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.
There are two accepted methods for preparing the Cashflow Statement: Direct and Indirect methods. In this help note we will be preparing a Cashflow Statement using the Indirect Method.
The instructions and advice herein are provided as a guide only, so please refer to the relevant accounting standards in your country as well.
Cashflow Statement Settings
Before preparing a Cashflow Statement report you must first categorise all your accounts as Operating, Investing , Financing or Non-Cash.
See the Cashflow Statement Financial Settings help article for details.
The Indirect Cashflow Statement
As per the Select a Report Template help article, you'll search for and run the Cashflow Statement (Indirect) template.
A sample Cashflow Statement report is shown below. This was run using a custom account tree created in Calxa. Click on the image to expand it in a separate window.
Note: If your report has a Discrepancy row between Net Cashflows and Bank at End this indicates that the Non-Cash Account nominations 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.
Create Account Tree for Summarising
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 in this report, 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 Depreciation Expense, Payments on Long-Term Loans, Sale of Land, Purchase of Equipment, Dividends on Shares or any other sections that may help to summarise and make the report more readable. Please refer to the help note on Account Trees for assistance to create a tree.
In the example report above we used an account tree with very simple groupings such as Trade Creditors, Other Current Liabilities and Long-Term Liabilities. The Assets and Liabilities sections of the Account Tree from this example are shown below.
To run a report that summarises at the root level header account totals of your Account Tree, set the Account Level in Report Filters to 2.
Note: Level 1 accounts are the account type headers like Assets and Liabilities, Income and Expense. Level 1 accounts are hidden from this report unless you run the report at level 1, in which case Operating, Investing and Financing activities are just shown as a breakdown by account type.