Tag: Cash flow software with depreciation

Cash flow software with depreciation (Depreciation non cash expense)

By Russell Bowyer

Cash flow software with depreciation included as a function will do so showing depreciation as a non cash expense. This means that whilst the cash flow software takes account of deprecation, this is not for the purposes of reflecting it in forward period cash flows. But is instead to include the depreciation expense on the forecast profit and loss, the projected balance sheet and the forecast cash flow statement reports instead. Additionally, deprecation is an add back for tax if you intend to add forecast tax payments into your cash flow reports.