Using the cash flow statement. Analysis of the cash flow of the enterprise

This report reflects payments and receipts of cash and cash equivalents to the 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. A sample filled out by an accountant must be submitted before the end of the first quarter of the next year after the reporting year.

Let's consider in more detail which articles are not included in the document:

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

When filling out the report, all flows are distributed by current, financial and investment activities. In the first case, the financial result from the implementation of ordinary activities is reflected, in the second - associated with the acquisition of non-current assets. Payments that change the structure of capital and borrowings refer to Next, instructions will be provided for filling out a cash flow statement, which describes in detail what amounts to enter in each of the lines.

Collapsed figures

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

Some cash flows are netted. For example, if they characterize the activities of counterparties more than the company itself. These operations include:

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

When reflecting folded VAT, it is necessary to indicate the difference between the amounts received from counterparties and those listed as part of payments. These numbers can appear on the lines:

• 4119, if the VAT transferred to suppliers and to the budget is less than 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, a single payment must be divided into separate transactions.
• The report is filled in thousand or million rubles.
• If the funds are received in a foreign currency, then the report shall include the amount converted into Russian rubles at the exchange rate on the date of receipt of the payment. If the number of homogeneous transactions, the price of which is expressed in the currency of another state, is large, then the average rate can be used.
• Be sure to reflect the cash equivalents of assets that change the price and can be sold at any time.

A cap

First of all, information about the organization is entered into the report: company name, TIN, type of activity. Further, the balances on the accounts and on hand at the beginning of the period are entered. All flows are divided into three groups (current, investment, financial transactions), each of which is further divided into income and expenses. How to fill out a cash flow statement? There are two columns next to each article. The first (“3”) contains the amounts for the reporting period, and the second (“4”) - for the previous one.

Operating activities

The main source of the organization's funds are the money of buyers and suppliers. Therefore, line (line) 4111 reflects the amount of revenue and advances received minus VAT and excises. This information can be obtained from the DT turnovers of the accounts of the most liquid assets (from 50 to 58) and CT62 (76).

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

• repayment of loans issued to employees;
• return of previously unspent accountable amounts;
• financial result of currency exchange operations;
• interest on debt investments.

The total amount of receipts is entered on line 4110. This is how the first part of the accounting standard is drawn up, the cash flow statement.

The procedure for filling out expense items is similar. First, the amount paid to suppliers of raw materials and materials (4121) is indicated. The data is taken from the balance sheet, specifically the amounts indicated for the turnover of КТ50 (51, 52) and DT60 (76). The transfer of money to counterparties is reflected through account 91/2, and cash is spent by accountable persons. Further in the report the sum of the paid salary (4122) is specified. These data are taken from the postings DT70 KT51. To reflect the amount of interest on obligations, a separate line 4123 is allocated.

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

Investment activity: income

In the process of work, the organization can buy and sell non-current assets. The cash flow from such transactions should be included in the cash flow statement. A completed sample form will be provided below.

The second section of the report shows the amount of dividends received (line 4214), income from the sale of shares in other enterprises (line 4212), financial investments. Information is taken from turnovers on DT50 (52, 58) and CT 76 in terms of received dividends. To determine the actual volume of financial investments, it is necessary to select from the indicated entries the amounts that were posted on the sub-account "Interest on bills". The report also contains information on the repayment of issued loans (line 4213), which is taken from the turnovers DT50 KT58. The sum of other (line 4119) and general receipts (line 4210) is allocated separately.

Investment activity: expenses

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

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

Financial activity: income

Information on cash flows associated with changes in the capital structure is entered in the third section of the accounting standard "Statement of Cash Flows". The order of filling is similar to that presented earlier. First, the amounts received by the enterprise in debt (4311) are indicated. Information is taken from the revolutions for CT66 (67) DT50 (51). The amount of the loan issued by the promissory note is indicated separately (4314), as well as the contributions of the owners for the reporting period (4312, 4313), other transactions (4319) and the total amount of receipts (4310).

Financial activities: expenses

Information on cash flows used to redeem promissory notes, debt securities, repayment of loans is reflected in line 4323. Data are taken from turnovers on DT66 (67) and КТ50 (51). The amount of paid dividends (4322), other expenses (4329) is reflected separately.

Results

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

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

This is how a company's cash flow statement is prepared. 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 a report may not provide information.

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

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

On the line "Balance at the beginning of the year" the amount is entered: 3 + 60 \u003d 63 thousand rubles.

For the current period, the organization received 1.77 million rubles. in from buyers and another 472 thousand rubles. in the form of advances. These data are taken from the postings DT50 KT62 and DT50 KT62. The report on the line "Proceeds from sales" (line 4111) indicates the amounts without VAT: 1770-270 + 472-72 \u003d 1.9 million rubles.

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

DT51 KT86 - funds were received from the budget.

DT86 KT98 - deferred expenses are taken into account.

Since state assistance increases the SC, 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, net of VAT, is reflected under line 4121. In addition, 150 thousand rubles were issued from the cash desk to pay the salaries of employees. The data is taken from the wiring DT70 KT50. This amount is entered in line 4122.

During the year, the employees of the organization were provided with material 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 displayed in "other payments".

The employee returned unused accountable funds to the cash desk in the amount of 10 thousand rubles. In the same period, suppliers received a penalty for violation of the terms of the contract for the sale of products in the amount of 210 thousand rubles. These operations are documented in the balance by postings: 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 transactions from operations.

Within a year, the organization sold the machine and the building. The proceeds from the transaction amounted to 1.18 million rubles. Securities of another organization worth 40 thousand rubles were also sold. These operations are entered into the balance by posting DT51 KT60 (76) for a total amount of 1.22 million rubles. These transactions are reflected in the report under lines 4211 (for the amount of fixed assets sold without VAT) and 4222.

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

The company spent 885 thousand rubles on the acquisition of OS. The data is taken from the wiring DT60 KT51. Other organizations were granted 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 in line 4223. The company also returned a loan taken from the bank in the amount of 320 thousand rubles. The numbers are taken from the revolutions of DT66 KT51. This operation is reflected on page 4323.

Cash flow statement: rules for filling out budget payments

VAT-related cash flows should be shown as a net. The total amount of tax 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 transferred amounts are reflected in the balance sheet by posting DT68 KT51. These amounts are entered in the report in lines 4124 (240 thousand rubles) and 4129 (20 thousand rubles).

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

The total amount of cash flows from investment transactions (4200) is calculated by subtracting from the sum of all funds received and the amount spent. Previously, the figures must be "cleared" from VAT:

1000 + 40 + 80 -700-60 \u003d 1120-760 \u003d 360 thousand rubles.

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

270 + 72-144-200 + 180-135 \u003d 43 thousand rubles.

The balance of financial transactions is:

12 + 70-320 \u003d -238 thousand rubles. This amount is reported in parentheses.

The difference between all receipts and expenses (843 + 310-238 \u003d 915 thousand rubles) is reflected in the article “Final balance for the reporting period”. Separately, the balance of funds at the end of the year is indicated. It is:

63 + 915 \u003d 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 steps and expenses of funds need to be "cleared" from the tax before for-half-not-no-eat from-that. This process is challenging for accountants. Not all invoices show VAT separately. In order not to make mistakes in the calculations, you need:

• allocate the annual sums of turnover for DT62 (60) KT51;
• on-lu-chiv-shu-yu-th figure to smart-live by 18/118, you-de-liv, thus, VAT;
• the rest of the amount will be "cleared" from the tax.

This method of calculation is suitable only for counterparties who sell goods subject to an 18% rate. What about products that are subject to a 10% rate, and those that are not subject to VAT at all? In such cases, you need to split-de-po-to-ki for opera-ra-qi-yam with different rates:

VAT balance = Received VAT + Received amounts from the budget - Transferred VAT - Paid VAT.

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

• A positive amount is taken into account under line 4119;
• A negative amount is shown in parentheses on line 4129.

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

How to display 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, vacations and bonuses, also personal income tax and insurance premiums? Some experts believe that in this article it is necessary to indicate only turnovers for DT70 KT50 (51), and the amount of transferred personal income tax, fees and other taxes should be reflected on page 4129. With this separation, you can understand who the funds are sent to: employees or to the budget. Others believe that line 4122 should show all payments related to payroll. Then it will be possible to determine how much it costs the organization to “maintain” employees. Both options are valid. It is only necessary to indicate in the explanatory note the chosen method of reflecting information.

NPP

In order to correctly fill out the form, you need to determine on which transactions the profit was received, which is the source of income tax in the reporting year, and, depending on the results, enter the data. Most often, the source of funds was income from the usual de-I-tel-no-sti. Therefore, the amount of tax is reflected on line 4124.

Cash equivalents

How to fill out a cash flow statement in relation to you-to-liquid-type financial investments? First, let's look at exactly what assets belong to this category. Cash equivalents are bank notes, demand deposits and other assets that can easily be converted into cash, but are subject to the risk of price changes. In the balance sheet, such values ​​\u200b\u200bare reflected on line 1250. The same amount should be transferred to the report.

An organization may have assets on its balance sheet, the price of which 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 preparing a report is similar to filling out a balance sheet. Currency values ​​are reflected in Form No. 1 at the exchange rate of the re-account of rubles on the date of the operation. When depositing balances of dollars and euros on accounts at the beginning of the year (p. 4450) and at the end (p. 4500) of the year, the exchange rate should be indicated on December 31. The difference that turned out after the recalculations needs to be reconciled, well, from-re-z in p. 4490. va-lu-te the organization does not have, then the calculations are carried out according to 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 instrument of cash management is the system of management accounting and budgeting. 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 the formation of this budget.

Cash flow budget

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

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

BDDS are compiled both in order to ensure the constant availability of funds allocated to fulfill the obligations of the enterprise, and for the effective use of the excess of these funds. Therefore, the BDDS should provide for measures against so-called "cash gaps", i.e. situations associated with a lack of cash for current payments (measures may be bank loans, issuance of shares or other attraction of funds). Temporarily free funds can be directed, for example, to investment projects, interest-bearing bank deposits, etc.

Thus, BDDS should ensure that there is an optimal daily balance (end balance) of funds throughout the entire planning period:

The composition and stages of the formation of BDDS in budgeting

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

Table. 1 Differences in BDR and BDDS articles

Article		BDDS
Depreciation
Revaluation of fixed assets and inventory items
Marriage in production
Damage and other losses
Inventory shortfalls
Exchange differences
Obtaining/repayment of credits (loans)
Purchase of fixed assets
Capital repairs
Indirect taxes

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

Jai K. Shim identifies 4 main sections of BDDS:

Cash inflow (balance at the beginning of the period, receipt of payments from buyers and other debtors);

Cash outflow (payments to creditors);

Net cash flow (difference between income and expenses);

Financial section detailing the receipt and repayment of borrowed funds.

Some researchers additionally distinguish a section on investment activity, which refers to the activity 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 company's investment program.

It is advisable to divide the procedure for developing a BDDS into a number of successively performed 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:

Determination of the required level of funds to finance investment costs (for the implementation of capital investments, acquisitions of fixed assets, construction for own needs, i.e. all costs financed from the profit left by the enterprise after taxation);

Determination of the minimum level of daily cash balance for contingencies ( "ending balance" in expression (1));

Definition of the revenue part of the budget ( "receipt" in formula (1)) - are performed on the basis of the sales budget, taking into account the analysis of receivables settlement, the budget for investment (sale of fixed assets and other assets of the enterprise) and financial activities (dividends, interest received);

Definition of the expenditure part 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 materials (usually, when determining the cost of raw materials and materials, accounting (standard) prices are used, which may differ from market prices) - taking into account movement of stocks of raw materials and supplies), overhead budgets (compensation of AUP, other general workshop 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 the cash flow budget, control and adjustment.

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

Table. 2 BDDS example

Index	Plan	Fact
Cash balance at the beginning of the period
Total cash received
Including:
From buyers for shipped products
Credits and loans
Dividends and interest earned
Sale of fixed assets and other assets
Total money spent:
Including
Payment for raw materials
Salary
Payment of dividends and interest
Expenses for the acquisition of fixed assets and other assets
Settlements with the budget
Other payments
Net cash flow
Cash balance at the end of the period

Application and 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 the BDR. The longer the planning period, the closer the BDDS to the BDR. When switching to short-term (operational) planning, it is not possible to take as a basis the BDR adjusted for the same period 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 the timing and amount of payment, conditions and volumes of deliveries. In addition, data on the value of expenses in the BDR are usually approximate, 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. Shchiborsch or V. Khrutsky, allows you to create 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 up to 1 month.
In this regard, the authors propose, in addition to the traditional methodology, an application-contract methodology, which involves the formation of a cash flow budget and a payment calendar (which means a schedule of receipts and payments of an enterprise) based on applications for spending funds.

The key feature of the proposed algorithm for the formation of BDDS for a short period is that, first of all, an analysis is made of the current needs of departments and the structure of payments for contractual relationships that has developed by the end of the period. Only after that, the income and expenses included in the BDR and the investment budget are checked against the needs for the current cash flow. The result of such a reconciliation can be both an adjustment of the BDDS, and a change in the BDR and the investment budget.
This approach to cash flow planning corresponds to R. Bellman's principle of optimality, well-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 prehistory of the object's movement to the current state. The "current state" of the object in our case is the situation that has developed by the beginning of the planning period in terms of contractual relationships and the needs of the enterprise in cash.
The application-contractual methodology for the formation of BDDS is shown in Fig. 1:

Figure 1 Application-contractual methodology for the formation of BDDS

When planning cash receipts(block 1 in Fig. 1) the calculation of the expected cash receipts is carried out based on the available planned data on income for a given period and the possible repayment of receivables by buyers ( Income).

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:

Terms of repayment of accounts receivable;

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

Terms from receipt of advances to the fulfillment by the enterprise of the relevant obligations;

The percentage of "bad" debts in the total share of invoices presented to buyers.

The calculation of these indicators is carried out for each type of activity in the context of groups of counterparties. To do this, you can use the accounting database of the enterprise.

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

Payments \u003d Balance start + Receipts - Balance end - Reserve, Where

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

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

Reserve- cash reserve for unscheduled, emergency payments.

Cash payment planning is carried out on the basis of approved applications and contracts (block 2 in Fig. 1). Within the framework of this methodology, it is supposed to create a database of contracts in which all financial and economic contracts concluded with the enterprise are recorded. The document application(An approximate format of the tabular part of the application is given in Table 3). The application is drawn up by the division for the costs of current activities. A prerequisite for the application is the availability 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 different interval plans, the drawing up of applications is carried out for each period.

Upon receipt of applications for all structural divisions of the Enterprise, the analysis of the received data is carried out. Drawing up a schedule of payments of funds 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 most priority items of payments are selected. If the maximum amount of payments is not enough to cover their highest priority (obligatory to pay) items, then it is concluded that it is necessary to obtain a loan, a loan in the amount necessary to pay these expenses. Credits and loans increase the income of the Enterprise for the planned period, but increase the payments of the following periods.

At the second stage, the dates of payments 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 Cash flow plan-calendar form

Initially, the terms of the most priority items of payments are determined based on the required payment terms and the Company's ability to fulfill these obligations. Further, the terms of payment are determined for the rest of the items, starting with the most priority items and ending with the less priority ones. At the same time, cash gaps are monitored, i.e. absence of periods with negative balances at the beginning, end of the period.

In addition, the amount of payments by items is formed taking into account the spending limits for each unit, established on the basis of the planned BDR and the 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 the items and determining the terms of payment, the columns of the applications of divisions are filled in, confirming the payment of the selected items at a certain time in the planned amount and quantity. In table. 5 shows the columns of the tabular part of the application, filled in 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 forming applications for the next period, the heads of departments have the right to again indicate in the application the items that did not pass (have not received confirmation of payment) in previous periods.
Based on the report on approved applications (payment schedule), as well as the schedule of receipts of funds, a payment calendar is formed, and on the basis of the latter - 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 the formation of BDDS should be part of the planning regulations at the enterprise (be fixed in internal regulatory documents) and be mandatory for use by all departments.

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

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

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

Expediency of expenses incurred and overexpenditures (comparison with the production program);

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

Control of the absence of "cash" gaps.

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

Compliance of submitted applications with the financial plan;

Making payments based on written requests from initiating services;

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

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

In the event of the formation of "cash gaps" (i.e. situations when the expenditure side of the budget exceeds the revenue, and the final balance of funds on a specific date becomes negative), measures are taken to eliminate them - a decision to "cut" expenses (or shift expenses in time) or getting a bank loan.

The proposed algorithm for the formation of the cash flow budget was successfully applied at a large enterprise supplier of network gas JSC "Sverdlovskoblgaz".

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

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

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

visibility. Contractors promptly receive a report on approved and unapproved expenses.

Literature

Khrutsky V.E., Sizova T.V., Gamayunov Intra-company budgeting. Table book on the formulation of financial planning - M .: Finance and statistics, 2003.

Upchurch A., Management accounting: principles and practice: Per. from English / Under. Ed. Sokolova Ya.V., Smirnova I.A. - M.: Finance and statistics, 2002.

Shchiborsh KV, Budgeting of industrial enterprises in Russia. - M.: Publishing house "Business and Service", 2001.

Cash flow information enables users to assess an organization's ability to generate cash and assess its cash requirements. Requirements for the presentation of information on cash flows and disclosure of related information are established by IFRS (MS) 7 Statement of Cash Flows.

Must represent for the period, classifying them by operating, investing and financing activities.

The classification of flows by category of activity provides information that allows users to assess the impact of each activity on the financial position of the company and on the amount of cash (and cash equivalents). This information can also be used to analyze the relationship between the specified categories of activity.

The same transaction can give rise to cash flows that are classified differently.

Operating activities

The amount of cash generated from operating activities is a critical indicator of whether a given category of activity generates enough cash to repay loans, maintain a company's productive capacity, pay dividends (and make new investments) without raising external funding sources.

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 mainly in the course of core activities that generate the company's revenue. Thus, they are usually the result of transactions that affect the formation of net income.

Examples of cash flows from operating activities include:

• proceeds from the sale of goods and the provision of services;
• receipts of rent payments for the granting of rights, remuneration, commissions and other types of proceeds;
• payments to suppliers of goods (and services);
• payments to employees (and on their behalf);
• receipts and payments of insurance companies on insurance premiums, claims, on rental and other types of insurance policies;
• payment (or refund) of income taxes, except for those related to financial or investment activities;
• receipts (and payments) under contracts for the performance of commercial (or exchange) operations.

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

Companies that specialize in dealing in securities will report them as inventory purchased with a view to resale. Cash flows arising from the sale and purchase of securities are classified as operating activities. As for other companies, for them it will be either an investment activity or cash equivalents.

Advances of cash and loans from financial institutions are usually classified as operating activities, as they are part of the company's main revenue-generating activities.

Investment activities

Separate disclosures of cash flows from investing activities reflect the extent to which resources are spent 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 in an economic way;
• 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 making 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 making commercial (or exchange) transactions);
• advancing (or lending) to other parties (with the exception of similar transactions carried out by financial institutions);
• receipts for the repayment of advanced amounts or loans provided to other parties (with the exception of similar operations carried out by financial institutions);
• payments under futures, forwards, options contracts and swaps (except for contracts entered into for the purpose of making commercial or exchange transactions, or payments related to financial activities).

Financial activities

Separate disclosure of information on cash flows from financial activities is necessary to forecast cash requirements from those who provide the company with a captain.

Examples of cash flows from financing activities include:

• proceeds from the issuance of shares or the issuance 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;
• loan repayments;
• payments by the lessee to settle a finance lease obligation.

An entity must prepare a cash flow statement for presenting cash flows from operating activities using:

• direct method according to which information on the main classes of gross receipts and gross payments is disclosed; or
• indirect method according to which net income is adjusted for the effect of non-cash transactions, deferred (or accrued) amounts of past (or future) cash flows from operating activities, as well as items of income (or expense) associated with cash flows from investing or financing activities.

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

Companies are encouraged to present cash flows from operating activities on the basis of the direct method in the cash flow statement, as this method provides information that the indirect method does not provide.

Table 1. Cash flow statement preparation methods

direct method	indirect method
Information is disclosed on the main types of gross receipts and payments that can be received: 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-cash items; other items that give rise to investment or financial cash flows	Profit (loss) for the reporting period is adjusted taking into account: the results of non-monetary transactions; any deferral or accrual of operating cash receipts or payments relating to past or future periods; items of income and expenses related to 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 the indicators of 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 indicators of inventories, receivables and payables for operating activities;
• other non-monetary items;
• other items, the movement of which is associated with investment or financial activities.

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

An entity must present gross cash receipts and payments separately for investing and financing activities, except for net cash flows.

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

• receipts and payments on behalf of customers, when the cash flow reflects the activities of the customer rather than the company itself. Examples of such receipts and payments are:
• acceptance (and payment) of a bank deposit on demand;
• funds intended by the investment company for clients;
• rent collected on behalf of (and paid) to the owners of the property;
• receipts and payments on items characterized by high turnover, large amounts and short maturities. Examples of such receipts and payments are advance payments (and repayments) for:
• the principal amount of the debt in settlements with customers who have credit cards;
• purchase and sale of investments;
• other short-term loans, for example, those with a repayment period of less than 3 months.

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

• receipts and payments associated with the acceptance (and payments) of deposits with a fixed maturity;
• placement (and closing) of deposits in other financial institutions;
• advance payments and loans to customers (and the repayment of such advance payments and loans).

Indicators of the statement of cash flows of the organization

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 funds in the organization.

The information provided in the form allows internal and external users to assess how the company creates and uses cash, whether there is enough cash to pay off current liabilities and pay dividends, determine if the company needs additional financing, etc.

The cash flow statement also supplements information on the organization's ability to raise 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 statement” (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 activity of the organization is considered to be the one that pursues the extraction of profit as the main goal or does not have the extraction of profit as such a goal in accordance with the objects and goals 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 activity the activity of the organization is considered. associated with 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 own construction, expenses for research, development and technological development; with the implementation of financial investments (acquisition 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 the organization, as a result of which the size and composition of the organization's own capital, borrowed funds (receipts from the issue of shares, bonds, the provision of loans by other organizations, the repayment of borrowed funds, etc.) change.

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 invoices, return of received short-term loans and borrowings, etc.) of funds. The initial element of the calculation is the proceeds from the sale of products.

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

indirect method common in foreign practice, where, when compiling a cash flow statement, operating, investment and financial activities are singled out.

Operating activities are the 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, as 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 amount 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 time of transfer of ownership, regardless of payment. In this regard, the revenue reflected in the income statement is not always equivalent to cash receipts, respectively, and the expenses indicated in the income statement are not equal to the 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 compiling 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 is an expense that generates net profit, but does not lead to an outflow of funds.

2. An adjustment is made for the amount of change in the balance of inventories at the beginning and end of the reporting year. If inventory balances have increased, then the difference in balances is deducted from net income, as an increase in inventory leads to a cash outflow. In the event of a decrease in stocks, the difference is added.

3. An adjustment is made for the amount of changes in receivables. 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 for the amount of accounts payable. At the same time, an increase in accounts payable leads to an inflow of cash, so the difference in accounts payable is added to net profit, otherwise the difference is subtracted.

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

The cash flow from investing and financing activities is determined by the direct method. The difference between the inflow (inflow) and outflow (outflow) of cash is the net cash flow, which is determined for each type of activity. The total net flow for all 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, but also about their equivalents. Under cash equivalents refers to short-term, highly liquid investments that are readily convertible to cash and are subject to an insignificant risk of changes in value.

For the purposes of compiling the statement of cash flows in Russia under cash means directly money in cash and in non-cash form, located in the cash desk of the organization, on its settlement, currency and special accounts.

The cash flow statement presents data that directly follows from the entries in the cash accounting accounts: 50 "Cashier" (with the exception of the balance on subaccount 50-3 "Cash documents"), 51 "Settlement accounts", 52 "Currency accounts" , 55 "Special accounts in banks" (except for the balance of sub-account 55-3 "Deposit accounts"), 57 "Transfers in transit".

Information about the cash flow 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 event of the presence (movement) of cash in foreign currency, information is initially generated on the movement of foreign currency for each of its types in relation to the statement of cash flows adopted by the organization. After that, the data of each calculation, drawn up in foreign currency, are recalculated at the 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 are summarized when filling in the relevant indicators of the cash flow statement.

Cash flow from current activities

The section “Cash flow from current activities” reflects:

Discloses information about amounts received from:

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

To fill in this line, debit turnovers on accounts 50 “Cashier”, 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 , excises paid by buyers).

On the line "Other income" show the amounts of funds received that are related to the current activities of the organization and are not indicated in the previous line:

budget and target financing and receipts:

• Debit of accounts 50 "Cashier", 51 "Settlement accounts", 52 "Currency accounts" Credit of account 86 "Target financing":

gratuitous receipts:

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

refunds from suppliers:

• Debit of accounts 50 "Cashier", 51 "Settlement accounts", 52 "Currency accounts" Credit of account 60 "Settlements with suppliers and contractors";

receipts for the satisfaction of claims, the amount of insurance compensation, etc.:

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

return of unused accountable amounts:

• Debit of account 50 "Cashier" Credit of account 71 "Settlements with accountable persons";

receipts in compensation for material damage, etc.:

• Debit of accounts 50 “Cashier”, 51 “Settlement accounts” Credit of account 73 “Settlements with personnel for other operations”.

1. to pay for goods, works, services:

• Debit of accounts 60 "Settlements with suppliers and contractors", 76 "Settlements with various debtors and creditors" Credit of accounts "Cashier", 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 “Cashier”, 51 “Settlement accounts”;

3. for the payment of interest on debt obligations:

a) dividends paid to founders;

• Debit of accounts 75 "Settlements with the founders", 70 "Settlements with personnel for wages" Credit of accounts 50 "Cashier", 51 "Settlement accounts", 52 "Currency accounts".

The amounts of the principal debt on 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 financing activities":

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

4. for calculations on taxes and fees:

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

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

• Debit of accounts 69 “Settlements for social insurance and security” Credit of account 51 “Settlement accounts”;

5. for other payments, transfers:

a) fines, penalties, forfeits 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 “Cashier”;

c) loans issued to employees:

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

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

Results of cash flows from current activities

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

The section “Cash flow from investment activities” reflects:

Indicator "Cash received - total" is formed as a 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, construction in progress, etc. To fill in the line, use the corresponding debit turnovers of cash accounts in correspondence with accounts 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors”. The following VAT amounts are not deductible:

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

• Debit of accounts 50 "Cashier", 51 "Settlement accounts", 52 "Currency accounts" Credit of accounts 91 "Other income and expenses", 16 "Settlements with various debtors and creditors".

Interest on securities (except for shares), loans, interest that the bank charges on the balance of funds:

• Debit of accounts 50 "Cashier", 51 "Settlement accounts", 52 "Currency accounts" Credit of accounts 91 "Other income and expenses", 76 "Settlements with various debtors and creditors";

3. "Other supply". This line reflects income from:

a) sales of equity and debt securities purchased 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 "Cashier", 51 "Settlement accounts", 52 "Currency accounts" Credit of account 58 "Financial investments".

The line "Sent funds - total" is formed as a 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 the acquired or created items of non-current assets:

• Debit of accounts 60 "Settlements with suppliers and contractors", 76 "Settlements with various debtors and creditors" Credit of accounts 50 "Cashier", 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 of accounts 60 "Settlements with suppliers and contractors", 76 "Settlements with various debtors and creditors" Credit of accounts 50 "Cashier", 51 "Settlement accounts", 52 "Currency accounts", 55 "Special accounts in banks";

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

• Debit of account 58 "Financial investments" Credit of accounts 50 "Cashier", 51 "Settlement accounts".

On the line “Result of cash flows from investing activities” reflects the difference between the inflow and outflow of funds for investment activities. This difference can be positive And negative. In the second case, the indicator “Result of cash flow from investing 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 a 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 transactions for current or investment activities, depending on the purpose of attracting borrowed sources:

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

2. "Budget appropriations and other targeted financing"- the amounts of budgetary and target financing are indicated;

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

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

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

Indicator "Sent funds - total" is formed as a sum of numerical data for the following items:

1. "To repay loans and borrowings" - funds transferred to repay the principal debt on borrowed funds (excluding interest):

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

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

3. "For other payments, transfers" - this line may 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".

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

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

The cash flow statement shows the total cash balance for all 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 value of the cash flow result 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 (CFD)? How to make a budget of income and expenses of the enterprise? How to prevent the excess of budget expenditures over its revenues?

If your business has income, then there are expenses. So, you need to professionally manage the budget.

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

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

We sit down comfortably and read to the end - in the final you will find an overview of reliable companies that will help arrange budgeting at the facility, plus tips on how to prevent the company's expenses from exceeding income.

1. What is BDR and BDDS and how do they differ

Even the family budget is not so easy to manage. Who has tried, he knows that money for everyday spending always leaves more than you expected. You have to adjust expenses, add new items to the budget, which 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. For any business hundreds of consumables and spending to be done.

The budget is not an abstraction, it is a specific concept supported by special documents. Each company, even consisting of 2 employees, maintains an income and expense budget (BDR) and, if possible, a cash flow budget (BCDS). This is the base.

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 the enterprise. As a rule, such a document has the form of a simple table, which takes into account all economic manipulations that lead to the receipt of funds or their expenditure. In this case, not only cash, but also any other income and expenses are taken into account.

BDDS- a way to reflect the movement of cash flows in the enterprise. This document contains only events that have monetary value.

The primary documents that are used when registering BDR transactions are acts of completed work and services rendered, acts of acceptance and transfer of tangible assets, any other documents confirming the company's income and expenses. The document is similar to the accounting report "On profit and loss".

What is the difference between BDR and BDDS?

These budgets are different. goals for which they are generated. BDR is being developed for the purpose of profit planning, which the company is able to receive for the budget period. This includes all information about prime cost products and revenue.

BDDS is designed for distribution of cash flows. It reflects all the activities of the organization, which was carried out in cash. With the help of BDDS, all operations of the enterprise on various accounts are tracked.

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	Yes	No
2	Revaluation of inventory items	Yes	No
3	Inventory shortfalls	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	Overhaul expenses	Yes	Yes

Both budgets together give a clear understanding of the current financial condition of the company and its prospects. Typically begins with a BDD, as this document is in a more "expanded" format.

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

BDDS is a plan for the movement of cash at the company's cash desk and on settlement accounts. The document reflects all planned receipts and write-offs of funds as a result of economic operations. BDDS protects the business from the main mistake - to be left without money to conduct the main activity.

This short video will explain the difference between BDR and BDDS using the example of buying a refrigerator.

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

When compiling the BDDS report, they are guided by three activities enterprises - operating room(current), investment and directly financial.

Let's consider them in detail.

Type 1. Operating activities

This is the main activity of the company - the work that creates income and expenditure of money. This is the production of products, the sale of goods, the provision of services, the performance of work, the leasing of equipment and other operations related to the movement of funds.

Type 2. Investment activity

Associated with buying or selling 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 company "Safe Technologies" 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 activity

Leads to changes in the composition and size of the company's fixed capital. For example, this is the attraction and return of loans necessary for the enterprise to develop new areas of production.

DDS budget prevents shortage and excess of working capital

The division of the company's activities into types allows us to evaluate the effect of all three areas on the financial status of the company and the amount of capital at its disposal.

A well-designed cash flow budget ensures that the funds needed to carry out the core business of the company are always available.

BDDS also allows you to effectively use the excess money of the enterprise, since the main principle of business is that free funds do not lie idle in bank accounts, but bring even greater profits.

3. How the BDR is formed - 5 main stages

BDR is a universal business process management tool. 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 systems for maintaining and managing the budget. 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 (CFD).

Before compiling the BDR, it is necessary to form and systematize the company's local budgets - production, management, sales budget, cost budget, etc. The BDR acts as a document summarizing all these data.

The main purpose of the BDR is accounting and forecasting the financial condition of the organization. This is the final part of the company's budget, the tip of the iceberg, the basis of which is the indicators of all company budgets in all areas.

Let's 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 give priority to costs.

What is included in the expenses:

• production costs;
• business expenses;
• managerial;
• salary and taxes;
• other expenses.

Detailing of expenditure items depends on the goals and capabilities of the company. It is clear that the more detailed the costs are taken into account, the clearer the economic situation in which a particular object is located.

Stage 2. Income calculation

Income is all income in the assets of the company.

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 the main products.

Each company has its own sources of income, so the details depend on the profile and specifics of the company.

Stage 3. Determination of profit

Profit is a positive difference between income and expenses. If the difference is negative, this is no longer profit, but lesion. This means that the company is operating at a loss, and cardinal changes are needed in production and all other processes.

Stage 4. Profit planning

Since profit is the main source of financing of the enterprise, all its activities are aimed at maintaining and increasing working capital . Money invested in production must be returned as fast as possible- this problem is solved by professional profit planning.

Another goal of planning is to get maximum benefit at minimum cost, but not at the expense of loss of quality, but at the expense of rational organization of work and reduction of associated costs.

At the same time, the main needs of the company are satisfied:

• payment of salaries and incentives for employees;
• accumulation of funds for the modernization and expansion of production;
• payment of obligations, as well as investors and owners of the company;
• increase in profitability of the enterprise;
• increasing competitiveness.

Again, the accuracy of the forecast is directly affected by the most detailed detailing of the company's expenses and income.

Stage 5. Reporting

Only professionals can make a competent and objective report. If you are the head of the company and doubt the competence of your CFD employees, then the best option is to delegate budgeting to a qualified outsourcing company.

Third-party specialists will not only compile a detailed BDD, but will also provide it if necessary. It may take more time, but the result will be more objective.

4. How BDDS is compiled - 5 main stages

In general, the compilation of the BDDS is similar to the formation of the BDR, but there are certain nuances.

As I said, only monetary receipts and expenditures that are reflected in financial documents.

Stage 1. Setting the cash balance

First you need to set a mandatory minimum balance of funds. The value of this indicator depends on the specifics of the company's activities and the likelihood of unforeseen situations. In financial parlance, this is called " closing balance ».

Stage 2. Determination of the revenue side

Revenue budgeting is based on a budget of sales and investment income, dividends and interest.

There are two options for collecting information:

1. Down up when plans for material receipts come from various departments and are then summarized into a single report;
2. Top down when the documents are approved by the central financial service of the company and then brought to the heads of departments.

Stage 3. Compilation of the expenditure part

The expenditure part is made up on the basis of direct costs - labor costs, raw materials, overhead, production, general business expenses. This also includes the cost of investments and other financial transactions to return loans, interest and dividends to investors.

Stage 4. Calculation of net cash flow

Net cash flow (sometimes use the English term Cash flow) is calculated by 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 part of the budget exceeds the income, a situation arises, which is called " cash gap ". The final balance then becomes negative. In such cases, they take measures to eliminate the minus - cut costs or (in extreme cases) use borrowed And reserve funds for further business.

Enterprises that cannot eliminate the negative balance for a long period, heading for bankruptcy. It is in such companies that wage arrears appear, debt obligations are not fulfilled, creditors press in, and profits do not cover current expenses.

Stage 5. Correction and approval

The final stage is the adjustment of the budget in accordance with the current economic realities and its approval by the leaders of the enterprise. The approved budget is an official document that guides the entire staff of the company, but first of all, the leaders of the Central Federal District.

5. Where to get help with BDD and BDDS - an overview of the TOP 3 service providers

The formation of the 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 do not have enough knowledge, it makes sense to invite third-party organizations. They will perform this work professionally, competently and fully, using modern software.

The experts of our magazine studied the market and chose the three most reliable and attractive companies in terms of cost.

"ITAN" is an up-to-date budgeting system for commercial facilities based on 1C. The main activity is the formulation, 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 unique products of the company are improved, becoming simpler and more convenient to manage. The mission of "ITAN" is to contribute to increasing the productivity of the financial management of enterprises.

Sale and introduction into practice software products 1C. Directions of activity - budgeting, accounting, warehouse and production accounting, sales, document flow.

The company employs 56 highly qualified and experienced professionals. The financial responsibility of employees for the result is provided. Over the past year, the firm 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

First BIT was founded in 1997 by several young and ambitious specialists in economics and applied mathematics. The main activity of the organization is business development based on current IT technologies. Now the company has 80 offices in Russia, near and far abroad countries.

"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 spending from exceeding its income - 3 useful tips

Keeping a budget professionally means constantly track financial performance activities. One of the purposes of budgeting is to prevent expenditures from exceeding revenues.

How to achieve this? Put expert advice into practice.

Tip 1. Discipline staff in the use of funds

Financial discipline is the basis for the rational distribution of material assets of an enterprise.

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 distribute and use it rationally. They are necessary for the enterprise to pay wages, purchase raw materials, materials, fixed assets, pay taxes, service debt, pay dividends, etc.

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

As a rule, a cash flow statement is formed 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 accounting policy of the company 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 cash flow statement is a separate, independent component of financial statements (regardless of the chosen method of its preparation, and information on cash flows from operating activities can be presented both by direct and indirect methods). In the Russian Federation, it is also included in the mandatory financial statements (f. 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 it for management purposes.

The statement of cash flows in Russia was initially included in the explanations, and over time began to be included in the appendices to the balance sheet and 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 of the cash flow statement in the financial statements in the regulatory framework of the Russian Federation

Validity	Legal document	Place of the cash flow statement in the accounting (financial) statements
Legislative level
From 1996 to 2012	Federal Law No. 129-FZ of November 21, 1996 “On Accounting”
2013 to present	Federal Law No. 402-FZ of 06.12.2011 “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 indicated
1999 to present	Order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n “On Approval of the Regulation on Accounting and Accounting in the Russian Federation”	As part of the appendices to the balance sheet and income statement
Regulatory level
2011 to present	Order of the Ministry of Finance of Russia dated February 2, 2011 No. 11n “On Approval of the Accounting Regulations “Cash Flow Statement” (PBU 23/2011)	Not indicated
From 1996 to 2000	Order of the Ministry of Finance of Russia dated February 8, 1996 No. 10 “On Approval of the Accounting Regulations “Accounting Statements of an Organization” (PBU 4/96)	As part of the notes to the balance sheet, income statement
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)
Methodical 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 income statement
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 income statement
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 income statement
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 income statement

The 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:

1. To what extent and from what sources are the funds received and what are the main directions of their use?
2. Is the company able to ensure the excess of cash receipts over payments as a result of its core activities?
3. Is the company able to fulfill and service its obligations? Is there enough money to run the core business?
4. To what extent can an enterprise meet investment needs from internal sources of funds?
5. What explains the difference between the amount of profit received and the amount of cash, etc.

According to IFRS, the cash flow statement should explain the reasons for the change in cash items for the period under review and contain information about the firm's cash flows in the context of its operating, investing and financing activities. At the same time, the composition of the articles of the listed sections of the report, as well as the degree of their detailing, is determined by the enterprise independently.

Statement of Cash Flow Methods

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

Figure 1. Cash flow statement preparation methods

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

The division of the entire activity of an enterprise into these three components is very important for Russian practice, since a positive total flow can be obtained by compensating for a negative cash flow from the main activity with an inflow of funds from the sale of assets (investment activity) or attracting bank loans (financial activity). 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 statement of cash flows by a direct method, especially for an external analyst, is its first section, which reflects the 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 distinguished: the ability to show the main sources of inflow and direction of outflow of funds; the ability to draw prompt conclusions regarding the sufficiency of funds for payments on various current obligations; direct link to the cash plan (the budget of cash receipts and payments); establishes the relationship between sales and cash receipts for the reporting period, etc.

Information about the main types of cash receipts and payments can be obtained: from the company's records; from the balance sheet and income statement, using the adjustment of the relevant items. In the first case, the specialists responsible for reporting, analyze the cash flow in various accounting accounts and classify cash flows by type of activity (operating, financial or investment). However, in practice, most businesses carry out a huge number of daily operations that cause cash flows, so cash flows are quite difficult to analyze and classify. As a result, the credential-based construction method is often too time-consuming, even for in-house accounting services. It is also unacceptable to external users who do not have access to company credentials that are trade secrets.

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

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

(+)Net sales proceeds
+(-) Decrease (increase) in receivables
+ Advances received

2. Payments to suppliers and staff =

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

3. Interest and other current expenses and income =

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

4. Taxes Paid =

(-) Taxes
+(-) Decrease (increase) in 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 disclose the relationship between the obtained financial result and the change in the absolute amount of the company's cash. In operational management, the direct method of determining the cash flow can be used to control the process of generating profits and draw conclusions regarding the sufficiency of funds for payments on current obligations. In the long term, the direct method of calculating the amount of cash flow makes it possible to assess the liquidity of the enterprise, since it reveals in detail the cash flow in the accounts, and also shows the degree to which the investment and financial needs of the enterprise are covered by its available cash resources.

Indirect method of constructing a cash flow statement

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

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

• shows the relationship 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 by the indirect method includes the implementation of the following steps:

1. According to the reporting, the net profit of the enterprise is determined.
2. To net profit are added the amounts of cost items that do not actually cause cash flows (for example, depreciation).
3. Subtracted (added) are any increases (decreases) that have occurred in the current assets items, with the exception of the “Cash” item.
4. Added (subtracted) any increase (decrease) that occurred in the items of short-term liabilities that do not require interest payments.

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

+ Net income
+ Cushioning
- (+) increase (decrease) in receivables
- (+) increase (decrease) in inventory
- (+) increase (decrease) in other current assets
+ (-) increase (decrease) in accounts payable
+(-) increase (decrease) in interest payable
+(-) increase (decrease) in reserves for future payments
+(-) increase (decrease) in tax arrears

The indirect method shows where the company's profit is specifically embodied, or where "live" money is invested. In addition to ease of calculation, 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 core activities. In the long term, this method allows you to identify the most problematic "places of accumulation" of frozen funds and, accordingly, outline ways out of this situation.

Comparative Analysis of Cash Flow Statement Methods

Compilation method	Advantages	Problems
		The essence of the problems	The existing approach to the solution
Straight	1. Shows the real movement of cash and their equivalents, as it is formed according to the data of accounting accounts: the general ledger, order journals, and other accounting registers. 2. Allows you to judge the sources of inflow and outflow of cash and cash equivalents, about their sufficiency for payments on the obligations of the organization. 3. More informative in terms of interpreting this report and using it to analyze the company's financial condition. 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 laborious - to compile it, you need 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 compiling a consolidated report: the complexity of the analysis of turnovers formed on cash accounts in the context of gross inflows and outflows of each company included in the group; elimination (exclusion) of intra-group transactions; reflection in the consolidated statement of cash flows of operations on purchases and sales of organizations. 3. The need to exclude turnovers between accounts.	The key to solving these problems is accounting automation.
		4. Does not take into account the relationship between the profit (loss) and the change in the amount of the organization's cash, i.e. does not answer the question - why the value of the change in cash deviates from the net profit received.	Preparation of a cash flow statement using the indirect method.
Indirect	1. Simplicity of calculations and establishing a relationship between net profit or profit before tax and changes in balance sheet items involved in core activities. Thus, the statement of cash flows can be compiled on the basis of the income statement and the balance sheet. 2. Data on real cash flows taken from accounting systems or any significant accounting automation are not required.	1. The need to wait for the closing of the reporting period. It does not promptly provide information after the end of the reporting period, as it is compiled on the basis of the income statement and balance sheet, which, according to the rules of Russian accounting, are formed before the end of March. It is at this moment that this report is required by the company's management for the purposes of coordinating budgets and strategic forecasts for the year.	Preparation of reporting regulations, requirement for early closing of the period, development of data collection forms for the purposes of preparing a cash flow statement and consolidation.
		2. Less visual and, on its basis, it is difficult to “decipher” any report figure to the level of cash flow entries, 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 enough.

In addition, the availability of data is an important factor in choosing a cash flow statement method. Often, the information necessary to fill in the items in the "Operating activities" section by the direct method is very difficult to extract from the total cash flow of the company, and the costs of its formation are quite high.

The use of various forms and methods for constructing a cash flow statement allows you to analyze their volumes and structure in several aspects. As a result, the user gets a detailed view of the operating, investment and financial transactions carried out by the enterprise for the period under review. This, in turn, allows him to form a judgment about the strengths and weaknesses of this 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, in the process of analysis, one should always pay attention to the extent to which operating flows cover the need for investments, loan payments or dividends. The stability of the operating flow in dynamics indicates the stable financial position of the enterprise, 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 stable negative net cash flow indicates serious financial difficulties leading to bankruptcy. The construction and analysis of various reports on cash flows in combination with other types of reporting provides a deeper understanding of the real situation of the enterprise, the actual results of its activities and future prospects.

Literature:

1. Accounting Regulation, “Cash Flow Statement” (23/2011), approved by Order No. 11n dated 02.02.2011.
2. International Financial Reporting Standard (IAS) 7 Statement of Cash Flows.
3. Rodina M.S. Cash flow statement as an opportunity to increase the information content of financial statements // National Association of Scientists. Economic sciences. 2015. No. IX(14). With. 81-84.
4. Pyatov M.L. The new Law "On accounting": a system of documents regulating the practice // BUKH.1C. 2013. No. 2.
5. Kadyrov I.S. Problems of compiling a cash flow report in commercial organizations // Bulletin of the Adygei State University. 2011. №2. With. 17-24.
6. Pivkin S.A. Increasing the information content of the cash flow report with innovations // Actual problems of the humanities and natural sciences. 2015. No. 7-4.
7. Peskova O.S., Gorkaeva D.A. Management accounting of cash flows in commercial organizations // Izvestiya VolgGTU. 2015. No. 15 (179). With. 140-144.
8. Prokopovich D.A. Cash flow statement under IFRS // Bulletin of professional accountants. 2012. No. 5. With. 10-30.
9. Kalenskaya V. Preparing a cash flow statement by the direct method: the practice of applying IFRS 7 // Financial Director. 2008. No. 12.
10. Khakhonova N.N. Information value of the cash flow statement: Russian and international aspects // Accounting and statistics. 2005. No. 6. With. 57-62.