Difference between Cash Flow Statement and Fund Flow Statement

 Cash flow statement

1. It shows the change of cash of organization. 

2. It starts the opening and closing balance of cash. 

3. It calculates only cash. 

4. It is useful for short term period. 

5. It follows the concept of cash of accounting. 

6. It shows the inflow and outflow of cash. 

7. It is the part of financial statement. 

8. It is a narrow concept. 

9. It also shows the cause of change in cash. 

10. It is less useful. 

Fund flow statement:

1. It shows the change of working capital of organization. 

2. There is no opening and closing balance in calculating Fund flow. 

3. It calculates all elements of working capital. 

4. It is useful for long term period. 

5. It follows the accural basis of accounting. 

6. It shows the changing of financial position of organization. 

7. It is not the part of financial statement. 

8. It is wide concept. 

9. It shows the cause of changing in working capital. 

10. It is more useful. 

So we can say that Fund flow and Cash flow statements are important documents of organization that are made for optimum utilization of finance and achieve the goal of organization. 

9. It also shows the cause of change in working capital. 

10. It is more useful.