Cash flow statement

What is cash flow statement?

A cash flow statement tracks the actual cash moving into and out of a business over a period, grouped into operating, investing, and financing activities. Unlike the P&L, it strips out non-cash items like depreciation and accruals to show real cash generated or burned. It answers where your money actually went.

Why it matters for fast-growing companies

Profit doesn't pay bills, cash does. Fast-growing companies can be profitable on paper yet run out of runway because receivables, inventory, or capex tie up cash. The cash flow statement is how founders and CFOs see true burn and manage the timing that keeps the lights on.

Related terms

• Accounting & closeIncome statement (P&L)An income statement, also called a P&L, reports a company's revenue, expenses, and resulting profit or loss over a period of time, a month, quarter, or year.
• Accounting & closeBalance sheetA balance sheet is a financial statement showing what a company owns (assets), what it owes (liabilities), and the owners' stake (equity) at a single point in time.
• Cash & runwayBurn rateBurn rate is how much cash a startup spends each month to operate.
• Cash & runwayRunwayRunway is how many months a startup can keep operating before it runs out of cash, assuming its current net burn rate.

Frequently asked questions