The Cashflow Statement report is a standard financial statement that shows how changes in the P&L and Balance Sheet accounts affect cash and cash equivalents. The analysis is broken down by Operating, Investing and Financing activities.

Before preparing a Cashflow Statement report you must first categorise all your accounts as Operating, Investing , Financing or Non-Cash.

See the Cashflow Statement settings help article for details.

There are two accepted methods for preparing the Cashflow Statement: Direct and Indirect methods. Both methods present cashflows as Operating, Investing and Financing Activities, however they differ in the way Operating Activities are calculated and presented. Calxa provides separate report templates for each method.

Browse to Reports -> Builder then type Cashflow Statement in the search bar.

The Direct Method for preparing a Cashflow Statement traditionally calculates Operating Activities by listing changes in cash receipts from customers and cash payments to suppliers.

Tip: 💡Calxa does not sync cash transactions from your accounting data so the reported values on individual accounts will be accrual values. You'll therefore achieve best results by summarising your Income with Receivables or Trade Debtor accounts and summarising your Expenses with Payables or Trade Creditors.

See the Create Account Tree for Summarising heading below for more details.

The Indirect Method for preparing a Cashflow Statement uses Net Profit as a baseline for calculating Operating Activities and then makes the necessary adjustments such as adding or subtracting Non-Cash expenses such as depreciation and adding or subtracting changes in Assets or Liabilities categorised as Operating Activities, such as Payables & Receivables.

Traditionally, the Cashflow Statement report is a summary level report that does not show the full detail of your chart of accounts. Calxa will by default show your full chart of accounts, split into the relevant categories of Operating, Investing and Financing.

The Account Level in the report criteria can be used to show or hide detail, however you may also wish to create an Account Tree with custom groupings such as the high level labels you see in the examples above. Please refer to the help note on Account Trees for assistance to create a tree

If your report has a Discrepancy row between Net Cashflows and Bank at End this indicates that the Non-Cash Accounts do not balance. Please refer to Step 2 – Ensure Non-Cash Accounts are Balanced in the Cashflow Statement help note for tips to resolve the discrepancy.