If you'd like to skip to a section... ⏱️TIMESTAMPS 00:00 - Intro 00:06 - Cash Flow Statement Definition 00:18 - Why do we need a Cash Flow Statement? 02:15 - What is a Cash Flow Statement? 03:45 - Direct Method Cash Flow Statement 05:00 - Indirect Method Cash Flow Statement 06:38 - How to make a Cash Flow Statement (Indirect Method) 08:07 - What are we reconciling? 08:43 - Cash Flow from Operating Activities 12:33 - Cash Flow from Investing Activities 13:36 - Cash Flow from Financing Activities
I am lil bit confused about the operating activities part.. As everyone knows that if account payables increases that means the cash increases therefore at this point we add the increase account payalbes and it is the same way arround if a/p decreases, cash will be deducted too.. But what i noticed is that not all of the current liabilities decreased only account payable decreased whereas the rest of current liabilities increased ( tax payable, accrued expenses, deferred revenue),, so why did you total all of them together??
I have been a CPA in the US for the last 28 going on 29 years. I have taught accounting at both the university (undergraduate and graduate) and community collage level for the last 25 years. This is the most comprehensive and clearly stated lecture I have ever witnessed. I am almost embarrassed to say, better than any that I have myself presented in a class room. Well studying for the CPA exam, I wish I had this 29 years ago. It would definitely helped. Well done.
I feel this kind of highlights a big issue within our education system. There are endless videos put together so intuitively and masterfully just for simple RUclips videos that are 100000x easier to understand and digest than some instructor reading off boring slides in a monotone voice. This is nuts to me how unrefined academic education is
For last 4 days I've been non stop watching the entire accounting playlist, taking notes, and studying all the info!!!! I am an independent artist that is trying to learn and understand everything that will help me grow in this day and age with tons of tech, and free resources at our finger tips I know learning about money would be a key skill to know and understand, and I happen to come across your page, it was like a gift from god!! All the your videos were perfectly organized in your accounting playlist, and I was absolutely blown away, you teach accounting so well, I understood everything and your examples made it 10x easier!! The video quality never changed since the first video!! You absolutely know what you are doing when you make a video, the editing is great and the visuals always keeps me interested. Once I can scrape up any money, I'm gonna to try and buy your whole pack of cheat sheets, money is really tight but those are all absolute gems!! you are a gift that keeps on giving!!! I worked hard, having sleepless night just learning and studying your videos!! I will forever support you and hoping in the future you could be my accountant, jk, ha!!! cant wait for your new video full of gems!! Please Keep doing what your doing and thank you sooo much James!!! you've truly changed my life!!!
@@elizavetasuvorova5521 thank you, I am just very serious about my future and have been working hard everyday!! I 10/10 recommended these accounting videos!! Each video I felt like I learn and understood more and more! James does a great job teaching!!!
This tutorial is extremely helpful. I think now that I've found your channel, I should be able to learn what I need to help me pass my financial management class. Thank you so much for putting this information out there. On-line classes are hard to grasp, especially when there are no lectures. It's nice to be able to turn to You Tube for help with my classes. Thank you so much!
I am exactly on the same boat. Currently taking an online MBA with UMGC. Currently on Financial Decision Making (second class). Only three Zoom classes every semester and I have to pretty much figure everything out on my own. This channel has helped me tremendously.
I am studying to become a bookkeeper and understanding cash flows statements is one of the most challenging topics for me. James did a great job in explaining of how to deal with a gain or a loss on the sale of office equipment, furniture.
i cannot begin to express my gratitude to this channel!!!!!! i have learned so much more from your videos than i have from my textbook. seriously, you are such a fantastic teacher and i appreciate all of the effort put into every video!! could not have learned accounting without you
This video is incredibly helpful. The statement of cash flows has always been my weak spot on exams. After reviewing this a few times it seems not so much a weak spot anymore. It is incredibly helpful how he is able to state things simply and grow them. I prefer this way of remembering things because when I go to take an exam as long as I can remember where to start, I can remember everything that follows.
Man i am curently doing my MBA and this info is very vital. Thanks for putting this together. I dont have any finance or accounting experience and i need to read a 594 paged book to work on an assignment. This is a life saver. Thanks!!!!!!
The way you visually explained the SCF on 4:40 makes this so much easier to understand. I was over-complicating this topic for myself, just straight-up memorizing formulas without understanding why they're important lol
Thank you thank you! I wish my university can teach like you! Theory, explanation, and examples! Clear, organised, and even aesthetic! Pray I pass my Finance and Accounting modules!
I don't what to say to express my gratitude. James your 15mins video is very condensed and helpful while my instructor spent 2 hours on explaining the same things...
The company that I work for uses the direct method. I do understand why you say its hard. It takes time to look for the required info, it all comes down to knowing where to retrieve it from the accounting system and balancing it to the bank. I really like how you explain things really cleary!! Always great to have a refresher 😊
Wow, I have been so engaged lately with your videos! They really make life much easier when you are having trouble following the lectures at uni, I can simply say wow man, really great work
Wanted to drop a comment on behalf of all those who view the video and move on. Your lessons are extremely helpful and informal and I want to praise you for the videos, you have helped me beyond words. Keep it up.
As someone who had an explicit background in the biological sciences and such, and who changed her major halfway through school to something very math and statistics-based, THIS IS LIFE-SAVING. (My new degree also requires me to take some accounting classes. While i appreciate accounting, I am also lost. I have classmates who know what they are doing. I do not. But this helps a lot. I am so thankful for everything that you do. Thank you. Appreciate it.).😇
Imagine, going through the book 4 times and still don't know what they are talking about. Then going on youtube and listen to a random guy and the result? Absolutely amazing :D ty so much
This is so much better than my college classes!!I’m learning details in your videos that I would not have caught in class. You are changing lives, my friend!!
hi james! I'm from Malaysia and currently studying diploma in accounting. Masya-Allah I'm really glad to found your channel. You also give me courage to pursue my studies! 😭 Just wanted to say thank you for these videos! It's help me a lottttt. Thank you so much! Keep it up!
@@fruutx my dear every subject mesti ada difficulties dia, and in accounting you need to understand the concepttt for sem 1 & 2 still can handle, start sem 3 ke atas dia dah libatkan mfrs which is satu panduan yg digunakan utk account oleh satu dunia. Its gonna be a little tough sebab kena baca lol. But trust me ada joy dia untuk account ni, kawan kena pandai cari sama sama belajar sbb account boleh buat u mood sway far far away gitu. Good luck!
Dude! You don't even realise how helpful this video has been for me. I just finished my CFS and this is the first time I complete one while fully understanding what I was doing 😅
Hi sir, my name is Alia Sofiea. thankyou so much for explanation. Through this video i understand that Statement of Cash Flows was a summary of a business's cash inflows & outflows over a period of time. There also 2 methods in preparing this statement which is direct method & indirect method. Next, for each method, there are 3 main sections of cash flow (a)CF from operating activities, (b)CF from investing activities and (c)CF from financing activities.
I keep watching your videos…..and quite honestly, they are so easy to follow due to the simplicity of your explanations (english is not my native language) . The best tutorial channel ever!!!!. Thanks again
I have always struggled to understand accounting. I Today for 15 min I learned more than in all my college classes. Simple, clear with precise examples. Keep up the great work.
The video lesson is really helpful. I now understand better, the preparation of cash flow statement using the direct and indirect methods. Thanks for creating such an enlightening and illuminating video lesson.
I know you probably get this all the time, but you're an absolute lifesaver! Your videos are so concise and easy to understand for people who don't have a finance or accounting background. I have had to familiarise myself with financial analysis for a new role (I only have an Economics background) and your channel has been my saving grace. I even downloaded your videos on my mobile RUclips app and watch them on public transport, while I wait in lines, etc. Thank you!
Your videos are so good & fun to watch mate. One of your videos helped me to crack an interview & I've been offered a well paying job now. Thanks to you my friend ☺️ God bless you 😊
Thank you so much for this tutorial! Although the ranching/farming business is very different from your example business, your simple explanation of this complicated spreadsheet is super helpful to me.
Thank you so much for such an in-depth video , your videos are helping so much in me learning for Financial Accounting in my 1st sem of MBA . I'm just really grateful to you , bcos without your content , i would be blindly and only learning the formats without actually understanding how the table are formed and need of each of the statements and analysis . Great videos ..Great work !!!
If you'd like to skip to a section...
⏱️TIMESTAMPS
00:00 - Intro
00:06 - Cash Flow Statement Definition
00:18 - Why do we need a Cash Flow Statement?
02:15 - What is a Cash Flow Statement?
03:45 - Direct Method Cash Flow Statement
05:00 - Indirect Method Cash Flow Statement
06:38 - How to make a Cash Flow Statement (Indirect Method)
08:07 - What are we reconciling?
08:43 - Cash Flow from Operating Activities
12:33 - Cash Flow from Investing Activities
13:36 - Cash Flow from Financing Activities
You are amazing, congrats
I am lil bit confused about the operating activities part.. As everyone knows that if account payables increases that means the cash increases therefore at this point we add the increase account payalbes and it is the same way arround if a/p decreases, cash will be deducted too..
But what i noticed is that not all of the current liabilities decreased only account payable decreased whereas the rest of current liabilities increased ( tax payable, accrued expenses, deferred revenue),, so why did you total all of them together??
Please answer me this so confusing
Thank you for mapping out the time stamps!
How this is wonderful tasks Please do financial management course fo MBA students because teaching is your gift .
I have been a CPA in the US for the last 28 going on 29 years. I have taught accounting at both the university (undergraduate and graduate) and community collage level for the last 25 years. This is the most comprehensive and clearly stated lecture I have ever witnessed. I am almost embarrassed to say, better than any that I have myself presented in a class room.
Well studying for the CPA exam, I wish I had this 29 years ago. It would definitely helped. Well done.
Thanks, it means a lot!
takes some fortitude to admit that so respect to you for that
I feel this kind of highlights a big issue within our education system. There are endless videos put together so intuitively and masterfully just for simple RUclips videos that are 100000x easier to understand and digest than some instructor reading off boring slides in a monotone voice. This is nuts to me how unrefined academic education is
This was just a tacky way for paul to showboat his cpa in a coy way. no one is impressed. wake me up when you pass the mcats. yawn
You could not have been that candid. That was a splendid explanation. So,so practical.
crazy how im paying 20 grand a year for an education and instead watching your free videos online
fr
For last 4 days I've been non stop watching the entire accounting playlist, taking notes, and studying all the info!!!! I am an independent artist that is trying to learn and understand everything that will help me grow in this day and age with tons of tech, and free resources at our finger tips I know learning about money would be a key skill to know and understand, and I happen to come across your page, it was like a gift from god!! All the your videos were perfectly organized in your accounting playlist, and I was absolutely blown away, you teach accounting so well, I understood everything and your examples made it 10x easier!! The video quality never changed since the first video!! You absolutely know what you are doing when you make a video, the editing is great and the visuals always keeps me interested. Once I can scrape up any money, I'm gonna to try and buy your whole pack of cheat sheets, money is really tight but those are all absolute gems!! you are a gift that keeps on giving!!! I worked hard, having sleepless night just learning and studying your videos!! I will forever support you and hoping in the future you could be my accountant, jk, ha!!! cant wait for your new video full of gems!! Please Keep doing what your doing and thank you sooo much James!!! you've truly changed my life!!!
Thanks for your kind words! There's no need to buy my cheat sheets, especially if money is tight. I'm happy if you're learning!
wow! your comment is amazing !!
@@elizavetasuvorova5521 thank you, I am just very serious about my future and have been working hard everyday!! I 10/10 recommended these accounting videos!! Each video I felt like I learn and understood more and more! James does a great job teaching!!!
In case u're thinking about giving up, there's still people like me viewing and loving this, thank you!
This tutorial is extremely helpful. I think now that I've found your channel, I should be able to learn what I need to help me pass my financial management class. Thank you so much for putting this information out there. On-line classes are hard to grasp, especially when there are no lectures. It's nice to be able to turn to You Tube for help with my classes. Thank you so much!
Hey Teresa, no problem at all. Hope your studies are going well!
I am exactly on the same boat. Currently taking an online MBA with UMGC. Currently on Financial Decision Making (second class). Only three Zoom classes every semester and I have to pretty much figure everything out on my own. This channel has helped me tremendously.
@@commentator245 yup yup, same here y'all! Without lectures these online classes can be difficult. Thanks for these videos @accountingstuff!
Hands down, the best channel to learn accounting!
Thanks, it means a lot!
I just bought your "All in one cheat sheet & practice question bundle." My man, you are heaven sent! Thank you!
Thanks for your support! All the best :)
This might be the single greatest channel on youtube...
That's kind of you to say!
I am studying to become a bookkeeper and understanding cash flows statements is one of the most challenging topics for me. James did a great job in explaining of how to deal with a gain or a loss on the sale of office equipment, furniture.
I learned a lot from this tutorial. It really saved me a lot of reading hours from our textbook. Thank you!
i cannot begin to express my gratitude to this channel!!!!!! i have learned so much more from your videos than i have from my textbook. seriously, you are such a fantastic teacher and i appreciate all of the effort put into every video!! could not have learned accounting without you
I stayed up for hours last night studying this from the book. This was so much better. I wish I saw this first.
This video is incredibly helpful. The statement of cash flows has always been my weak spot on exams. After reviewing this a few times it seems not so much a weak spot anymore. It is incredibly helpful how he is able to state things simply and grow them. I prefer this way of remembering things because when I go to take an exam as long as I can remember where to start, I can remember everything that follows.
Great to hear it's making sense :)
I can't even put into words how helpful this tutorial is. Thanks so much!
You're most welcome :)
Reiko You nice keep going!!! #army😂💜
million thanks Sir. this video is very helpful. God bless you
No worries, glad it helped!
You're the teacher everyone needs. So thankful!
Man i am curently doing my MBA and this info is very vital. Thanks for putting this together. I dont have any finance or accounting experience and i need to read a 594 paged book to work on an assignment. This is a life saver. Thanks!!!!!!
No worries! Hope your MBA is going well :)
The way you visually explained the SCF on 4:40 makes this so much easier to understand. I was over-complicating this topic for myself, just straight-up memorizing formulas without understanding why they're important lol
I am a CPA and I can say that you explain everything so nicely. Do a lesson on deferred taxation
Cheers for your request!
Damn, that request could at least have a "Please".
How do you know when someone is a cpa? Dont worry...they will be sure to tell you. no one is impressed. yawn.
I've been waiting for this video for months. Thanks again.
No worries, hope it helped!
Best channels for accounting
Accounting stuff
MM Cambridge Accounting
Accounting lecture
You 3 are save our life.
Thanks! Hope your studies are going well
3rd year accounting student here. Thank you so much. May the Lord bless you❤
Hope your studies are going well!
Once again, you're an absolute legend. The best accounting teacher, period.
Thank you thank you! I wish my university can teach like you! Theory, explanation, and examples! Clear, organised, and even aesthetic! Pray I pass my Finance and Accounting modules!
Am with you on this one
Did you pass?
Thanks!
This is by far the simplest tutorial I have watched on this topic, and the video was just fun to watch
Thanks Doris, hope it helped!
These presentations are down to earth, simple to understand. I love the way the explanations are done
I don't what to say to express my gratitude. James your 15mins video is very condensed and helpful while my instructor spent 2 hours on explaining the same things...
The video offers incredible value in our profession. Thank you for creating this channel.
Glad you found it useful!
Good to have you back James.
Cheers Mosi!
The company that I work for uses the direct method. I do understand why you say its hard. It takes time to look for the required info, it all comes down to knowing where to retrieve it from the accounting system and balancing it to the bank. I really like how you explain things really cleary!! Always great to have a refresher 😊
Bro, your thumbnail images on all your videos is one of the reasons why I watch it. Ik it’s about to get interesting.
Thanks Jarir! They take me a while to put together so I'm happy you like them
Wow, I have been so engaged lately with your videos! They really make life much easier when you are having trouble following the lectures at uni, I can simply say wow man, really great work
Thanks I'm glad you're enjoying them. Best of luck at uni!
I just smiled when they reconciled.
Doing a cpa 1 exam in December and this is really helpful
The presenter has made complex concepts amazingly simple and clear. Thank you so much!
this playlist is the only thing helping me pass this semester
big ups man!
Wanted to drop a comment on behalf of all those who view the video and move on. Your lessons are extremely helpful and informal and I want to praise you for the videos, you have helped me beyond words. Keep it up.
Thanks, great to hear you're finding the channel useful. All the best :)
This was absolutely brilliant!!! Thank you so much!
Glad you found it useful!
Thank you,these really helped cuz I have an exam tommorrow💕
As someone who had an explicit background in the biological sciences and such, and who changed her major halfway through school to something very math and statistics-based, THIS IS LIFE-SAVING. (My new degree also requires me to take some accounting classes. While i appreciate accounting, I am also lost. I have classmates who know what they are doing. I do not. But this helps a lot. I am so thankful for everything that you do. Thank you. Appreciate it.).😇
No problem, all the best with your studies!
Imagine, going through the book 4 times and still don't know what they are talking about. Then going on youtube and listen to a random guy and the result? Absolutely amazing :D ty so much
Good to see you back again. Please keep these videos coming.
Thanks, will do!
So good !! Perfect
Thanks!!
You are a gifted teacher. Awesome
Thank you!
This is so much better than my college classes!!I’m learning details in your videos that I would not have caught in class. You are changing lives, my friend!!
Thanks, great to hear you enjoyed the video!
wow even much more explicit than my tutors in class. I've never been able to understand this to this extent, thank you.
I'll definitely subscribe
After been an accountant for years and looking back to the basic concept again, I do think your video is good for every stage. 👍🏻 Thank you!
Thanks, glad to hear it!
hi james! I'm from Malaysia and currently studying diploma in accounting. Masya-Allah I'm really glad to found your channel. You also give me courage to pursue my studies! 😭 Just wanted to say thank you for these videos! It's help me a lottttt. Thank you so much! Keep it up!
susah ke 😩
@@fruutx my dear every subject mesti ada difficulties dia, and in accounting you need to understand the concepttt for sem 1 & 2 still can handle, start sem 3 ke atas dia dah libatkan mfrs which is satu panduan yg digunakan utk account oleh satu dunia. Its gonna be a little tough sebab kena baca lol. But trust me ada joy dia untuk account ni, kawan kena pandai cari sama sama belajar sbb account boleh buat u mood sway far far away gitu. Good luck!
Hi. Just wanted to say that this video helps me understand better how to do cash flow. Thank you very much
That's great to hear!
Well explained. Thank you for teaching.
Glad it was helpful!
Please make a video on MONTH - END REPORTS of accounting ....your videos are very productive..thank you james
Thanks for your request!
I hated Cash Flow Statement! Am now so in-love with it after watching your videos couple times.. James !! 🙏🏼🙏🏼
You are very good with explaining.
Thank you!
Thanks, glad you enjoyed the video :)
The King is Back!!! Been waiting for new uploads!!
final exam tomorrow and this helped a lot. Thank you!
Hope it went well!
Dude! You don't even realise how helpful this video has been for me. I just finished my CFS and this is the first time I complete one while fully understanding what I was doing 😅
Hi sir, my name is Alia Sofiea. thankyou so much for explanation. Through this video i understand that Statement of Cash Flows was a summary of a business's cash inflows & outflows over a period of time. There also 2 methods in preparing this statement which is direct method & indirect method. Next, for each method, there are 3 main sections of cash flow (a)CF from operating activities, (b)CF from investing activities and (c)CF from financing activities.
This video was so beneficial for me - I couldn’t get my head around the cash flow statement but now it seems so simple!!!
Thanks a million!
Great to hear it's clicking for you!
Thanks! This is much more helpful and informative than my professors
No problem, hope it made sense :)
A clear Exercise to understand.
Thanks, glad you found it useful!
I keep watching your videos…..and quite honestly, they are so easy to follow due to the simplicity of your explanations (english is not my native language) . The best tutorial channel ever!!!!. Thanks again
Great to hear you're enjoying the vids :)
Best presentation so far on cashflow statement. Thank you
Ur a lifesaver, my lecturer or tutor could not explain it as well as u have done!
I have always struggled to understand accounting. I Today for 15 min I learned more than in all my college classes. Simple, clear with precise examples. Keep up the great work.
Thank you very much! Your tutorials are clearly articulated and easy to understand. Loved it!
Glad you like them!
Why does your video come out wherever my class goes?
The video lesson is really helpful.
I now understand better, the preparation of cash flow statement using the direct and indirect methods.
Thanks for creating such an enlightening and illuminating video lesson.
the best one who explained cash flow statement thank you soo much
Thanks, I'm glad you enjoyed it :)
I know you probably get this all the time, but you're an absolute lifesaver! Your videos are so concise and easy to understand for people who don't have a finance or accounting background. I have had to familiarise myself with financial analysis for a new role (I only have an Economics background) and your channel has been my saving grace. I even downloaded your videos on my mobile RUclips app and watch them on public transport, while I wait in lines, etc. Thank you!
Thanks Tigele! Great to hear that you're finding these useful. Hope it's all making sense. All the best!
Extremely helpful! Thank you so much
You're very welcome :)
such a helpful simplified video. really helped my understanding!!
That's great to hear :)
That was veeeerrrryyyy useful, thank you
Glad to hear it 👍
Awesome, one of the most clear and easy to understand lessons on cash flows that I have seen. Excellent work.
Cheers, glad you enjoyed it!!
Your tutorial is the best!
Glad you enjoyed it!
You're a god. Also the reason why I'll pass my accounting exam.
THANK YOU SO MUCH!!!!! I was totally lost and my exams are next week, but my teacher still went over this way too quickly. You saved me🥳
No problemo. Hope it's making sense. Best of luck in your exam :)
this video is awesome. Saved my life day before final. bless up
Best of luck!!!
Nice explanation..thanks..saved my tomorrow's exam
How did it go?
Your videos are so good & fun to watch mate. One of your videos helped me to crack an interview & I've been offered a well paying job now. Thanks to you my friend ☺️ God bless you 😊
Congrats Krishna!! That's awesome news :)
Thank you so much for this tutorial! Although the ranching/farming business is very different from your example business, your simple explanation of this complicated spreadsheet is super helpful to me.
Wow, great explanation and example! Thanks a lot!
Thanks, glad you enjoyed it :)
Nice one. Am good to go. Thank you
You're welcome, all the best :)
Bro you are next level at making all that easy!
Really grateful that i found this, thank you for your efforts and approach.
You're very welcome :)
I'm CS aspirant
After your video all concept Cristal clear....thank you for your efforts
OMG I don't know how to thank you, I was so frustrated at myself cuz I didn't get the reverse +- on the operating cash flow, you saved my lifeeeeeee
Great!...absolutely good job at providing simple but comprehensive explanation of the material....thanks
Thanks buddy :)
Great way to present and deliver.. keep up the great work
Thanks!!
James you are a life saver thank you so much!!!
No problem, glad I could help!
This video is great, just what I needed for my accounting final tomorrow morning.
Good luck!!!
graduated accountancy with your videos help thanks
Congrats!!
Thank you so much for such an in-depth video , your videos are helping so much in me learning for Financial Accounting in my 1st sem of MBA . I'm just really grateful to you , bcos without your content , i would be blindly and only learning the formats without actually understanding how the table are formed and need of each of the statements and analysis . Great videos ..Great work !!!
Thanks for your feedback! Great to hear that you're finding these videos useful :)
i'm glad to see you, Mr. James, thank you for all this lessons. i follow you from Azerbaijan
Thank you!!
Super video, you speak at a good speed, and it's well explained
Absolutely great, i couldn't get through my financial reporting module without your help. Thanks!
Thanks for this, it made it easier to understand
No worries, glad you found it useful!
This is awsome.Well explained Tutorial.Very informative
so nice explanation to clear conception of the topic.
Thanks, glad you enjoyed it :)
i would really really appreciate your unique teaching style and looking forward for more such interesting and knowledgeable videos on accounting, ❤
That's great to hear thanks! I have plenty of accounting tutorials that you may find useful :)