There is a big difference between cash flow and fund flow. One, who are associated with the financial field must be aware of the difference, but those who are not can take both the things at same. However, here we are sharing information about the difference between cash flow and fund flow. If you need cash flow assignment help or fund flow assignment help for your institution, then you can use the information with some changes.


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Cash flow term is used to show the changes registered in the  outflow and inflow of cash within an organisation. This statement is an analytical reconciliation one and it explains the reasons that cause differences in the closing and opening cash balances in a period of time. The fund flow on on the other hand, is a statement that depicts the variation in  financial position (The up and down flow). It shows the change in entity working capital in the two financial years.

Talking about understanding a company’s financial position, then cash flow statement explains it better. The fund flow, on the other hand explains the balance sheet and the income statement. Both statements are vital for stakeholders as it helps the stakeholders to understand the cash and funds sources and application.

What is the Purpose of Preparing the Cash Flow and Fund Flow?

The cash flow report explains the reasons for cash movements at the start and at the conclusion of the accounting period. The fund flow report is prepared to show various reasons that cause changes in the financial position in last year and the present accounting year.

The cash flow statement is beneficial to analyze the cash planning for short term. The fund flow statement is used to analyze long-term financial planning.

The cash flow has been divided into three categories operating activities, financing activities and investing activities. The cash flow method can be prepared using two methods direct and indirect.

There is not such in fund flow. It is simple and straight.

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