I'm new to HC.
Sorry to go back in time a bit but like others, I have an interest in understanding SHJ Revenue vs Cashflow.
I found the posts by Tim8 on 14/2/18 (with the table) & by macherry on 27/2/18 very useful but I am still puzzled.
I hope macherry can help again.
macherry explained how GST being included in the CF values can explain some differences.
My understanding is that employee+other expenses in a given year on the P&L would match the relevant Payments to suppliers and employees from CF except for the GST & the changes to outstanding Debtors & Creditors. So, for a rough guide, if we assume all Other Expenses (non employee) had GST & make a comparison of the values in the table on that basis, it is reasonable to expect that some years CF would exceed P&L expenses & vise versa in other years.
When I do this, Payments to suppliers and employees still exceeds the P&L equivalent every year by a significant amount. This confuses me. Help please.
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