How To Calculate Cash Flow from Operations in Sage Intacct | Arithmix

Calculating cash flow from operations is an essential part of managing your business finances. It helps you understand the amount of cash generated or used by your business operations. In this article, we will discuss how to calculate cash flow from operations in Sage Intacct, a cloud-based accounting software that offers a comprehensive suite of financial management tools.

What Is Cash Flow from Operations?

Cash flow from operations is the amount of cash generated or used by a company's core business operations. It is a crucial metric that helps businesses understand their ability to generate cash from their day-to-day operations. Cash flow from operations is calculated by subtracting operating expenses from operating revenues.

Operating revenues include all the cash inflows generated by the company's core business operations, such as sales revenue, service revenue, and other operating income. Operating expenses include all the cash outflows related to the company's core business operations, such as salaries and wages, rent, utilities, and other operating expenses.

Positive cash flow from operations indicates that a company is generating enough cash from its core business operations to cover its operating expenses and invest in future growth. Negative cash flow from operations indicates that a company is not generating enough cash from its core business operations to cover its operating expenses and may need to rely on external financing to meet its cash needs.

When Is It Valuable To Calculate Cash Flow from Operations?

Calculating cash flow from operations is valuable for businesses of all sizes and industries. It helps businesses understand their cash flow position and make informed decisions about their operations and investments. Here are some scenarios when calculating cash flow from operations is particularly valuable:

• When preparing financial statements: Cash flow from operations is a key component of the statement of cash flows, which is an essential financial statement that shows the sources and uses of cash during a specific period. Calculating cash flow from operations accurately is crucial for preparing accurate financial statements.
• When evaluating business performance: Cash flow from operations is a critical metric that helps businesses evaluate their performance over time. By comparing cash flow from operations from different periods, businesses can identify trends and make informed decisions about their operations and investments.
• When planning for future growth: Cash flow from operations is an essential metric that helps businesses plan for future growth. By understanding their cash flow position, businesses can make informed decisions about their investments and financing needs.

Overall, calculating cash flow from operations is a crucial part of managing your business finances. By using Sage Intacct, businesses can easily calculate and track their cash flow from operations and make informed decisions about their operations and investments.

How Do You Calculate Cash Flow from Operations in Sage Intacct

Sage Intacct itself isn’t naturally geared towards letting you calculate complex metrics like Cash Flow from Operations. As an alternative, teams typically use products like Arithmix to import data from Sage Intacct and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Sage Intacct, combine it with data from other systems, and create calculations like Cash Flow from Operations.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Cash Flow from Operations in Arithmix

Calculating metrics like Cash Flow from Operations is simple in Arithmix. Once you've created your free account, you’ll be able to import your Sage Intacct data, and use it to create natural language formulas for metrics like Cash Flow from Operations.

Arithmix is designed to give you the power to build any calculations you want on top of your Sage Intacct data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.