> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.
# 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
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.
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.
Common strategies:
* Speed up customer collections
* Delay vendor payments (within terms)
* Reduce inventory levels
* Delay major purchases
* Seek financing before you need it
Depreciation reduced net income but no cash actually left the business. Adding it back shows the true cash generated from operations.
Track outstanding customer invoices.