How to Generate Indirect Statement of Cash Flows Comparison

Overview:

The Comparative Cash Flow Statement (Indirect Method) provides a side-by-side view of cash flow movements across multiple periods. This helps users analyze operational efficiency, investment activities, and financing trends.

In QNE AI Cloud Accounting (QCA), the report uses the indirect method—starting from net income and adjusting for non-cash items and changes in working capital. Users can generate comparisons across fiscal years or reporting periods, making it easier to track liquidity and financial strategy over time.

Scenario:

You’re preparing quarterly financial reports and need to compare cash flow activity between Q1 and Q2. You want to highlight shifts in operating efficiency, investment decisions, and financing sources, and ensure the report aligns with your General Ledger and Trial Balance. You also need to export the report for board review and audit documentation.

Solution:

1. Navigate to the report. Go to Reporting > Report Center > General Ledger > Other Reports > Indirect Statement of Cash Flows Comparison.

2. In the Report Criteria window:

• Set the Date Range to define the reporting cut-off (e.g., end of the current month).

• Then apply the necessary filters to generate the desired report results.
  

3. Click Preview to generate the report


4. The report displays a comparative summary of cash flow activities across the selected reporting periods. Each section—Operating, Investing, and Financing—shows line items with values for Period 1, Period 2, and the Variance.Application:

Liquidity Trend Analysis – Compare operating cash flows across periods to assess improvements or declines in business efficiency.

Application:

• Investment Oversight – Monitor changes in investing activities to evaluate shifts in capital expenditures or asset divestments.

• Financing Strategy – Track variations in financing inflows and outflows to guide decisions on loans, equity, or dividend policies.

• Audit & Compliance – Provide auditors and finance teams with a transparent, period-over-period breakdown of cash movements for validation.

• Board Reporting – Present comparative cash flow insights to support strategic planning, performance reviews, and financial oversight.