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1) Cash flow statements are based on narrow concept of funds consider the changes in cash where as funds flow statements are based on changes in working capital.
2) Cash flow statements are prepared on cash basis where as funds flow statements are prepared on accrual basis
3) Cash flow statement does not require use of changes in working capital. Funds flow statement requires to use of separate statement of changes in net working capital
4) The preparation of cash flow statement considers only those transactions that are linked with flow of cash. The preparation of funds flow statement considers those transactions that are linked with flow of funds along with actual cash
5) Cash flow statements are more useful in short term cash planning and analysis where are funds flow statements are long term cash planning and analysis.
Cash flow statement show were the cash or cash equivalents used in the two years.
Fund flow statement show the change of business working capital.
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