Knowing your company’s accounting profit or loss alone is not enough to assess its current and past financial position. What truly matters is understanding how money moves in and out of your business and this is where Cash Flow becomes essential. It is one of the most important indicators of an organization’s financial health.
In Wafeq, you can easily track cash movement through detailed reports that show every transaction affecting your cash balance whether from operating, investing, or financing activities.
This report helps you answer key financial questions such as:
Does the company have enough liquidity to cover its current obligations?
Which activities generate cash, and which consume it?
How can cash management be improved to ensure financial sustainability?
In this guide, we will walk through how to use and read the Cash Flow Report step by step, understand its components, and interpret its results.
Why Is This Report Important?
The Cash Flow Statement helps you:
Measure the company’s actual liquidity: It shows how much cash is currently available and whether the company can meet its short-term commitments such as salaries, rent, and bills.
Identify sources and uses of cash: It highlights where your cash is coming from (operations, financing, or investing) and where it’s going, helping you distinguish between activities that generate liquidity and those that consume it.
Evaluate financial stability: By comparing cash flows over different periods, you can see whether the company is growing sustainably or facing liquidity challenges that need attention.
Make better financial decisions: The report helps you determine the right time to spend, invest, or borrow, based on actual — not estimated — cash positions.
Reveal the gap between profit and cash: Sometimes financial statements show profit while the company struggles with low cash. The Cash Flow Report exposes this gap clearly, since it focuses on real cash movement rather than accounting profit.
Build trust with investors and banks: Consistent positive cash flow sends a reassuring signal to lenders and investors about the company’s ability to meet obligations and maintain steady returns.
Viewing and Understanding the Cash Flow Statement in Wafeq
To access the Cash Flow Statement, go to the "Reports" section in the main menu, then select "Cash Flow" under the Financial Reports category.
Note: You can pin the Cash Flow if you use it frequently, making it easier to access quickly. For more information, refer to this guide:
The report displays your company’s cash inflows and outflows during the selected period, giving you a precise view of your organization’s ability to generate and manage cash efficiently.
You can analyze cash movements across three main sections: Operating Activities, Investing Activities, and Financing Activities.
Each section shows the impact of its transactions on the total cash balance for example, the Operating section reflects cash from daily operations like sales and payments; the Investing section shows cash changes related to purchasing or selling assets; and the Financing section displays changes from loans or capital contributions.
Tracking Data Trends Across Time Periods
Sparklines displayed alongside each line item in the " Cash Flow Report" provide a clear visual representation of how values change across the selected time periods, making it easier to identify trends, increases, and decreases at a glance.
Hover over a sparkline to view the value for each specific time period in more detail.
Actions and Customization Options
From the top of the report, you can perform several actions, including:
Select or enter a custom date range: You can select the time period by choosing a predefined period, entering a custom period, or using the time range slider to adjust the start and end points and select the required months.
Choosing the currency in which you want the report to display.
Add Filter by vendor, customer, branch, project, or cost center.
Exporting the report to PDF or Excel format.
Please note that the columns in this report are fixed, you cannot hide or modify them, as they contain essential financial data required for accuracy.
Comparison Options in Cash Flow Report
Using the Comparison Options in Profit and Loss reports, you can control how data is displayed and compared with previous periods, as well as define the time unit, the order in which periods are displayed, and the level of detail included in the report.
Show % Change
You can choose how the percentage change is displayed:
- Don't Show: Do not display the percentage change.
- Month-over-Month: Show the percentage change compared to the previous month.
- Quarter-over-Quarter: Show the percentage change compared to the previous quarter.
- Year-over-Year: Show the percentage change compared to the same period in the previous year.
Period Unit
You can select the time unit used for the comparison:
- Month: Display and compare data on a monthly basis..
- Year: Display and compare data on a yearly basis.
Date direction
You can choose how the time periods are arranged in the report:
- Oldest to Newest.
- Newest to Oldest.
Once the data is displayed, Wafeq allows you to view it in two ways: either by Parent Accounts only, or by Parent and Sub-Accounts.
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