Receipt of a bank loan intrest on savings and investments and shareholder investments etc Cash out Flow. A cash inflow means that cash is going into the company. Cash flow is based on the concept of outflow and inflow of cash and cash equivalents during a particular period. Fund flow is based on the concept of changes in working capital over a period of. Inflows and outflows of cash. It is ended with either increase in working capital or decrease in working capital. The difference between cash flow and fund flow is that the former is more concrete and current while the latter is more abstract and doesnt only deal with recent data. Funds flow statement is in consonant with the actual basis of accounting. Cash is a current asset while Fund is a liability which may be current or non-current. The key difference between the cash flow statement and fund flow statement is that cash flow statement is a statement that records the cash inflows and outflow for a financial year whereas fund flow statement is a statement used to assess the change in financial position of a company between two accounting periods that shows the inflow and outflow of funds.

It is started with funds from operation or funds lost in operation. Cash flow statements signify the changes in the cash and cash equivalents of the business due to the business operations in one time period. This statement is required under Generally Accepted Accounting Principles GAAP and. Funds flow statements report changes in a businesss working capital from its operations in a single time period but have largely been superseded by cash flow. Fund flow is based on the concept of changes in working capital over a period of. Funds flow statement is in consonant with the actual basis of accounting. This essentially means that you have earnings that havent actually generated any cash for the business or you have losses that didnt require the business to pay out any cash. Cash flow statement or statement of cash flows is a financial statement that shows how changes in balance sheet and income accounts affect cash and cash equivalents and breaks the analysis. Cash contains currency in physical form only while fund contains cash credit cheque kind etc. Difference in Cash Flow.

The fund flow records the movement of cash in and out of the company. In cash flow cash from the operations is calculated. The key difference between the cash flow statement and fund flow statement is that cash flow statement is a statement that records the cash inflows and outflow for a financial year whereas fund flow statement is a statement used to assess the change in financial position of a company between two accounting periods that shows the inflow and outflow of funds. Cash flow refers to the current format for reporting the inflows and outflows of cash while funds flow refers to an outmoded format for reporting a subset of the same information. It tells us from where funds have come and where funds have gone. Difference in Cash Flow. Cash Flow and Fund Flow Differences. Cash flow statement or statement of cash flows is a financial statement that shows how changes in balance sheet and income accounts affect cash and cash equivalents and breaks the analysis. Cash is a current asset while Fund is a liability which may be current or non-current. Cash flow is based on the concept of outflow and inflow of cash and cash equivalents during a particular period.

Cash flow refers to the concept of inflow and outflow of cash and cash equivalents during a particular period. It is a summary of a firms inflow and outflow of funds. Lets look at some of the differences between cash flow and funds flow statement 1. Cash flow analysis is a tool of short-term financial analysis while the funds flow analysis is comparatively a long-term one. Cash flow is based on the concept of outflow and inflow of cash and cash equivalents during a particular period. The difference between cash flow and fund flow statement is explained here in tabular formCash flow shows the movement of cash and cash equivalents while the fund flow shows the financial position of the firm over a period of time. It is started with funds from operation or funds lost in operation. Receipt of a bank loan intrest on savings and investments and shareholder investments etc Cash out Flow. It is ended with closing cash in hand and cash equivalents. It is ended with either increase in working capital or decrease in working capital.

Cash Flow and Fund Flow Differences. Cash flow is based on the concept of outflow and inflow of cash and cash equivalents during a particular period. While funds flow statement reveals the change in the working capital of a company between two balance sheet dates while cash flow statement reveals the change in the cash position of the company between two balance sheet dates. The major differences between cash flow statement and fund flow statement are as follows. Purchase of stock raw materials or tools wages rents and daily operating expenses dividend payments income tax etc. Funds flow statements report changes in a businesss working capital from its operations in a single time period but have largely been superseded by cash flow. Main purpose is to show the movement of cash. Inflows and outflows of cash and cash equivalents. Difference in Cash Flow. Earnings are supposed to represent the true profits of the business but they dont really correspond to the cash generated by the business because you can have non-cash earnings or non-cash losses.