To properly track the finances for a business, it's important to understand the three common financial statements - the Balance Sheet, the Statement of Cash Flows, and the Income Statement. These financial statements relate to each other and can help investors paint a holistic financial picture of their profitability.
The Statement of Cash Flows, also referred to as the Cash Flow (CF) Statement, highlights a business' cash inflows and outflows. All cash should be represented on this financial statement including cash from
\[ Starting \, balance + \, Operating \, CF + Investing \, CF + Financing \, CF = Ending \, balance \]