Cash Flow Statement

A cash flow statement is one of the four main financial statements for a company, along with the balance sheet, income statement, and statement of shareholders’ equity.

It is a record of the amount of cash and cash equivalents that flow in and out of a company for a specific time.

Cash includes currency, checks on hand, and deposits in the bank. Cash equivalents are short-term, temporary investments, such as Treasury bills, CDs, or commercial paper.

Cash is the lifeblood of the business. This statement helps you understand where money is coming from and where it is being spent.

The cash flow statement is made up of three components: operating activities, investing activities, and financing activities.


About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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