Cash Flow Statement In Sage 50: Report Guide & Forecast

By Antonio Garcia Nov 16, 2023 8 min

Even if your business is making great sales, it’s quite common to mistake a profit sheet for actual, spendable cash. That’s exactly why your Profit and Loss statement only tells half the story. Often, your cash is lying in unpaid invoices and inventory, making you struggle to pay bills. To see where your money actually is, you need to look at your Sage 50 Cash Flow Statement. You can connect with Sage live experts at +1-844-341-4437 for deeper insights. In this post, we will discuss more about the Cash Flow Statement, what it shows, how to run it, and common mistakes to avoid.

What Is Sage 50 Cash Flow Statement?

Sage 50 Cash Flow Statement helps you understand the actual financial position of your business. It specifically tells you about the cash entering and leaving your business over a period. The tool connects your balance sheet and your income statement by tracking the actual cash flow across three core business pillars:

1. Operating Activities

The day-to-day revenue-generating activities, such as cash collected from customers and cash paid to suppliers.

2. Investing Activities

Cash spent on or earned from long-term assets, such as buying a company vehicle, purchasing equipment.

3. Financing Activities

Cash flow related to borrowing money, paying off loans, or owner investments.

What’s Inside Sage 50 Cash Flow Report?

Sage 50 Cash Flow report mainly shows your specific bank activities and projects future cash flow over a period. It has three main sections: Starting Cash, Expected Incoming Cash, and Expected Outgoing Cash, concluding in a forecasted closing balance.
The report shows the following key components:

• Starting Cash: It’s your total opening balance across all selected bank accounts at the beginning of the reporting period.
• Expected Incoming Cash: It’s the total cash flow into your accounts, which includes:
  • Customer receipts and outstanding paid invoices.
  • Supplier refunds.
  • Other deposits, transfers, and forecast income.
• Expected Outgoing Cash: It’s the total value of money flowing out of your business, which includes:
  • Vendor/supplier payments.
  • Customer refunds.
  • Payroll and operating expenses.
  • Outstanding tax and VAT liabilities.
  • Bank transfers and regular direct debits.
• Net Balance And Forecast: It’s the net difference between your total cash flow in and out, calculated against your starting cash. You can get more information on Sage 50 Cash Flow report from live Sage 50 representatives at +1-844-341-4437.

Sage 50 Cash Flow Forecast – What’s The Use?

The Cash Flow report in Sage 50 shows where your money has been, but Sage 50 Cash Flow forecast shows where your money is going. It helps you predict your future liquidity by analyzing your expected incoming cash, outgoing expenses, and current bank balances.

Below are the primary uses of Sage 50 Cash Flow Forecast:

Identifies Cash Shortfalls
The forecast helps you identify upcoming periods where expenses might exceed income. It allows you to ensure funding or avoid non-essential purchases.

Planning Expenditures
Assesses the affordability of large purchases, expansions, or hiring, based on projected rather than current cash.

Tracking Invoices and Bills
Integrates seamlessly with your ledger to factor in due dates for accounts receivable and accounts payable.

Manual Adjustments
Allow you to perform manual adjustments, such as adding a potential loan or an anticipated tax payment to the forecast without altering your actual accounting records.

How To Create Sage 50 Cash Flow Statement?

Creating Sage 50 Cash Flow statements is easy as the software itself generates them automatically using your existing ledger data. Now, carry out the prompts below:

• Go to the Home window and open the Report Centre.
• Next, select Financials, and then choose Statement of Cash Flows.
• Afterward, enter your Date Range and click the Display button.
• In your Sage 50 Home window, click the Reports and Forms menu and open the Report Centre.
• From the given categories on the left side, choose Financials and scroll down to find Statement of Cash Flows.
• Here, highlight it and click the Display or Generate Report option.
• Now, set your parameters and select the specific fiscal year and date range you wish to review.
• Here, if you need to include previous years or revalue foreign currencies in the statement of cash flow in Sage 50, choose Modify this report before finalizing.

How To Use Sage 50 Cash Flow Manager For Forecasting?

If you are looking to forecast your cash inflows and outflows rather than generating a historical statement, you have the option of using the Cash Flow Manager tool. Here’s how to use it:

• Go to Analysis in the main menu and select Cash Flow Manager.
• Choose which bank accounts and transactions you want to track.
• The built-in chart will graph your incoming cash from customer invoices and outgoing cash for vendor/payroll payments over your chosen time period.

Steps To Modify The Cash Flow Statement In Sage 50

If you need to create accurate forecasts, maintain healthy liquidity, and customize financial reports to your specific business operations, you must modify the cash flow statement in Sage 50.

To modify the statement cash flow in Sage 50, you need to adjust the report’s layout and edit account categories in your Charts of Accounts. Also, you can use the Cash Flow Manager for custom forecasting.
Now, follow these stepwise methods to modify Sage 50 cash flow statement:

Method 1 – Modify Report Settings

• Go to the Home window and open the Report Centre.
• Next, choose the Financials button, then click the Statement of Cash Flows.
• Afterward, click Modify this report or Options tab.
• Here, adjust the Dates and choose Current Year or Previous Year, and select whether you want to include foreign currency revaluations or account notes.
• Customize the columns, fonts, and printers to your preference, then click OK to view the updated report.

Method 2 – Adjust Account Types And Classes
If your cash flow statement is showing incorrect totals or missing lines, such as depreciation or sales of assets, your general ledger accounts may be misclassified.

• Move to the Maintain tab, and then click the Chart of Accounts option.
• Next, verify that all your accounts bank, asset, and liability accounts have the correct Account Type assigned.
• For custom statement designs, select Reports and Forms and click Financial Statements.
• Now, select the Cash Flow statement, and click Design.
• Afterward, right-click the Column Desc section to modify activity qualifiers. It includes changing Only Credits/Debits to Net for reconciling net income or cash flows.
• Next, save the statement under a new name.

Method 3 – Change Forecasts In Cash Flow Manager
If you are modifying a forecast Cash Flow in Sage 50 rather than a historical statement:

• Select the Analysis tab, and then choose the Cash Flow Manager.
• After this, click Change cash flow settings to adjust projection periods and choose whether to base forecasts on open or historical transactions.
• Use the Pencil icon or the Adjustments option to manually add or subtract figures, such as payroll costs, potential loans.
• Now, tick-mark the Include box next to individual accounts, customers, or vendors to control exactly what cash is flowing in and out.

Key Benefits Of Cash Flow Forecasting Software For Sage 50

Cash flow forecasting software for Sage 50 helps financial managers avoid manual data entry and guesswork by syncing seamlessly with your accounting data. It predicts future cash positions, proactively flags potential cash gaps, and improves decision-making regarding vendor payments, payroll, and business growth.
Cash Flow Forecasting software for Sage 50 users can avail the following operational advantages:

• Real-Time Data Sync

Automatically pulls live accounts payable, accounts receivable, and bank ledger data directly from Sage 50 to generate accurate, up-to-date cash positions.

• Proactive Shortfall Alerts

Identifies exactly when you are at risk of running out of cash. It allows you to ensure proper funding or modify spending before the problems occur.

• Strategy Planning

Allows you to address “what-if” situations, such as the financial impact of hiring new staff, purchasing equipment, or handling seasonal revenue dips.

• Reduced Manual Errors

Removes the tedious and error-prone process of manually building complex forecasts in external spreadsheets.

• Optimized Collections

Sage 50 Cash Flow Statement also identifies outstanding customer invoices and tracks overdue receivables to ensure cash is flowing into the business on time.

Sage 50 cash flow statement and forecast are the ultimate tools to manage financial operations with complete peace of mind. Instead of guessing your next month’s expenses, you will have the real-time data needed to make proactive, smart, and confident business decisions. If you need help customizing your Sage 50 financial templates or setting up your forecast, contact our live Sage 50 expert team at +1-844-341-4437.

Read Here:
CIM50 Manufacturing For Sage 50