Cash Flow Statement

What is Cash Flow Statement?

Cash Flow Statement tracks the movement of cash in and out of business across three categories: Operating Activities (day-to-day business), Investing Activities (asset purchases/sales), and Financing Activities (loans, equity). It provides insights into liquidity, cash generation capability, and how cash is being utilized. Unlike P&L which uses accrual basis, cash flow statement shows actual cash movements. Tally generates cash flow statements using indirect or direct method.