Go to the Settings > General > Accounting page to enable and configure the Cash Flow Accounting.
Basically, your cash flow can fall into just two root categories: Income (when you are paid) and Expense (when you pay). Income is commonly made up with (but not limited to) the following: payments of your clients by Work Order / Sale, investments, dividends, partner programs. Expense is generally about paying wages, paying for parts, materials, taxation, utility, rental, advertising.
Cash flow may involve different sources of financing, and types of spending. That’s exactly why adding all your cash flow items is that important.
You can always select the needed cash flow item in the payments. As a result, you will be able to receive a detailed Cash Flow Report.
Pay attention: There are six default types of cash flow items that can not be edited or removed:
Prepayment is an automated income transaction generated upon receiving a Work Order payment on a pre-pay basis
There are two ways of creating Prepayment payments:
1. When creating a new Work Order, complete a corresponding field Prepayment.
2. From the Work Order profile. Go to the Payments tab and press the + Prepayment button (works only with active Work Orders).
Client's payment for service, goods. Use this cash flow item when receiving payment for the work order or sale
Refunds from the supplier. Register supplier cash returns with this item
Payout is an automated expense transaction generated upon making a client’s payout. From the Work Order profile, go to the Payments tab and press the - Payout button (works only with active Work Orders)
Clients refund is an automated expense transaction generated from the cashbox to make a client return from Work Order or Sale
Supplier payment for service, goods. Use the item to pay for your postings
Here's the thing: you cannot select alternative cash flow items for these operations. However, you can add a comment to a transaction.
In a nutshell, tracking cash flow makes it possible to:
Get nice structured data organized by type of payment, and source
Check all income / expense categories and see their proportion on one screen
Track expenses within a period, measure spending against revenue
Find regular expenses to plan budgets in advance
Spot inefficiencies and reorganize budgeting to cut your bills
See what makes you money and which categories are not that good.
As a result, you can plan accordingly, easily avoiding potential cash gaps and paying always on time. So, now you can forget about running out of funds, right when you need some extra cash to meet your liabilities with suppliers and employees.