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Cash Flow Tracking System - User Guide

Quick Links

Financial Concepts

Understanding Cash Flow

Cash flow represents the net amount of cash and cash equivalents moving in and out of a business during a specific period. It's crucial for:

  • Measuring business liquidity
  • Planning future expenditures
  • Making investment decisions
  • Assessing business health

Types of Cash Flow

1. Cash Flow from Operations (CFO)

  • Definition: Money generated from regular business operations
  • Examples:
    • Customer payments (+)
    • Supplier payments (-)
    • Employee salaries (-)
    • Rent and utilities (-)
    • Tax payments (-)
  • Importance: Indicates business sustainability and operational efficiency

2. Cash Flow from Investing (CFI)

  • Definition: Cash involved in buying and selling long-term assets
  • Examples:
    • Equipment purchases (-)
    • Property acquisition (-)
    • Investment in securities (-)
    • Sale of assets (+)
    • Investment returns (+)
  • Importance: Shows how a company is growing or shrinking its asset base

3. Cash Flow from Financing (CFF)

  • Definition: Cash moving between a company and its owners/creditors
  • Examples:
    • Loan proceeds (+)
    • Debt repayment (-)
    • Share issuance (+)
    • Dividend payments (-)
    • Stock buybacks (-)
  • Importance: Indicates how a company finances its activities

Key Financial Metrics

1. Liquidity Ratios

  • Current Ratio = Current Assets ÷ Current Liabilities

    • Measures ability to pay short-term obligations
    • Healthy ratio: > 1.5

  • Quick Ratio = (Current Assets - Inventory) ÷ Current Liabilities

    • More conservative measure of liquidity
    • Healthy ratio: > 1.0

2. Cash Management Metrics

  • Burn Rate

    • Monthly rate at which a company spends cash
    • Calculated as: Total Cash Spent ÷ Number of Months
    • Critical for startups and growth companies

  • Runway

    • How long a company can operate before running out of cash
    • Calculated as: Current Cash ÷ Monthly Burn Rate
    • Expressed in months or years

3. Cash Flow Analysis

  • Operating Cash Flow Ratio

    • Measures how well current liabilities are covered by cash flow
    • Higher ratio indicates stronger financial health

  • Cash Flow Coverage Ratio

    • Ability to pay off debt with operating cash flow
    • Important for debt management

Financial Statements

1. Cash Flow Statement

  • Purpose: Shows cash movements over a period
  • Components:
    • Operating activities section
    • Investing activities section
    • Financing activities section
    • Net change in cash position
  • Importance:
    • Reveals actual cash position
    • Shows sustainability of business operations
    • Helps predict future cash needs

2. Related Statements

  • Balance Sheet

    • Point-in-time snapshot of assets, liabilities, and equity
    • Complements cash flow analysis

  • Income Statement

    • Shows profitability over time
    • May differ from cash flow due to accrual accounting

Startup-Specific Considerations

  • Growth vs. Profitability

    • Balance between scaling and cash conservation
    • Impact on fundraising needs

  • Funding Rounds

    • Effects on cash flow from financing
    • Dilution considerations

  • Market Conditions

    • Impact on burn rate management
    • Adjustment of growth strategies

Installation Guide

Prerequisites

  • Python 3.9+
  • PostgreSQL (production) or SQLite (development)
  • Modern web browser
  • Git

Step-by-Step Installation

  1. Clone the repository:

    git clone https://github.com/yourusername/cash-flow-tracker.git
cd cash-flow-tracker

  2. Create and activate virtual environment:

    python -m venv venv
source venv/bin/activate  # On Windows: venv\Scripts\activate

  3. Install dependencies:

    pip install -r requirements.txt

  4. Set up environment variables in .env:

    FLASK_APP=main.py
FLASK_ENV=development
DATABASE_URL=postgresql://user:password@localhost/dbname
ANTHROPIC_API_KEY=your_api_key_here

  5. Initialize database:

    flask db upgrade

  6. Run the application(Can use your own Python version, I'm using Python 3.11):

    python3.11 main.py

User Manual

Account Management

  1. Registration

    • Visit /register
    • Fill in username and password
    • Account will be created instantly

  2. Login

    • Navigate to /login
    • Enter credentials
    • Access your dashboard

  3. Settings

    • Update profile information
    • Change password
    • Configure module preferences

Cash Flow Management

Transaction Entry Methods

  1. Manual Entry

    • Click "Add Transaction" on Cash Activities page
    • Required fields:
      • Date
      • Description
      • Amount
      • Transaction Type
    • Click Submit to save

  2. Bulk Upload

    • Download template from Upload page
    • Fill in transactions following template format
    • Upload file
    • Review and confirm entries
    • Edit any entries if needed before saving

Transaction Categories

  1. Operating Activities (CFO)

    • Cash from customers
    • Salary & supplier payments
    • Interest paid
    • Income taxes
    • Other operating cashflow

  2. Investing Activities (CFI)

    • Purchase/sale of property & equipment
    • Investment purchases/sales
    • Other investing cashflow

  3. Financing Activities (CFF)

    • Share issuance
    • Borrowings/repayments
    • Dividend payments
    • Other financing cashflow

Dashboard & Analytics

Charts and Visualizations

  1. Monthly Balance Chart

    • View balance trends over time
    • Interactive timeline
    • Hover for detailed values
    • Export functionality

  2. Income vs Expense Chart

    • Monthly comparison
    • Category breakdown
    • Trend analysis
    • Filtering options

  3. Cashout Categories Chart

    • Expense distribution
    • Category percentages
    • Interactive legends
    • Detailed tooltips

AI-Powered Analysis

  1. Pattern Recognition

    • Seasonal trends
    • Growth patterns
    • Anomaly detection
    • Historical comparisons

  2. Risk Assessment

    • Burn rate calculation
    • Runway estimation
    • Liquidity analysis
    • Cash flow volatility

  3. Financial Forecasting

    • 30-day projection
    • 60-day projection
    • 90-day projection
    • Confidence intervals

Report Generation

Cash Flow Statement

  1. Navigate to AI Analysis page
  2. Click "Generate Cash Flow Statement"
  3. Download Excel file containing:
    • Operating activities
    • Investing activities
    • Financing activities
    • Net cash flow
    • Beginning/ending balances

Troubleshooting

Common Issues

  1. Chart Display Issues

    • Clear browser cache
    • Refresh page
    • Check for JavaScript console errors
    • Verify data exists for selected period

  2. Upload Problems

    • Verify template format
    • Check date formatting (YYYY-MM-DD)
    • Ensure all required fields are filled
    • Maximum file size: 5MB

  3. AI Analysis Errors

    • Verify API key is set
    • Check for sufficient transaction history
    • Ensure internet connectivity
    • Wait a few minutes and retry

Error Messages

Error Cause Solution
"Failed to fetch data" Network/server issue Check connection and retry
"Chart generation failed" Data processing error Verify data format
"Upload template mismatch" Incorrect file format Use provided template
"API key invalid" Authentication issue Check API key in settings

FAQ

Q: How do I reset my password? A: Use the "Forgot Password" link on the login page.

Q: Can I export my data? A: Yes, use the export function in Cash Activities page.

Q: How is my data secured? A: We use encryption and secure database practices.

Q: What file formats are supported for upload? A: CSV and Excel files using our template.

Support

Last updated: [2025.02.26]