Using the cash flow statement. Analysis of the company's cash flow

This report reflects payments and receipts of cash and cash equivalents into accounts. The latter are highly liquid financial investments that can be easily converted into cash, but whose value may change slightly. All organizations that maintain accounting must submit a cash flow statement. The sample completed by the accountant must be submitted by the end of the first quarter of the next year after the reporting year.

Let's take a closer look at which articles are not included in the document:

amounts for trade transactions;
invested funds in cash equivalents;
currency transactions;
receiving money from a bank, transferring funds between accounts that do not change the total amount of assets.

When filling out the report, all flows are distributed according to current, financial and investment activities. In the first case, the financial result from ordinary activities is reflected, in the second - associated with the acquisition of non-current assets. Payments that change the structure of capital and borrowed funds are included in the following. Instructions for completing the cash flow statement will be presented, which detail what amounts to enter on each line.

Collapsed indicators

The standard form does not provide for line numbering. If the document is submitted to statistics, then the codes must be entered independently, based on Order of the Ministry of Finance No. 66. In other cases, there is no need to number articles.

Some fund flows are shown on a collapsed basis. For example, if they characterize the activities of counterparties more than the company itself. Such operations include:

agent cash flows associated with payment of commission services;
VAT and excise taxes;
receipts from the counterparty related to the reimbursement of utility payments for rent.

When reflecting reduced VAT, you must indicate the difference between the amounts received from counterparties and those listed as part of payments. These numbers can appear in rows:

4119, if the VAT transferred to suppliers and to the budget is less than that received from buyers and from the budget;
4129, if the VAT transferred to suppliers and to the budget is more than received from buyers and from the budget.

Peculiarities

The report does not reflect the entire list of cash flows. The same operation can be classified into several categories. In this case, the single payment must be divided into separate transactions.
The report is completed in thousand or million rubles.
If funds are received in foreign currency, then the amount converted into Russian rubles at the exchange rate on the date of receipt of payment is entered in the report. If the number of similar transactions, the price of which is expressed in the currency of another state, is large, then the average rate can be used.
It is imperative to reflect the cash equivalents of assets that change price and can be sold at any time.

Cap

First of all, information about the organization is entered into the report: company name, tax identification number, type of activity. Next, the balances in the accounts and in the cash register at the beginning of the period are entered. All flows are divided into three groups (current, investment, financial operations), each of which is further divided into receipts and expenses. How to fill out a cash flow statement? Opposite each article there are two columns. The first (“3”) contains amounts for the reporting period, and the second (“4”) - for the previous one.

Operations

The main source of funds for the organization is money from buyers and suppliers. Therefore, line (line) 4111 reflects the amount of revenue and advances received minus VAT and excise taxes. This information can be obtained from the turnover of the DT accounts of the most liquid assets (from 50 to 58) and KT62 (76).

The amounts of received rent, license and other commission payments, net of VAT, are reflected on line 4112. If the usual activity of the organization is leasing property, then these amounts should be included in revenue. On line 4113, income from the resale of financial investments is indicated, and other income is reflected in a separate item (4119). This article includes, in particular:

repayment of loans issued to employees;
return of previously unspent accountable amounts;
financial results of foreign exchange transactions;
interest on debt investments.

The total amount of receipts is entered on page 4110. This is how the first part of the accounting standard statement of cash flows is prepared.

The procedure for filling out expense items is similar. First, the amount paid to suppliers of raw materials and materials is indicated (4121). The data is taken from the balance sheet, specifically the amounts indicated for the turnover of KT50 (51, 52) and DT60 (76). The transfer of money to counterparties is reflected through account 91/2, and cash is spent by accountable persons. Next, the report indicates the amount of salary paid (4122). This data is taken from the DT70 KT51 postings. A separate line 4123 is allocated to reflect the amount of interest on obligations.

The amount of income tax paid is indicated on page 4124 of the same name. The amount of all other taxes, except indirect ones, social insurance contributions is reflected on page 4129. Next, the total amount of cash expenses (4120) and the financial result from current activities (4100) are displayed. Here's how to complete the cash flow statement for accounts from the balance sheet.

Investment activity: income

In the process of operation, an organization can buy and sell non-current assets. Cash flows from such transactions must be recorded in the cash flow statement. A completed example of the form will be presented below.

The second section of the report shows the amount of dividends received (p. 4214), income from the sale of shares in other enterprises (p. 4212), and financial investments. Information is taken from the turnover of DT50 (52, 58) and CT 76 regarding dividends received. To determine the actual volume of financial investments, you need to separate from the indicated transactions the amounts that were posted to the “Interest on bills” subaccount. The report also includes information on the repayment of issued loans (p. 4213), which is taken from the turnover of DT50 KT58. The sum of other (p. 4119) and general revenues (p. 4210) is highlighted separately.

Investment activity: expenses

The amount of funds allocated for the purchase of debt securities, provision of loans (line 4223), financial investments (line 4222), interest paid to holders of shares and bonds (line 4224), and other payments (line 4229) is separately allocated. Next, a line is highlighted to display the amount of expenses. The information on the basis of which data is entered into these articles is taken from the circulation of DT58.

Here's how to complete the cash flow statement in section two.

Financial activities: income

Information on cash flows associated with changes in the capital structure is entered into the third section of the accounting standard, “Statement of Cash Flows.” The filling procedure is similar to that presented earlier. First, the amounts received by the company in debt are indicated (4311). Information is taken from circulation on KT66 (67) DT50 (51). The amount of the loan formalized by the promissory note is indicated separately (4314), as well as the owners' contributions for the reporting period (4312, 4313), other transactions (4319) and the total amount of receipts (4310).

Financial activities: expenses

Information on cash flows aimed at repurchasing bills, debt securities, loan repayment is reflected on page 4323. Data is taken from turnover for DT66 (67) and KT50 (51). The amount of dividends paid (4322) and other expenses (4329) are reflected separately.

Results

Line 4400 displays the total balance, which is obtained by adding the amounts from lines 4100, 4200 and 4300. A negative value is entered in parentheses. Additionally indicated:

Balance of funds at the beginning (4450) and end (4500) of the reporting year.
Monetary expression of the influence of the exchange rate against the ruble (4490).

Here's how to prepare a cash flow statement for a business. The completed form must be submitted to the Federal Tax Service along with This rule applies to all organizations that maintain accounting, with the exception of non-profit structures. Small businesses whose performance can be understood without reporting may not provide information.

How to fill out a cash flow statement using the direct method?

As of 01.01, the LLC has balances in the cash register (3,000 rubles) and in the bank account (60,000 rubles). You need to fill out a report on the filling movement described above.

In the line “Balance at the beginning of the year” the amount is entered: 3+60= 63 thousand rubles.

During the current period, the organization received 1.77 million rubles. from buyers and another 472 thousand rubles. in the form of advances. This data is taken from the postings DT50 KT62 and DT50 KT62. The report on the line “Proceeds from sales” (line 4111) indicates the amounts excluding VAT: 1770-270+472-72 = 1.9 million rubles.

In the current period, the organization received state aid in the amount of 70 thousand rubles. The funds were used to purchase raw materials necessary for the manufacture of products. These transactions are confirmed in the balance sheet by the following entries:

DT51 KT86 - funds received from the budget.

DT86 KT98 - deferred expenses are taken into account.

Since government assistance increases the capital cost, these amounts are reflected in the second section of the report in “other income” (p. 4119).

During the year, the company transferred 944 thousand rubles to suppliers. The data is taken from the wiring DT60 KT51. This amount minus VAT is reflected on line 4121. In addition, 150 thousand rubles were issued from the cash desk to pay employee salaries. The data is taken from the wiring DT70 KT50. This amount is entered in line 4122.

During the year, the organization’s employees were provided with financial assistance in the amount of 210 thousand rubles. The data is taken from the wiring DT73 KT50. This payment relates to current activities and is shown in “other payments”.

The employee returned unused accountable funds to the cash desk in the amount of 10 thousand rubles. During the same period, suppliers received a penalty for violating the terms of the contract for the sale of products in the amount of 210 thousand rubles. These transactions are recorded in the balance sheet with the following entries: DT50 KT71 (76). The amount of the fine and accountable funds is 220 thousand rubles. reflected in “other income”. Here's how to complete the cash flow statement for the transactions portion of operating activities.

Within a year, the organization sold the machine and the building. The proceeds from the transaction amounted to 1.18 million rubles. The securities of another organization worth 40 thousand rubles were also sold. These transactions are entered into the balance sheet by posting DT51 KT60 (76) for a total amount of 1.22 million rubles. In the report, these transactions are reflected on line 4211 (for the amount of sold fixed assets excluding VAT) and 4222.

During the current period, 80 thousand rubles were returned to the LLC. in the form of a loan. The data is taken from the wiring DT51 KT58. This amount is reflected on line 4213.

The company spent 885 thousand rubles on the purchase of the OS. The data is taken from the wiring DT60 KT51. Other organizations were provided with loans in the amount of 60 thousand rubles. The data is taken from the wiring DT58 KT51. These two transactions are entered on lines 4221 and 4223.

During the reporting period, the organization received a short-term loan for 12 thousand rubles. (DT51 KT66). This amount is reflected on line 4223. The company also repaid the loan taken from the bank in the amount of 320 thousand rubles. The numbers are taken from the revolutions of DT66 KT51. This transaction is reflected on page 4323.

Cash flow report: rules for filling out budget payments

Cash flows related to VAT must be shown collapsed. The total tax amount is calculated for all transactions, but is shown in the context of the current transaction. The amount of taxes and fees transferred to the budget amounted to 360 thousand rubles: NPP - 130 thousand rubles, VAT - 210 thousand rubles, other taxes - 20 thousand rubles. All listed amounts are reflected in the balance sheet by posting DT68 KT51. These amounts are entered in the report on lines 4124 (240 thousand rubles) and 4129 (20 thousand rubles).

How to fill out a cash flow statement: an example of filling out the total lines

The total amount of cash flows from investment transactions (4200) is calculated by subtracting from the amount all funds received and the amount spent. First, the numbers must be “cleared” of VAT:

1000+40+80 -700-60 = 1120-760 = 360 thousand rubles.

There was no VAT movement on financial transactions. Therefore, the resulting flow, which is entered on page 4219, was:

270+72-144-200+180-135 = 43 thousand rubles.

The balance of financial transactions is:

12+70-320 = -238 thousand rubles. This amount is entered in the report in parentheses.

The difference between all receipts and expenses (843+310-238 = 915 thousand rubles) is reflected in the article “Final balance for the reporting period.” The balance of funds at the end of the year is indicated separately. It amounts to:

63+915 = 978 thousand rubles.

Here's how to fill out a cash flow statement. An example of filling is shown in the photo below.

How to allocate VAT?

All receipts and expenditures of funds must be “cleaned” from tax before payment. This process causes difficulties for accountants. Not all accounts reflect VAT separately. To avoid making mistakes in calculations, you need to:

allocate annual amounts of turnover for DT62 (60) KT51;
by multiplying the figure by 18/118, you de-live, thus, VAT;
the remaining amount will be “cleared” of tax.

This method of calculation is suitable only for counterparties who sell goods subject to an 18% rate. What to do with products for which a 10% rate is provided, and those that are not subject to VAT at all? In such cases, you need to sort out the operations with different rates:

VAT balance = VAT received + Amounts received from the budget - VAT transferred - VAT paid.

The calculated difference will be the “net” cash flow from a specific type of activity:

The positive amount is taken into account on line 4119;
A negative amount is shown in brackets on page 4129.

Not all accountants follow this algorithm. If VAT is not separated in the report, this should be indicated in the explanatory note.

How to reflect salary?

On page 4122 all payments related to wages are indicated. The question is, is it necessary to enter in this line, in addition to salaries, holidays and bonuses, also personal income tax and insurance contributions? Some experts believe that in this article it is necessary to indicate only turnover according to DT70 KT50 (51), and the amounts of transferred personal income tax, fees and other taxes should be reflected on page 4129. With this division, you can understand to whom the funds are sent: employees or the budget. Others believe that on page 4122 it is necessary to show all payments related to payroll. Then it will be possible to determine how much it costs the organization to “maintain” employees. Both options have a right to exist. You just need to indicate in the explanatory note the chosen method of displaying the information.

NPP

In order to fill out the form correctly, you need to determine which transactions generated profit, which is the source of payment of income tax in the reporting year, and, depending on the results obtained, enter data. Most often, the source of funds was income from ordinary activities. Therefore, the tax amount is reflected on line 4124.

Cash equivalents

How to fill out a cash flow statement in relation to your financial investments? First, let's look at exactly what assets fall into this category. Cash equivalents are bank bills, demand deposits and other assets that can be easily converted into cash, but are subject to price risk. In the balance sheet, such values are reflected on line 1250. The same amount should be transferred to the report.

An organization may have assets on its balance sheet whose price is expressed in the currency of another state. In this case, how to fill out a cash flow statement? An example of entering data on transactions in foreign currency.

The principle of drawing up a report is similar to filling out a balance sheet. Currency values are reflected in Form No. 1 at the exchange rate of rubles on the date of the transaction. When entering amounts of dollar and euro balances in accounts at the beginning of the year (p. 4450) and at the end (p. 4500) of the year, you must indicate the exchange rate for December 31. The difference that turned out after the recalculations must be reconciled on page 4490. If cash assets and accounts are in a foreign country The organization does not have any currency, then calculations are made using the following formula:

Page 4490 = Annual turnover for DT50 (52) KT91-1 - Annual turnover for KT50 (52) DT91-2.

You can check the correctness of the calculations using the following formula:

Page 4500 = Page 4450 - Page 4400 - Page 4490.

One of the most important factors determining the efficiency of doing business for an enterprise is the ability to manage its solvency. The main tool for managing funds is the management accounting and budgeting system. Cash flow is controlled in budgeting using the Cash Flow Budget. In the article, the authors try to reveal the main approaches to the formation of a cash flow budget and propose their own methodology for forming this budget.

Cash flow budget

Under cash flow budget (CFB) understand the budget (plan) for the movement of the current account and cash at the cash desk of an enterprise or its structural unit, reflecting all projected receipts and withdrawals of funds as a result of the economic activities of the enterprise.

To effectively conduct business, an enterprise in the present and future must have a positive cash balance. That is why BDDS is given a leading place in the budgeting system. As V. Khrutsky notes, “in business there is only one irreparable mistake: to remain without funds in the current account or in the account from which current operations and investment projects can be financed.”

BDDS are compiled both to ensure the constant availability of funds allocated to fulfill the obligations of the enterprise, and to effectively use the excess of these funds. Consequently, the BDDS must provide measures against the so-called “cash gaps”, i.e. situations related to a lack of cash for current payments (measures may include bank loans, issuing shares or otherwise raising funds). Temporarily available funds can be directed, for example, to investment projects, bank deposits at interest, etc.

Thus, the BDDS must ensure the availability of an optimal daily balance (closing balance) of funds throughout the entire planning period:

Composition and stages of formation of BDDS in budgeting

The cash flow budget is usually prepared on the basis of the income and expenditure budget (IBB) and the investment budget. However, the BDDS cannot be calculated by calculation from the two mentioned budgets. This is due to the different methods of forming the BDDS and BDR. The budget of income and expenses is formed using the “accrual” method (i.e., income and expenses are determined at the point in time when they were actually incurred, regardless of payment), the cash flow budget is formed using the “cash” method (i.e. . income and expenses must not only be made, but also paid). In addition, there are budget items for income and expenses that are not related to cash flow (for example, depreciation, defects, shortages), just as there are cash flow items that are not related to current capital turnover and investment activities (credits and borrowings).
Intalev company specialists, for example, cite the following differences in the articles BDR and BDDS (Table 1):

Table. 1 Differences in articles BDR and BDDS

Article		BDDS
Depreciation
Revaluation of fixed assets and inventories
Defects in production
Damage and other losses
Shortages based on inventory results
Exchange differences
Obtaining/repaying loans (loans)
Purchase of fixed assets
Major repairs
Indirect taxes

Naturally, the BDDS, developed on the basis of the mentioned budgets, is compiled from parts that are functionally related to the corresponding parts of the BDDS and the investment budget.

Jai K. Shim identifies 4 main sections of BDDS:

Receipt of funds (balance at the beginning of the period, receipt of payments from customers and other debtors);

Expenditure of funds (payments to creditors);

Net cash flow (the difference between receipts and expenses);

Financial section detailing the receipt and repayment of borrowed funds.

Some researchers additionally highlight a section on investment activities, which refers to the activities of an enterprise related to capital investments (acquisition of buildings, structures, intangible assets, as well as their sale; making long-term financial investments in other organizations, issuing bonds and other securities). The last section is a reflection of the investment budget and describes the cash flow under the enterprise's investment program.

It is advisable to divide the procedure for developing a BDDS into a number of sequential stages. From the description of the budgeting process given in the work of V. Khrutsky, the following stages of the formation of the BDDS can be distinguished:

Determining the required level of funds to finance investment costs (for capital investments, acquisition of fixed assets, construction for own needs, i.e. all costs financed from the profit remaining with the enterprise after taxation);

Determining the minimum level of daily cash balance for unexpected expenses ( "closing balance" in expression (1));

Determination of budget revenue ( "receipts" in formula (1)) - are carried out on the basis of the sales budget, taking into account the analysis of the collection of accounts receivable, the budget for investment (sale of fixed assets and other assets of the enterprise) and financial activities (dividends, interest received);

Determination of the expenditure side of the budget ( "payments" in formula (1)) - are carried out on the basis of budgets for direct costs (labor costs, costs for raw materials and supplies (usually, when determining the cost of raw materials and supplies, accounting (standard) prices are used, which may differ from market prices) - taking into account movements of inventories of raw materials and materials), overhead budgets (remuneration of AUP, other general shop and general business expenses), budgets for investment (purchase and construction of fixed assets) and financial activities (repayment of loans and interest on them, payment of dividends);

Formation of a cash flow budget, control and adjustment.

An example of a cash flow budget is given in Table 2.

Table. 2 Example BDDS

Indicator	Plan	Fact
Cash balance at the beginning of the period
Total funds received
Including:
From buyers for shipped products
Credits and loans
Dividends and interest received
Sale of fixed assets and other assets
Total funds spent:
Including
Payment for raw materials
Remuneration
Payment of dividends and interest
Expenses for the acquisition of fixed assets and other assets
Calculations with the budget
Other payments
Net Cash Flow
Cash balance at the end of the period

Application-contractual methodology for the formation of BDDS

The possibilities for effective cash flow planning depend on the planning period. Long-term (a year or more) and medium-term (quarter, year) BDDS can practically coincide with BDR. The longer the planning period, the closer the BDDS to the BDR. When moving to short-term (operational) planning, it is not possible to take the BDR adjusted for the same period as a basis due to the strong susceptibility of the cash flow process to random influences that are almost impossible to foresee at the stage of compiling the BDR, such as: fluctuations in terms and amounts of payment, conditions and volumes of supplies. In addition, data on the monetary expression of expenses in the BDR are usually approximate and are created on the basis of standard (accounting) prices for raw materials and materials.

The traditional method of forming the expenditure part of the Cash Flow Budget, for example, described in the works of K. Shchiborshch or V. Khrutsky, allows the formation of a cash flow budget for a period of several months to a year, but is not always suitable for the needs of operational (short-term) planning for a period of up to 1 year. month.
In this regard, the authors propose, in addition to the traditional method, an application-contractual method, which involves the formation of a cash flow budget and a payment calendar (which is understood as a schedule of receipts of funds and payments of the enterprise) based on applications for the expenditure of funds.

The key feature of the proposed algorithm for the formation of BDDS for the short-term period is that, first of all, an analysis is carried out of the current needs of the departments and the structure of payments for contractual relationships that developed by the end of the period. Only after this are the income and expenses included in the BDR and investment budget compared with the needs for the current cash flow. The result of such a reconciliation can be either an adjustment of the BDDS or a change in the BDDS and the investment budget.
This approach to cash flow planning corresponds to R. Bellman’s principle of optimality, known in the mathematical theory of optimal control: the optimal path of movement to the achieved goal from the current state in which the object is located does not depend on the history of the object’s movement to the current state. The “current state” of the object in our case is the situation that has developed at the beginning of the planning period regarding contractual relationships and the enterprise’s needs for funds.
The application and contractual methodology for forming the BDDS is presented in Fig. 1:

Figure 1 Application and contractual methodology for the formation of BDDS

When planning cash flows(block 1 in Fig. 1) the estimated cash receipts are calculated based on the available planned data on income for a given period and the possible repayment of receivables by buyers ( Receipts).

The calculation of receipts is carried out taking into account the established practice of relationships with customers. To do this, using, for example, statistical methods, an analysis of the current activities of the enterprise is carried out and the following indicators are determined:

Receivables repayment terms;

The percentage of incoming advances from the total amount of products (goods) sold;

The time period from receipt of advances to the fulfillment by the enterprise of relevant obligations;

The percentage of “bad” debts in the total share of invoices presented to customers.

These indicators are calculated for each type of activity by groups of counterparties. To do this, you can use the company's accounting database.

After calculating the total amount of planned revenues, the maximum possible amount of payments for the period is determined:

Payments = Beginning Balance + Receipts - Ending Balance - Reserve, Where

Beginning balance- actual (in the absence of such data - planned) cash balance at the beginning of the planning period;

Balance- planned cash balance at the end of the planning period;

Reserve- cash reserve for unplanned, emergency payments.

Planning cash payments carried out on the basis of approved applications and contracts (block 2 in Fig. 1). Within the framework of this methodology, it is assumed that a database of agreements will be created in which all financial and business agreements concluded with the enterprise are registered. For planning cash payments based on one-time relationships with counterparties that are not formalized in contracts, the document is intended bid(The approximate format of the tabular part of the application is given in Table 3). The application is prepared by the department for expenses for current activities. A prerequisite for the application is the presence of documentary evidence of each line of expenses (invoice, certificate, production plan).

Table 3 Application format

The frequency of drawing up requests corresponds to the frequency of budget planning. When using several plans with different intervals, applications are drawn up for each period.

Upon receipt of applications for all structural divisions of the Enterprise, an analysis of the received data is carried out. Drawing up a cash payment schedule is carried out in two stages:

Determining the purpose of payments;

Determination of payment dates.

At the first stage, after determining the maximum amount of payments (Payments), the highest priority payment items are selected. If the maximum payment amount is not enough to cover your highest priority (obligatory payment) items, then a conclusion is made about the need to obtain a loan in the amount necessary to pay these expenses. Credits and borrowings increase the Company's income for the planned period, but increase payments for subsequent periods.

At the second stage, payment dates are determined. To do this, a schedule of cash receipts is drawn up, on the basis of which the cash balance for each planning step is determined (minimum, indivisible planning period - for example, a day, a week, etc.).

Table. 4 Form of cash flow calendar plan

Initially, the terms of the highest priority payment items are determined based on the required payment terms and the Company’s capabilities to fulfill these obligations. Next, payment terms are determined for the remaining items, starting with the highest priority items and ending with lower priority items. At the same time, cash gaps are monitored, i.e. absence of periods with negative balances at the beginning and end of the period.

In addition, the amount of payments by item is formed taking into account expense limits for each division, established on the basis of the planned budget and investment budget (block 3 in Fig. 1). If the payments are appropriate and necessary, a decision is made to make adjustments to the BDR and the investment budget.

After selecting items and determining payment deadlines, the divisions’ application fields are filled in, confirming payment of the selected items within a certain time frame in the planned amount and quantity. In table 5 shows the columns of the tabular part of the application, filled out by the person responsible for determining the terms and items of payments.

Table 5

Applications with approved deadlines and payment items are returned to the heads of the department. When generating applications for the next period, department heads have the right to again indicate in the application items that were not passed (did not receive confirmation of payment) in previous periods.
Based on the report on approved applications (payment schedule), as well as the cash receipt schedule, a payment calendar is formed, and based on the latter - the BDDS (block 4 in Fig. 1).

An important aspect of the proposed methodology, along with the compilation technology, is the organization of planning work. The methodology for forming the BDDS should be part of the planning regulations at the enterprise (to be enshrined in internal regulatory documents) and be mandatory for use for all departments.

Applications for the period, grouped and displayed in the form of a report by department, are submitted to the manager responsible for the expenditure of funds. The report is analyzed by priority of applications, by expense items, by type of activity, and for each line of the application the amount and date of payment for applications are indicated. Unapproved applications must be submitted the following month along with new applications.

When organizing planning, it is necessary to provide for control operations:

Compliance of BDDS articles with limits (determined by the BDDS and investment budget);

The feasibility of the costs and overruns (comparison with the production program);

Limit on cash balances at the end of the period in case of unforeseen expenses;

Controlling the absence of cash gaps.

Control is carried out in accordance with the planning regulations, the main principles of which are:

Compliance of submitted applications with the financial plan;

Making payments based on written requests from the initiating services;

Transfer of funds is made in accordance with the payment register approved by the Financial Director.

Applications for payment submitted by departments in excess of the plan are paid only with the permission of the General Director (or the person replacing him).

When “cash gaps” arise (i.e., a situation when the expenditure side of the budget exceeds the revenue side, and the final cash balance on a specific date becomes negative), measures are taken to eliminate them - a decision to “cut” expenses (or shift expenses over time) or obtaining a bank loan.

The proposed algorithm for forming a cash flow budget was successfully applied at a large enterprise supplying network gas, OJSC Sverdlovskoblgaz.

The application of the technique showed that the technique has the following advantages:

Simplicity. The technique is quite simple to use and implement in production.

Credibility. Reliability is achieved due to the fact that data is presented only about real necessary costs, and all departments of the enterprise participate in planning.

Visibility. Performers promptly receive a report on approved and unapproved expenses.

Literature

Khrutsky V.E., Sizova T.V., Gamayunov In-house budgeting. A reference book on financial planning - M.: Finance and Statistics, 2003.

Upchurch A., Management accounting: principles and practice: Trans. from English/Under. Ed. Sokolova Y.V., Smirnova I.A. - M.: Finance and Statistics, 2002.

Shchiborshch K.V., Budgeting the activities of industrial enterprises in Russia. - M.: Publishing house "Delo and Service", 2001.

Cash flow information enables users to assess an organization's ability to generate cash and estimate its cash needs. The requirements for the presentation and disclosure of cash flows are set out in IFRS (MS) 7 Statement of Cash Flows.

Must present for the period, classifying them into operating, investing and financing activities.

Classifying flows into activity categories provides information that allows users to assess the impact of each activity on the company's financial position and cash (and cash equivalents). This information can also be used to analyze the relationship between specified categories of activity.

The same transaction may result in cash flows that are classified differently.

Operations

The amount of cash generated by operating activities is the most important indicator of whether a given category of activity generates enough cash to repay loans, maintain the company's productive capacity, pay dividends (and make new investments) without resorting to external sources of financing.

When forecasting cash flows from operating activities, information about their individual components in conjunction with other information is valuable.

Cash flows from operating activities are generated primarily in the course of core activities that generate the company's revenue. Thus, they usually result from transactions that contribute to net income.

Examples of cash flows from operating activities include:

proceeds from the sale of goods and provision of services;
receipts of rental payments for the provision of rights, remunerations, commissions and other types of revenue;
payments to suppliers of goods (and services);
payments to (and on behalf of) employees;
receipts and payments by insurance companies for insurance premiums, claims, annuity and other types of insurance policies;
payment (or reimbursement) of income taxes, except those related to financial or investment activities;
receipts (and payments) under contracts for commercial (or exchange) operations.

Some transactions, such as the sale of a manufacturing facility, may result in a financial result that is included in net income. However, the corresponding cash flow relates to investing activities.

Companies that specialize in securities transactions will record them as inventory acquired for resale. Cash flows generated as a result of transactions for the purchase and sale of securities are classified as operating activities. As for other companies, for them it will be either investing activities or cash equivalents.

Cash advances and loans by financial institutions are generally classified as operating activities because they are core activities that generate a company's revenue.

Investment activities

Separate disclosure of cash flows from investing activities reflects the extent of expenditures on resources intended to generate future income and cash flows.

Examples of cash flows from investing activities include:

payments for the acquisition of fixed assets, intangible assets and other non-current assets. These include payments related to the capitalization of costs for the development and construction of fixed assets using an economic method;
proceeds from the sale of fixed assets, intangible assets and other non-current assets;
payments for the acquisition of shares or debt instruments of other companies, as well as shares in joint ventures (with the exception of such instruments that act as cash equivalents or instruments for carrying out commercial (or exchange) transactions);
proceeds from the sale of shares (or debt instruments) of other companies, as well as shares in joint ventures (with the exception of such instruments that act as cash equivalents or instruments for carrying out commercial (or exchange) transactions);
advances (or lending) to other parties (with the exception of similar transactions carried out by financial institutions);
receipts in repayment of advances or loans provided to other parties (except for similar transactions carried out by financial institutions);
payments under futures, forward, option contracts and swaps (except for contracts concluded for the purpose of carrying out commercial or exchange transactions, or payments related to financial activities).

Financial activities

Separate disclosure of cash flows from financing activities is necessary to forecast cash demands from those providing capital to the company.

Examples of cash flows from financing activities include:

proceeds from the issue of shares or the issue of other equity instruments;
payments to owners upon redemption or redemption of company shares;
proceeds from the issue of bonds, bills, mortgages, loans, as well as from other short-term or long-term debt instruments;
payments to repay loans;
payments by the lessee to satisfy the finance lease obligation.

A company must prepare a statement of cash flows to present cash flows from operating activities using:

direct method, in accordance with which information about the main classes of gross receipts and gross disbursements is disclosed; or
indirect method under which net income is adjusted to take into account the effects of non-cash transactions, amounts deferred (or accrued) from past (or future) cash flows from operating activities, and items of income (or expense) related to investing or financing cash flows activities.

Methods for preparing a statement of cash flows for operating activities are reflected in table. 1.

Companies are encouraged to report cash flows from operating activities using the direct method in their statement of cash flows, as this method provides information that the indirect method does not provide.

Table 1. Methods for preparing a cash flow statement

Direct method

Indirect method

Information is disclosed on the main types of gross receipts and payments that can be obtained:

or from accounting data;
or by adjusting sales and their cost taking into account:
changes in inventories, operating payables and receivables during the reporting period;
other non-monetary items;
other items leading to investment or financing cash flows

Profit (loss) for the reporting period is adjusted taking into account:

results of non-cash transactions;
any deferrals or accruals of operating cash receipts or payments relating to past or future periods;
items of income and expenses associated with investment or financial cash flows

In accordance with the direct method, information on the main classes of gross receipts and gross payments can be obtained:

from accounting registers;
by adjusting revenue, cost of sales (for financial institutions - interest and similar types of income, interest expenses and similar types of expenses), as well as other items in the statement of comprehensive income, taking into account:
changes in inventory, receivables and payables from operating activities;
other non-monetary items;
other items the movement of which is related to investing or financing activities.

Alternatively, net cash flow from operating activities may be presented using the indirect method by reporting revenues and expenses in the statement of comprehensive income and changes during the reporting period in inventory balances, receivables and payables from operating activities.

An entity must present gross cash receipts and cash disbursements separately for investing and financing activities, except for cash flows that are reported on a net basis.

The following cash flows from operating, investing or financing activities may be reported on a net basis:

receipts and payments on behalf of clients, when cash flows reflect the activities of the client rather than the company itself. Examples of such receipts and payments may include:
acceptance (and payment) of bank deposits upon request;
financial resources intended by the investment company for clients;
rent collected on behalf of (and paid to) the owners of a property;
receipts and payments for items characterized by high turnover, large amounts and short repayment periods. Examples of such receipts and payments include advance payments (and repayments) for:
the principal amount of debt in settlements with clients who have credit cards;
acquisition and sale of investments;
other short-term loans, for example those whose repayment period does not exceed 3 months.

Cash flows arising from each of the following types of activities of a financial institution may be presented on an aggregate basis:

receipts and payments associated with the acceptance (and disbursement) of deposits with a fixed maturity;
placing (and closing) deposits in other financial institutions;
advances and loans made to customers (and repayments of such advances and loans).

Indicators of the organization's cash flow statement

Cash— the most liquid category of assets, which provides the organization with the greatest degree of liquidity. In the process of carrying out all types of financial and business transactions, the organization generates cash flows in the form of their receipt or expenditure.

The cash flow statement discloses data on cash flows in the reporting period, characterizing the availability, receipt and expenditure of cash in the organization.

The information presented in the form allows internal and external users to assess how the company creates and uses cash, whether there are enough cash to pay off current liabilities and pay dividends, allows them to determine whether the company requires additional financing, etc.

The cash flow statement also provides information about the organization's ability to attract and use cash.

Cash flow statement characterizes changes in the financial position of the organization in the context of current, investment and financial activities.

The formation of this reporting form is regulated by PBU 23/2011 “Cash Flow Report” (Order of the Ministry of Finance dated February 2, 2011 No. II n).

The main source of funds should be current activities. Current activities The activities of an organization are considered to be those that pursue profit-making as the main goal or do not have profit-making as such a goal in accordance with the objects and purposes of the activity, i.e. activities that, in accordance with PBU 9/99 “Income of the organization,” are ordinary (Fig. 5.1).

Rice. 5.1. Channels of receipts and payments for current activities

Investment activities the activities of the organization are considered. related to the acquisition of land, buildings and other real estate, equipment, intangible assets and other non-current assets, as well as their sale; with the implementation of its own construction, expenses for research, development and technological development; with financial investments (purchase of securities of other organizations, including debt, contributions to the authorized (share) capital of other organizations, provision of loans to other organizations, etc.) (Fig. 5.2).

Financial activities- this is the activity of an organization, as a result of which the size and composition of the organization’s equity capital and borrowed funds changes (proceeds from the issue of shares, bonds, loans from other organizations, repayment of borrowed funds, etc.).

Rice. 5.2. Channels of receipts and payments for investment and financial activities

There are two methods of presenting cash flows from current (operating) activities: direct and indirect.

Direct method is based on determining the inflow (revenue from the sale of products, works, services, advances received, etc.) and outflow (payment of supplier bills, return of short-term loans and advances received, etc.) of funds. The initial element of the calculation is revenue from the sale of products.

The direct method of determining cash flows is based on information about all transactions carried out in the reporting period on bank accounts and with cash, grouped in a certain way. The direct method has been approved for use by Russian organizations.

Indirect method common in foreign practice, where when drawing up a cash flow statement, operating, investing and financial activities are distinguished.

Operating activities represent cash flows associated with the main activities of the organization, bringing it the main profit.

The indirect method of presenting cash flows from operating activities includes an element of analysis, since it is based on a comparison of changes in various balance sheet items for the reporting period, characterizing the property and financial position of the organization, and also includes an analysis of the movement of fixed assets, their depreciation and other indicators. As a result of applying the indirect method, the final financial result (net profit for the reporting period) is converted into the difference between the amounts of cash available to the organization at the beginning and end of the reporting year.

When drawing up the calculation, it is assumed that transactions are reflected in accounting at the moment of transfer of ownership, regardless of payment. As a result, revenue reported on the income statement is not always equivalent to cash receipts, and expenses reported on the income statement are not equal to expenses paid. As a result, the net profit indicator on the income statement does not reflect the actual availability of funds available to the organization at the reporting date.

Therefore, when preparing a cash flow statement, the net profit indicator is adjusted in the following order:

1. Depreciation of property is added to net profit, since depreciation charges are an expense that forms net profit, but does not lead to an outflow of cash.

2. An adjustment is made to the amount of change in the balances of inventories at the beginning and end of the reporting year. If inventory balances increase, then the difference in balances is deducted from net income, since an increase in inventory leads to an outflow of cash. If inventory decreases, the difference is added.

3. An adjustment is made for the amount of changes in accounts receivable. If accounts receivable decreased at the end of the year, then the difference is added to net profit, otherwise it is subtracted from it.

4. An adjustment is made to the amount of accounts payable. At the same time, an increase in accounts payable leads to an influx of cash, so the difference in accounts payable is added to net profit, otherwise the difference is deducted.

As a result of these adjustments, the amount of net cash flow from operating activities is calculated.

Cash flows from investing and financing activities are determined by the direct method. The difference between the inflow (receipt) and outflow (outflow) of funds is the net cash flow, which is determined for each type of activity. The total net flow for all types of activities is the increase in cash for the reporting period, defined as the difference in cash balances at the beginning and end of the reporting period.

In foreign practice, financial statements disclose information not only about the organization’s cash assets, but also about their equivalents. Under cash equivalents refers to short-term, highly liquid investments that are easily convertible into cash and are subject to an insignificant risk of changes in values.

For the purpose of preparing a cash flow statement in Russia under cash directly refers to money in cash and non-cash form located at the organization’s cash desk, in its settlement, currency and special accounts.

The cash flow report presents data directly resulting from the entries in the cash accounting accounts: 50 “Cash” (except for the balance of subaccount 50-3 “Cash documents”), 51 “Settlement accounts”, 52 “Currency accounts” , 55 “Special accounts in banks” (except for the balance of subaccount 55-3 “Deposit accounts”), 57 “Transfers in transit”.

Information on the movement of funds of the organization on these accounts is reflected on an accrual basis from the beginning of the year and is presented in the currency of the Russian Federation.

In the case of the presence (movement) of funds in foreign currency, information on the movement of foreign currency for each type is initially generated in relation to the cash flow statement adopted by the organization. After this, the data for each calculation made in foreign currency are recalculated at the exchange rate of the Central Bank of the Russian Federation as of the date of preparation of the financial statements. The data obtained for individual calculations is summarized when filling out the corresponding indicators of the cash flow statement.

Cash flow for current activities

The section “Cash flow for current activities” reflects:

Discloses information about amounts received from:

sales of products, goods, works and services, including advances;
rental and license payments, fees, commission payments, etc.;
other income.

To fill out this line, debit turnovers on accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” are used in correspondence with accounts 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors” (including VAT , excise taxes paid by buyers).

According to the line “Other receipts” show the amounts of cash received that are related to the current activities of the organization and are not indicated in the previous line:

budgetary and targeted funding and revenues:

Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 86 “Targeted financing”:

gratuitous receipts:

Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 98 “Deferred income” (91 “Other income and expenses”):

refunds from suppliers:

Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 60 “Settlements with suppliers and contractors”;

receipts for satisfaction of claims, amounts of insurance compensation, etc.:

Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 76 “Settlements with various debtors and creditors”;

return of unused accountable amounts:

Debit account 50 “Cash” Credit account 71 “Settlements with accountable persons”;

receipts for compensation for material damage, etc.:

Debit of accounts 50 “Cash”, 51 “Settlement accounts” Credit of account 73 “Settlements with personnel for other transactions”.

1. for payment for goods, works, services:

Debit accounts 60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” Credit accounts “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special accounts in banks” (including prepayment);

2. for wages:

Debit of account 70 “Settlements with personnel for wages” Credit of accounts 50 “Cash”, 51 “Settlement accounts”;

3. for payment of interest on debt obligations:

a) dividends paid to the founders;

Debit of accounts 75 “Settlements with founders”, 70 “Settlements with personnel for wages” Credit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”.

The principal amounts of loans and credits that the organization repaid in the reporting year are not shown in this line. They are indicated in the section “Cash flows from financial activities”:

Debit of accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings” Credit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”;

4. for calculations of taxes and fees:

Debit of accounts 68 “Calculations for taxes and fees”, 69 “Calculations for social insurance and security” Credit of accounts 50 “Cash”, “Cash accounts” (including the amount of the listed penalties).

For paid contributions for compulsory pension insurance and insurance against industrial accidents and occupational diseases, you can enter an additional line:

Debit of accounts 69 “Calculations for social insurance and security” Credit of account 51 “Current accounts”;

5. for other payments, transfers:

a) fines, penalties, penalties paid by the organization for violation of the terms of business contracts:

Debit of account 76 “Settlements with various debtors and creditors” Credit of account 51 “Settlement accounts”;

b) funds issued to accountable persons:

Debit of account 71 “Settlements with accountable persons” Credit of account 50 “Cash”;

c) loans issued to employees:

Debit of account 73 “Settlements with personnel for other operations” Credit of account 50 “Cash”, etc.

If there are significant turnovers under the items “Other income” and “Other expenses”, a breakdown should be provided in additional lines of the report.

Results of cash flows from current activities

According to the line “Results of the movement of funds from current activities” reflects the difference between the inflow and outflow of cash from current activities. This difference can be positive or negative. In the second case, the indicator “Results of cash flow from current activities” is reflected in parentheses.

The section “Cash flow from investing activities” reflects:

Indicator “Cash received - total” is formed as the sum of numerical data for the following items:

1. “From the sale of fixed assets and other property.” This line reflects funds received from the sale of equipment, leased items, intangible assets, unfinished construction projects, etc. To fill out the line, use the corresponding turnovers on the debit of cash accounting accounts in correspondence with accounts 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors”. VAT amounts are not deducted:

2. “Dividends, interest on financial investments” - amounts received from participation in the capital of other organizations (dividends):

Debit accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit accounts 91 “Other income and expenses”, 16 “Settlements with various debtors and creditors”.

Interest on securities (except for shares), loans, interest accrued by the bank on the cash balance:

Debit accounts 50 “Cash”, 51 “Cash accounts”, 52 “Currency accounts” Credit accounts 91 “Other income and expenses”, 76 “Settlements with various debtors and creditors”;

3. "Other receipts." This line reflects receipts from:

a) sales of equity and debt securities acquired for a period of more than 12 months (shares, bonds, bills) and other financial investments that are recorded in the debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” in correspondence with accounts 58 “Financial investments”, 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors”;

b) repayment of loans provided to other organizations:

Debit of accounts 50 “Cash”, 51 “Cash accounts”, 52 “Currency accounts” Credit of account 58 “Financial investments”.

Line “Cash sent - total” is formed as the sum of numerical data for the following items:

1. “For the acquisition of fixed assets (including profitable investments in tangible assets) and intangible assets).” This line shows the amounts paid to suppliers and contractors for acquired or created non-current assets:

Debit accounts 60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” Credit accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special bank accounts” (including prepayment) ;

2. “For financial investments” - This line deciphers the amounts transferred to sellers of securities and other organizations and persons in connection with their acquisition:

Debit accounts 60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” Credit accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special accounts in banks”;

3. “For other payments, transfers.” This line may show the amounts transferred to borrowers in accordance with the loan agreement:

Debit account 58 “Financial investments” Credit account 50 “Cash”, 51 “Cash accounts”.

According to the line “Result of cash flow from investment activities” reflects the difference between the inflow and outflow of funds from investment activities. This difference may be positive And negative. In the second case, the indicator “Result of cash flow from investment activities” is reflected in parentheses.

Cash flow from financing activities

The section “Cash flow from financial activities” reflects:

Indicator “Cash received - total” is formed as the sum of numerical data for the following items:

1. "Credits and loans" - amounts received from creditors under agreements (loan, credit) excluding accrued interest. Interest amounts are reflected as part of operations for current or investment activities, depending on the purpose of attracting borrowed sources:

Debit of accounts 51 “Currency accounts”, 52 “Currency accounts” Credit of accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings”;

2. “Budget allocations and other targeted financing”— the amounts of budget and targeted funding are indicated;

3. "Contributions of participants" - amounts received from shareholders (founders) as a result of placement of their own equity securities:

Debit of accounts 50 “Cash”, 51 “Settlement accounts”, 52 “Currency accounts” Credit of account 75 “Settlements with founders” (81 “Own shares (shares)”);

4. "Other receipts" - amounts of income from financial activities that are not reflected in the listed lines.

Indicator “Funds sent - total” is formed as the sum of numerical data for the following items:

1. “For repayment of loans and borrowings” - funds transferred to repay the principal debt on borrowed funds (excluding interest):

Debit of accounts 66 “Settlements for short-term loans and borrowings”, 67 “Settlements for long-term loans and borrowings” Credit of accounts 51 “Settlement accounts”, 52 “Currency accounts”;

2. "For payment of dividends" - This line shows the amounts of dividends paid to the company's participants:

3. “For other payments, transfers” - This line can show the amounts of lease payments transferred to the lessor:

Debit of account 76 “Settlements with various debtors and creditors” Credit of accounts 51 “Settlement accounts”, 52 “Currency accounts”, 55 “Special accounts in banks”.

According to the line “Result of cash flows from financial activities” reflects the difference between the inflow and outflow of funds from financial activities. This difference may be positive And negative. In the second case, the indicator “Result of cash flow from financing activities” is reflected in parentheses.

Indicator “Result of cash flow for the reporting period” is the algebraic sum of indicators of cash flow results for the reporting period for all types of activities. He may also have positive or negative value.

The cash flow statement shows the total cash balance for all types of activities at the beginning of the reporting period ( line “Cash balance at the beginning of the reporting year”).

Cash balance at the end of the reporting period is calculated by adjusting (increasing or decreasing) the cash balance at the beginning of the reporting period by the amount of the result of cash flow for the reporting period.

Information on cash flows is provided in the statements for at least two years (reporting and previous).

What is a cash flow budget (CFB)? How to create a budget for income and expenses of an enterprise? How to prevent budget expenditures from exceeding its revenues?

If your business has income, it also has expenses. This means you need to budget professionally.

The more money, the more difficult it is to manage. In order to properly distribute funds and manage the solvency of the company, entrepreneurs use budget of income and expenses And cash flow budget .

Denis Kuderin, an expert on economic and financial issues, is with you. In this article I will tell you what the concepts mentioned above are and how to manage a budget to make business more efficient.

Sit back comfortably and read to the end - at the end you will find a review of reliable companies that will help establish budgeting at the facility, plus tips on how to prevent business expenses from exceeding income.

1. What are BDR and BDDS and how do they differ?

Even managing a family budget is not that easy. Anyone who has tried it knows that there is no money for everyday expenses. it always takes more than you expected. You have to adjust expenses, add new items to the budget that you completely forgot about at the time of its preparation.

Imagine how much more difficult it is to manage the budget of a large enterprise. At any commercial facility hundreds of expense items and expenses that need to be made.

The budget is not an abstraction, it is a concrete concept supported by special documents. Each enterprise, even one consisting of 2 employees, maintains an income and expense budget (I&C) and, if possible, a cash flow budget (CFB). This is the basis.

Before moving on to the practical meaning of these concepts, let's define the terminology.

BDR– a method of documenting transactions that form the income and expenses of an enterprise. As a rule, such a document takes the form of a simple table, which takes into account all economic manipulations that lead to the receipt of funds or their expenditure. This takes into account not only monetary, but also any other income and expenses.
BDDS– a way to reflect the movement of cash flows in an enterprise. This document only deals with events that have monetary value.

The primary documents that are used when registering BDR transactions are acts of completed work and services provided, acts of acceptance and transfer of tangible assets, and any other documents confirming the company’s income and expenses. The document is similar to an income statement.

What is the difference between BDR and BDDS?

These budgets are different goals for which they are formed. BDR is being developed for the purpose of profit planning, which the company is able to receive during the budget period. This includes all data about production costs products and revenue.

BDDS is intended for cash flow distribution. It reflects all the activities of the organization that were carried out in cash. With the help of BDDS, all transactions of the enterprise are monitored across various accounts.

The table shows the transactions that are reflected in the budget documents we are considering:

№	Operations	Reflected in the BDR	Reflected in BDDS
1	Depreciation calculation	Yes	No
2	Revaluation of inventory items	Yes	No
3	Shortages of inventory assets	Yes	No
4	Manufacturing defect	Yes	No
5	Credits and loans	No	Yes
6	Acquisition of fixed assets	No	Yes
7	VAT	Yes	Yes
8	Expenses for major repairs	Yes	Yes

Both budgets together provide a clear understanding of the company’s current financial condition and its prospects. As a rule, it begins with the preparation of the BDR, since this document has a more “extended” format.

The BDR includes three groups of financial indicators - income, costs and profit. The latter is calculated by subtracting the second from the first.

BDDS is a cash flow plan for the company's cash desk and current accounts. The document reflects all planned receipts and write-offs of funds as a result of business operations. BDDS protects a business from the main mistake of being left without money to conduct its core business.

In this short video, they will explain to you the difference between BDR and BDDS using the example of buying a refrigerator.

2. What activities underlie the compilation of BDDS - 3 main types of activities

When compiling a report, the BDDS is guided by three types of activities enterprises – operating room(current), investment and directly financial.

Let's look at them in detail.

Type 1. Operating activities

This is the main activity of the company - the work that creates income and expenses of money. This is the production of products, sales of goods, provision of services, performance of work, rental of equipment and other operations related to cash flow.

Type 2. Investment activity

Related to the acquisition or sale non-current assets. Investing, like operating activities, is aimed at making a profit or achieving a beneficial effect for the company. However, in such activities the main working capital is not involved, but is used " free" money.

Example
The Safe Technologies enterprise invests part of its assets in development of alternative energy sources – generators based on solar panels and wind. Money is invested in laboratory research and scientific development. These financial transactions are necessarily reflected in the BDDS report.
Type 3. Financial activities
Leads to changes in the composition and size of the company's fixed capital. For example, this is the attraction and repayment of loans necessary for the enterprise to develop new areas of production.
The DDS budget prevents shortages and excesses of working capital
Dividing the company's activities into types allows us to assess the effect of all three areas on the financial status of the company and the amount of capital at its disposal.
A well-drafted cash flow budget ensures that the funds necessary to carry out the company's core business are always available.
BDDS also allows you to effectively use the company's excess money, since the main principle of business is that free funds do not lie idle in bank accounts, but bring even greater profits.
3. How BDD is formed - 5 main stages
BDR is a universal tool for managing business processes. It allows you to optimally use the company's resources, assess the economic condition of the enterprise, and plan further work.
Today most companies use automated budget management and management systems. Special programs reduce the number of errors, reduce the time for calculations and facilitate the work of employees of the financial departments of the enterprise and financial responsibility centers (FRC).
Before drawing up a BDR, you need to create and systematize the company’s local budgets - production, management, sales budget, cost budget, etc. The BDR is a document that summarizes all this data.

The main purpose of BDR is accounting and forecasting the financial condition of the organization. This is the final part of the enterprise’s budget, the tip of the iceberg, the basis of which is the indicators of all company budgets in all areas.
Let us consider step by step how the BDR is formed.
Stage 1. Cost calculation
Without expenses there is no income. Guided by this simple truth, the financial departments of any company pay primary attention to costs.
What is included in the consumables:
production costs;
business expenses;
managerial;
wages and taxes;
other expenses.

The detailing of expense items depends on the goals and capabilities of the company. It is clear that the more details the costs are taken into account, the clearer the economic situation in which a particular object is located.
Stage 2. Calculation of income
Revenues are all inflows into a company's assets.
These include:
sales revenue;
income from services;
rental income;
non-operating income– interest on loans, compensation and other income not directly related to the sale of main products.

Each enterprise has its own sources of income, so the details depend on the profile and specifics of the company.
Stage 3. Determination of profit
Profit– a positive difference between income and expenses. If the difference is negative, it is no longer a profit, but lesion. This means that the enterprise is operating at a loss, and fundamental changes are needed in production and all other processes.
Stage 4. Profit planning
Since profit is the main source of financing for an enterprise, all its activities are aimed at maintaining and increasing working capital . Money invested in production must be returned as quickly as possible– this problem is solved by professional profit planning.
Another goal of planning is to obtain maximum benefits at minimum costs, but not at the expense of quality loss, but through rational organization of labor and reduction of associated costs.
At the same time, the main needs of the company are satisfied:
payment of salaries and incentives to employees;
accumulation of funds for modernization and expansion of production;
payment of obligations, as well as to investors and owners of the company;
increasing the profitability of the enterprise;
increasing competitiveness.

Again, the accuracy of the forecast is directly affected by the most detailed breakdown of the company’s expenses and income.
Stage 5. Report preparation
Only professionals can draw up a competent and objective report. If you are the head of a company and doubt the competence of your CFO employees, then the best option is to delegate budgeting to a qualified outsource company.
Third-party specialists will not only draw up a detailed BDR, but also provide it if necessary. This may take more time, but the result will be more objective.
4. How the BDDS is compiled - 5 main stages
In general, the preparation of a BDDS is similar to the formation of a BDR, but there are certain nuances.
As I already said, only monetary receipts and expenses that are reflected in financial documents.
Stage 1. Setting the cash balance
First, you need to set a required minimum balance. The value of this indicator depends on the specifics of the company’s activities and the likelihood of unforeseen situations. In financial language this is called " closing balance ».
Stage 2. Determination of the revenue part
The preparation of the revenue side of the budget is based on the budget of sales and income from investments, dividends and interest.
There are two options for collecting information:
Bottom - up when plans for material receipts come from various departments and are then compiled into a single report;
Top down, when documents are approved by the central financial service of the company and then communicated to department heads.

Stage 3. Compilation of consumables
The expenditure part is based on direct costs - labor costs, raw materials, overhead, production, and general business expenses. This also includes the costs of investments and other financial transactions for the return of loans, interest and dividends to investors.
Stage 4. Calculation of net cash flow
Net Cash Flow (sometimes the English term is used Cash Flow) is calculated using a formula and shows the difference between positive and negative balance for a specific period of time. This indicator characterizes the current financial status of the enterprise and determines its prospects.
When the expenditure side of the budget exceeds the revenue side, a situation arises that is called " cash gap " The final balance then becomes negative. In such cases, measures are taken to eliminate the disadvantage - they cut costs or (as a last resort) use borrowed And reserve funds for further business.
Enterprises that cannot eliminate their negative balance over a long period heading towards bankruptcy. It is in such companies that wages are delayed, debt obligations are not fulfilled, creditors are pressing, and profits do not cover current expenses.
Stage 5. Adjustment and approval
The final stage is the adjustment of the budget in accordance with current economic realities and its approval by the managers of the enterprise. The approved budget is an official document that guides all company personnel, but primarily the managers of the Central Federal District.
5. Where to get help in drawing up BDR and BDDS - review of the TOP 3 service companies
The formation of BDR and BDDS is a responsible job that should be carried out by experienced and qualified employees.
If there are none at your enterprise or your specialists lack knowledge, it makes sense to invite third-party organizations. They will do this work professionally, competently and fully, using modern software.
The experts of our magazine studied the market and chose three most reliable and attractive in terms of cost of company services.
"ITAN" is an up-to-date budgeting system for commercial properties based on 1C. The main area of activity is the establishment, implementation and automation of financial planning at the customer’s enterprise, the organization of management accounting, the consolidation of financial information for large holdings and companies with an extensive network of branches.
The company was founded in 1999. Among the achievements is the development of universal and integrated solutions based on the 1C platform. Every year the company's unique products are improved, becoming simpler and easier to manage. ITAN's mission is to help improve the productivity of financial management of enterprises.
Sales and implementation 1C software products. Areas of activity: budgeting, accounting, warehouse and production accounting, sales, document flow.
The company employs 56 highly qualified and experienced specialists. Employees are financially responsible for the results. Over the past year, the company has gained 250 new clients. Another advantage is metropolitan quality at regional prices. GOODWILL has many finished projects in the field of automation of financial, warehouse, management accounting.
3) First BIT
The First BIT company was founded in 1997 by several young and ambitious specialists in economics and applied mathematics. The main direction of the organization’s activities is business development based on current IT technologies. Now the company has 80 offices in Russia, near and far abroad.
"First BIT" will automate the enterprise in all necessary areas, including budgeting and management accounting. 2,500 thousand customers have already chosen the company's software products and services.
6. How to prevent budget expenses from exceeding its income - 3 useful tips
Maintaining a budget professionally means constantly track financial results activities. One of the goals of budgeting is to prevent expenses from exceeding income.
How to achieve this? Put expert advice into practice.
Tip 1. Discipline your staff in the use of funds
Financial discipline is the basis for the rational distribution of an enterprise’s material assets.

Cash is one of the most limited resources, so the success of an enterprise’s economic activity is largely determined by the ability of management to rationally distribute and use it. They are necessary for the enterprise to pay wages, purchase raw materials, fixed assets, pay taxes, service debt, pay dividends, etc.

To effectively manage cash flow, you need to know: its value for a given period of time; its structure (main elements); types of activities that form the corresponding elements of the flow and the mechanisms of their formation. In this regard, the most important tool for managing a company's cash flow is the cash flow statement.

As a rule, a cash flow statement is generated on the basis of accounting information or data contained in the balance sheet and income statement, however, unlike them, it is not directly related to the company’s accounting policies and in this sense is more objective.

The presentation of a cash flow statement is mandatory and regulated by law in many countries. In IFRS and US GAAP, the statement of cash flows is a separate, independent component of financial statements (regardless of the chosen method of its preparation, and information about cash flows from operating activities can be presented using either a direct or indirect method). In the Russian Federation, it is also part of the mandatory financial statements (form No. 4) compiled by organizations. It should be noted that, despite the existence of a similar form in Russian reporting, it contains a number of differences from international standards that make it difficult to use for management purposes.

The cash flow statement in Russia was initially included in the explanatory notes, and over time began to be included in the appendices to the balance sheet and the income statement (Table 1). This indicates the importance and growing interest in the information provided in the reporting form under consideration.

Table 1. Evolution of the position occupied by the cash flow statement as part of the financial statements in the regulatory framework of the Russian Federation

Validity period	Regulatory document	Place of the cash flow statement in the accounting (financial) statements
Legislative level
From 1996 to 2012	Federal Law of November 21, 1996 No. 129-FZ “On Accounting”
From 2013 to present	Federal Law of December 6, 2011 No. 402-FZ “On Accounting”	As part of the appendices to the balance sheet and income statement
From 1995 to 1998	Order of the Ministry of Finance of Russia dated December 26, 1994 No. 170 “On the Regulations on Accounting and Reporting in the Russian Federation”	Not specified
From 1999 to present	Order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n “On approval of the Regulations on accounting and financial reporting in the Russian Federation”	As part of the appendices to the balance sheet and profit and loss statement
Regulatory level
From 2011 to present	Order of the Ministry of Finance of Russia dated 02.02.2011 No. 11n “On approval of the Accounting Regulations “Cash Flow Statement” (PBU 23/2011)	Not specified
From 1996 to 2000	Order of the Ministry of Finance of Russia dated 02/08/1996 No. 10 “On approval of the Accounting Regulations “Accounting Statements of an Organization” (PBU 4/96)	As part of the explanations to the balance sheet, financial results statement
From 2000 to present	Order of the Ministry of Finance of Russia dated July 6, 1999 No. 43n “On approval of the Accounting Regulations “Accounting Statements of an Organization” (PBU 4/99)
Methodological level
From 1996 to 2002	Order of the Ministry of Finance of Russia dated November 12, 1996 No. 97 “On the annual financial statements of organizations”	As part of the notes to the balance sheet and profit and loss account
From 2002 to 2003	Order of the Ministry of Finance of Russia dated January 13, 2000 No. 4n “On the forms of financial statements of organizations”	As part of the appendices to the balance sheet and profit and loss account
From 2003 to 2011	Order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n “On the forms of financial statements of organizations”	As part of the appendices to the balance sheet and profit and loss account
From 2011 to present	Order of the Ministry of Finance of Russia dated July 2, 2010 No. 66n “On the forms of financial statements of organizations”	As part of the appendices to the balance sheet and profit and loss account

A cash flow statement is urgently needed for both managers and external users - creditors, shareholders, investors, etc., who, based on the results of its construction and analysis, can see real income and expenses, as well as get answers to the following questions:

To what extent and from what sources were funds received and what are the main areas of their use?
Is the enterprise, as a result of its core activities, able to ensure that cash receipts exceed payments?
Is the company able to fulfill and service its obligations? Are there enough funds to carry out your main activities?
To what extent can an enterprise meet investment needs from internal sources of funds?
What explains the difference between the amount of profit received and the amount of cash, etc.

According to IFRS, the cash flow statement must explain the reasons for changes in cash items for the period under review and contain information about the company's cash flows in the context of its operating, investing and financing activities. In this case, the composition of the articles of the listed sections of the report, as well as the degree of detail thereof, is determined by the enterprise independently.

Methods for preparing a cash flow statement

There are two main methods for constructing detailed cash flow reports - direct and indirect. (Fig. 1)

Figure 1. Methods for preparing a cash flow statement

At the same time, according to IFRS, cash flows are detailed in the context of three key activities: operating room (main); investment; financial.

Dividing the entire activity of an enterprise into the three indicated components is very important for Russian practice, since a positive total flow can be obtained by compensating for negative cash flow from core activities with an influx of funds from the sale of assets (investment activities) or by attracting bank loans (financing activities). In this case, the value of the total flow “masks” the real unprofitability of the enterprise.

Direct method of constructing a cash flow statement

The greatest difficulty in the process of constructing a cash flow statement using the direct method, especially for an external analyst, is its first section, which reflects cash flow from operating activities.

When using the direct method, the main types of gross cash receipts and payments are disclosed.

The following advantages of this method are highlighted: the ability to show the main sources of inflow and direction of outflow of funds; the ability to make prompt conclusions regarding the sufficiency of funds for payments on various current obligations; direct link to the cash plan (budget of cash receipts and payments); establishes the relationship between sales and cash proceeds for the reporting period, etc.

Information about the main types of cash receipts and payments can be obtained: from the company's accounts; from the balance sheet and income statement using adjustments to the relevant items. In the first case, specialists responsible for reporting analyze cash flows across various accounting accounts and classify cash flows by type of activity (operating, financial or investing). However, in practice, most enterprises carry out a huge number of transactions every day that cause cash flow, so cash flow is quite difficult to analyze and classify. In this regard, the construction method based on accounting data often turns out to be too labor-intensive even for internal accounting services. In addition, it is unacceptable for external users who do not have access to the enterprise's credentials, which constitute its trade secret.

In this situation, a simpler and more universal way is to use the balance sheet and income statement data with appropriate adjustments.

Scheme for determining cash flow from core activities (direct method)
1. Cash received from clients =

(+)Net sales revenue
+(-) Decrease (increase) in accounts receivable
+ Advances received

2. Payments to suppliers and staff =

(-) Cost of products and services sold
+(-) Increase (decrease) inventory
+(-) Decrease (increase) accounts payable
+(-) Increase (decrease) in deferred expenses
+ General, commercial and administrative expenses
+(-) Decrease (increase) in other liabilities

3. Interest and other current expenses and income =

(-) Interest expenses
+(-) Decrease (increase) accrued interest
+(-) Decrease (increase) in reserves for upcoming payments
+(-) Non-operating / other income (expenses)

4. Taxes paid =

(-) Taxes
+(-) Decrease (increase) debt/reserves for tax payments
+(-) Increase (decrease) in advances on tax payments

Cash flow from operating activities = (item 1 - item 2 - item 3 - item 4)

The disadvantage of the considered method is that it does not reveal the relationship between the obtained financial result and changes in the absolute amount of funds of the enterprise. In operational management, the direct method of determining cash flow can be used to monitor the process of profit generation and draw conclusions regarding the adequacy of funds to pay current obligations. In the long term, the direct method of calculating the amount of cash flow makes it possible to assess the liquidity of an enterprise, since it reveals in detail the movement of cash in accounts, and also shows the extent to which the investment and financial needs of the enterprise are covered by its available monetary resources.

Indirect method of constructing a cash flow statement

A statement of cash flows by operating activities can also be obtained using the indirect method. According to the construction algorithm, this method is the reverse to the direct one.

Under the indirect method, a firm's net income or loss is adjusted to reflect the results of non-cash transactions and changes in operating working capital. So this method:

shows the relationships between different types of activities of the enterprise;
establishes the relationship between net profit and changes in the working capital of the enterprise for the reporting period.

The algorithm for generating cash flow from operating activities using the indirect method includes the implementation of the following stages:

According to the reporting data, the net profit of the enterprise is determined.
The amounts of cost items that do not actually cause cash flow (for example, depreciation) are added to net profit.
Any increases (decreases) that occurred in items of current assets are subtracted (added) with the exception of the item “Cash”.
Any increases (decreases) that occurred in items of short-term liabilities that do not require interest payments are added (subtracted).

Determination of cash flow from core activities (indirect method)
Cash flow from operating activities =

+ Net profit
+ Depreciation
- (+) increase (decrease) in accounts receivable
- (+) increase (decrease) inventory
- (+) increase (decrease) in other current assets
+ (-) increase (decrease) accounts payable
+(-) increase (decrease) interest payable
+(-) increase (decrease) in reserves for upcoming payments
+(-) increase (decrease) in debt on tax payments

The indirect method shows where exactly the company’s profit is materialized, or where “real” money is invested. In addition to the simplicity of calculations, the main advantage of using the indirect method in operational management is that it allows you to establish a correspondence between the financial result and changes in working capital involved in the main activity. In the long term, this method allows us to identify the most problematic “places of accumulation” of frozen funds and, accordingly, outline ways out of such a situation.

Comparative analysis of methods for preparing cash flow statements

Compilation method	Advantages	Problems
Compilation method	Advantages	The essence of the problems	Existing solution approach
Direct	1. Shows the real movement of cash and cash equivalents, as it is formed according to accounting accounts: general ledger, order journals, and other accounting registers. 2. Allows you to judge the sources of inflow and outflow of cash and cash equivalents, their sufficiency for payments on the organization’s obligations. 3. More informative in terms of interpretation of this report and its use to analyze the financial condition of the company. 4. Allows you to assess the level of liquidity of the company in the long term. 5. Provides information useful for estimating future cash flows.	1. Quite labor-intensive - its compilation requires a large array of data on monetary transactions, therefore a detailed classifier of cash flows and their equivalents and automation of the accounting process are required. 2. Difficulties in preparing a consolidated report: the complexity of analyzing turnover generated in cash accounts in the context of gross inflows and outflows of each company included in the group; elimination (exclusion) of intragroup transactions; reflection of purchases and sales of organizations in the consolidated cash flow statement. 3. The need to eliminate turnover between accounts.	The key to solving these problems is accounting automation.
Direct		4. Does not take into account the relationship between the profit (loss) received and the change in the amount of funds of the organization, i.e. does not answer the question - why the value of the change in cash flows deviates from the net profit received.	Preparation of a cash flow statement using the indirect method.
Indirect	1. Simplicity of calculations and establishment of a connection between net profit or profit before tax and changes in balance sheet items involved in the main activity. Thus, a cash flow statement can be prepared from the income statement and balance sheet. 2. Data on real cash flows taken from accounting systems or any significant automation of accounting are not required.	1. The need to wait until the reporting period closes. It does not promptly provide information after the end of the reporting period, since it is compiled on the basis of the financial results statement and balance sheet, which, according to Russian accounting rules, are formed before the end of March. It is at this moment that this report is required by the company’s management for the purpose of coordinating budgets and strategic forecasts for the year.	Drawing up reporting regulations, requiring early closing of the period, developing data collection forms for the purpose of drawing up a cash flow statement and consolidation.
Indirect		2. Less visual and on its basis it is difficult to “decipher” any figure in the report to the level of cash flow transactions, which is often required for internal control and budgeting. 3. Does not provide information useful for estimating future cash flows.	Preparation of a cash flow statement using the direct method.
Conclusion: suitable for companies that do not have the ability to automate the accounting process sufficiently.

In addition, an important factor when choosing a cash flow statement method is the availability of data. Often, the information necessary to fill out the items in the “Operating Activities” section using the direct method is very difficult to isolate from the company’s total cash flow, and the costs of its formation are quite high.

The use of various forms and methods for constructing a cash flow report allows you to analyze their volumes and structure in several aspects. As a result, the user receives a detailed understanding of the operating, investment and financial transactions carried out by the enterprise during the period under review. This, in turn, allows him to form a judgment about the strengths and weaknesses of a given enterprise, its current and potential problems.

In general, the ability of an enterprise to generate significant cash flows from its core activities is a positive fact. However, during the analysis process, you should always pay attention to the extent to which operating flows cover the need for investment, loan payments or dividends. The stability of the operating flow over time indicates the stable financial position of the enterprise and the effective work of its management. At the same time, too much dependence on external financing to cover current needs should be seen as a negative signal.

Finally, a persistently negative net cash flow indicates serious financial difficulties leading to bankruptcy. The construction and analysis of various cash flow reports in combination with other types of reporting provides a deeper understanding of the real position of the enterprise, the actual results of its activities and future prospects.

Literature:

Accounting Regulations, “Cash Flow Statement” (23/2011), approved by Order No. 11n dated 02/02/2011.
International Financial Reporting Standard (IAS) 7 “Statement of Cash Flows”.
Motherland M.S. Cash flow statement as an opportunity to increase the information content of financial statements // National Association of Scientists. Economic Sciences. 2015. N IX(14). With. 81-84.
Pyatov M.L. New Law “On Accounting”: a system of documents regulating practice // BUKH.1S. 2013. No. 2.
Kadyrov I.S. Problems of compiling a cash flow report in commercial organizations // Bulletin of the Adygea State University. 2011. No. 2. With. 17-24.
Pivkin S.A. Increasing the information content of the cash flow report during innovation // Current problems of the humanities and natural sciences. 2015. No. 7-4.
Peskova O.S., Gorkaeva D.A. Management accounting of cash flows in commercial organizations // Izvestia VolgSTU. 2015. No. 15(179). With. 140-144.
Prokopovich D.A. Cash flow statement according to IFRS // Bulletin of professional accountants. 2012. No. 5. With. 10-30.
Kalenskaya V. Preparation of a cash flow statement using the direct method: practice of applying IFRS 7 // Financial Director. 2008. No. 12.
Khakhonova N.N. Information value of the cash flow statement: Russian and international aspects // Accounting and statistics. 2005. No. 6. With. 57-62.