Recruiter's Glossary

Examples: Journal Entry • Accrual Basis • Fixed Assets

Cash Flow Statement

Term from Accounting industry explained for recruiters

A Cash Flow Statement is a key financial report that shows how money moves in and out of a company. Think of it like a company's checkbook that tracks where cash comes from and where it goes. Unlike other financial reports that might include future promises of money, this one focuses on actual cash movements. Accountants prepare this statement to help business leaders understand if there's enough money to pay bills, grow the business, or if they need additional funding. Other names for this document include "Statement of Cash Flows" or "Cash Flow Report."

Examples in Resumes

Prepared monthly Cash Flow Statement reports for a $50M retail company

Analyzed and improved accuracy of quarterly Statement of Cash Flows for manufacturing clients

Led team in automating Cash Flow reporting processes using Excel

Developed Cash Flow Statement forecasting models for executive decision-making

Typical job title: "Financial Accountants"

Also try searching for:

Accountant Financial Analyst Corporate Accountant Financial Reporting Specialist Management Accountant Finance Manager Financial Controller

Where to Find Financial Accountants

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you explain the difference between profit and cash flow to a non-financial manager?

Expected Answer: A senior accountant should be able to explain in simple terms that profit is what you earn on paper, while cash flow shows actual money available. They should provide real-world examples like having sales on credit (profit) vs. receiving actual payment (cash flow).

Q: How do you handle complex cash flow forecasting for a large organization?

Expected Answer: Should discuss methods of gathering data from different departments, using historical trends, considering seasonal variations, and how they would present this information to management in an understandable way.

Mid Level Questions

Q: What are the three main sections of a cash flow statement and why are they important?

Expected Answer: Should explain operating activities (day-to-day business), investing activities (buying/selling assets), and financing activities (loans/owner investments) in simple terms with examples.

Q: How do you identify potential cash flow problems before they become critical?

Expected Answer: Should discuss monitoring payment patterns, reviewing aging reports, checking seasonal trends, and watching for changes in customer payment behavior.

Junior Level Questions

Q: What's the basic purpose of a cash flow statement?

Expected Answer: Should explain that it shows how much actual cash comes in and goes out of a business, helping managers know if there's enough money to pay bills and run the business.

Q: How is a cash flow statement different from an income statement?

Expected Answer: Should explain that an income statement shows profits/losses including money not received yet, while cash flow shows actual money movements in and out of the business.