Troubleshooting

The first step is to check the accuracy of your cash flow statement. Since the historical years will already have a cash or overdraft balance, you can check your cash flow and cash balances for those years against the balance sheet cash.

If the balances do not agree, you will need to check your cash flow entries again:

1. First of all, check your totals for any casting errors.
2. Next, determine what the difference is and divide by two. Look through your cash flow to see whether there is an amount equal to this figure. This test checks to see whether you have wrongly posted a figure as negative instead of positive, or vice versa.
3. Scan through the balance sheet and P&L account for an amount equal to the whole difference calculated in Step 1. This test checks to see whether you have omitted an amount from the cash flow.
4. Scan through the balance sheet and P&L account to see whether there are any accounts or balances that have not been accounted...