We will not tell lies. It's hard to make the cash flow by the direct method. Is not unusual to be done to match force against the closin...
We will not tell lies. It's hard to make the cash flow by the direct method. Is not unusual to be done to match force against the closing balance of cash. This practice is popularly known in my enviroment as balance the accounts with the "machete" or give "machete" to the accounts. Ie not an adjustment, but cut "until the balance of cash match". (Watching it that way, it's funny the subject, but more than fun, it's more accurate to say that is criminal). Considering that the destiny of the report or information is for others who based on the information, made its decision making. 
The truth is that making cash flow by the directmethod is very difficult.
Therefore, those who must do, end up making a feast of information, combining statistical reports, accounts receivable, sales, etc., data that are not properly supported, and to match the ending balance of cash, they should adjust some value in other income or other expenses.
When attempting to cash flow by the direct method with traditional methods, you'll get to the need to adjust the report to other income and other expenses. But if you can make the traceability of cash resources, you determine to be used or where it came to the last penny of dollar.
Therefore, the balance of the cash flow must match the ending balance of cash, must be validated mathematically, and all the movements properly proved and supported with valid and sufficient evidence.
Believe me for a long time I have been thinking an easy way to do it. The work can be done with the help of Excel techniques. The wonderful thing is that with Excel, the cash flow by the direct method perfect match against the balance, without asking for help from "machete."
Please let me finish translating the book into English, so that you can buy at very low cost.
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