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💧 Free Cash Flow Statement Template

Below is a full cash flow statement structure: operating activities, investing activities, and financing activities — ending with the net change in cash. Copy it into a spreadsheet and see exactly where your money came from and where it went.

A profitable business can still run out of cash — that is why the cash flow statement exists. It tracks the actual movement of money in and out of your bank accounts, separate from the accrual-based P&L. If you have ever wondered “we are profitable, so why is the bank account empty?”, this statement has the answer.

Header

FieldsDescription
Business Name*Your registered legal name.
Period*e.g. “Year ended 31 December 2026” or “Q1 2026”.
Currencye.g. EUR, USD, GBP.

Operating Activities

FieldsDescription
Net Profit*From your P&L (starting point).
Add: DepreciationNon-cash expense — add it back.
Change in Accounts ReceivableIncrease = cash outflow; decrease = inflow.
Change in InventoryIncrease = cash outflow; decrease = inflow.
Change in Accounts PayableIncrease = cash inflow; decrease = outflow.
Cash from Operations*Net cash generated by day-to-day business.

Investing Activities

FieldsDescription
Purchase of EquipmentCash spent on fixed assets — negative.
Sale of EquipmentCash received from selling assets — positive.
Purchase of InvestmentsBuying stocks, bonds, or other businesses.
Cash from Investing*Net cash used in investing — usually negative.

Financing Activities

FieldsDescription
Loan ProceedsCash received from new loans — positive.
Loan RepaymentsCash paid to reduce debt — negative.
Owner Withdrawals / DividendsMoney taken out by owners — negative.
New Capital InvestedCash put in by owners or investors — positive.
Cash from Financing*Net cash from financing activities.

Net Cash Movement

FieldsDescription
Net Change in Cash*Operating + Investing + Financing.
Opening Cash Balance*Cash at the start of the period.
Closing Cash Balance*Opening + Net Change — should match your bank.

How to use

  1. 1Start with Net Profit from your P&L for the same period.
  2. 2Add back depreciation — it is a non-cash expense that reduced profit but did not use cash.
  3. 3Adjust for changes in receivables, inventory, and payables from your balance sheet.
  4. 4List any cash spent on or received from buying or selling assets (investing).
  5. 5List any cash from loans, repayments, or owner transactions (financing).
  6. 6Confirm the Closing Cash Balance matches your actual bank balance — if not, something is missing.

Or automate this

Building a cash flow statement manually means juggling numbers from the P&L and balance sheet, and one wrong sign flips the whole thing. Nika can pull from your connected accounts and generate a clean cash flow statement every month — from {price} per statement. She tracks every penny in and out so you always know your real position.

Questions

Why is my cash flow different from my profit?

Profit is based on accrual accounting — revenue is counted when earned, not when paid. Cash flow tracks actual money movement. If you invoiced a client €10,000 in December (profit) but they pay in January, your December profit looks great but your cash flow shows zero from that sale. Timing differences are the main reason the two diverge.

What is free cash flow?

Free cash flow is the cash left over after a business pays for its operating expenses and capital expenditures (equipment, property). It represents the money available to repay debt, pay dividends, or invest in growth. Formula: Cash from Operations − Capital Expenditures.

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