Cash Flow Statement Generator
Turn cash figures into a structured Statement of Cash Flows with operating, investing and financing sections.
Statement Inputs
Enter each figure as a positive amount — the tool applies the correct sign (money in adds, money out subtracts). Leave a line blank if it does not apply.
Generated Statement
Your Statement of Cash Flows, using the IAS 7 activity classes and the direct method.
| Line item | Amount |
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Reconciliation Check
Two independent cross-checks confirm the statement is internally consistent before you rely on it.
| Check | Result |
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Scenario Analysis
Each scenario re-runs the full statement with one change, so you can see how a single movement shifts your closing cash.
| Scenario | Net Change | Closing Cash |
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Build And Verify Your Statement
Gather your recordsCollect bank statements and ledger totals for the period you are reporting.
Classify each movementDecide whether each sum is operating, investing or financing — that classification is the statement.
Enter the totalsPut each class total into the inputs above, as positive amounts.
Check the reconciliationConfirm both cross-checks pass, so the statement balances before you use it.
Export or hand overCopy, print or save the statement, and share it with your accountant where reporting rules apply.
What Is A Cash Flow Statement?
A cash flow statement is a financial report showing the cash entering and leaving a business over a period, grouped into three activities: operating (carrying on the business), investing (buying or selling assets), and financing (borrowing, owners contributing or withdrawing). It reconciles the opening cash balance to the closing one, so you can see not just how much cash the business has, but where it came from.
Cash Flow Statement Vs Profit And Loss
Profit and loss accounts use accruals — revenue is recognised when earned and costs when incurred, whether or not money changed hands. A cash flow statement only tracks money that actually moved. A business can be profitable on paper and still run out of cash because customers have not paid or because it spent heavily on assets, which is why both reports matter.
The Three Activity Classes
Operating activities cover the day-to-day: cash from customers and paid to suppliers, staff, lenders and tax. Investing activities cover non-current assets and loans to or from other entities. Financing activities cover new borrowings, repayments, owner capital and drawings. Separating them shows whether your core operation, your asset spending, or your funding moved the cash position.
Direct Method Vs Indirect Method
This generator uses the direct method for operating activities — the cash actually received and paid, which is the clearest way to build a statement from bank and ledger records. The indirect method starts from profit and adjusts for non-cash items like depreciation and working-capital movements; accountants often use it for statutory reporting, and it needs figures this tool does not collect.
How The Reconciliation Works
The statement must satisfy two identities: opening cash plus the net change equals closing cash, and total inflows minus total outflows equals that same net change. The reconciliation panel checks both, so if either fails you know a figure was entered or classified incorrectly rather than the arithmetic being wrong.
Common Mistakes To Avoid
The usual slips are mixing business and personal money, forgetting a movement, entering a figure as negative when it is an inflow (or the reverse), and treating a loan as operating cash rather than financing. The three activity subtotals make an outlier easy to spot, and the reconciliation catches an unbalanced entry before it reaches your records.
Method and Limits
The statement uses the IAS 7 activity classes and the direct method for operating cash. Every input is entered as a positive magnitude and the tool applies the correct sign per line. Net change is the sum of the three class subtotals; closing cash is opening cash plus that net change.
- Not a statutory or IAS 7 compliant statement. It applies the structure and direct method as a clear framework, not a full compliance report.
- No indirect method. Depreciation add-backs, profit reconciliation and working-capital movements are not modelled.
- No classification judgements. The tool does not decide whether a specific transaction belongs in operating, investing or financing — that is yours or your accountant's call.
- Not modelled: restricted cash, foreign-exchange retranslation, VAT and tax accruals, within-period timing, and bank reconciliation.
Method checked ; source evidence checked 28 September 2026.
Frequently Asked Questions
What is a cash flow statement?
A cash flow statement is a financial report showing the cash entering and leaving a business over a period, grouped into operating, investing and financing activities. It reconciles the opening cash balance to the closing one, so you can see not just how much cash the business has, but where it came from.
What is the difference between a cash flow statement and a profit and loss account?
Profit and loss accounts use accruals — they recognise revenue when earned and costs when incurred, whether or not money changed hands. A cash flow statement only tracks money that actually moved. A business can be profitable on paper and still run out of cash, which is why the two reports answer different questions.
How does this generator structure the statement?
It follows the IAS 7 structure: it lists the line items you enter under each of the three activity classes, shows a subtotal for each class, then computes the net increase or decrease in cash and adds it to the opening balance to give the closing balance. It uses the direct method for operating activities — cash actually received and paid.
Why does my closing cash not match my bank balance?
Common reasons include timings (a cheque issued but not yet cleared), funds held for a specific purpose, personal money mixed with business money, or a movement you have not entered yet. The reconciliation panel confirms the statement is internally consistent, so a gap usually points to a missing or misclassified movement rather than an arithmetic error in the tool.
Can I use this if my business is a sole trader or landlord?
Yes. The three activity classes apply to any entity. For a sole trader, "owner capital introduced" covers money you put in and "drawings" covers money you take out. For a landlord, rent received sits in operating activities and property purchases sit in investing activities. The structure is the same; only the labels change.
Is this a statutory or IAS 7 compliant statement?
No — it is an educational generator. It applies the IAS 7 activity structure and the direct method as a clear, correct framework, but it does not prepare a statutory or fully compliant statement: it does not model the indirect method, restricted cash, foreign exchange, tax accruals, or every classification judgement. Use it to understand and draft your statement, and confirm the final figures with your accountant where reporting rules apply.
Sources
- IFRS Foundation — IAS 7 Statement of Cash Flows (the three activity classes and the opening-to-closing reconciliation; repository source evidence checked 2026-09-28)
- GOV.UK — Company and accounting records (records must capture money received and spent; repository source evidence checked 2026-09-28)
About this tool
Created and maintained by CoryVu. Read how we check our tools and consult the sources and assumptions on this page.
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