Many people think that both fund flow statement and balance sheet are same

however there are many differences between funds flow statement and
balance sheet, lets look at some of the differences between the two -
1. Fund Flow Statement is a statement which shows inflows and outflows of
funds of the various items and their effect on the working Capital, while
balance sheet is a schedule showing the balances of various accounts due to
and due from the business at a particular date.
2. Fund Flow Statement can be prepared at any time while balance sheet is
prepared at the end of accounting period only.
3. The objective behind preparing fund flow statement is to show change in
various items of balance sheet between two balance sheet dates. But as far as
balance sheet is concerned its objective is to show the financial position of the
business at a particular date
4. While information contained in fund flow statement is used by internal
management, but information contained in balance sheet is normally used by
the outsiders.
5. While it is not necessary to publish the funds fl