opening balance, saving accounts exclude from cash flow

[Yawar Amin]

Yes, that's right. I just assumed that these were both chequing accounts in
both banks. If they were less liquid assets, they would be less cash-like
and more investment-like. So moving money from a chequing account to an
investment account might be considered an outgoing cash flow if I remember
correctly.

On Sun, Feb 8, 2009 at 3:42 PM, Mike or Penny Novack <
stepbystepfarm at mtdata.com> wrote:

> Yawar Amin wrote:
>
>  Hi
>>
>> If your cash flow report in Gnucash doesn't include your account transfer
>> from one bank to another, it's doing the right thing. Balance transfers
>> between different asset accounts don't count as cash flow; only income and
>> expenses do. (Somebody please correct me if I'm wrong.)
>>
>>
> Close
>
> The correct answer in this case. An ordinary savings account is still
> "current assets" and would be considered cash in hand just like money in
> your checking account. If these accounts were with the same bank, not
> uncommon to have an arrangement where in case the checking account balance
> went negative, the bank would do an automatic transfer between.
>
> But was that savings in a less liquid form, say a time deposit of some
> sort, then yes, you might want that to be reflected in your "cash flow" as
> the money might not be immediately accessible. A less common situation these
> days where bank products offered include "money market" accounts and CDs
> that allow withdrawals (affects what rate interest received, but CAN be
> withdrawn before due date).
>
> You can be in fine economic shape with regard to the balance sheet but
> still have a "cash flow" problem.
>
> Michael
>