Errors

Cash flow statement does not balance

Overview

Issues that can lead to this error include:
  • Balance sheet not balancing
  • Line items captured with incorrect debit/credit signs
  • Rounding differences in rolled forward adjustments
  • Misallocated adjustments
  • Balance sheets without a separate retained earnings line
These issues and their respective solutions are discussed in further detail below.

Resolving the "Cash flow statement does not balance" error

  1. This error occurs most frequently in tandem with the error "Balance sheet does not balance".

    Solution:
    Update the balance sheet with correct and complete figures (whilst also ensuring that the original/source balance sheet itself balances). In addition, ensure that the income statement is valid (i.e., profit or loss and OCI must be consistent with the movements in reserves and retained earnings in the balance sheet).

  2. Income statement and balance sheet line items should carry accounting debit or credit balances, not "presentation amounts". This means, for example, that Flowkash assumes that revenue balances will be captured as negative amounts.

    Solution:
    Capture your line items with the correct accounting sign (i.e., the sign they would have had you drawn them directly from your accounting system's trial balance).

    The table below summarises what sign should be used for the different types of line item:

    Element Sign Capture as
    Revenue Credit Negative
    Expense Debit Positive
    Asset Debit Positive
    Liability Credit Negative
    Equity - Share capital Credit Negative
    Equity - Accumulated profit
    		 Credit
    		 Negative
    Equity - Accumulated loss
    		 Debit Positive
    Equity - Reserves Context-dependent
    		 Context-dependent

  3. The error can also occur after you copy an existing project to a new company or reporting period. When you carry out a copy operation, Flowkash creates placeholder adjustments for you to update when you start working on the new project. These placeholders substitute the old adjustment amounts for +1 or -1, depending on whether the old amount was positive or negative. This can result in rounding differences that trigger the error.




    Solution: 
    The following actions will clear the error in such cases:
    • Delete whichever adjustments are no longer needed; and
    • Update the remaining placeholder amounts with actual figures relevant to the new reporting period.

  4. Misallocated adjustments can trigger this error.

    Solution:
    Ensure that no adjustments have unintentionally been allocated to the wrong line item (typically equity for a non-equity adjustment, or vice-versa).

  5. Some companies present share capital and retained earnings in a single line item called "Shareholder's capital" or similar. In Flowkash, this may cause the app not to incorporate profit/loss for the year in the cash flow calculation.

    If all other errors have been cleared, the value of the error in the balance check will be identical to the company's profit/loss for the year.

    Solution:
    Present retained earnings in a line of its own In the Flowkash balance sheet and classify it accordingly.
Back

Flowkash is framework-agnostic, however the language used in the app is drawn from IFRS.

The change only takes effect on the date that your existing subscription is due to expire.

If you'd like to access the features of the new plan immediately, you will need to go to the subscriptions management page and process a once-off payment that will cover the intervening period.

As with subscription upgrades, the change only takes effect on the date that your existing subscription is due to expire. You will continue to have access to the plan you are downgrading from in the intervening period.

When you cancel a subscription, we stop collecting payments immediately, and you can’t reactivate it. You will be able to access and modify your work under the current subscription until it lapses .

Your Flowkash user account will be cancelled 60 days after your subscription lapses.

Afterwards, to continue using Flowkash you will have to purchase a new subscription

Please contact us through support@flowkash.com for feature requests and bug reporting.