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Statement

Cash Flow Statement

The cash flow statement reconciles net profit to actual cash movement. A business can be profitable on paper but cash-insolvent - which is the leading cause of business failure. The statement covers three sections: Operating Activities (cash from core business), Investing Activities (capex, acquisitions), and Financing Activities (loans, equity, dividends).

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How it works

Add cash inflows and outflows across three sections. The tool calculates net cash movement and opening/closing balances. Export to Excel for your records or financial reporting.

Operating Activities

Cash generated from core business operations

$0.00

Investing Activities

Cash used for or generated by long-term assets

$0.00

Financing Activities

Cash from debt, equity, and dividend transactions

$0.00

Summary

Opening Cash$0.00
Operating$0.00
Investing$0.00
Financing$0.00
Net Change in Cash$0.00
Closing Cash Balance$0.00

Common Mistakes to Avoid

  • Confusing depreciation (non-cash) with cash outflow
  • Not separating operating from investing activities

Best Practices

  • Prepare 13-week rolling cash flow forecasts
  • Monitor Days Sales Outstanding (DSO) to improve receivables

Why use this tool?

Profit doesn't equal cash. A growing business can run out of cash due to slow receivables or heavy capex. A cash flow statement shows the real liquidity position.

Frequently Asked Questions

It tracks the actual movement of cash in and out of a business across three activities: Operating (day-to-day business), Investing (buying/selling long-term assets), and Financing (debt and equity transactions). Unlike the P&L, it ignores non-cash accounting entries.

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Disclaimer: Accountdesq provides this Cash Flow Statement for informational and convenience purposes only. Output is not a substitute for professional accounting, legal, or tax advice. No data entered is transmitted to or stored on our servers - all calculations happen locally in your browser. Accountdesq accepts no liability for errors in generated documents. Always consult a qualified accountant or tax professional for compliance matters.