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“We had our best quarter ever, but somehow we can’t make payroll.” This happens more than you’d think. Profit and cash aren’t the same thing — you can be profitable on paper and still run out of money. The Cash Flow Statement explains why. It tracks every dollar moving in and out of your business, so you can see where the cash actually went.

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Why cash flow matters

You can be profitable and still run out of cash:
  • Customers pay slowly (accounts receivable grows)
  • You buy inventory before selling it
  • You invest in equipment
  • Loan payments reduce cash but aren’t expenses
The Cash Flow Statement reveals these dynamics.

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Accessing the report

  1. Go to Reports in the sidebar
  2. Click Cash Flow Statement
  3. Select your date range

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Report structure

Cash flow is divided into three activities:

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Operating Activities

Cash from day-to-day business: 
Net Income
+ Depreciation & Amortization
+ Decrease in Accounts Receivable
- Increase in Accounts Receivable
+ Decrease in Inventory
- Increase in Inventory
+ Increase in Accounts Payable
- Decrease in Accounts Payable
= Net Cash from Operations

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Investing Activities

Cash from buying/selling assets: 
- Purchase of Equipment
- Purchase of Investments
+ Sale of Equipment
+ Sale of Investments
= Net Cash from Investing

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Financing Activities

Cash from debt and equity: 
+ Proceeds from Loans
- Loan Repayments
+ Owner Contributions
- Owner Draws/Distributions
= Net Cash from Financing

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Net Change in Cash

Net Cash from Operations
+ Net Cash from Investing
+ Net Cash from Financing
= Net Change in Cash

Beginning Cash Balance
+ Net Change in Cash
= Ending Cash Balance

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Key metrics

MetricFormulaWhat It Shows
Operating Cash FlowFrom operations sectionCore business health
Free Cash FlowOperating - CapExCash available for growth/distributions
Cash Burn RateNet cash decrease / monthsHow fast you’re using reserves
Cash RunwayCash balance / monthly burnMonths until cash runs out

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Direct vs. Indirect Method

Pluvel uses the indirect method (starting from net income) by default. This is the standard approach and reconciles to your P&L.
The direct method (listing all cash receipts and payments) is available but less common. Contact support if you need it.

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Date ranges

PresetPeriod
This MonthCurrent month to date
Last MonthPrevious full month
This QuarterCurrent quarter to date
Last QuarterPrevious full quarter
This YearYear to date
Last YearPrevious full year
CustomAny date range

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Comparison views

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Period comparison

Compare cash flow across periods:
  1. Select a date range
  2. Click Compare
  3. Choose a prior period
  4. See side-by-side cash flows

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Trend analysis

View multiple periods at once:
  • Last 6 months
  • Last 4 quarters
  • Last 3 years

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Common patterns

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Healthy pattern

  • Positive operating cash flow
  • Investing outflows (growing the business)
  • Moderate financing (manageable debt)

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Warning signs

PatternConcern
Negative operating cash flowBusiness isn’t generating cash
Growing AR faster than revenueCollection problems
Financing covers operatingRelying on debt to survive
Decreasing cash runwayRunning out of runway

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Cash flow forecasting

Based on your historical patterns, Pluvel projects future cash:
  1. Go to Reports → Cash Flow → Forecast
  2. See projected cash position for next 90 days
  3. Adjust assumptions (growth rate, collection timing)

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Forecast factors

  • Seasonal patterns from prior years
  • Outstanding invoices and expected collection
  • Scheduled bills and payroll
  • Loan payments

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Improving cash flow

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Speed up collections

  • Invoice immediately when work is complete
  • Offer early payment discounts
  • Follow up on overdue invoices
  • Accept card payments

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Slow down payments

  • Use full payment terms (net 30, net 45)
  • Negotiate longer terms with vendors
  • Time large purchases strategically

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Monitor working capital

Working Capital = Current Assets - Current Liabilities
  • High working capital = more cash buffer
  • Low working capital = potential cash crunch

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Export and sharing

FormatUse Case
PDFShare with stakeholders
ExcelDetailed analysis
CSVImport to other tools

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Scheduled reports

Send automatic cash flow reports:
  1. Click Schedule
  2. Set frequency
  3. Add recipients

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Common questions

Net income includes non-cash items (depreciation) and timing differences (revenue recognized but not collected). Operating cash flow adjusts for these to show actual cash movement.
Free Cash Flow = Operating Cash Flow - Capital ExpendituresIt’s the cash available after maintaining/growing operations. Use it for dividends, debt repayment, or reserves.
Common strategies:
  • Speed up customer collections
  • Delay vendor payments (within terms)
  • Reduce inventory levels
  • Delay major purchases
  • Seek financing before you need it
Depreciation reduced net income but no cash actually left the business. Adding it back shows the true cash generated from operations.

AR Aging Report

Track outstanding customer invoices.