Indirect / Direct Cash Flow Worksheet

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Engagement CS enables you to create cash flow statements in Microsoft Excel based on information that is linked directly to your client's trial balance data in CSA. You can customize your Cash Flow lines and transfer them from one engagement client to another from Engagement CS. The Custom Excel workpaper or cash flow statement option on the Excel/Word tab of the New Document dialog enables you to select an indirect or direct cash flow workpaper that are classified according to the FASB standard of operating, investing, and financing activities.

Also known as the reconciliation method that focuses on the difference between net income and net cash flow from operations.
Also known as income statement method that reports major classes of operating cash receipts and payments.

Choose Setup > Cash Flow Worksheet > Indirect (or Direct). The Indirect or Direct Cash Flow Worksheet dialog becomes available after you have selected options in the Indirect or Direct Cash Flow dialog.

Notes

  • Although cash flow worksheets can be created for interim clients, the balances always reflect year-to-date amounts. You cannot create a cash flow worksheet and perform analysis based on a single period of an interim basis client. However, if an interim period statement of cash flows is desired, the cash flow analysis can be completed using the year-to-date amounts.
  • All menu items in Setup > Cash Flow Worksheet are available only when the trial balance is available from the current engagement staff.
  • If the current engagement has multi-staff enabled, only the staff member that has the trial balance assigned to them can create a cash flow worksheet. Otherwise, the Cash Flow worksheet options are unavailable (grayed) in the Setup menu.
  • If amounts are changed in the Trial Balance that would affect the Cash flow worksheet, you may need to refresh the data files before amounts are displayed correctly in your Excel statements. To do so, Choose Setup > Cash Flow Worksheet > Indirect (or Direct) and click Done.
  • The Direct cash flow worksheet brings in accounts with a type of Revenue or Expense and grouping codes that are assigned to the following categories:
    • Cost of Sales
    • Sales
    • Operating Expenses
    • Other Income
    • Other Expenses
    • Provision for Income Taxes

See also: Rolling forward the Cash Flow Worksheet

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Special information

  • Create a cash flow worksheet based on account number or any number of grouping schedules, and with any balance type.
  • Use the Cash Flow lines variable type in the Engagement CS Variable toolbar in Excel to easily create your cash flow statement.
  • Filter and add multiple Locations and Departments to your cash flow statement in Microsoft Excel. See Filtering locations and departments in Excel.
  • Analyze the differences between prior period and current period balances for a selected grouping code based on the balance type that was selected when the worksheet was created. See Analyze Difference dialog.
  • Analyze details about which accounts make up the specific cash flow sections and lines in the Cash Flow Analysis Report to help you foot the Cash Flow statement after it is created.
  • Transfer cash flow lines from one Engagement CS client to another.
  • For engagement clients that have locations and/or departments set up, you must process the cash flow by each combination of location and/or department. If only locations or departments exist in the client, then a cashflow worksheet must be created for each department or location. See Select Locations and Departments dialog.
  • For 990 clients, the following cash flow lines and types are available:
    • Operating Activities <Displays all OA items>
    • Investing Activities <Displays all IA items>
    • NonCapital Financing Activities <Displays all Noncap FA items>
    • Capital Financing Activities <Displays all Cap FA items>
    • NonCash Activities <Displays all NonCash items>
    • NonCash Operating Activities <Displays all NonCash OA items>

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Fields & buttons

Grouping Type

Displays either Account number or the Grouping Schedule name based on the initial selections made in the Indirect/Direct Cash Flow dialog.

Cash Flow Worksheet grid

  • Account number > Grouping Code: Displays the account number or Grouping code type for each row item in the Cash Flow Worksheet grid.
  • Description: Displays a description for the account or grouping Schedule code.
  • Cash Account: Mark this checkbox to indicate which grouping codes or accounts represent cash. Because lines marked as cash do not need to be analyzed, the difference is zeroed regardless of the balances for each of the two selected periods that are analyzed.
  • Balance Type mm/dd/yy (prior year) and Balance Type mm/dd/yy (year to date): Displays the year-end amounts for the prior year and the year-to-date amounts for the current year.

    Note: Although cash flow worksheets can be created for interim clients, the balances always reflect year-to-date amounts. You cannot create a cash flow worksheet and perform analysis based on a single period of an interim basis client. However, if an interim period statement of cash flows is desired, the cash flow analysis can be completed using the year-to-date amounts.

  • Analyze button: Click this button to analyze the line items in the cash flow worksheet. Note that you cannot analyze a line item that is marked as a cash account.

Notes

  • If the Cash Flow Worksheet is sorted by Account number (when created by account), the accounts are displayed in the Cash Flow Worksheet grid in the same order as they do in the Chart of Accounts.
  • If the Cash Flow Worksheet is sorted by Grouping Schedule (when created by Grouping Schedule), then items in the Cash Flow Worksheet grid are sorted by the Cash Flow Category, followed by grouping code. For example, all Grouping codes assigned to current assets are displayed first, and if there are multiple codes assigned to the same category then they are sorted by the grouping code (in alpha or numeric order). The order that the categories appear is the same as the order that they appear in the Grouping Schedules dialog-Current Assets, Net Property and Equipment, Non Current Assets, Current Liabilities, Long Term Liabilities, and Equity.

Create New Worksheet button

When clicked, you can click OK to delete the old worksheet including all amounts that were previously analyzed to cash flow, and then create another Cash Flow Worksheet with the appropriate options selected from the Indirect/Direct Cash Flow dialog. Or, click Cancel to return to the original Cash Flow Worksheet without making any changes or deletions.

Change Balance Type button

When clicked, you can click Yes to select another balance type from the drop-down list in the Choose Balance Type dialog. Note that if you proceed with this action the balance type on the direct worksheet is changed and may cause the analysis to be out of balance.

Total Status

Displays a running total of the amounts in the Unexplained Amount column. When all codes are analyzed correctly, the total will equal zero.

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