Our Cash Flow Statement Calculator is a web-based tool that simplifies the process of generating accurate cash flow statements. In just a few clicks, you’ll have a comprehensive cash flow statement with this calculator. Today most businesses prepare it besides trial balance and balance sheet.
Please add a minus with the amount where you need to subtract the item. (Example, Cash paid for taxes: -2000)
Please remember that we do not store or sell any information you used in this calculator.
What is the Cash Flow Statement?
The cash flow statement is one of the important reports in accounting that provides a clear view of how money moves in and out of your business. It gives insight into liquidity, operational efficiency, and overall financial health. It plays a vital role in cash management.
The cash flow statement especially shows how much money your business has received and paid over an accounting period. It provides a clear insight into your company’s liquidity, solvency, and overall financial health.
It shows how well your business generates cash to support its operating expenses and pay debts. Every business should prepare a cash flow statement because it helps investors and creditors to understand the liquidity position of the business, also how it manages its cash.
The cash flow statement is divided into three parts:
- Operating Activities: This section tracks cash flows related to the core business operations, such as cash receipts from sales and cash payments for expenses like wages, inventory, and taxes. It shows how much cash is generated or spent on the company’s day-to-day activities.
- Investing Activities: This part records cash flows from the purchase or sale of long-term assets, such as property, equipment, or investments. Cash spent on acquisitions or received from selling any fixed assets is reflected here.
- Financing Activities: This section describes cash flows related to raising or repaying capital. It includes transactions like issuing or repurchasing stock, borrowing or repaying loans, and paying dividends to shareholders.
What is the Cash Flow Statement Calculator?
It is an automated free accounting tool designed for business owners, accounting professionals, finance analysts, students, or any other individuals who do accounting tasks.
Whether you’re tracking operating, investing, or financing activities, the calculator offers a streamlined experience that saves you time and boosts accuracy. Allowing you to focus more on strategic decision-making and less on number-crunching.
Cash Flow Statement Format
The cash flow statement can be prepared using either direct or indirect methods. In this calculator, we follow the direct method. The format we used is based on the IAS 7.
Write “net cash provided by” if the figure is positive, and “net cash used by” if the figure is negative.
How to prepare the cash flow statement using the indirect method?
For the indirect method, we have to reconcile the net income by making some adjustments to figure out the cash flows from operating activities. But the other two steps remain the same as the direct method.
Here’s how we calculate the “Cash flows from operating activities” using the indirect method.
Conclusion
The cash flow statement is an important part of the cash management. Nowadays, almost every business makes it to control their cash. But not everyone has enough time to prepare it manually and thats why, we’ve created this cash flow statement calculator to minimize your task. Comment down below in case you have any queries.