In many cases when the Caseware trial balance is balanced and mapped the Balance Sheet and Income Statement are usually balanced right away and require no further changes. In order to balance, the Statement of Cash Flow frequently requires particular adjustments and changes as outlined below.

 

Statement of Cash flows compares the Cash - end of year with Cash consists of balance.

You may need to click on the folder icon to reveal the cash consists of section in order to modify it. The Cash Consists of section can be closed once modifications are complete. The Cash consists of section will toggle interchangeably with the Cash note, if the Cash note is present in the Jazzit Financial Statements. See How rounding differences are calculated for more information on Cash Flow rounding differences.

 

Like the Income Statement and Balance Sheet, the cash flow will automatically calculate the many of the balances using just information from the CaseWare trial balance. This is typically done by calculating the difference between the current and prior year balances. The prior year column will be based on differences between the prior year and second prior balances.

 

Consequently you need to ensure that the Caseware trial balance has data for the 2 prior years.

 

This applies to: Items not affecting cash and Changes in non-cash working capital.

 

 

Some balances in the Investing and Financing sections are either sourced from a Jazzit working paper or calculated manually because it cannot be calculated using just the Caseware trial balance alone. If you are not using the linked working paper, click on the button next to the link to switch it to manual. The line will automatically switch to manual if the relevant working paper is not present in the Caseware file. 

 

 

Also, the WP will not link in the prior year column, this may need to be filled in manually if this is the first year you are preparing financial statements for a particular client.

 

 

 

List of WPs that link to the Cash Flow statement

CA - Property, plant & equipment

MS-MW - Marketable securities

 

The variance column in the Draft Balance Sheet can be used to help reconcile the rounding difference in the Cash Flow statement.

 

Any changes made to the Balance Sheet may require a corresponding change in the Cash Flow statement.

 

When using the direct method there is a dropdown that will reveal the calculations for cash receipts from customers and suppliers.

 

Amounts entered into Related party investing activities and Shareholders investing activities are automatically subtracted from the related advances line.

 

Sometimes it may be difficult to identify the wrong or missing amounts on the CF just by looking at. Doing the Cash Flow manually on a separate medium (ex: paper) may be helpful in identifying those amounts.