Understand the Cash Flow Statement
The Cash Flow Statement shows how money moves in and out of your business during a specific period. While the income statement measures profitability and the balance sheet shows financial position, the cash flow statement tracks the actual cash movement — how money came in, how it went out, and how your cash position changed from start to finish in the period.
Rillet automatically generates your cash flow statement based on your company’s chart of accounts and account activity, using a rules-based approach to map each account to the correct part of the statement. This removes the need for manual categorization or complex spreadsheets.
How the Cash Flow Statement Is Generated
Rillet builds the cash flow statement from three main sources:
Account activity, grouped by account subtype.
System-generated rows (e.g., Net Income, FX Impact).
Manual adjustments, if applicable.
The account subtype assigned to each account determines how its activity is reflected in the cash flow statement. These mappings allow Rillet to automate most of the work.
Tip: If a line doesn’t look right, check the account’s subtype — it’s likely the source.
To learn more, see:
📄 Set Up Your Chart of Accounts
How Account Subtypes Drive the Cash Flow
Each account in your chart of accounts has an account subtype. This subtype defines where the account’s activity appears in the cash flow statement.
Equity Compensation
Stock Compensation
Accumulated Depreciation
Depreciation & Amortization
Accounts Receivable
Change in Accounts Receivable
Allowance for Doubtful Accounts
Change in Accounts Receivable
Deferred Revenue
Change in Deferred Revenue
Accounts Payable
Change in Accounts Payable
Accrued Expense
Other Change in Working Capital
Credit Card
Other Change in Working Capital
Deferred Commissions
Other Change in Working Capital
Lease Liability
Other Change in Working Capital
Other Assets
Other Change in Working Capital
Other Current Asset
Other Change in Working Capital
Other Current Liability
Other Change in Working Capital
Prepaid Expense
Other Change in Working Capital
Right of Use Asset
Other Change in Working Capital
Sales Tax Liability
Other Change in Working Capital
Unbilled Revenue
Other Change in Working Capital
Customer Credit
Other Change in Working Capital
Fixed Assets
Capex
Other Long Term Liability
Long-term debt
Debt
Long-term debt
Equity
Equity financing
Additional Paid In Capital
Equity financing
Retained Earnings
Earnings adjustments
Other Key Cash Flow Rows in Rillet
In addition to subtype-driven rows, Rillet adds key system-generated lines:
Net Income: Pulled directly from your income statement, this is the starting point for calculating operating cash flow. It reflects accounting profit — but not actual cash — so the statement adjusts for non-cash and timing differences.
Opening Balance: The ending cash balance from the prior month, pulled from the balance sheet. It includes all accounts grouped as cash or cash equivalents and serves as the starting point for the rollforward.
Net Change in Cash: The sum of all activity above the line — including operating, investing, and financing cash flows. This shows how much cash moved in or out of the business during the period.
Closing Balance: This is the final line in the cash flow statement and is calculated as:
Opening Balance
+ Net Change in Cash
+ Retained Earnings Adjustments
+ FX Impact (if applicable)
= Closing Balance
This amount should match the total cash on your balance sheet and in your bank accounts at month-end.
Frequently Asked Questions
Why doesn’t a line show up in my cash flow? Check if the related accounts had activity during the period and if their subtypes are mapped correctly.
My cash flow doesn’t match my GL—what should I check? Review the Opening Balance, FX impacts (if multi-currency), and any manual Retained Earnings adjustments.
Can I change how an account maps? Yes. Update the subtype in your Chart of Accounts. Changes will apply to future periods.
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