Study and forecast cash flow - the subject of attention not only of specialists financiers.World practice pays special attention to this issue because of the resulting liquidity problems.Objective unevenness of receipts and payments can cause such problems.The reason may be the result of unforeseen circumstances.Regardless of the reason why there are no cash, the enterprise may face very serious consequences.
turnover period of cash
calculations durations of money pledged in the cash flow analysis.Evidence of serious financial difficulties is the lack of even a small cash reserve funds.On the actual losses of the company said an excessive amount of money related to the depreciation of money and inflation, or lost opportunity profitable use of the money and, consequently, generate additional revenue.Qualitative analysis of cash flow - the need to control the situation, the ability to plan the financial and economic activities in the future.
period, the turnover of funds is the time, the action of which begins with the receipt of the money to the account until the time of disposal of money.
analysis of cash businesses includes real movement of money in the enterprise, assess synchrony income and expenditure of funds, linking the value of the result to the state funds.
Associated analysis of cash flows with changes in the size and composition of equity and loans to enterprises with bank loans.
issue money
Equity may undergo changes due to the cash capital increase, resulting in the issuance of equity income in the turnover of money, which led to an overall increase in the money supply.Domestic Practice considers the financial result in the current activity.
cash flow analysis based on two methods: direct and indirect.
direct analysis method
In the direct method of analysis carried out comparing the absolute amount of revenues and spending money on activities: the current, investment and financial activities.This method has its advantages, expressed the possibility to evaluate the total amount of receipts and expenditures of cash resources of the enterprise to determine the article, forming the largest inflow or outflow of money in the sphere of activities.Cash flow projections are based on information that is obtained using this method.
significant disadvantage of the method is that the relationship of financial results to changes in cash flows that exist in the accounts of the company, can not be established.
indirect method of analysis
cash flow analysis based on indirect method allows using the data records of income, accounting information and balance, which are formed in the journal Accounting, set the cause of the difference in performance andcause effect on net cash flow.
indirect method based on the detailed adjustment of net income or net loss for the effects of all transactions, any deferrals or accruals of past or future period cash receipts and payments.Profit in this activity is the initial element.
using an indirect method cash flow analysis can explain the reasons for the discrepancy between the amount of profit and the change in cash during the period.The rearrangement of the balance sheet data and applications to balance form 5, the adjustment of the profit and loss account for the recalculation of cash flows into cash.
