What is a cash flow statement?
A cash flow statement tracks the cash that goes in and out of a business during a specific period of time (e.g., a month, quarter, or year). For property owners, it helps measure how well their rental business is able to generate cash to cover debts and expenses. Cash flow statements help owners make informed decisions about their businesses.
How can I generate a cash flow statement in Azibo?
Azibo enables rental property owners to create a complete, up-to-date cash flow statement for individual properties, portfolios, or all properties over a specific time period. Simply follow these steps:
- Import all rental business transactions (e.g., rent payments, maintenance expenses, mortgage payments, etc.)
- Assign each transaction to a unit, property, and/or portfolio.
- Use our bulk editor, transaction splitting, and other helpful tools to tag each transaction as a specific income, expense, or CapEx category.
- Go to Reports and click Cash Flow Statement. Select the properties and the time period for the report to see the live results.
Can I use Azibo’s cash flow statement as a trailing 12 months (T12) statement?
Yes, Azibo’s cash flow statement for the last 12 months is the same as a T12 statement. Similarly, Azibo’s cash flow statement for the last three months is the same as a T3 statement.
What are some common mistakes that landlords make with their cash flow statement?
- Confusing a cash flow statement with the P&L. Cash flow and profits are different financial metrics, and should not be used in the same report.
- Failing to include all mortgage items. To generate an accurate cash flow statement, be sure to include the principal and escrow portions of your mortgage.
- Including depreciation. Depreciation should not be reflected in a cash flow statement; instead, it’s included in the Schedule E and Balance Sheet.
Disclaimer: This content has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting or tax advice.