Replies posted by Tristan Nguyen

2 Replies

T
Tristan NguyenNew Decimal
asked in General

Issues with the cash flow report

Hi @Michael,Here is an example for issue with #1 in my post from other client. There is a positive $13,600 adjustment for Accounts Payables to Net Income By Operating Activities. Here in AP, you can see that this positive decrease is due to the IES invoices and Secretary of State that were vouchered into AP which are offsets by the payments made to Northern and Bridgestone.In Buildings, you can see the decrease related to the same invoices. In the example above, I hope you can see how by simply by entering a fixed asset purchase into AP causes the Net Cash Provided by Operating Activities to be overstated in Digits cash flow report.

6
Yass Baharvandy
1 year ago
T
Tristan NguyenNew Decimal
asked in General

Issues with the cash flow report

Hi @Michael,Thank you for getting back to me. QuickBooks cash flow report is also inaccurate so if Digits is validating the reports against QuickBooks, then it is likely also wrong.Here is an example of issue #3 that I see in Digits cash flow report:This particular client received $303k in Other Income. These other incomes are one-off grants that are not part of their normal operation. If you back away this income from the Net Income of $96k, then their net operating is a net loss of $207k ​​​​In the cash flow report, there is no adjustment made for other non-operating income to reconcile Net Income to Net Cash by operating activities. In this example, the net cash from operation is overstated by $303k (the amount of other income).  There are many “exceptions” to the indirect cash flow reporting logic of just simply taking net income and adjusting it by the delta of the balance sheet account balances that QuickBooks use and sounds like Digit is also using the same logic. I am importing

6
Yass Baharvandy
1 year ago

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