Cash flows from current activities can be. Types of cash flows of the organization: the importance of their analysis and management. As part of investment activities

From this article you will learn:

• What are the types cash flows organizations
• How is the analysis and management of various types of cash flows of the organization

The success of an enterprise directly depends on the effectiveness of capital management. Various types of cash flows of an organization are a major factor in stability and sustainability. They provide development economic activity company, profit growth, achievement of goals.

To create conditions for the economic development of the enterprise in the conditions modern market, it is necessary to know the principles and mechanisms of financial management, to put into practice the most optimal methods for accelerating the movement of various types of cash flows of the organization, to correctly use the methods of analysis.

What provide different types of cash flows of the organization

Cash flow (CF) is a continuous process of movement of cash and non-cash money. All types of economic and financial activities of the company are accompanied by income and costs.

The economic activity of each organization is inextricably linked with the inflow and outflow of funds, the receipt of various payments and payments that are distributed over time.

Different types of cash flows of the organization are combined into a single financial flow, which is an independent object of the resource management system. The strategy of distribution and synchronization of various DPs plays a crucial role in the economic development of an enterprise. Financial management is reflected in the final result of the company's activities.

Without "financial blood circulation" it is impossible to provide efficient work enterprises in today's market. New companies enter the consumer market every year. But why do some of them successfully develop and increase profits, while others go bankrupt?

A properly organized financial resource management system, the use of modern methods of distributing funds can optimize not only the company's business activities, but also ensure profitable investment, create conditions for economic well-being and prosperity, achieve goals and get high performance.

Effective management of various types of cash flows of the organization provides:

• Financial balance, stability and profitability of the enterprise, which depend on the uniformity of movement and the level of synchronization in terms of volume and time of different types of cash flows. The higher the level of synchronization, the faster the implementation strategic goals and the company is growing rapidly.
• Rational use financial resources firms, which allows to reduce credit dependence, to minimize the need of the enterprise for borrowed funds.
• Reducing the risk of insolvency when an organization is unable to meet its financial obligations on time in the required volumes.

Synchronization of cash flow is an essential part of the company's anti-crisis plan. The imbalance of various types of cash flows of an organization increases the risk of insolvency and bankruptcy of even a successful enterprise.

Competent and effective financial management contributes to obtaining additional profit and increasing the assets of the enterprise. It is necessary to include even temporarily free residual funds in circulation and continuously increase investment resources.

With a high level of synchronization of income and expenses in terms of volume and time, the company's real need for the current and insurance balance of funds decreases. Such a management strategy is aimed at reducing the reserves of investment resources that are formed in the process of real investment.

Competent financial management contributes to the discovery of new sources of profit. Efficient management of various types of cash flows allows you to generate additional resources for investment (investments) - the placement of capital in order to make a profit.

The main types of cash flows of the organization

• Positive (PDP) or inflow Money- these are the amounts that come to the account of the organization from all types of transactions.
• Negative (NIR) or cash outflow is the amount of payments for all types of transactions.
• A single complex object of financial management - RAP and ODP. These two types of organization's cash flows are closely related. The reduction of one type of financial flow over a certain period of time leads to a violation of synchronization and a reduction in the flow of the second type.

• DP financial services for the enterprise as a whole.
• DP financial services of individual structural divisions and CFR (financial responsibility centers) of the company.
• DP on individual financial transactions that are subject to independent management.

Efficient financial management allows you to analyze and timely evaluate the most vulnerable places for managing funds in order to immediately plan and take appropriate anti-crisis measures.

• DP on current activities. It includes revenues from all completed sales, advances received from customers, payments from ancillary operations, settlements with suppliers, fund wages, tax deductions.
• DP for investment activities. This includes all types of financial transactions related to the purchase of property and the sale of long-term assets.
• DP on financial activities. Combines various credit receipts, loans, repayment of interest on loans, payment of dividends on securities (shares, promissory notes).

• Internal (VDP) - the movement of money within the enterprise.
• External (VDP) - the movement of funds between the enterprise and its counterparties (suppliers, buyers).

• Cumulative (CDP) - the entire amount of receipts or payments of funds for a period of time at intervals.
• Net (NDP) - the difference between positive (PDP) and negative (NPD) flows for a period of time by intervals.

Net DP is of great importance for determining the market value and financial position of the enterprise, it determines the performance of the company.

Amount of NPV for the period = Amount of CAP (received funds) for the period - Amount of CAP (disbursed funds) for the period.

The amount of NPV affects the size of the company's financial assets. The NPV can be either positive or negative.

• Balanced (FCF) can be calculated for the enterprise as a whole, for a separate financial responsibility center, for a specific operation.

The balance between individual types of cash flows of the organization for the period is calculated using the following formula:

Amount of RAP = Amount of CAP + Anticipated increase in the amount of the cash reserve.

• Unbalanced (NDP) is a deficit or surplus (excess) total financial flow. In case of insufficient funds or excess of income over expenses, the balance is not ensured.

• Short-term (KDP) - the calculation is done for a certain period, from the beginning of receipt of payments to the end, but not more than 1 year.
• Long-term (LTD) - calculated over a period of more than 1 year, from the start of receipt of payments to the end of a certain period.

Short-term DP refers to the current and partly financial activities, and long-term DP refers to the investment and partly financial activities of the firm. For example, it can be long-term loans or loans. Calculations of KDP and DDP are used for individual operations of the enterprise.

• Priority (PIP) is a high level of NPV or the net profit of an enterprise, for example, from the sale of goods.
• Secondary (VDP) - has an insignificant volume, therefore, does not significantly affect the results of the company's financial activities (for example, the issuance of accountable funds).

• Current (TDP) - the indicator is compared with the cost at the current time.
• Future (BDP) - the indicator is compared with the value at a certain future point in time.

Most often, the classification according to the method of evaluation in time is used in determining the future profit of the enterprise - discounting.

In accordance with international standards financial accounting, the organization's cash flows are divided according to types of economic activity:

• DP on operating activities - payments to suppliers of raw materials, deductions for third-party services.
• DP on investment activity - payments and receipts in the course of investment.
• DP on financial activities - payments and receipts related to the attraction of equity or other funds, with the receipt of long-term or short-term loans and borrowings.

The above classification is necessary for accounting, effective planning and analysis of the continuous cash flow of the enterprise. Competent financial management is based on a standard financial accounting system.

Other Important Types of Cash Flows of an Entity

In addition to the above classification system for accounting for financial assets, there are other equally important types of cash flows of an organization:

• Excessive (IDP) - the amount of financial receipts exceeds the needs of the company in spending funds. The presence of a financial surplus indicates insufficiently effective planning and use of enterprise resources. Excess DP indicates a loss of profit for the firm, since money depreciates as a result of inflation.
• Deficient (DDP) - means that the incoming funds are not enough to fully meet the needs of the company. The shortage of funds leads to a deterioration in the financial position of the enterprise, its economic development slows down, the consequences can be critical.
• Discrete (DDP) - income or expenses of the company associated with the performance of single transactions in a certain period, for example, the acquisition of an intangible asset or gratuitous receipts.
• Regular (RDP) - income or expenses of the enterprise associated with ongoing business transactions for periods of time.

Regular DP companies can be uniform and uneven. This is due to the periodicity of the receipt of funds as a result of the business operations of the company.

The considered types of cash flows of the organization may have differences only within a certain period of time. With a minimum time interval, all financial flows will be discrete, and long period they can be regarded as regular.

Analysis of various types of cash flows of an organization

Here you should consider in detail why you need an analysis of the movement of various types of cash flows of the organization (ADP). A well-organized financial accounting of the moments and magnitudes of inflows (PDP) and outflows (ODP) of funds in an enterprise allows you to determine the financial stability and profit of the company. This type of analysis is also called operational, since the calculations take into account income and costs from operating (current) activities.

The analysis of the inflows and outflows of the enterprise's funds is an important link in financial management, since it is on its basis that the strategic plan development of the company, taking into account the possibilities of self-financing of the enterprise, its financial potential and profitability.

The increase in financial resources directly affects the economic well-being of the enterprise. Without a stable profit, it is impossible to cover the company's debt obligations. A financial deficit usually leads to a crisis. An excess of available funds usually indicates a loss-making enterprise.

The company's unprofitability is due to two main factors - inflation and lost investment opportunities. The company can receive additional income from the profitable investment of excess funds. Analysis of the movement of various types of cash flows of the organization allows you to identify its actual financial position.

The analysis of aggregate indicators of inflows and outflows of funds is the most important characteristic of the company's stability and stability. Only the analytical method allows you to determine the effectiveness of financial management and identify the financial potential of the enterprise.

In order to analyze the financial condition of the company (to calculate the ADP), it is necessary to calculate the outflow (OIR) and inflow (OIR) of funds for the period of time for which the loan, credit or loan was taken. For example, when borrowing funds for 1 year, the analysis (ADP) is done on an annual basis. If the loan term is up to 90 days, then an analytical calculation (ADP) is made for the quarter.

Elements of cash inflows for the period:

• The company's profit earned in one particular period.
• Depreciation accrued for one specific period.
• Release of funds from: stocks, receivables, fixed assets, other assets.
• Increase in accounts payable.
• Growth of other liabilities.
• Increase in share capital.
• Issuance of new loans.

Elements of outflow of funds for the period:

• Payments: taxes, interest, dividends, fines and penalties.
• Additional attachments funds in: stocks, receivables, other assets, fixed assets.
• Reduction of accounts payable.
• Decrease in other liabilities.
• Equity outflow.
• Repayment of loans.

An indicator of the total cash flow (CFC) of a company is the difference between the inflow (CFP) and outflow (CFC) of funds. Any changes in the financial reserves of the enterprise, receivables and payables, other assets and liabilities, fixed assets in one way or another affect the EIR indicator. To determine the real degree of such influence, it is necessary to compare the indicators of residual funds for various items of stocks, debtors, creditors at the beginning and end of a certain time period.

If an increase in the balance of financial reserves, debtors and other assets for a specific period is detected, then the final result of the calculation is recorded with a “-” sign and indicates an outflow of money. A decrease in the balance of funds is recorded with a “+” sign and indicates an inflow of capital. The growth of creditors and other liabilities is considered as an inflow of funds and is marked with a “+” sign, and their decrease is an outflow with a “-” sign.

When analyzing the movement of various types of cash flows, an organization must take into account some features in determining the inflow and outflow of funds. This is due to the change in fixed assets. When performing calculations, one should take into account not only the growth or decrease in the value of their balance for a certain time period, but also the final indicator of the sale of a part of fixed assets for a specific period. If the selling price exceeds the balance estimate, then this indicates an inflow of funds. If the balance sheet value exceeds the selling price, then we are talking about an outflow.

The inflow or outflow of funds due to changes in the value of fixed assets is calculated by the formula:

Inflow (outflow) of funds due to changes in the value of fixed assets = Cost of fixed assets at the end of the period - Cost of fixed assets at the beginning of the period + Results of the sale of fixed assets during the period.

The indirect analytical method ADP is based on grouping the elements of inflow and outflow of funds by areas of management, which in turn are divided into blocks:

• enterprise profit management;
• inventory and settlement management;
• financial liability management;
• tax and investment management;
• ratio control equity and loans.

ADP by direct analytical method is performed as follows:

Total cash flow (Net cash) = Increase (decrease) in cash as a result of production and economic activities + Increase (decrease) in cash as a result of investing activities + Increase (decrease) in cash as a result of financial activities.

Calculation of the first term:

Revenue and sales - Payments to suppliers and staff + Interest received - Interest paid - Taxes.

Calculation of the second term of the total cash flow:

Proceeds from the sale of fixed assets - Capital investments.

Calculation of the third term:

Received loans - Repayment of debt obligations + Issue of bonds + Issue of shares - Payment of dividends.

To perform the ADA, it is necessary to have data for at least three past years. If an enterprise has a stable excess of inflow over outflow of funds, then it can be considered financially stable and creditworthy. Even a short-term excess of outflow over inflow, as well as all fluctuations in the value of the total CF, indicate the company's insufficient stability and low creditworthiness.

If the amount of outflow systematically exceeds the amount of inflow, then the company is characterized as insolvent. A positive total CF (inflows greater than outflows) indicates the size of the loan allowance that the firm can receive.

Analysis of different types of cash flows of the organization allows you to determine the weak link in financial management. For example, the reason for the outflow may be insufficiently thought-out management of financial reserves, settlements (debtors and creditors), financial payments (taxes, interest, dividends).

Identification of deficiencies in capital management is necessary for the correct development of lending conditions, which will be reflected in the loan agreement. For example, if the main reason for the outflow of finances is excessive diversion of funds into settlements, then maintaining the turnover of receivables at a certain level during the entire period of using the loan can become a favorable condition for lending.

If the reason for the outflow was an insufficient indicator of share capital, then compliance with a certain standard level of the coefficient can be considered as the main condition for lending financial leverage(leverage) - managing the assets and liabilities of the company in order to make a profit.

It is more convenient to analyze the indicators of inflow and outflow of funds using the cash flow report. In accordance with the international standard IAS7 "Report on changes in financial position» (put into operation on the territory Russian Federation Order of the Ministry of Finance of Russia dated December 28, 2015 N 217n) is the main source of information for analysis (ADP). It is compiled not according to the sources and directions of the movement of funds, but according to the areas of activity of the organization - operating (current), investment and financial.

When compiling a statement of cash flows and changes in the financial position of an enterprise, the indicators of cash received by the organization as a result of activities are determined:

• operating (current);
• investment;
• financial.

To generate a cash flow statement, balance sheet data and a profit and loss statement are used.

Managing the types of cash flows of the organization

Without competent financial management, it is impossible to effectively manage all the economic activities of the enterprise and safely resolve current financial problems.

The management system for various types of cash flows of an organization is built based on key principles:

• informative authenticity.

Financial management should be provided with mandatory information base. The creation of such a base is complicated by the lack of a direct financial report based on general methodological principles of accounting.

World standards for the formation of a direct financial report began to be developed only since 1971 and, according to some experts, are still far from complete. In our country, accounting is carried out in ways that differ from those accepted in world practice. This causes certain difficulties and does not allow ensuring the reliability of the information base.

• Ensuring balance.

The management of all types of cash flows of the organization must comply with the overall goals and objectives of financial management, as well as ensure a balance of inflows and outflows of funds by types, volumes, periods of time and other important indicators. This is the only way to optimize the financial planning of the company.

• Ensuring efficiency.

Financial inflows and outflows of any company are characterized by unevenness, which leads to the emergence of free assets in significant volumes. Temporarily free balances are non-productive assets that depreciate over time for various reasons. Effective management of funds should ensure their investment.

• Providing liquidity.

The unevenness of some types of cash flows of the organization causes a temporary lack of finance. This adversely affects the degree of solvency of the enterprise. Therefore, it is very important to ensure the greatest degree of their liquidity during the entire period of activity. To do this, it is necessary to synchronize the positive (PDP) and negative (NDP) flows in the context of each specific time period.

The primary task of financial management is to ensure financial balance enterprises. This can only be achieved if there is a balance and synchronization of inflow and outflow in time.

Reporting helps to analyze the movement of funds and draw conclusions about the financial condition of the enterprise. Types of reporting:

• about the security of the company with financial resources at any time;
• free from the influence of legislative and accounting requirements (intended only for the head or owner of the company);
• covering all areas of the enterprise.

Cash flow (CF) is the aggregate income and payments distributed over time, which are formed as a result of the activities of the enterprise. The financial management of the company should be guided by the main provisions:

• Cash flows ensure the economic activity of the company in all areas of its work. They are called the "money blood circulation" system of the enterprise. The positive results of economic actions testify to the "financial health" of the company.
• The financial balance and stability of an enterprise are directly related to its strategic development . The speed of economic development depends on the degree of synchronization of various types of cash flows of the organization. The higher its level, the faster the company's strategic goals and objectives are realized.
• The high rhythm of the implementation of operational (current) processes allows you to increase the company's turnover, manufacture and sell as many products as possible. Delays in payments have a negative impact on the creation of a production base - stocks of raw materials, the efficiency of employees, and the sale of the finished product.
• Active management of all types of cash flows of the organization allows you to reduce the needs of the enterprise for loans and borrowings. Financial resources can be formed from internal sources only with a rational and economical attitude to material resources and rational economic activity. This is especially important for young developing companies, as they have limited access to external financial sources (credits, loans, loans).
• The increase in the rate of capital turnover occurs due to a reduction in the duration of production and financing cycles, a decrease in the need for financial means which serve the economic activity of the organization. As a result, the company's profit increases rapidly.
• The risk of insolvency and bankruptcy of the enterprise is significantly reduced. Even with successful economic activity and making sufficient profits, periods of insolvency may occur. This happens due to insufficient balance of inflow and outflow of funds over time. Only a well-organized synchronization of the receipt and expenditure of funds can save the organization from the risk of insolvency.
• Additional profit of the enterprise is generated by financial assets. Efficient use of temporarily released cash balances, well thought out investment funds allows you to accumulate sufficient capital and generate additional investment resources. A high degree of synchronization of receipts and payments in terms of volume and time makes it possible to reduce the company's needs for current and insurance balances of assets that serve the company's operating activities, as well as to form reserve investments.

Example. To calculate the net cash flow (NPF) of an organization, you can use a more complex method. First you need to find the total indicator of cash flows associated with the main activities, finance and investments. The present value can be calculated directly or indirectly.

For planning the internal budget of a company, it is better to use the direct method of calculation. To do this, you need to know the amount of revenue received from the sale of goods or services. The formula also reflects other income and expenses for operating activities and tax payments. But this method of calculation has one drawback - it cannot be used to determine the relationship between changes in the volume of funds and the company's income.

The indirect method makes it possible to deeply analyze the financial condition of the organization at the current moment. It allows you to adjust the indicator when accounting for transactions that do not have a financial focus. At the same time, the obtained value may indicate that the current value of a successful firm is more/less than income for a time interval.

An example of calculating the company's cash flow for 1 month (30 days):

1. Primary activity:

• proceeds from the sale of products - 450,000 rubles;
• raw material costs - 120,000 rubles;
• staff salary - 45,000 rubles;
• total - 285,000 rubles.

1. Investment activities:

• investments in land - 160,000 rubles;
• investments in assets - 50,000 rubles;
• total - 210,000 rubles.

1. Financial activities:

• obtaining a loan from a bank - 100,000 rubles;
• dividend payments - 20,000 rubles;
• total - 80,000 rubles.

The calculation is performed according to the formula:

DP of the company for 30 days = 285,000 rubles. - 210,000 rubles. + 80 000 rub. = 155,000 rubles.

The company's cash flow for 1 month of activity is 155,000 rubles.

Knowledge of the classification of all types of cash flows of the organization, the ability to perform all necessary calculations and analyze the results will help you improve the efficiency of the enterprise. The formulas given in this article will help you correctly compose financial statements, will avoid mistakes and problems with the tax authorities.

One of the directions of financial management of enterprises is the effective management of cash flows. Full score financial condition enterprise is impossible without the analysis of cash flows. One of the objectives of managing these flows is to identify the relationship between them and profit, for which it is necessary to know whether the profit received is the result of effective cash flows or is it the result of some other factors.

To understand this issue, it is necessary to understand what is meant by the terms "cash flow" and "cash flow".

Flow of funds - This is the transfer of money to someone, both in cash and non-cash. The movement of money is the fundamental principle, as a result of which finances arise, i.e. financial relations, cash funds, cash flows.

cash flow An enterprise is the aggregate of all its receipts and payments for a certain period of time. In world practice, cash flow is called "cash flow" (English cash flow, although the literal translation of this term means "cash flow").

Cash flows differ from a simple transfer of money in a number of ways:

• o this is the result of the monetary relations arising in the enterprise, which are the result of the movement of money;
• o organized and managed processes;
• o processes limited to a certain period of time, that is, having time limits - the beginning and end;
• o cash flow as an indicator has a series economic characteristics: intensity, liquidity, profitability, sufficiency.

Degree cash flow intensity - this is an increase or decrease in its value over a certain period of time, i.e. the maximum flow is intense.

Cash flow liquidity - it is the excess of positive (receipt) over negative (payments). Return on cash flow is not its important characteristic, it is calculated, for example, as the ratio of net cash flow to inflows or outflows. Sufficiency of cash flow determined by its excess or deficiency.

The inflows (receipts) and outflows (payments) of money over a period of time are constituent parts cash flow. A set of inflows or receipts is a positive cash flow, and a set of cash outflows or payments is a negative cash flow.

Net cash flow - is the difference between the sum of inflows and outflows. The net flow is one of the financial results of the enterprise along with such indicators as profit and profitability. Note that this is a specific result, since the company should not set as its goal the growth of net cash flow unnecessarily. Net flow can be either positive or negative. A positive cash flow is a positive net flow, and a negative cash flow is a negative net flow.

A positive net flow, or a positive cash flow, can be either excess or deficit. Excess flow means a significant excess of cash receipts over demand. Deficient cash flow characterizes the opposite phenomenon, when receipts are not enough to cover the need. Negative flow, of course, is always scarce. The excess and scarcity of cash flow are indicators that are similar in content to such indicators as profitability and unprofitability (the use of the latter is also quite legitimate).

A time estimate defines the cash flow as present and future. The present flow is determined in the assessment of the present time, and the future flow is determined in the assessment of some future specific point in time by discounting, i.e. bringing future cash flows into a comparable form with the present.

The goal of cash flow management is to balance positive and negative cash flows over time, synchronizing them on a weekly, ten-day basis, or as needed.

Unbalanced flows make at some point the cash flow as a whole illiquid, and the company insolvent. Obviously, the main ways to balance threads are:

• o increase in funds in the turnover of the enterprise and, above all, its own;
• o increase in revenue through additional sales;
• o reduction in payments.

Balanced cash flow is liquid. The indicator is the liquidity ratio, which is defined as the ratio of positive flow (inflows) to negative flow (outflows). The minimum value of this indicator is equal to one.

The balance of the cash flow is ensured by its planning, primarily through the development of operational financial plan, the so-called payment calendar. It is developed for a month with a frequency of 5, 10, 15 days. The peculiarity of the payment calendar is that the company first determines all its cash expenses for the month, and then seeks sources of funds to cover expenses if cash income is not enough. The development of an economically sound payment calendar is one of the mandatory conditions effective cash flow management.

As already noted, cash flows are associated with cash inflows and outflows (Table 8.1).

Table 8.1. Cash inflows and outflows by type of activity

The need to divide the activities of the enterprise into three types (main, investment, financial) is explained by the role of each of them and their relationship. If the main activity is the main source of profit, then investment and financial activities are designed to contribute, on the one hand, to the development of the main activity, on the other hand, to provide it with additional funds.

By and large, the division of the enterprise into types is one of the ways to ensure a balance in the income and payments of the enterprise. For these purposes, enterprises develop a cash flow plan for the quarter (Table 8.2).

Table 8.2.

Thus, the main objects of cash flow management are:

• o positive flow - tributaries;
• o negative flow - outflows;
• o cash balance.

Cash flow planning for the year is carried out using the so-called cash budget, which is also called the cash flow budget or, as it is often called, the cash flow budget, abbreviated as KB, BDP, BDDS. Budgets at the enterprise are developed, as a rule, for one year, but this can be done for three, six months, and for another period.

Some enterprises plan cash flows for certain types of income and expenses, assets and liabilities, etc.

The main ways to strengthen the finances of enterprises are related to the optimization of the funds used by them and the elimination of their deficit.

Enterprise finance is the most important category of a market economy. They play a decisive role in the system of financial relations of the state, therefore, their professional management contributes to solving not only the problems of enterprise finance, but also such problems as inflation, budget deficit, monetary policy, stock market development, corruption, etc.

Company executives are interested in the financial security and stability of the business, which is largely determined by the generated cash flow. Cash flow ("cash flow") is the sum of receipts and payments for a certain period of time, which is divided into separate intervals.

Cash flows serve to ensure the functioning of the company in virtually all aspects. To achieve the required business goals, to ensure stable growth, the financial manager needs to optimally organize cash flow management. For this purpose, it is convenient to classify cash flows into types.

Classification of cash flows into types

1. Direction of movement:

• Positive cash flow, the amount of cash receipts from all types of operations (sometimes use the term "cash inflow").
• Negative cash flow, the amount of cash payments for all types of its operations (sometimes use the term "cash outflow").

The relationship between these species is quite high. If, over a period of time, one of these types of flows is reduced, then this will most likely entail a reduction in the second type. Therefore, in financial management these two types are considered as a complex control object.

2. By management levels: CFD, projects, activities allows you to evaluate the most narrow places financial management and take timely action:

• The overall cash flow of the company. This cash flow includes all other types and serves the business as a whole.
• Cash flow of individual structural divisions, centers of financial responsibility (CFD) of the enterprise.
• Cash flow for individual transactions. This is the primary object of self-management.

Figure 1. Types of cash flows on an example software product"WA: Financier": Consolidated Statement of Cash Flows under IFRS.

3. By type of activity:

• Cash flow for current activities. Includes proceeds from the sale of core activities, advances from customers, revenue from ancillary activities and repayment of debts to suppliers, wages, tax payments to the budget fund.
• Cash flow from investment activities. For example, it includes cash flow associated with the acquisition of property or the sale of long-term assets.
• Cash flow from financial activities. Includes receipts of loans and borrowings, interest repayments, dividend payments, etc.

Figure 2. Types of cash flows on the example of the software product "WA: Financier". Consolidated cash flow statement.

4. In relation to the company:

• internal cash flow. Cash flow within the company.
• external cash flow. Cash flow between a company and its counterparties.

5. Calculation method:

• Aggregate cash flow - the entire amount of cash receipts or payments for a period of time at intervals.
• Net cash flow (NFC) - the difference between positive and negative cash flow over a period of time by intervals. NPV is a significant result of a business that determines its market value and financial position.

The formula for calculating NPV both for the company as a whole and for individual CFDs is:

The amount of net cash flow for the period = The amount of positive cash flow (cash inflows) for the period - The amount of negative cash flow (cash outflows) for the period.

The NPV sum can be both positive and negative. This indicator affects the size of the company's cash assets.

6. According to the level of sufficiency:

• Excess cash flow. In this case, the receipts are much higher than the company's actual need for spending them. An indicator of redundancy is a high positive NPV value.
• Deficient cash flow. In this case, the receipts are significantly lower than the company's actual need for spending them. At the same time, the amount of NPV can be positive, but it does not provide all the needs of the company for spending money. A negative NPV automatically means a deficit.

7. In terms of balance:

• Balanced cash flow. It can be calculated both for the company as a whole, and for a separate CFD, a separate operation.

Balance formula between individual types of cash flows for the period:

Positive cash flow amount = Negative cash flow amount + Anticipated increase in cash reserve amount.

• Unbalanced cash flow. In this case, equality is not guaranteed. Unbalanced is both deficit and excess total cash flow.

8. By time period:

• Short term cash flow. The period from the beginning of cash receipts (or payments) to the end is no more than 1 year.
• Long term cash flow. The period from the beginning of receipts of funds (or payments) to the end of more than 1 year.

Typically, these types of cash flows are used for individual operations of the company: short-term cash flow is usually associated with current and partly with financial activities, long-term cash flow is associated with investment and partly with financial activities (for example, long-term loans and borrowings).

9. By importance in the formation of financial performance:

• Priority cash flow - generates a high level of net cash flow (or net profit). For example, proceeds from the sale of goods.
• Secondary cash flow - in terms of its functional orientation or insignificant volume, it does not have a significant impact on the formation of financial results. For example, the issuance of cash under the report.

10. According to the method of evaluation over time:

• Current cash flow - a comparable amount, given at a cost to the current point in time.
• Future cash flow is a comparable amount, discounted in value to a specific future point in time.

Typically, this classification is used for discounting.

11. In accordance with international accounting standards, cash flows are also divided by types of economic activity:

• Cash flow from operating activities is characterized by payments to suppliers of raw materials and supplies; third party performers certain types services that support operations.
• The cash flow from investment activities is characterized by payments and receipts of funds that interact with the implementation of real and financial investment.
• Cash flow from financial activities is characterized by receipts and payments of funds that are associated with the attraction of equity or other capital, with the acquisition of long-term and short-term credit and loans.

Taking into account the above classification, organized different kinds financial planning and cash flow management. Thus, the classification of types of cash flows helps to carry out accounting, analysis and planning of cash flows in the company.

Purpose and objectives of cash flow management

Topic 8. Cash flow management of the organization

The implementation of all types of financial and business operations of the organization is accompanied by the movement of funds - their receipt or expenditure. This continuous process is defined by the concept cash flow.

Cash flow- a set of time-distributed cash inflows and outflows.

Management Goal cash flows - Ensuring the financial balance of the organization in the process of its development by balancing the volume of receipts and expenditures of funds and their synchronization in time.

Tasks of cash flow management:

formation of a sufficient amount of funds of the organization in accordance with the needs of its economic activity;

optimization of the distribution of the volume of generated financial resources of the organization in the areas of economic activity;

Ensuring a high level of financial stability and solvency of the organization;

· maximizing the growth of net cash flow, ensuring the specified pace of development of the organization;

· minimization of losses in the value of funds in the process of their economic use.

There are the following types of cash flows.

· By type of activity allocate cash flows from current (operating), financial and investment activities.

· Direction of cash flow allocate a positive cash flow characterizing the totality of cash receipts and a negative cash flow characterizing the totality of payments.

· By calculation method allocate gross cash flow, representing the totality of receipts and expenditures of funds and net cash flow, representing the difference between positive and negative cash flows.

· According to the degree of continuity single out regular ones, i.e. providing for equal intervals between payments and irregular (discrete).

· By volume sufficiency allocate excess cash flow, representing the excess of cash inflows over their outflows and deficit cash flow, in which cash receipts are lower than the organization's needs for spending them.

The organization's cash flows in all forms and types, and, accordingly, the total cash flow are the most important independent object of financial management.

The system of key indicators characterizing the cash flow includes:

the volume of cash receipts;

the amount of money spent;

the volume of net cash flow;

the amount of cash balances at the beginning and end of the period under review;

check amount of funds;

· Distribution of the total amount of cash flows of certain types for certain intervals of the period under review. The number and duration of such intervals are determined by the specific tasks of analyzing or planning cash flows;

· assessment of factors of internal and external nature, influencing the formation of cash flows of the organization.

Cash flow is carried out in three types of activities:

current (main, operational) activity;

· investment activities;

· financial activities.

Current (main, operating) activities- the activity of the organization, pursuing the extraction of profit as the main goal, or not having the extraction of profit as such in accordance with the subject and objectives of the activity, i.e., the production of industrial, agricultural products, the implementation construction works selling goods, providing services Catering, harvesting agricultural products, leasing property, etc.

Inflows from current activities:

receipt of proceeds from the sale of products (works, services);

Receipts from the resale of goods received by barter;

Receipts from the repayment of receivables;

advances received from buyers and customers.

Outflows from current activities:

payment for purchased goods, works, services;

Issuance of advances for the purchase of goods, works, services;

payment of accounts payable for goods, works, services;

· salary;

payment of dividends, interest;

· payment according to calculations on taxes and fees.

Investment activities– activities of the organization related to the acquisition of land plots, buildings, other real estate, equipment, intangible assets and other non-current assets, as well as their sale; with the implementation of own construction, expenses for research, development and technological development; with financial investments.

Inflows from investment activities:

receipt of proceeds from the sale of non-current assets;

receipt of proceeds from the sale of securities and other financial investments;

income from the repayment of loans granted to other organizations;

receiving dividends and interest.

Outflows from investment activities:

payment for acquired non-current assets;

payment of acquired financial investments;

· issuance of advances for the acquisition of non-current assets and financial investments;

granting loans to other organizations;

· Contributions to authorized (share) capitals of other organizations.

Financial activities- the activity of the organization, as a result of which the value and composition of the organization's own capital, borrowed funds change.

Cash inflows from financing activities:

Receipt from the issue of equity securities;

income from loans and credits provided by other organizations.

Outflows from financial activities:

repayment of loans and credits;

Repayment of financial lease obligations.

The cash flows generated by the current activities of the organization often go into the sphere of investment activities, where they can be used to develop production. However, they can also be directed to the sphere of financial activity for the payment of dividends to shareholders. Current activities are quite often supported by financial and investment activities, which provides an additional inflow of capital and the organization's survival in a crisis situation. In this case, the organization ceases to finance capital investments and suspends the payment of dividends to shareholders.

The cash flow from current activities is characterized by the following features:

current activity is the main component of all economic activity of the organization, therefore, the cash flow generated by it should occupy the largest share in the total cash flow of the organization;

forms and methods of current activities depend on industry characteristics, therefore, in different organizations, cash flow cycles of current activities can vary significantly;

· Operations that determine the current activity are distinguished, as a rule, by regularity, which makes the monetary cycle quite clear;

· Current activity is focused mainly on the commodity market, so its cash flow is related to the state of the commodity market and its individual segments. For example, a shortage of inventories in the market can increase the outflow of money, and overstocking finished products can reduce their influx;

current activities, and hence its cash flow, are inherent in operational risks that can disrupt the cash cycle.

Fixed assets are not included in the cash flow cycle of current activities, since they are part of investing activities, but it is impossible to exclude them from the cash flow cycle. This is explained by the fact that current activities, as a rule, cannot exist without fixed assets, and in addition, part of the costs of investment activities is reimbursed through current activities through depreciation of fixed assets.

Thus, the current and investment activities of the organization are closely related. The cash flow cycle from investing activities is the period of time during which cash invested in non-current assets will return to the organization in the form of accumulated depreciation, interest or proceeds from the sale of these assets.

The cash flow from investing activities is characterized by the following features:

· the investment activity of the organization is subordinate in relation to the current activities, so the inflow and outflow of funds from investment activities should be determined by the pace of development of current activities;

Forms and methods of investment activity are much less dependent on the industry characteristics of the organization than current activities, therefore, in different organizations, the cycles of cash flows of investment activities are usually almost identical;

· the inflow of funds from investment activities in time is usually significantly distant from the outflow, i.e. the cycle is characterized by a long time lag;

investment activity has various forms(acquisition, construction, long-term financial investments, etc.) and different directions of cash flow in certain periods of time (as a rule, outflow, which significantly exceeds inflow, predominates initially, and then vice versa), which makes it difficult to present its cash flow cycle in a sufficiently clear scheme;

· investment activity is associated with both commodity and financial markets, the fluctuations of which often do not coincide and can affect the investment cash flow in different ways. For example, an increase in demand in the commodity market may give the organization an additional cash inflow from the sale of fixed assets, but this, as a rule, will lead to a decrease in financial resources in the financial market, which is accompanied by an increase in their value (percentage), which, in turn, may lead to an increase in the cash outflow of the organization;

· the cash flow of investment activities is affected by specific types of risks inherent in investment activities, united by the concept of investment risks, which are more likely to occur than operational ones.

The cash flow cycle of financial activity is the period of time during which money invested in profitable objects will be returned to the organization with interest.

The cash flow from financing activities is characterized by the following features:

financial activity is subordinate in relation to the current and investment activities, therefore, the cash flow of financial activities should not be formed to the detriment of the current and investment activities of the organization;

the volume of cash flow of financial activities should depend on the availability of temporarily free cash, so the cash flow of financial activities may not exist for every organization and not constantly;

financial activity is directly related to the financial market and depends on its state. A developed and sustainable financial market can stimulate financial activity organizations, therefore, provide an increase in the cash flow of this activity, and vice versa;

financial activities are characterized by specific types of risks, defined as financial risks, which are characterized by a special danger, therefore, they can significantly affect the cash flow.

The cash flows of the organization are closely related to all three types of its activities. Money constantly "flows" from one activity to another. The cash flow of current activities, as a rule, should fuel investment and financing activities. If there is a reverse direction of cash flows, then this indicates an unfavorable financial situation of the organization.