Financial reports in project management, specifically final accounts, provide a clear picture of an organization's financial position at the end of the fiscal year through various financial statements such as the income statement, statement of financial position, cash flow statement, and statement of changes in equity. These statements serve crucial purposes, including assessing business performance, liquidity, and sources of income, which aid in decision-making for stakeholders. The cash flow statement, in particular, details cash inflows and outflows, helping the organization evaluate its cash management and future financial commitments.

1. FINANCIAL REPORTS IN PROJECT MANAGEMENT
Final accounts are those accounts that are prepared
by joint stock company at the end of fiscal year. The
purpose of creating final accounts is to provide a clear
picture of the financial position of the organization to
its management, owners or any other users of such
accounting information.
Final accounts are also known as financial Statements.
The statements which gives the information about
the report of the activities performed in the business

2. There are several types of financial
statements.
•Income statement
•Statement of financial position
•Cash flow statement
•Statement of change in equity

3. Importance of financial statements
i. Provide the information about the
financial position of the business i.e
continuity or bankruptcy and closer
ii. Provide the performance and change in
equity of the Organization
iii.The information can be used by users of
accounting information in making
decisions.

4. iv. Helps to determine the important
sources of income with fluent cash flow
v. To determine the information about the
result of operations of the business.
vi. Gives the estimate information about
the liquidity and debt position of the
business
vii. Helps to determine the costs incurred in
the business

5. INCOME STATEMENT
This is the financial statement which is used
to show the income and expenditure of the
business. It shows the net profit figure or the
profit before tax. It is comprised of trading
and profit or loss account.

6. The costs incurred on the goods delivery are
charged to the goods in order to have a true
profit. Examples are carriage for goods, import
duty, packing and unpacking goods etc. These
are used to get the value for the cost of goods
sold together with stocks. The gross profit and
other incomes also should deduct selling and
distribution expenses to get the net profit

7. Statement of financial position
Is a financial statement that reports the
assets, liabilities and equity of the company
on a given date. Means that it shows the
resources , obligations and ownership
which all gives the position of the business.

8. The purpose of statement of financial
position is to present the true information
about company’s assets, liabilities and
equity. It represents the main elements of
financial statements using accounting
equation that:
•Assets = Liabilities + Capital (equity) or
•Assets – Liabilities = capital (Equity)

9. CASH FLOW STATEMENT
•This is the detailed financial statement
which shows the cash inflows/ receipts and
cash outflows/expenditure of the business
for the period.
•It is like the assessment of business liquidity
in the accounting period
•It is the statement for cash inflow and cash
outflow.

10. •The cash inflow can be profits, cash sales,
bank loan, overdrafts, and any other cash
received from debtors, interest, dividend
received on investments, grants etc
•Cash outflows can be losses cash purchases
and all cash payments on goods and
services, wages, taxes, suppliers,
investment, maintenance etc

11. The uses of cash flow statement.
•Provide a detailed picture of what
happened to business’s cash during the
accounting period.
•It demonstrates company’s ability to
operate either in short term or long term
basing on cash inflows.

12. •It enable the business to find out how far future
share issues may be needed, or additional
capital.
•It help to assess the cash inflows which the
business may be able to generate in the
future.
•To highlight on how far the business will be
able to meet future commitments, e.g. tax
due, loan repayments, decision to invest etc

13. There are three categories of cash flow
where companies can analyze and
determine the liquidity and solvency of the
business.
•Cash flow from operating activities.
•Cash flow from investing activities
•Cash flow from financing activities

14. CASH FLOW FROM OPERATING ACTIVITIES
•These are regular business activities where
the inflow of cash is through selling the
goods or services and all receivables. This
contains the core function activity of the
business. Outflows incudes all payments to
suppliers, taxes and other business
expenses

15. Cashflow from investing activities
These are cash that has been
spent/invested on fixed assets for the
intension of generating profits in the
future.
Investment activities means the
acquisition and disposal of long-term
assets or the items which involve long-
term use of cash

16. •Activities can invest in the assets,
lending money or sale of investments.
• The cashflow can be found on
investment on assets, income from the
assets and pay back loans and
expenses incurred on investments

17. •Cashflow from financing activities
•This focus on how the firm raises capital and pay it
back. Financing activities shows how the company
funds its business. Three ways to finance a business are
:
•Introducing capital (equity) by cash or bank
•Using a debt or bank loan
•Dividends/shares.
Cash outflows are dividend payments, repayment of
debts or repurchase of shares. Cash inflows includes
receiving loan, issuing shares, introducing capital.

18. Exercise.
1.With examples discuss the sources of cash
inflow and cash outflow of LGTI.
2.What are sources of revenue( cash inflow
of Dodoma Municipal council and how
the money is consumed(cash outflow)