The Cashflow Statement is used to assess past cash flows as well as helping to forecast future cash flows. It is concerned with describing and examining the inflows and outflows of cash that lead to the change in cash held after a transaction has taken place.

The purposes for which a Cashflow Statement is prepared include:

  • to show cash inflows and cash outflows during the year
  • to help forecast future cash flows
  • to help with financial planning to aid in the assessment of a school’s financial flexibility and position