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Module code: 577

📚 Financial Statements A2

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A cash flow statement is a financial document that shows all the money coming into a company and all the money going out of a company during a specific time period (like a month or a year). It answers a simple question: 'How much cash do we have right now?' This is different from profit – a company can be profitable but still have no cash to pay its bills!

Companies use three main financial statements together. The balance sheet shows what the company owns (like buildings and equipment) and what it owes (like loans) at one specific moment in time – it's like a photograph. The profit and loss account (also called the income statement) shows if the company made money or lost money over a period of time by comparing sales revenue with costs and expenses.

The cash flow statement is the third important document. While the profit and loss account shows profit, the cash flow statement shows actual cash movements. For example, if you sell something for £1,000 but the customer will pay in 60 days, the profit and loss account shows £1,000 profit today, but the cash flow statement shows £0 cash received today. This is why companies need all three statements – each one tells a different part of the financial story. Together, they give a complete picture of the company's financial health.

How to Check the Cash Flow Statement

Core PathWay
A2

1 🎯 Purpose & What 'Good' Looks Like

Checking the cash flow statement means you look at money coming in and money going out. You want to find if the numbers are correct. Good checking means you find mistakes early and you ask questions about differences. You use a polite, clear tone with your manager or team. You explain problems in a simple way.

Two quick openers:
“I checked the cash flow statement and I have a question.”
“Can I ask about the numbers for last month?”

✓ Always be polite when you ask about money.

✓ Write down questions before you speak.

💬 Dialogue 1: Checking the Statement at Your Desk

Maria is checking the cash flow statement at her desk. She finds a problem and talks to her manager Tom.

Maria: “I checked the cash flow statement.”
Tom: “Good. Is everything correct?”
Maria: “No, I found a small difference.”
Tom: “OK. What is the problem? Can you show me?”
Maria: “The payment for May is missing. It is not here.”
Tom: “I see. How much is the payment?”
Maria: “It is 5,000. The total is wrong because of this.”
Tom: “OK, I will look at it today. Thank you for checking.”

2 🧭 Move Map (Step-by-Step Strategy)

Step 1: Look at the statement
Purpose: You read all the numbers and dates.
“I will look at the cash flow statement now.”
“First, I check the dates and totals.”

Step 2: Compare the numbers
Purpose: You see if money in and money out are correct.
“I compare this month with last month.”
“I want to see if the numbers match.”

Step 3: Find problems
Purpose: You look for mistakes or differences.
“I found a difference in the payments.”
“This number looks wrong.”

Step 4: Ask or report
Purpose: You tell your manager about the problem.
“Can you help me with this question?”
“I need to report a mistake in the statement.”

💬 Dialogue 2: Asking Polite Questions in a Meeting

Sara has a question about the cash flow statement. She asks her colleague John in a meeting.

Sara: “Can I ask about the cash flow statement?”
John: “Yes, of course. What is your question?”
Sara: “The numbers for money in are different from last month.”
John: “I see. Let me check. Which amount do you mean?”
Sara: “The total here. It is 15,000 this month, but it was 20,000 last month.”
John: “Ah yes. Do the two numbers match the records?”
Sara: “I am not sure. Can you check the records?”
John: “Yes, I will confirm this after the meeting. Thank you for asking.”

3 💬 Phrasebank by Function (Grouped Starters)

Opening the conversation
Neutral: “I checked the cash flow statement.”
Polite: “I looked at the statement and I have a question.”
Firm: “I found a problem in the cash flow statement.”

Asking about numbers
Neutral: “Is this number correct?”
Polite: “Can I ask about this amount?”
Firm: “This number is different from last month.”

Explaining differences
Neutral: “The totals don’t match.”
Polite: “I think there is a small difference here.”
Firm: “This payment is missing.”

Requesting help
Neutral: “Can you help me?”
Polite: “Can you confirm this for me?”
Firm: “I need to report this today.”

Closing
Neutral: “Thank you for your help.”
Polite: “I will check again tomorrow.”
Firm: “Please look at this soon.”

💬 Dialogue 3: Reporting a Serious Mistake

Maria found a big mistake in the cash flow statement. She needs to report it to Tom quickly.

Maria: “I need to report a mistake. It is important.”
Tom: “OK. What did you find? Tell me.”
Maria: “The expense total is wrong. It is too high.”
Tom: “Are you sure? How do you know?”
Maria: “Yes, I compared all the numbers. This is not correct.”
Tom: “What is the difference? How much?”
Maria: “It says 50,000, but the correct total is 40,000.”
Tom: “That is a big mistake. OK, I will fix it today. Good work.”

4 📨 Micro-Templates (Email/Chat)

Email Template:

Subject: Question about cash flow statement – [month]

Hi [name],

I checked the cash flow statement for [month]. I found a difference in the [payment/expense/income] section. The number is [amount] but I think it is wrong.

Can you look at this? I can compare it with last month if you need.

Thank you,
[Your name]

—

Chat Template:

Hi [name], I have a quick question about the cash flow statement. The total for [category] looks different this month. Can I ask about it? I checked the numbers and I think there is a mistake. Thanks!

💬 Dialogue 4: Understanding Cash Flow Terms

John is new to the company. Sara explains the cash flow statement to him.

John: “Can you help me? I need to understand this cash flow statement.”
Sara: “Yes, of course. What do you want to know?”
John: “What does cash flow mean? I do not know this word.”
Sara: “Cash flow means money in and money out. It shows the movement of money.”
John: “I see. And what is the difference between income and expense?”
Sara: “Income is money in. This means money the company gets. Expense is money out. This means money the company pays.”
John: “OK, I understand now. So we check both numbers every month?”
Sara: “Yes, that is correct. We check them every month.”

5 🎭 Micro-Dialogues in Action

Dialogue 1: At the desk (neutral)

Maria: I checked the cash flow statement.
Tom: Good. Is everything correct?
Maria: I found a small difference.
Tom: What is the problem?
Maria: The payment for May is missing.
Tom: OK, I will look at it.

—

Dialogue 2: In a meeting (polite)

Sara: Can I ask about the cash flow statement?
John: Yes, what is your question?
Sara: The numbers for money in are different from last month.
John: Let me check. Which amount?
Sara: The total here. It doesn’t match.
John: I will confirm this after the meeting.

—

Dialogue 3: Reporting a problem (firm)

Maria: I need to report a mistake.
Tom: What did you find?
Maria: The expense total is wrong. It is too high.
Tom: Are you sure?
Maria: Yes, I compared all the numbers. This is not correct.
Tom: OK, I will fix it today.

💬 Dialogue 5: Comparing Two Months

Tom asks Maria to compare the cash flow statements from June and July.

Tom: “Maria, can you compare June and July for me?”
Maria: “Yes, I can. I will check the cash flow statements now.”
Tom: “Good. Put the two statements next to each other. What do you see?”
Maria: “The income went up. It was 30,000 in June, and it is 35,000 in July.”
Tom: “That is good news. What about the expenses?”
Maria: “The expenses went down. They were 25,000, and now they are 22,000.”
Tom: “Excellent. So we have more money this month?”
Maria: “Yes, that is correct. We have 13,000 now. Last month we had 5,000.”

6 ⚠️ Pitfalls → Fixes → Best

Being too direct
❌ Bad: “This is wrong.”

→ Better: “I think this is wrong.”

✓ Best: “Can I ask about this number? I think there is a mistake.”

Not giving details
❌ Bad: “I found a problem.”

→ Better: “I found a problem in the statement.”

✓ Best: “I found a difference in the May payment section.”

Forgetting to be polite
❌ Bad: “Check this now.”

→ Better: “Can you check this?”

✓ Best: “Can you help me check this when you have time?”

Using unclear words
❌ Bad: “Something is not good.”

→ Better: “Something is wrong.”

✓ Best: “The total doesn’t match last month.”

Grammar tip: Use “Can I…” or “Can you…” to make polite questions. Use “I think…” to be less direct when you talk about mistakes.

💬 Dialogue 6: Finding Missing Information

Sara is preparing the cash flow statement but some information is missing. She asks John for help.

Sara: “John, I am working on the cash flow statement. Some information is missing.”
John: “OK. What information do you need?”
Sara: “I need the payment information for August. Do you have it?”
John: “Let me check. Which payment do you mean?”
Sara: “The office rent payment. It is not in the records.”
John: “Ah yes. The rent is 3,000 every month. I will send you the information.”
Sara: “Thank you. Can you send it today? I need to finish this statement.”
John: “Yes, I will send it in ten minutes.”
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