What does a cash flow report present?

A cash flow report primarily presents the actual experience of cash inflows and outflows over a specific period, detailing the real movement of cash within a business. This report helps businesses measure their liquidity and overall financial health by showing how much cash was generated and used in operations, investments, and financing activities during a given timeframe.

While projected cash inflows and outflows, estimated revenues and expenses for the fiscal year, and predictions based on previous cash inflow trends all involve forecasting or estimating future financial scenarios, they do not accurately represent the cash transactions that have already occurred. The cash flow report focuses on the reality of cash management, enabling stakeholders to make informed decisions based on historical data rather than projections or estimates.