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Hey there Iamp;#39;m James youamp;#39;re watching AccountingStuff and in this video weamp;#39;ll go over the Cash Flow Statement for beginners a Cash Flow Statement is a financial statement that summarizes a businessamp;#39;s cash inflows and outflows over a periodof time weamp;#39;ll 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 itamp;#39;s earned and record your expenses as they are incurred so what does that mean? if youamp;#39;re 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 re