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...
method 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.