success.<\/p>\n<h2><strong><span id=\"b\">How Digital Payments Can Boost Your Business Performance<\/span><\/strong><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-14040 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2.webp\" alt=\"how to prepare cash flow statement\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/how-to-prepare-cash-flow-statement-2-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>Digital payments facilitate quicker cash flow, improved tracking, heightened security, enriched data integration, and reduced processing time. They enhance your financial operations in the following ways:<\/p>\n<ul>\n<li><strong>Improving the efficiency of financial processes while reducing cost<\/strong><\/li>\n<\/ul>\n<p>Digital payments streamline financial operations by automating processes, reducing manual tasks, and minimizing errors. This increased efficiency not only saves valuable time but also lowers operational costs associated with traditional payment methods, such as paper checks and cash handling. By adopting digital payment solutions, businesses can allocate resources more effectively and focus on growth opportunities.<\/p>\n<ul>\n<li><strong>Transactions should provide more comprehensive reconciliation details<\/strong><\/li>\n<\/ul>\n<p>Digital payments offer detailed reconciliation information, making it easier to track and match transactions with corresponding records. This level of transparency helps businesses identify discrepancies quickly, maintain accurate financial records, and simplify the auditing process. With better reconciliation details, managing finances becomes more efficient and reliable.<\/p>\n<ul>\n<li><strong>Aligning with the payment recipient\u2019s preferred methods<\/strong><\/li>\n<\/ul>\n<p>Digital payments ensure that businesses can meet their customers&#8217; or partners&#8217; preferred payment methods, whether it\u2019s credit cards, digital wallets, or other electronic options. This flexibility improves customer satisfaction, reduces friction in the payment process, and enhances overall payment efficiency. By accommodating recipient preferences, businesses can foster stronger relationships and ensure smoother financial transactions.<\/p>\n<ul>\n<li><strong>Facilitating faster transactions and enabling real time payment processing<\/strong><\/li>\n<\/ul>\n<p>Digital payments enable faster transaction processing, allowing funds to be transferred and received in real-time. This reduces delays associated with traditional payment methods, such as bank transfers or checks, improving cash flow and ensuring that businesses can access their funds quickly. Real-time payments enhance efficiency, reduce operational costs, and support faster decision-making and business growth.<\/p>\n<h2><strong>Creating a Cash Flow Statement<\/strong><\/h2>\n<p>After establishing your starting balance, you need to calculate cash flow from operating activities. This step is essential as it indicates the amount of cash generated by a company\u2019s core operations. The cash flow from operations can be calculated using either the direct or indirect method.<\/p>\n<h3>1. Direct method<\/h3>\n<p>The direct method for calculating cash flow from operating activities is a straightforward approach that involves adding up all cash inflows from operational activities, such as sales and other revenue streams, and subtracting all cash outflows related to operating expenses, like purchases, wages, and other payments.<\/p>\n<p>This method focuses on capturing actual cash transactions both receipts and disbursements that occur during the reporting period. By directly tracking these cash flows, businesses can gain a clear understanding of how much cash is generated or used in their core operations.<\/p>\n<h3>2. Indirect method<\/h3>\n<p>The indirect method of calculating cash flow from operating activities begins with net income, as reported on the income statement (as outlined in the previous step). From there, you make adjustments to account for non-cash items and accruals that impacted the income statement but didn\u2019t involve actual cash transactions.<\/p>\n<p>These adjustments aim to &#8220;reverse&#8221; the effects of accrual-based accounting, which includes items like accounts receivable, accounts payable, and deferred revenues. Two of the most commonly used and consistent adjustments are depreciation and amortization, as they represent non cash expenses that need to be added back to net income.<\/p>\n<p>By making these adjustments, the indirect method provides a clearer picture of the actual cash flow generated or used by the company during the reporting period.<\/p>\n<h2><strong>Example of a Cash Flow Statement<\/strong><\/h2>\n<p>Understanding how a cash flow statement is structured can provide valuable insights into a company\u2019s financial health. Below is an example that illustrates the key components and how they contribute to effective financial management.<\/p>\n<p><img decoding=\"async\" class=\"wp-image-14032 size-full aligncenter\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/WhatsApp-Image-2024-12-23-at-13.17.33.webp\" alt=\"cashflow \" width=\"371\" height=\"460\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/WhatsApp-Image-2024-12-23-at-13.17.33.webp 371w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/WhatsApp-Image-2024-12-23-at-13.17.33-242x300.webp 242w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/WhatsApp-Image-2024-12-23-at-13.17.33-339x420.webp 339w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/WhatsApp-Image-2024-12-23-at-13.17.33-150x186.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/WhatsApp-Image-2024-12-23-at-13.17.33-300x372.webp 300w\" sizes=\"(max-width: 371px) 100vw, 371px\" \/><\/p>\n<h2><strong>Integrating a Digital Payment Gateway with Accounting Software<\/strong><\/h2>\n<p>Creating a cash flow statement can often be a time-consuming process, particularly when relying on manual methods like Excel spreadsheets, which are prone to errors and inconsistencies. These errors can lead to inaccurate financial reports and mismanagement of cash flow.<\/p>\n<p>As a result, more and more businesses are shifting towards online accounting software to streamline their financial processes and generate accurate cash flow statements. Many organizations have also integrated digital payment gateways with <a href=\"\/ph\/blog\/accounting-system\/\">accounting software<\/a> to simplify transaction processing and ensure greater accuracy.<\/p>\n<p>By doing so, they reduce the risk of errors associated with manual data entry and improve the overall efficiency of their financial operations. <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro\u2019s integrated accounting<\/a> solutions provide seamless digital payment processing, helping businesses minimize errors and enhance the accuracy of their cash flow statements.<\/p>\n<a href=\"https:\/\/www.hashmicro.com\/ph\/offer\/download-erp-pricing-list?medium=banner-article\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-skema-harga.webp\" alt=\"SkemaHarga\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>A cash flow statement is essential for assessing whether a company has enough liquid cash to meet its obligations and invest in assets. To effectively manage cash flow, businesses should adopt reliable accounting software to streamline processes, reduce errors, and improve accuracy.<\/p>\n<p>While the cash flow statement provides valuable insights, it should be supplemented with other financial reports for a comprehensive view of the company\u2019s performance. Before implementing <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">accounting software<\/a>, businesses can explore software features, pricing, and capabilities to find the best fit.<\/p>\n<p>To experience the benefits firsthand, request a <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/\">free demo<\/a> from HashMicro and discover how integrated accounting solutions can enhance your cash flow management and financial operations.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>Cash flow statements, revenue reports, and balance sheets provide essential financial insights that influence organizational decision-making. While all three are valuable for evaluating a company\u2019s financial health, many business leaders consider cash flow statements to be the most crucial. For this reason, numerous companies rely on robust accounting platforms for Philippine businesses\u00a0to manage their cash [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":14037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[157],"tags":[],"class_list":{"0":"post-14019","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Learn How to Prepare a Cash Flow Statement for Your Business<\/title>\n<meta name=\"description\" content=\"A cash flow statement is an important financial tool that tracks cash movement within an organization.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/how-to-prepare-cash-flow-statement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Learn How to Prepare a Cash Flow Statement for Your Business\" \/>\n<meta property=\"og:description\" content=\"A cash flow statement is an important financial tool that tracks cash movement within an organization.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hashmicro.com\/ph\/blog\/how-to-prepare-cash-flow-statement\/\" \/>\n<meta property=\"og:site_name\" content=\"HashMicro Philippine Blog\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-23T06:46:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-23T02:09:57+00:00\" \/>\n<meta property=\"og:image\" 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