What is the basic idea of compiling cash flow statement with report system software?

Teach you how to quickly prepare a cash flow statement.

Quickly compile cash flow statement according to two main tables

The preparation of cash flow statement has always been a difficult point in the preparation of enterprise statements. If all accounting entries are adjusted to cash basis according to the requirements of cash flow statement standards, it is equivalent to redoing a set of accounting entries, which will undoubtedly greatly increase the workload of financial personnel and lack maneuverability in practice. Therefore, many financial personnel hope to prepare the cash flow statement only according to the balance sheet and income statement, which is an extravagant hope. In fact, it is impossible to compile a cash flow statement only based on the balance sheet and income statement, and it is necessary to obtain relevant data according to the general ledger and subsidiary ledger.

According to the practical experience, the author puts forward a method of compiling cash flow statement quickly, and discusses with readers that the data source of this method is mainly based on two main tables, and only the necessary data is obtained from relevant account books, so as to achieve the purpose of compiling cash flow statement simply and quickly. Based on the principle of importance, the compilation method proposed in this paper sacrifices accuracy for speed. Quickly prepare the cash flow statement in the order from easy to difficult:

First, fill in the "net increase of cash and cash equivalents" item in the supplementary materials to determine the "net increase of cash and cash equivalents".

Two, fill in the main table "cash flow of financing activities" to determine the "net cash flow of financing activities".

Third, fill in the "cash flow from investment activities" in the main table and determine the "net cash flow from investment activities".

Fourth, calculate and determine the net cash flow generated by operating activities. The calculation formula is: net cash flow from operating activities = net increase of cash and cash equivalents-net cash flow from financing activities-net cash flow from investment activities. The difficulty in compiling cash flow statement is to determine the net cash flow generated by operating activities. Because there are relatively few fund-raising activities and investment activities in enterprise business, and financial data are easy to obtain, it is easy to fill in the cash flow items of these two activities, and it is also easy to ensure that the net cash flow results of these two activities are correct, so it is also easy to ensure that the net cash flow generated by operating activities calculated according to this formula is correct. The result of this calculation can verify whether the item of "net cash flow from operating activities" in the main table and supplementary materials is filled in correctly.

Fifth, fill in the item of "adjusting net profit to cash flow from operating activities" in the supplementary materials, and check whether the calculation results are consistent with the results obtained by the formula in the fourth step. If not, check their final consistency again;

Sixth, finally fill in the item of "cash flow from operating activities" in the main table, and verify the calculation results with the results calculated by the formula in the fourth step. If they are not consistent, check their final consistency again. As the "other cash received related to operating activities" in this project is generated by backward extrusion, the "net cash flow generated from operating activities" in the main table is equal to the supplementary data, thus quickly completing the preparation of the cash flow statement.

The following describes in detail the compilation methods and formulas of each item in the above order:

I. Determine the "net increase of cash and cash equivalents" in the supplementary information.

Cash ending balance = ending balance of "monetary funds" in the balance sheet;

Opening balance of cash = the opening balance of "monetary funds" in the balance sheet;

Net increase of cash and cash equivalents = ending cash balance-beginning cash balance.

There are few cash equivalents in general enterprises, so this formula does not consider this factor, and if there are any, it should be filled in accordingly.

Two, determine the main table of "net cash flow from financing activities"

1. Cash received from investment absorption = (paid-in capital or equity ending-paid-in capital or equity beginning)+(bonds payable ending-bonds payable beginning)

2. Cash received for loan = (end of short-term loan-beginning of short-term loan)+(end of long-term loan-beginning of long-term loan)

3. Other cash received related to financing activities

If the investor fails to pay the equity on time, he will be fined cash income, etc.

4. Cash paid for debt repayment = (initial amount of short-term loan-ending amount of short-term loan)+(initial amount of long-term loan-ending amount of long-term loan) (excluding interest)+(initial amount of bonds payable-ending amount of bonds payable) (excluding interest)

5. Cash for dividend distribution, profit or interest payment = dividend payable debit amount+interest expense+long-term loan interest+interest on construction in progress+interest on bonds payable-credit balance of accrued expenses-bill discount interest expense.

6. Other cash paid related to financing activities.

For example, cash paid for financing expenses, cash paid for financing lease, and cash paid for reducing registered capital (acquisition of company shares, return of joint venture investment of joint venture units, etc.). ), cash paid by enterprises for the purchase and construction of fixed assets by installments, cash paid by installments other than cash paid in the first installment, etc.

III. Determine the main table of "net cash flow from investment activities"

1. Cash received from investment recovery = (initial number of short-term investments-final number of short-term investments)+(initial number of long-term equity investments-final number of long-term equity investments)+(initial number of long-term debt investments-final number of long-term debt investments)

In this formula, if the opening amount is less than the closing amount, it will be included in the cash items paid by the investment.

2. Cash received from investment income = investment income in the income statement-(ending number of interest receivable-beginning number of interest receivable)-(ending number of dividends receivable-beginning number of dividends receivable)

3. Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets = credit balance of fixed assets liquidation+(ending intangible assets-beginning intangible assets)+(ending other long-term assets-beginning other long-term assets)

4. Other cash received related to investment activities.

For example, recover the principal of financial leasing equipment.

5. Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets = (ending number of projects under construction-beginning number of projects under construction) (excluding interest)+(ending number of fixed assets-beginning number of fixed assets)+(ending number of intangible assets-beginning number of intangible assets)+(ending number of other long-term assets-beginning number of other long-term assets)

In the above formula, if the ending amount is less than the beginning amount, it is accounted for in the net cash recovered from the disposal of fixed assets, intangible assets and other long-term assets.

6. Cash paid for investment = (short-term investment ending number-short-term investment beginning number)+(long-term equity investment ending number-long-term equity investment beginning number)+(long-term debt investment ending number-long-term debt investment beginning number) (excluding investment gain or loss)

In this formula, if the ending amount is less than the beginning amount, it is included in the cash items received from the investment recovery.

7. Other cash paid related to investment activities.

If the investment is not in place on time, it will be fined.

Four, determine the supplementary information in the "net cash flow from operating activities".

1, net profit

This item is filled in according to the net profit in the income statement.

2. Provision for impairment of assets

Accrued asset impairment reserve = the accumulated amount of various asset impairment reserves accrued in this period.

Note: Bad debt losses written off directly are not included.

3. Depreciation of fixed assets

Depreciation of fixed assets = depreciation of manufacturing expenses+depreciation of management expenses.

Or: = Cumulative Depreciation End-Cumulative Depreciation Start

Note: Depreciation of foreign investment in fixed assets is not considered.

4. Amortization of intangible assets = intangible assets (beginning number-ending number)

Or = cumulative credit amount of intangible assets

Note: The decrease of foreign investment caused by intangible assets is not considered.

5. Amortization of long-term prepaid expenses = long-term prepaid expenses (beginning number-ending number)

Or = accumulated credit amount of long-term deferred expenses.

6. Decrease of prepaid expenses (decrease: increase) = initial number of prepaid expenses-final number of prepaid expenses.

7. Increase (decrease) amount of accrued expenses = ending amount of accrued expenses-beginning amount of accrued expenses.

8. Losses from disposal of fixed assets, intangible assets and other long-term assets (less: gains)

According to the fixed assets cleaning and non-operating expenditure (or income) subsidiary ledger analysis.

9. Scrapping loss of fixed assets

Fill in the column according to the analysis of fixed assets cleaning and non-operating expenses subsidiary ledger.

10, financial expense = interest expense-discounted interest on bills receivable.

1 1. Investment loss (minus: income) = investment income (debit balance is positive and credit balance is negative).

12, deferred tax credit (less: debit) = deferred tax (period-end-beginning)

13. Decrease in inventory (decrease: increase) = inventory (opening number-closing number)

Note: The decrease of foreign investment in inventory is not considered.

14. Decrease in operating accounts receivable (decrease: increase) = accounts receivable (beginning-end)+notes receivable (beginning-end)+prepayments (beginning-end)+other accounts receivable (beginning-end)+prepaid expenses (beginning-end)-ending balance of bad debt provision.

15. Increase (decrease) of operating payables = accounts payable (period-end-beginning)+accounts received in advance (period-end-beginning)+notes payable (period-end-beginning)+wages payable (period-end-beginning)+welfare expenses payable (period-end-beginning)+taxes payable (period-end).

16, other

There is generally no data.

Verb (abbreviation of verb) determines "net cash flow from operating activities" in the main table.

1. Cash received from selling goods and providing services = income from main business in income statement ×( 1+ 17%)+ income from other business in income statement+(opening balance of bills receivable-closing balance of bills receivable)+(opening balance of accounts receivable-closing balance of accounts receivable)+(closing balance of accounts receivable-opening balance of accounts receivable)

2. Tax refund = (initial balance of subsidies receivable-final balance of subsidies receivable)+subsidy income+accumulated deduction amount of current income tax.

3. Other cash received related to business activities = details of non-operating income+details of other business income+details of other receivables+details of other payables+interest income from bank deposits (formula 1).

In specific operations, because the cash flow statement is compiled according to two main tables and some detailed account books, the data is difficult to be accurate, so this item is left to be filled back at the end, and the calculation formula is as follows:

Other cash received related to operating activities (Formula 2) = "Net cash flow from operating activities"-{(1+2)-(4+5+6+7)}

There is not much difference between the data generated by formula 2 and the result calculated by formula 1.

4. Cash paid for goods and services = [main business cost in the income statement+(ending balance of inventory-opening balance of inventory) ]×( 1+ 17%)+ other business expenses (excluding tax)+(opening balance of notes payable-ending balance of notes payable)+(opening balance of accounts payable-ending balance of accounts payable)+

5. Cash paid to employees = accumulated debits from payroll accounts payable+accumulated debits from welfare accounts payable+pension insurance, unemployment insurance, housing accumulation fund, medical insurance in management expenses+labor protection fees in the schedule of costs and manufacturing expenses.

6. Paid tax = accumulated debit amount of each detailed account of payable tax+accumulated debit amount of each detailed account of other payables+accumulated debit amount of management fee tax+other business expenditure related taxes.

That is, all kinds of taxes and fees actually paid, excluding input tax.

7. Other cash paid related to business activities.

= Non-operating expenses (excluding losses from disposal of fixed assets)

+Management expenses (excluding wages, welfare expenses, labor insurance, unemployment insurance, housing accumulation fund, pension insurance, medical insurance, depreciation, bad debt reserve or bad debt loss, tax included, etc.). )

+Operating expenses, costs and manufacturing expenses (excluding wages, welfare expenses, labor insurance, unemployment insurance, housing accumulation fund, endowment insurance, medical insurance, etc.). )

+Debit amount of other receivables in current period+Debit amount of other payables in current period+bank charges.

Six, the impact of exchange rate changes on cash = exchange gains and losses

Seven. Important precautions

The compilation method of cash flow statement proposed in this paper is just a simple method summarized by the author according to his own practical experience. It is simple because this method is only compiled according to the balance sheet, income statement and some detailed subjects, and the actual business is complicated, so the cash flow statement compiled according to this method can not fully reflect it. According to the working paper method and the T account method, the workload is very large and needs to be accumulated well at ordinary times. In practical work, the cash flow statement is an annual final statement, and there is no requirement to compile it at ordinary times. Most corporate finance neglected to do this basic work well because of their busy work, but it was impossible to start with the temporary preparation at the end of the year. This method can temporarily solve the urgent needs of financial personnel in these enterprises.

The role of cash flow statement in enterprise decision-making has not been highly valued by enterprise management, and the preparation of such statements by enterprise financial personnel is also completed, so it is difficult for accounting firms to audit or not to audit at all. Give full play to the role of cash flow statement, there is a process of gradual understanding.

In order to accurately compile the cash flow statement, financial personnel need to do a good job of data accumulation every month, and the method proposed in this paper is only a stopgap measure. From the point of view of importance, the cash flow statement compiled by this method can basically reflect the cash flow of enterprises and meet the basic decision-making needs of enterprises. Readers can improve and supplement this method according to the specific situation of each enterprise to meet their own compilation habits and needs.

Exam tips:

The method proposed in this paper, financial personnel engaged in the preparation of statements will soon be skilled, and the cash flow statement can generally be prepared within one hour after proficiency, and the fastest speed of the author himself is 20 minutes.

The compilation method proposed in this paper is relatively rough, which is only suitable for single-subject enterprises with prominent main business, not suitable for diversified group enterprises and enterprises with frequent mergers and acquisitions and foreign investment (you can refer to it).

Discuss how to quickly master the preparation of cash flow statement.

The most important thing of cash flow statement is to master two core contents. One is that cash inflows and outflows are reflected in the statements; Second, the basis of preparation is cash basis.

For the understanding of the first core content, if it is compiled by the direct method, all those involved in cash flow are selected and included in the corresponding subjects; If the indirect method is adopted, all items that do not involve cash inflow and outflow should be eliminated on the basis of net profit.

For the understanding of the second core content, as long as cash inflows and outflows occur in the current period, they must be considered, no matter when the actual benefit period of cash inflows or outflows is.

The above two core contents are the focus of the cash flow statement. If you can master these contents, it is not difficult to prepare a cash flow statement.

Explanation of indirect method for preparing cash flow statement;

(1) Losses (or gains) from the disposal of fixed assets, intangible assets and other long-term assets are not business activities and should be written off. The loss of these activities reduces the net profit, so they should be added back, otherwise the gains must be deducted.

(2) Financial expenses. If the financial expenses of business activities have not been paid, they shall be adjusted in the accrued and prepaid expenses. Therefore, the adjustment of financial expenses is only related to investment activities and fund-raising activities. The adjustment method is the same as 7. Increase the deduction of net profit and reduce the increase of net profit.

(3) Net profit = total profit-income tax = total profit-(income tax payable+deferred tax credit-deferred tax debit) = total profit-income tax payable-deferred tax credit+deferred tax debit. Deferred tax credit reduces net profit and needs to be added back, while debit increases net profit and needs to be subtracted.

(4) Decrease in prepaid expenses (decrease: increase)

This project reflects the increase or decrease of prepaid expenses due to the influence of business activities. The reduction of prepaid expenses will generally increase expenses and reduce net profit, which should be added back on the basis of net profit; The increase of prepaid expenses will generally reduce cash or inventory, which has nothing to do with net profit, but will reduce the cash flow of operating activities and should be deducted from net profit.

However, the increase or decrease of deferred expenses caused by investment activities and fund-raising activities, such as deferred expenses transferred from projects under construction, should not be considered. Because this kind of business neither affects the net profit nor the cash flow of operating activities.

(5) Inventory decrease (decrease: increase)

Changes in inventory generally belong to business activities. An increase in inventory means a decrease in cash or an increase in operating payables; A decrease in inventory means an increase in sales costs and a decrease in net profit. Therefore, when adjusting the net profit, the increase in inventory should be subtracted or the decrease in inventory should be added. In the case of credit purchase, the influence of credit purchase on cash flow should also be reflected by adjusting the increase or decrease of operating accounts payable.

If the increase or decrease of inventory is not a business activity, it cannot be adjusted, such as the inventory reduced by foreign investment and the inventory invested by investors.

(6) Increase (decrease) of business items payable

In the net profit, all the expenses incurred have been deducted as deductions, but some of these inventory items included in the cost are actually not paid, and the net cash flow = net cash inflow-net cash outflow, while some of the original deductions do not involve cash outflow, so it is necessary to adjust "net cash flow = net cash inflow-(minus-the part that actually does not have cash outflow), that is," net cash flow = net cash inflow- The reduction of business payable items is also understood in this way.

(7) Depreciation of fixed assets

Add the accrued accumulated depreciation because the accumulated depreciation reduces the net profit. The accrued accumulated depreciation has no cash outflow and does not affect the cash flow, so it should be added back.

This item is filled with the depreciation accrued this year, not calculated according to the difference between the accumulated depreciation at the beginning of the year and the accumulated depreciation at the end of the year. The amount of accumulated depreciation increase is not necessarily the accumulated depreciation accrued in this period (if there are fixed assets sold in this period, the accumulated depreciation amount will decrease), so the amount listed in this item is the credit amount of accumulated depreciation in this period.

Accumulated depreciation included in manufacturing expenses should also be added back, although accumulated depreciation included in manufacturing expenses does not necessarily affect the current net profit (if the product is not sold, it will not affect the net profit). Although the accumulated depreciation that does not affect the net profit is added back in this project, it is deducted in the project "-Inventory Increase" (the accumulated depreciation that does not affect the net profit is reflected in the inventory project, and the inventory amount is increased), so the cash flow will not be overcharged or undercharged.

Handling when the amount of accounts receivable given in the title is book balance or book value:

(1) If the book balance of accounts receivable is given in the title, the amount of bad debt reserve will not be deducted.

Accrual of bad debt reserve: Debit the management fee and credit the bad debt reserve, which has no influence on the account balance of accounts receivable and does not need to be adjusted;

Write off bad debts: bad debt reserve is credited to accounts receivable, and the amount of accounts receivable is reduced, but no cash actually flows into the enterprise, which is treated as a reduction item;

Write-off and Recovery of Bad Debt: Debit Accounts Receivable, Credit Bad Debt Reserve, Debit Bank Deposit and Credit Accounts Receivable. Accounts receivable items have not changed, but cash inflows have actually occurred, so this item should be treated as an added item.

(2) If the title gives the amount of accounts receivable in the balance sheet, the accounts receivable in the balance sheet is the book value after deducting bad debt provision.

Accrual of bad debt reserve: debit management fee and credit bad debt reserve. The increase of bad debt provision means the decrease of accounts receivable. However, the increase of bad debt provision (that is, the decrease of accounts receivable) is recorded by the borrower as management expenses rather than cash accounts, which does not constitute cash inflows. Therefore, when calculating the cash received from selling goods and providing services, the provision for bad debts in the current period should be taken as a deduction.

Write off bad debts: Debit bad debt reserve and credit accounts receivable. Because the accounts receivable in the balance sheet are the book value after deducting bad debt provision, the reduction of bad debt provision here leads to the increase of the book value of accounts receivable, while the credit of accounts receivable leads to the decrease of the book value of accounts receivable, so the debit balance has no effect on the book value of accounts receivable, and thus has no effect on the cash received from selling goods, so no adjustment is made.

Write-off and Recovery of Bad Debt: Debit Accounts Receivable, Credit Bad Debt Reserve, Debit Bank Deposit and Credit Accounts Receivable. The first entry has no effect on accounts receivable, and the second entry reduces accounts receivable and receives money. No special adjustment is considered when calculating the ending amount of accounts receivable.