Cash flow statement can be prepared under direct or indirect method.
The system can auto generate data to cash flow statements under both methods with various built-in tools and plug-in.
Auto generating process provides a good starting points for auditors to work on cash flow statement, which can significantly improve productivity and efficiency of job assignment, especially for inexperienced staffs.
In addition, 2 built-in cash flow tools are provided by system to quick detect, easily and conveniently modify any wrong-doings in cash flow transaction generated by auto process.
1. GL Movement Worksheet Tool
This shows how the transaction amount is arrived in cash flow statement after auto generating process. It is presented by use of movement in general ledger transactions.
2. Data Source Worksheet Tool
This lists out all of source data (amounts) which can be used to provide data input to GL Movement Worksheet Tool. This tool can save considerable time for auditors as they don't have to search for information in note to financial statements , supporting schedules and management account to get data input for cash flow transaction items.
Built-in secretary tool
Completion of statutory information will auto output data to cash fow statement (directors' report and note to financial statements as well) as follow:
- Current year's issue of paid-up shares capital for working capital purpose to proceed from issue of share capital in cash flow statement
Built-in dividend tool
Completion of dividend information will auto output data to cash flow statements (directors' report, statement of change in equity and note to financial statement as well) as follow:
- Dividend paid for current year to Dividends paid to equity holder of the Company in cash flow statements
Built-in Tool for Statement of Acquired Assets and Liabilities
Completion of this statement enables non-cash acquisition of assets and liabilities to be excluded from cash flow transactions during auto generating process.
Completion of source data in asset plug-in will auto output information to cash flow statement (supporting schedules and note to financial statements as well) as follow:
- Addition of asset schedule to cash flow GL movement worksheet to arrive at amount: Purchase of property, plant and equipment, investment property and intangible assets in cash flow statement
- Disposal of assets schedule to cashf flow GL movement worksheet to arrive at amount:proceed from property, plant and equipment, investment property and intangible assets in cash flow statement
FD and Loan Plug-in
Completion of source data in FD and loan plug-in will auto output information to cash flow statement (supporting schedules and note to financial statements as well) as follow:
- Schedule of fixed deposits listing to change in pledged fixed deposits in cash flow statements
- reconciliation of hire purchase and finance lease to Payment of hire purchase and finance lease in cash flow statement
- Term loan schedule to Proceed from(payment of) bank borrowings in cash flow statement
- Schedule of banker acceptances, trust receipts analysis to Proceed from(payment of) bank borrowing in cash flow statement