The last major financial statement that QuickBooks produces is the Statement of Cash Flows. The Statement of Cash Flows is a financial report that shows how the balance sheet accounts and income affect cash flow. It analyzes the cash flow into three activities: operating, investing, and financing activities. This statement lets you know the short term viability of your business, whether you can pay bills day-to-day.
Basically, the Statement of Cash Flows helps you determine the solvency and liquidity of your business.
The Statement of Cash Flows report shows how your cash position has changed over a period of time. It shows how much cash was earned from profit, where the additional cash came from, and where it was spent. It is then broken down as an operating activity, investing activity, or financing activity.
The Cash Flow Forecast report helps you predict how much cash you will have at a given time by projecting cash inflows, cash disbursements and bank account balances. This report is produced on a week by week basis. It is important to enter all invoices and bills with accurate due dates to produce an accurate report.