CULTURAL NARRATIVES OF CASH FLOWS IN ACCOUNTING: FROM DESHI NAAMA TO DIGITAL FINANCE

Prior to the development of modern banking and accounting systems, Indian businesses, traders, and moneylenders managed cash flow using traditional methods derived from local and cultural customs. These included oral agreements, handwritten ledgers, Hundis, and community trust—all of which were indigenous banking tools. This paper explores the evolution of cash flow management from these informal yet successful techniques to codified financial reporting. Cash flow statements detail cash transactions under operating, investing, and financing operations. These statements are prepared in compliance with Accounting Standard-3 (effective-3) and, effective of July 1, 2017, IND-AS:7. These claims facilitate the examination of liquidity and financial stability. Furthermore, artificial intelligence (AI) has significantly improved cash flow analysis and forecasting through statistical models and software that combines machine learning and programming techniques. This study highlights the transition from Bahi-Khata to digital finance, demonstrating how cash flow is crucial to Indian accounting culture. India's transition from Bahi-Khata to digital finance serves as an example of how it has maintained its robust accounting culture while adapting to global financial standards. Financial transparency, regulatory compliance, and company decision-making have all improved as a result of this shift. To ensure accuracy and consistency in financial reporting, cash flow statements are required in India. AI-driven analytics provide predictive insights that improve cash flow management and liquidity planning. Cash flow is a key component of accounting culture, and as technology develops, it is expected that India's financial sector would employ digital solutions more and more.