3 replies to this topic

[danielnewell]

is anyone else having this problem? or am i missing something. the financial statement says my cash flow is positive, but the cash at the top of the screen shows negative

[Sunshine Airways CEO]

Are you looking at your 'month to date' income statement?

 

Depending on what day of the month you are in, you will show different net incomes due to payroll and other expenses happening at different days of the month.

You could show a profit on the 14th, but when you login on the 16th after payroll is run, you could be running at a net loss.

 

Since there is not Statement of Cash Flows, it might be a little difficult to understand where your cash is going.

[grimsleeper]

Do not forget income tax is handled as a lump sum at the end of the month.

 

eg.  My 30m DoP airline pays about 210m income tax on the first day of the month.  On occasion, if I do not bank enough on the last day of the month, I go negative at the start of the next.

[danielnewell]

Oh okay. Thanks for the responses!

 

That's why i have negative cash flow at the beginning of the months.