Register now or log in to join your professional community.
the indirect way is the most popular in contracting companies . but what about the direct way which starts with the revenue ?
The Indirect Method
The indirect method is preferred by most firms because is shows a reconciliation from reported net income to cash provided by operations
Budget break down then loaded to primavera
INDIRECT METHOD
both method are usefull and maintaining same result at end , But the Differences between two method is in Presentation of ( net Cash Flow From Operating Activities ) : the Direct method require presenting all gross payment ( receivable & Payable ) , But the Indirect Method Make Reconciliation for Net Income .
the Indirect Method is most popular in use .
when reporting Statement Of Cash Flow Using The indirect method , you must declare of Payment Of ( Interest & Taxes ).
But When Reporting SCF using Direct Method , You need to show the reconciliation between net income & net Cash Flow , because this Indirect Method is popular .