Cash Flow Statement
The Accountant's Dictionary
Fri, Jun 19, 2026
A cash flow statement is the financial statement that shows how cash moved through operating, investing, and financing activities during the period.
What Cash Flow Statement means in business operations
Cash Flow Statement is explained here in the context of real finance, payroll, HR, and ERP workflows. This definition is written for business users who need practical understanding that supports implementation, reporting, approvals, reconciliation, and policy decisions.
If you are reviewing related concepts, continue to the The Accountant's Dictionary, browse ERP articles on the Eprecus blog, or explore the Eprecus ERP platform overview.
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Cash flow statement
The cash flow statement explains how the business generated and used cash during the reporting period. It complements the income statement by showing actual liquidity movement rather than just accrual-based profit.
Why it matters
A profitable business can still face cash pressure. That is why finance leaders, lenders, and owners rely on the cash flow statement when evaluating resilience and funding needs.
How teams use it
Teams use it to analyze operating cash generation, capital spending, debt movements, owner distributions, and the bridge between net income and cash outcomes.
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