A cash flow statement (CFS) summarises the amount of cash and cash equivalents entering and exiting your business over a given period. It shows changes in balance sheet accounts enabling analysis of operating, investing and financial activities of your business. Essentially, a CFS can be used to determine the short term viability of a company, in its ability to meet its expenses. A CFS differs from an income statement in that it excludes non-cash related transactions such as the depreciation of assets, deferred income tax, and write-offs. Importantly CFS reflect: Your business’s liquidity and solvency Changes in your business’s assets, liabilities and equity through cash outflows, inflows and cash being held by your business Your business's operating performance and predicted future cash flows