How to Prepare Cash Flow Reports in Tally & BI Tools 

January 22, 2025

A cash flow report is a vital tool that helps businesses track the inflow and outflow of cash within a specific period. With Tally, you can easily and efficiently generate a cash flow report. In this guide, we will show you how to prepare cash flow reports in Tally and BI tools.

What is a Cash Flow Report? 

A cash flow report summarizes the amount of cash and cash equivalents entering and leaving a company. It helps in understanding the liquidity position and ensures that the business can manage its cash needs efficiently. 

Benefits of Cash Flow Reports for Businesses 

Here are some key benefits for businesses: 

I) Better Financial Planning: Regular cash flow reports help in forecasting future cash needs and planning for investments or expenses. 

II) Enhanced Decision Making: Accurate cash flow information allows business leaders to make informed decisions regarding expenditures, investments. 

Steps to Prepare Cash Flow Reports in Tally Prime 

Follow these simple steps to generate a cash flow report in Tally: 

1. Navigate to Cash Flow Reports
   • Go to the Gateway of Tally. 
   • Select Display More Reports from the main menu. 
   • Choose Cash/Funds Flow under the Accounting section. 
2. Select the Period
   • After selecting Cash/Funds Flow, you will be prompted to enter the period for which you want to generate the report. 
   • Enter the From and To dates to define the time frame for the report. 
3. View the Report
   • After setting the dates, Tally will generate the cash flow report.
   • You can view the report on the screen and analyze the cash inflows and outflows. 
4. Customize the Report
   • Use the F12: Configure option to customize the report according to your requirements. Additionally, you can choose to include or exclude details such as Show Average, Periodicity, Show Graph and more.
5. Export or Print the Report 

Why Use Cash Flow reports on BI Tools Like EasyReports? 

EasyReports is a reporting and MIS automation tool for Tally, SAP B1, NAV, BC and other ERPs. It enhances your reporting capabilities & offers various standard and customizable reports around different areas of your business. 

Benefits you will get in EasyReports for Cash Flow Report: 

1) Direct Cash Flow Statement: 
EasyReports provides detailed direct inflow and outflow cash flow report, allowing you to: 

• Analyze past data to understand cash inflow and outflow sources. 
• Use various drag-and-drop features for effortless report customization. 
• Break down cash flow by group and ledger for in-depth insights. 
• View cash flow by time period 

Advantages:  

• Get bank / cash wise cash flows or group into cash / bank or other types of account 
• Get daily, weekly, monthly, quarterly summaries or detailed cash flow 
• Filter on specific heads to get statements of inflows and outflows related to specific heads 
• You can also get multiple company consolidated cash flow

2) Indirect Cash Flow Statement: 
Under the comparative financial statement report, EasyReports offers indirect cash flow statement. It offers: 

• Help you track the flow of funds within the organization. 
• Allow you to see where the earned profits have been utilized. 
• Track your Cashflows from Operating, Investing and Financing Activities 

Advantages:  

• Mapping of ledgers to cash flow heads can be done once and reused for preparation of cash flow on demand without the need to do excel based working 
• Consolidated cash flow across companies is possible 
• Cash flow adjustment entries can be incorporated based on specific business requirements, e.g. taxes paid instead of change in provision for taxes  

This is how you can prepare cash flow reports in Tally & BI tools. To learn more, feel free to connect with the author at info@orchidtec.in