What is a Cash Flow statement ?
When a sales invoice is raised, the money might not come in for several weeks. Similarly a purchase invoice may not be paid for several days or weeks. These differences in timing are what distinguishes a Profit and Loss Account from a Cash Flow statement.
A Cash Flow statement should start with opening bank and cash balances, then add the money which has actually come in from sales invoices, then deduct the money gone out to pay bills, repay loans, pay staff etc. This leaves the closing bank and cash balances.
A Cash Flow statement is not the same as a Funds Flow statement, the latter being a legal requirement for large companies, but not for small businesses.