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Hey there Im James youre watching AccountingStuff and in this video well go over the Cash Flow Statement for beginners a Cash Flow Statement is a financial statement that summarizes a businesss cash inflows and outflows over a periodof time well get into how that works in a moment but first why do we need a Cash Flow Statement? in accounting there are two main methods for preparing your books the cash method andthe accrual method with the cash method you recognize your revenue when cash is receivedand you record your expenses when cash is paid out but under the accrual method you recognizerevenue as its earned and record your expenses as they are incurred so what does that mean? if youre cash accounting then technically you only have one financial statement the IncomeStatement it summarizes your revenues and expenses over a period of time leaving you with a profitor a loss but with the cash method we said that you recognize revenue when cash is received andyou record ex