Cash flow statement (direct method)
List the cash received and paid, group it into operating, investing and financing, and get a cash flow statement with the closing balance.
A profit does not mean cash in the bank. This workbook records every cash receipt and payment, groups them into operating, investing and financing activities and shows the net cash from each and the closing cash balance, which is the cash flow statement banks and investors ask for.
Business owners and accountants preparing management accounts or loan applications, and finance students learning how cash moves through a business.
What is included
- Receipts and payments in one list
- Operating, investing and financing activities
- Running cash balance after every line
- Net cash from each activity and closing cash
- Chart of net cash by activity
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Screenshots
How to use it
- Type your opening cash and bank balance at the top.
- Record every receipt and payment with its date, a description and the activity it belongs to.
- Choose receipt or payment for each line and enter the amount.
- Read the net cash from each activity and the closing balance.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
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What the cash flow statement (direct method) does
A profit does not mean cash in the bank. This workbook records every cash receipt and payment, groups them into operating, investing and financing activities and shows the net cash from each and the closing cash balance, which is the cash flow statement banks and investors ask for.
Who it is for
Business owners and accountants preparing management accounts or loan applications, and finance students learning how cash moves through a business.
How to use the workbook
- Type your opening cash and bank balance at the top.
- Record every receipt and payment with its date, a description and the activity it belongs to.
- Choose receipt or payment for each line and enter the amount.
- Read the net cash from each activity and the closing balance.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Receipts and payments in one list
- Operating, investing and financing activities
- Running cash balance after every line
- Net cash from each activity and closing cash
- Chart of net cash by activity
The workbook has these sheets: Instructions, Cash flows, By activity. The main table has the columns Date; Description; Activity; Receipt or payment; Amount; Signed amount; Running balance. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.
Tips for getting it right
- Include every cash and M-Pesa movement or the closing balance will not match the bank.
- Operating covers day-to-day trading; investing is buying or selling assets; financing is loans and capital.
- Check the closing balance against your bank and M-Pesa statements.
- Prepare it monthly so a cash problem shows up early.
Why keep this record
Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.
Questions people ask
Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.
Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.
Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.
Keeping it safe and up to date
Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.
Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Vat return calculator. See more accounting templates or ask us for a custom one.
The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.
Related guides, calculators and templates
- Free calculator: VAT Return Calculator
- Guide: VAT invoices and quotations in Kenya: what to include and common mistakes
- Guide: How to use M-Pesa statements to prove income and expenses
- Guide: Bookkeeping for small businesses in Kenya: how to get started
- Another template: Supplier statement reconciliation
- Another template: Weighted average stock ledger
- Another template: Balance sheet template
Need something different? Request a custom template, browse all guides or see every Excel template.
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