Today I made a quick video to explain the basics behind the Statement of Cash Flows, one of the most misunderstood reports. All business owners should be looking to this report to understand the actual cash coming and going out for their business. The income statement does not do this! Loan payments, owner distributions, unpaid vendor invoices and uncollected customer receivables are not accounted for on the Profit & Loss. So, it is very important to understand this report as it takes all cash flows into account.