Cash flow statement

Where cash actually came from and went, split into operating, investing and financing activities.

Example

Operating −$45k, financing +$500k from a round, so cash rose $455k despite an operating loss.

Important

This is the statement that reconciles 'we are profitable' with 'we have no money'.

Related terms

• Cash flow — The actual movement of money in and out of your bank account, as distinct from revenue you have earned but not been paid.
• Income statement (P&L) — A statement of revenue, costs and profit over a period. Revenue − COGS = gross profit; gross profit − OpEx = operating profit.
• Balance sheet — A snapshot at one moment of what you own (assets), what you owe (liabilities), and the difference (equity).

Lessons that explain it

• Reading a cash flow statement — The statement that reconciles 'we are profitable' with 'we have no money'. Three sections, one answer. (10 min)

All 176 terms in the Founder glossary