Resume Writing Tips & Free Resume Examples

A cash flow statement is the same as a budget. It is a pro forma statement used for internal planning and estimates how much money will flow into and out of a business during a designated period of time, usually the coming tax year. Your profit at the end of the year will depend on the proper balance between cash inflow and outflow.
The Cash Flow Statement identifies when cash is expected to be received and when it must be spent to pay bills and debts. It also allows the manager to identify where the necessary cash will come from.