Forecast your Cash Flow.

In the business kingdom, “Cash” is the king. For running any business cash is vital and if you have cash in hand you can survive the competition, invest wisely, and grow rapidly.

Cash Flow means the transactions happening in and out of the business with regards to cash. It also refers to the net amount between the Cash and the Cash Equivalents. Cash Flow helps to assess the liquidity, flexibility, and overall financial performance of the business. Not many are aware of this brilliant feature which is available in TallyPrime.  Aimtech BSPL shall help unlock these hidden features.

Cash Flows are described as a tangible and virtual movement of money. The roots of Cash Flow are determined by its time, nominal amount, currency, and account. Cash Flows are also used for representing operating activities in an organization. In Accounting terms, it is the difference between the opening and closing balance of cash respectively. The Cash Flow appears to be positive when the closing balance is greater than the opening balance, otherwise negative.

Cash Flow Analysis is often used to analyze the liquidity position of the business and also gives us a snapshot of the inflow and outflow of cash in the business. To analyze from where the cash is coming Cash Flow Reports are prepared. Cash Flow statements are also used as Receipts and Payments statements. The Accountants or the Owners of the company usually maintain these reports. Cash Flow has three main categories –

  • Operating Cash Flows deals with day-to-day transactions.
  • Investing Cash Flows are done for the expansion purpose.
  • Financing Cash Flows accounts with external activities of the firm that allows the shareholders to understand the financial position if the business.

How to approach to Cash Flow Reports?

Go to Display > Cash/ Funds Flow

Three reports of Cash Flow:

1) Cash Flow 2) Fund Flow  3) Cash Flow Projection.

Let us understand the three reports in detail:

  • Cash Flow Summary

It reflects historical data of cash inflow and outflow periodically and also Net impact of the same. The values shown are from summary of all ledgers which are grouped under cash and bank accounts. The amounts debited to Cash/Bank account are considered as Inward and amounts credited are considered as Outward in Cash Flow. One can get through Average Cash Flow periodically and it’s Graphical Representation by configuring the same in F12 as Yes.

  • Fund Flow Summary

It displays Sources of Funds and Application of Funds and then compares it with changes in the Working Capital Balances. To view the report monthly or weekly one should select the entire period and then click on Alt+N.

  • Cash Flow Projection

Cash Flow Projection is an important report in TallyPrime. It analyses the statements of Bills Receivable and Bills Payable and also provides periodic inflow and outflow which is expected on the screen. The projection report starts from the date of last entry in TallyPrime. By default it will reflect the monthly report and one can change the periodicity to quarterly or weekly and so on. There is an option provided for Overdraft Amount, if any.

Prerequisites for getting projected Cash Flow Report:-

  1. Ensure Bill wise details in the ledger master screen is set to Yes.
  2. While posting the Invoice, In the Bill wise details dialog box, ensure that correct due dates are mentioned.

Users using Scenario Management can use the Projected Cash Flow Report by including the optional Sales and Purchase vouchers.

Aid to the Customers

  • Directors or business owners get the strategic view of the amount to be received and payments to be made.
  • The main advantage is that it provides the outstanding receivables period wise and can be forwarded to the collection team or to the salesperson for follow up.
  •  The due debtor when informed in advance is more likely to pay on time.

Hindrance for the Customers

  • The disadvantage of the report is that it shows only the due date that is due in the current period; old outstanding is to be seen in F12 options and set the same as Yes.
  • Another hindrance is the starting point of the report i.e. the last entry date in Books of Accounts. In case of a postdated entry, the report will be then visible from that day (i.e. last postdated entry date).


 This report is helpful for getting Projected Cash Flow for the period.

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