Cash flow statement gives information about your company’s cash position. There are two types of cash flow statement.
- Historical Cash flow statement.
- Prospective cash flow statement.
If your company is stock exchange listed then it is mandatory to submit an audited historical cash flow statement along with other sets of account. It shows how the cash position of your firm has changed in the past. It allows the stakeholder to make an informed decision. On the other hand, a prospective cash flow statement gives an indication of your firm’s cash position in the future. It is crucial for the management of a firm to produce PCF to run the financing function efficiently. Prospective investors often require cash flow statement as part of their investment appraisal. At Acumen Group, we can assist you in preparing a cash flow statement or perform an independent review (but not audit) of the cash flow statement.