SimpleXoft company created software solution about Cashflow Analysis
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We prepared a comprehensive cash flow analysis to make proper disclosure for the liquidity and long-term solvency of a company and enable us to make accurate managerial decisions for effective liquidity management.
02
We propose the method of using Sisense BI analytics in the assessment of the Cash Flow statement. In our CF analysis solution, we use cash basis accounting instead of accrual basis accounting. The purpose of this Industry analysis is to show where an entity's cash is being generated (cash inflows), and where its cash is being spent (cash outflows), over a specific period (usually quarterly and annually). It is important for analyzing the liquidity and long-term solvency of a company.
03
We calculated Cash Flow by making adjustments to net income by adding or subtracting differences in revenue, expenses, and credit transactions (appearing on the balance sheet and income statement) resulting from transactions that occur from one period to the next. And we apply a direct method of cash flow calculating (these figures are calculated by using the beginning and ending balances of a variety of business accounts and examining the net decrease or increase in the accounts).
04
Data sources are commonly used and can be General Ledger, Trial Balance, Balance sheet, P&L or Cash Flow Statement itself. It is used by a variety of stakeholders, such as credit and equity investors, the government, the public, and decision-makers within the organization. These stakeholders have different interests and apply a variety of different techniques to meet their needs.
The set of the objects below enables to reach out the goal above:
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Prepare Cash Flow Statements under IFRS based on available General Ledger, Balance Sheet, and Profit and Loss Account;
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Provide well-visualized dynamics of the major items of the cash flow statements;
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Investigate the possible gaps of liabilities repayment schedule to define the amount of required financing and time when it`s expected to be required;
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Analyze Net Change in Cash and Free Cash flow to define the company`s demand on financing during the operating period;
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Analyze Net Operating Cash Flow and Gross Operating Cash flow with the EBITDA disclosure that enables to see major risk in the financing of operating activity;
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Analyze amount Interest Accrued from one hand and Net Cash Flow from other hand to be able to find out whether it`s possible to repay debt during the analyzed period;
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Estimate the level of the company`s internal accruals that effect fin result but not effect cash flow.