Fund flow statement is a statement of cash inflows and cash outflows. There are persons who feel that the funds are cash or working capital which represent the excess of current assets over current liabilities. … And the funds used in the flow statement is a current assets.

The cash flow statement follows an activity format and is divided into three sections: operating, investing and financing activities. Generally, the operating activities are reported first, followed by the investing and finally, the financing activities.

The cash flow will record a company’s inflow and outflow of actual cash (cash and cash equivalents). The fund flow records the movement of cash in and out of the company. Both help provide investors and the market with a snapshot of how the company is doing on a periodic basis.

Sources of funding include credit, venture capital, donations, grants, savings, subsidies, and taxes. Fundings such as donations, subsidies, and grants that have no direct requirement for return of investment are described as “soft funding” or “crowdfunding”.