Smart Fund Flow Management

The funds flow statement helps the management in assessing the activity of working capital and whether the working capital has been effectively used to the maximum extent in business operations or not.

Fund flow management. Fund flow statement leads to improvement in the rate of profit on assets by directing the flow of funds to those activities with higher margins. Fund flow statement helps to know where did the profits go. The cash flow will record a companys inflow and outflow of.

Finally monthly reports of the Park Fund Water Fund and Sewer Fund and appropriation reports and quarterly cash flow report for major funds are distributed to the council town manager and department heads. A fund flow statement is a statement in summary form that indicates changes in terms of financial position between two different balance sheet dates showing clearly the different sources from which funds are obtained and uses to which funds are put. To summarize Fund flow statement is considered as an important tool for financial analysis and control.

Therefore fund flow analysis is the tool which lets investors follow the money and bring to the light a lot of hidden aspects of the promotermanagement decisions. In a narrow sense the term fund means cash and the fund flow statement depicts the cash receipts and cash disbursements payments. The statement also depicts the surplus or deficit in working capital than required.

It enables the firm to evaluate its current financing pattern and take suitable corrective measures in case it finds any inadequacies. Sources of funds and applications of funds for a particular period. A fund flow statement is a statement prepared to analyse the reasons for changes in the financial position of a company between two balance sheets.

A Funds Flow Statement is a financial document that analyses a companys Balance Sheet of two years to validate the movement of funds from the previous financial year to the current year. The funds flow statement reveals the sources from where the funds are made available and the purpose for which funds are utilized in an organization. So it is a main tool to make a organization to survive in the future.

It portrays the inflow and outflow of funds ie. This in turn lets the investor know whether her interests are being cared for by the companymanagement. Hence it helps in making future forecasts about funds requirement and.