Cash Flow Statement

See where your cash comes from and where it goes.

“We had our best quarter ever, but somehow we can’t make payroll.” This happens more than you’d think. Profit and cash aren’t the same thing — you can be profitable on paper and still run out of money.

The Cash Flow Statement explains why. It tracks every dollar moving in and out of your business, so you can see where the cash actually went.

Why cash flow matters

You can be profitable and still run out of cash:

• Customers pay slowly (accounts receivable grows)
• You buy inventory before selling it
• You invest in equipment
• Loan payments reduce cash but aren’t expenses

The Cash Flow Statement reveals these dynamics.

Accessing the report

1. Go to Reports in the sidebar
2. Click Cash Flow Statement
3. Select your date range

Report structure

Cash flow is divided into three activities:

Operating Activities

Cash from day-to-day business:

Net Income
+ Depreciation & Amortization
+ Decrease in Accounts Receivable
- Increase in Accounts Receivable
+ Decrease in Inventory
- Increase in Inventory
+ Increase in Accounts Payable
- Decrease in Accounts Payable
= Net Cash from Operations

Investing Activities

Cash from buying/selling assets:

- Purchase of Equipment
- Purchase of Investments
+ Sale of Equipment
+ Sale of Investments
= Net Cash from Investing

Financing Activities

Cash from debt and equity:

+ Proceeds from Loans
- Loan Repayments
+ Owner Contributions
- Owner Draws/Distributions
= Net Cash from Financing

Net Change in Cash

Net Cash from Operations
+ Net Cash from Investing
+ Net Cash from Financing
= Net Change in Cash

Beginning Cash Balance
+ Net Change in Cash
= Ending Cash Balance

Key metrics

Metric	Formula	What It Shows
Operating Cash Flow	From operations section	Core business health
Free Cash Flow	Operating - CapEx	Cash available for growth/distributions
Cash Burn Rate	Net cash decrease / months	How fast you’re using reserves
Cash Runway	Cash balance / monthly burn	Months until cash runs out

Direct vs. Indirect Method

Pluvel uses the indirect method (starting from net income) by default. This is the standard approach and reconciles to your P&L.

The direct method (listing all cash receipts and payments) is available but less common. Contact support if you need it.

Date ranges

Preset	Period
This Month	Current month to date
Last Month	Previous full month
This Quarter	Current quarter to date
Last Quarter	Previous full quarter
This Year	Year to date
Last Year	Previous full year
Custom	Any date range

Comparison views

Period comparison

Compare cash flow across periods:

1. Select a date range
2. Click Compare
3. Choose a prior period
4. See side-by-side cash flows

Trend analysis

View multiple periods at once:

• Last 6 months
• Last 4 quarters
• Last 3 years

Common patterns

Healthy pattern

• Positive operating cash flow
• Investing outflows (growing the business)
• Moderate financing (manageable debt)

Warning signs

Pattern	Concern
Negative operating cash flow	Business isn’t generating cash
Growing AR faster than revenue	Collection problems
Financing covers operating	Relying on debt to survive
Decreasing cash runway	Running out of runway

Cash flow forecasting

Based on your historical patterns, Pluvel projects future cash:

1. Go to Reports → Cash Flow → Forecast
2. See projected cash position for next 90 days
3. Adjust assumptions (growth rate, collection timing)

Forecast factors

• Seasonal patterns from prior years
• Outstanding invoices and expected collection
• Scheduled bills and payroll
• Loan payments

Improving cash flow

Speed up collections

• Invoice immediately when work is complete
• Offer early payment discounts
• Follow up on overdue invoices
• Accept card payments

Slow down payments

• Use full payment terms (net 30, net 45)
• Negotiate longer terms with vendors
• Time large purchases strategically

Monitor working capital

Working Capital = Current Assets - Current Liabilities

• High working capital = more cash buffer
• Low working capital = potential cash crunch

Export and sharing

Format	Use Case
PDF	Share with stakeholders
Excel	Detailed analysis
CSV	Import to other tools

Scheduled reports

Send automatic cash flow reports:

1. Click Schedule
2. Set frequency
3. Add recipients

Common questions

Why is operating cash flow different from net income?

Net income includes non-cash items (depreciation) and timing differences (revenue recognized but not collected). Operating cash flow adjusts for these to show actual cash movement.

What's free cash flow?

Free Cash Flow = Operating Cash Flow - Capital Expenditures

It’s the cash available after maintaining/growing operations. Use it for dividends, debt repayment, or reserves.

How do I improve a negative cash flow?

Common strategies:

• Speed up customer collections
• Delay vendor payments (within terms)
• Reduce inventory levels
• Delay major purchases
• Seek financing before you need it

Why does depreciation add back to cash?

Depreciation reduced net income but no cash actually left the business. Adding it back shows the true cash generated from operations.

AR Aging Report

Track outstanding customer invoices.