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It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas: Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls

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