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Why doesn't the Cash Flow tool match with my Statement of Cash Flows?
Why doesn't the Cash Flow tool match with my Statement of Cash Flows?

Explaining the difference between a statement of cash flows and the Fathom Cash Flow tool

Updated over a week ago

Fathom's interactive Cash Flow analysis tool is different to a traditional Statement of Cash Flows that you might find in your accounting software. 

Rather than displaying movements in cash from operating, investing and financing activities, Fathom's tool displays Operating, Free and Net Cash Flow along with detail on the variables/results that drive these values.

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As an example, Operating Cash Flow = Net income + Non-cash Expenses + Changes in Working Capital

Rather than displaying direct movements in cash, Fathom utilizes what is often referred to as the "indirect method" to arrive at Operating, Free and Net Cash Flow figures. This method uses movements in accounts from the P&L and Balance Sheet to determine cash flows.

Correcting Data Inconsistencies

If any of the figures in Fathom's Cash Flow analysis tool differ from what's reflected in your P&L and/or Balance Sheet in your accounting system, there may be inconsistencies in the classification of your accounts in Step 3 of the company Settings.

We recommend you use the Cash Flow tool itself, in combination with the Financials tool to verify the amounts and correct classification of accounts.

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