How to Understand Your eCommerce Cash Flow Statement

Learning how to read and understand your ecommerce cash flow statement can be challenging, but so worth it!
In this video, our Chief Guru, Brittany Brown, lays out a tutorial for beginners, complete with examples, explaining how to use your cash flow statement to understand exactly what is going on in your business. Knowing this will help you make better decisions now and in the future.
She goes through:
- What goes into your cash flow statement
- Why it’s important to use
- How it can help you in your business
She also goes into QuickBooks Online to demo:
- How it creates a cash flow statement for you
- How to read & understand it appropriately
This is the 4th in our understanding ecommerce financial statements series:
1. "An Intro to Financial Statements | For eCommerce Businesses": • An Intro to Financial ...
2. "How to Read and Analyze Your eCommerce Income Statement": • How to Read and Analyz...
3. "How to Read and Analyze Your eCommerce Balance Sheet": • How to Read and Analyz...
4. "How to Understand Your eCommerce Cash Flow Statement": • How to Understand Your...
0:00 How to Understand Your eCommerce Cash Flow Statement
0:38 Understanding Financial Statements Makes YOU a Better Business Owner
0:52 Why the Cash Flow Statement is Such a Valuable Tool
1:04 Cash is King
2:00 The Cash Flow Cycle
3:07 What is a Cash Flow Statement?
3:20 What a Cash Flow Statement Shows
3:27 Why is a Cash Flow Statement Important to Small Business?
4:53 Cash Positive vs Cash Negative
5:04 The 3 Types of Cash Flow
6:04 The Structure of a Cash Flow Statement
6:47 Direct vs. Indirect Method
7:39 A Cash Flow Statement Allows You to Project Your Cash Flows Now & in the Future
7:56 What are the Benefits of a Healthy Cash Flow?
8:44 Finding the Cash Flow Statement in QuickBooks Online
9:05 How to Read the Cash Flow Statement
9:32 What is Accrual Accounting and How Does It Differ from Cash Accounting
10:08 How Accounts Receivable Works on the Cash Flow Statement
12:30 Inventory Management is a Primary Reason to Cash Plan
12:45 The Right Way to Track Inventory to Show Profitability
13:15 How Inventory Shows Up on the Cash Flow Statement
16:10 How Investing Activities Show Up on the Cash Flow Statement
16:32 How Financing Activities Show Up on the Cash Flow Statement
17:15 The Way the Cash Flow Statement is Set Up
17:37 Why You Must Be Cash Positive Over All
18:15 Indicators that All is Well with Your Business
Download our “Five Signs of Bookkeeping Trouble with an eCommerce Business” - ledgergurus.co...
For help with your eCommerce accounting, you can view our services here: ledgergurus.co...
Other related content:
- "How to Account for Inventory for eCommerce Businesses" - ledgergurus.co...
- “Managing Cash Flow | Through Understanding Your Inventory Cycle” - ledgergurus.co...
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• How to Understand Your...

[@georgeneamodia7240]

I watched it all. Thank yoou Brit!

[@LedgerGurus]

You're very welcome! Glad it was helpful. :)

[@danielnoguera6418]

This whole series has been invaluable! Thank you so much

[@DreamFirms]

Thanks for sharing this tip!

[@LedgerGurus]

You bet!

[@nusaibahkofar-naisa9576]

Hello! Thank you for another great video. A quick question though: Towards the end of the video you mentioned that if a business is not operating cash positive that it will eventually run out of cash...that the profitability of the business has to eventually sustain it. When you say "operating cash positive" are you referring to the line on the cash flow statement that says "net income" or are you referring to the line that says "net cash provided by operating activities"? Can you please shed more light on your statement? Thank you.

[@LedgerGurus]

I'm referring to net cash provided by operating activities. If you are always supplementing operating shortfalls with loans and asset sales, you will eventually run out of people who will lend you money and assets to sell. The operations of the business must be cash positive to be sustainable.

[@nusaibahkofar-naisa9576]

@@LedgerGurus Thank you for your response!

[@LedgerGurus]

@@nusaibahkofar-naisa9576 You are so welcome. We're glad to help!

[@shahabaskk8741]

Hello dear, We are doing print on demand on US from India using Shopify, so is it necessary to collect tax? If so how will be file it? Hoping to get your reply soon :)

[@LedgerGurus]

Yes, if you are selling things in the US, you do need to collect sales tax. We have several resources to help you: - Shopify Sales Tax Set-Up for Stress-Free Compliance - kzbin.info/www/bejne/op-4eIWffNSsaa8 - Why Online Retailers Need to Worry About Sales Tax - ledgergurus.com/blog/why-online-retailers-need-to-worry-about-sales-tax/ These should give you a good start. Let us know if you have further questions.