{"id":74214,"date":"2025-08-12T11:57:03","date_gmt":"2025-08-12T09:57:03","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=74214"},"modified":"2025-10-01T15:01:32","modified_gmt":"2025-10-01T13:01:32","slug":"cash-flow-statement-template","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/cash-flow-statement-template\/","title":{"rendered":"Cash flow statement template (download for Excel)"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tCash flow statement template (download for Excel)\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2025-08-12T11:57:03+02:00\">Aug 12, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Cash flow statement template (download for Excel)\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/cash-flow-statement-template\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author\">\n\t\t\t<div class=\"co-authors\">\n\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n\n\n<p class=\"has-paragraph-medium-font-size\">As one of the 3 main financial statements, a cash flow statement is an essential tool for understanding a company\u2019s financial health, assessing its liquidity, and confirming how much cash it has on hand. <\/p>\n\n\n\n<p>Along with the balance sheet and income statement, this set of financial documents are required for both private and public companies.<\/p>\n\n\n\n<p>In South Africa, the Companies Act 71 of 2008 requires all registered companies to maintain accurate financial records. <\/p>\n\n\n\n<p>Publicly listed and certain other entities must prepare financial statements, including cash flow statements, in accordance with International Financial Reporting Standards (<strong>IFRS<\/strong>).<\/p>\n\n\n\n<p>A standard cash flow statement format encompasses three main sections: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>operating activities,<\/li>\n\n\n\n<li>investing activities, <\/li>\n\n\n\n<li>and financing activities.<\/li>\n<\/ul>\n\n\n\n<p>This guide will cover not only a cash flow statement template, but also how to prepare your cash flow statement, what to include in the three main sections, and how the direct and indirect methods differ.<\/p>\n\n\n\n<p>We\u2019ll also cover IAS 7 requirements for cash flow statements, including recent changes companies should keep in mind.<\/p>\n\n\n\n<p>For more information, you can also read <a href=\"https:\/\/www.sage.com\/en-za\/blog\/cash-flow-statement-explained\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow statements explained here<\/a>.<\/p>\n\n\n\n<p>To prepare a statement more efficiently, <a href=\"#gate-f259afc7-9a84-42cf-afe3-d2c6e58ee80a\">download our free cash flow template.<\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-here-s-what-we-ll-cover\">Here\u2019s what we\u2019ll cover<\/h4>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-completing-the-main-sections-of-the-cash-flow-statement\" data-level=\"2\">Completing the main sections of the cash flow statement<\/a><\/li><li><a href=\"#h-the-difference-between-direct-and-indirect-cash-flow-statements\" data-level=\"2\">The difference between direct and indirect cash flow statements<\/a><\/li><li><a href=\"#h-ias7-requirements-for-cash-flow-statements\" data-level=\"2\">IAS7 requirements for cash flow statements<\/a><\/li><li><a href=\"#h-disclosures\" data-level=\"2\">Disclosures<\/a><\/li><li><a href=\"#h-cash-flow-statement-templates\" data-level=\"2\">Cash flow statement templates<\/a><\/li><li><a href=\"#h-what-are-the-3-main-sections-of-a-cash-flow-statement\" data-level=\"2\">What are the 3 main sections of a cash flow statement?<\/a><\/li><li><a href=\"#h-what-are-cash-and-cash-equivalents\" data-level=\"2\">What are cash and cash equivalents?<\/a><\/li><li><a href=\"#h-what-s-the-difference-between-an-income-statement-and-a-cash-flow-statement\" data-level=\"2\">What&rsquo;s the difference between an income statement and a cash flow statement?<\/a><\/li><li><a href=\"#h-what-isn-t-included-in-a-cash-flow-statement\" data-level=\"2\">What isn&rsquo;t included in a cash flow statement?<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-completing-the-main-sections-of-the-cash-flow-statement\"><strong>Completing the main sections of the cash flow statement<\/strong><\/h2>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;69d1539135689&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"69d1539135689\" class=\"wp-block-image size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"1119\" height=\"810\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Interactive-image-1119x810.jpg\" alt=\"An illustrated cash flow statement template appears on the left, paired with a checklist on the right outlining six steps to prepare your cash flow statement, with the Sage logo in the bottom right corner.\" class=\"wp-image-74218\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Interactive-image-1119x810.jpg 1119w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Interactive-image-768x556.jpg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Interactive-image.jpg 1458w\" sizes=\"auto, (max-width: 1119px) 100vw, 1119px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<p>To prepare a cash flow statement, follow these six steps:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-list-the-opening-balance\"><strong>1. List the opening balance<\/strong><\/h3>\n\n\n\n<p>Begin by listing the opening balance of cash and cash equivalents for the reporting period. <\/p>\n\n\n\n<p>This figure should equal the closing balance from the previous reporting period.<\/p>\n\n\n\n<p>The starting balance can be placed at the top or the bottom of the statement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-input-cash-flow-related-to-operating-activities\"><strong>2. Input cash flow related to operating activities<\/strong><\/h3>\n\n\n\n<p>This section can use either the direct or the indirect method.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When using the <strong>direct method,<\/strong> record all cash received and all cash paid. Then, calculate the total.<\/li>\n\n\n\n<li>When using the <strong>indirect method<\/strong>, start by listing the company\u2019s profit or loss for the reporting period (under IFRS, which applies to South African companies). Then, take steps to reverse the effect of the accruals. Adjust for elements like depreciation and amortisation, and then calculate the total.<\/li>\n<\/ul>\n\n\n\n<p>Under IFRS, companies may choose from several different starting points when using the indirect method. <\/p>\n\n\n\n<p>Options include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Profit or loss<\/li>\n\n\n\n<li>Profit or loss before tax<\/li>\n\n\n\n<li>Operating profit or loss<\/li>\n\n\n\n<li>Profit or loss from continuing operations<\/li>\n<\/ul>\n\n\n\n<p>List cash inflows and outflows from operating activities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Receipts from goods or services sold<\/strong>: Add any cash receipts from goods (for a product-based company) or services (for a service-based company).<\/li>\n\n\n\n<li><strong>General operating and admin expenses<\/strong>: Subtract any cash payments to suppliers for goods and services related to the company\u2019s core business activities. Also include office expenses, rent and utilities for the company\u2019s facilities.<\/li>\n\n\n\n<li><strong>Wage expenses<\/strong>: Subtract any cash used to pay the company\u2019s employees, executives and directors.<\/li>\n\n\n\n<li><strong>Income tax payments<\/strong>: Subtract any cash used to pay for the company\u2019s income tax.<\/li>\n\n\n\n<li><strong>Other operations<\/strong>: Add any cash receipts that fall outside of the core business activities. Such as license income, the share of profits from joint ventures or grant monies received.<\/li>\n\n\n\n<li><strong>Depreciation and amortisation adjustments<\/strong>: Add in the value of any depreciation and amortisation to undo the effect of these accruals.<\/li>\n\n\n\n<li><strong>Change in inventory<\/strong>: Subtract the value of any increases in inventory or add the value if inventory has decreased.<\/li>\n\n\n\n<li><strong>Change in operating assets<\/strong>: Subtract the value of any increases in operating assets such as accounts receivable and monies owed to the business or add the value if operating assets have decreased.<\/li>\n\n\n\n<li><strong>Change in operating liabilities<\/strong>: Add the value of any increases in operating liabilities such as accounts payable or subtract the value if operating liabilities have decreased.<\/li>\n<\/ul>\n\n\n\n<p>Note that the process is similar to that for calculating the change in operating assets but that the process is reversed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-input-cash-flow-related-to-investing-activities\"><strong>3. Input cash flow related to investing activities<\/strong><\/h3>\n\n\n\n<p>In the next section, list cash received and paid from investing activities.<\/p>\n\n\n\n<p>Tally all cash inflows and outflows related to buying and selling property and assets that increase the value of the business.<\/p>\n\n\n\n<p>Note that IFRS allows for interest and dividend receipts to be included in either investing or operating activities. <\/p>\n\n\n\n<p>The classification of these receipts must be consistent between reporting periods.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Receipts from the sale of property and equipment<\/strong>: Add any cash received from selling assets such as property and machinery.<\/li>\n\n\n\n<li><strong>Collection of loans: <\/strong>Add in cash from receiving financing from investors, mortgages or loans.<\/li>\n\n\n\n<li><strong>Proceeds from disposal of investments: <\/strong>Add in any cash received from the sale of marketable securities, or other investments such as contracts or IP rights.<\/li>\n\n\n\n<li><strong>Purchase of property and equipment:<\/strong> Subtract any investments in assets such as property and machinery.<\/li>\n\n\n\n<li><strong>Loans to others:<\/strong> Subtract payment of monies in the form of loans made to others, typically subsidiary companies.<\/li>\n\n\n\n<li><strong>Purchases of investments:<\/strong> Subtract any cash paid from purchasing marketable securities, or other investments such as contracts or IP rights.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-total-cash-flow-related-to-financing-activities\"><strong>4. Total cash flow related to financing activities<\/strong><\/h3>\n\n\n\n<p>Here, list the cash received and paid from financing activities.<\/p>\n\n\n\n<p>Tally all cash inflows and outflows from fundraising and repaying debts that allow the company to operate or grow.<\/p>\n\n\n\n<p>Note that IFRS allows for interest and dividend payments to be reflected in either financing or operating activities.<\/p>\n\n\n\n<p>Their classification must remain consistent between reporting periods.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>New banks loans<\/strong>: Add any cash received from bank loans or other creditors.<\/li>\n\n\n\n<li><strong>Proceeds from issuing common stock:<\/strong> Add any cash received from the sale of equity, stock, or bonds.<\/li>\n\n\n\n<li><strong>Repayment of bank loans: <\/strong>Subtract any cash paid to repay loans and debt, either from investors, mortgages or the bank.<\/li>\n\n\n\n<li><strong>Dividend and interest payments: <\/strong>Subtract any cash paid to pay dividends and interest. Under IFRS, dividend and interest payments may be classified as operating activities instead.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-determine-the-total-change-in-cash\"><strong>5. Determine the total change in cash<\/strong><\/h3>\n\n\n\n<p>Calculate the total change by adding together the operating, investing, and financing activities. <\/p>\n\n\n\n<p>This figure reflects the total increase or decrease in the company\u2019s cash and cash equivalents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-calculate-the-cash-at-end-of-year\"><strong>6. Calculate the cash at end of year<\/strong><\/h3>\n\n\n\n<p>Finally, determine the ending balance. <\/p>\n\n\n\n<p>Add or subtract the increase or decrease in cash and cash equivalents to the starting balance for the cash flow statement\u2019s reporting period.<\/p>\n\n\n\n<p>A positive balance indicates that the company has more cash flowing in than out. <\/p>\n\n\n\n<p>A negative balance confirms that the company has more cash flowing out than in.<\/p>\n\n\n\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;69d153913729d&quot;}\" data-wp-interactive=\"core\/image\" data-wp-key=\"69d153913729d\" class=\"wp-block-image size-large wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"1440\" height=\"593\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on--click=\"actions.showLightbox\" data-wp-on--load=\"callbacks.setButtonStyles\" data-wp-on-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/2-1440x593.jpg\" alt=\"Infographic of a person sitting on a stack of cash fishing on a large dollar bill. Text explains that cryptocurrency and gold arent shown in a cash flow statement template since theyre not easily converted to set amounts of cash.\" class=\"wp-image-74225\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/2-1440x593.jpg 1440w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/2-768x316.jpg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/2.jpg 1458w\" sizes=\"auto, (max-width: 1440px) 100vw, 1440px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-difference-between-direct-and-indirect-cash-flow-statements\"><strong>The difference between direct and indirect cash flow statements<\/strong><\/h2>\n\n\n\n<p>IFRS allow the direct or the indirect method of calculating operating activities.<\/p>\n\n\n\n<p>While both methods provide the same end result, they have several important differences.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td><strong>Direct method<\/strong><\/td><td><strong>Indirect method<\/strong><\/td><\/tr><tr><td><strong>Accounting method<\/strong><\/td><td>Uses cash accounting, which tallies cash when it\u2019s received or paid<\/td><td>Uses accrual accounting, which tallies cash when it\u2019s earned<\/td><\/tr><tr><td><strong>Starting point for calculating operating activities<\/strong><\/td><td>Not applicable; simply lists cash inflows and outflows from operating activities<\/td><td>Starts with profit or loss under IFRS<\/td><\/tr><tr><td><strong>Estimated work level<\/strong><\/td><td>Tends to be higher, as it requires listing all cash transactions<\/td><td>Tends to be lower, as it works back from the income statement<\/td><\/tr><tr><td><strong>IFRS requirements<\/strong><\/td><td>Must reconcile net income to net cash flow from operating activities<\/td><td>None<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ias7-requirements-for-cash-flow-statements\"><strong>IAS7 requirements for cash flow statements<\/strong><\/h2>\n\n\n\n<p>IFRS uses <a href=\"https:\/\/www.ifrs.org\/content\/dam\/ifrs\/publications\/pdf-standards\/english\/2024\/issued\/part-a\/ias-7-statement-of-cash-flows.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">IAS7<\/a> (International Accounting Standard 7: Statement of Cash Flows) for preparing cash flow statements.<\/p>\n\n\n\n<p>Below are some requirements to keep in mind when using this standard.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-operating-investing-and-financing-activities\"><strong>Operating, investing, and financing activities<\/strong><\/h3>\n\n\n\n<p>Any company using IFRS standards must analyse cash flows using 3 types of activities:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Operating activities<\/strong>: Focus on cash received and paid from revenue-producing activities<\/li>\n\n\n\n<li><strong>Investing activities<\/strong>: Focus on acquiring and disposing long-term assets and investments<\/li>\n\n\n\n<li><strong>Financing activities<\/strong>: Focus on borrowing funds and repaying debts<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-direct-method-for-reporting-operating-activities\"><strong>Direct method for reporting operating activities<\/strong><\/h3>\n\n\n\n<p>For the direct method for reporting operating activities, IAS 7 requires reconciling net income to net cash flow from operating activities.<\/p>\n\n\n\n<p>This extra step aligns the statement of cash flows with the income statement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-indirect-method-for-reporting-operating-activities\"><strong>Indirect method for reporting operating activities<\/strong><\/h3>\n\n\n\n<p>IFRS also allows the indirect method for reporting operating activities. IAS7 requires using profit or loss as the starting point.<\/p>\n\n\n\n<p>As of 2024, companies may define this starting point in one of several different ways.<\/p>\n\n\n\n<p>However, IAS7 requires a standard starting point for reporting periods starting <strong>01 January 2027<\/strong> (read more below).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-reporting-investing-and-financing-activities\"><strong>Reporting investing and financing activities<\/strong><\/h3>\n\n\n\n<p>IAS7 requires companies to report most investing and financing activities gross, categorised by type of receipt or payment.<\/p>\n\n\n\n<p>However, this standard requires certain activities to be reported net, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cash received or paid on behalf of customers<\/li>\n\n\n\n<li>Cash received or paid for items in large amounts, with rapid turnover, and with short maturities<\/li>\n\n\n\n<li>Cash received or paid related to financial institution deposits<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-dividend-and-interest-payments-and-receipts\"><strong>Dividend and interest payments and receipts<\/strong><\/h3>\n\n\n\n<p>IAS7 allows some flexibility when reporting dividend and interest activity.<\/p>\n\n\n\n<p>Both may be considered operating activities.<\/p>\n\n\n\n<p>Companies have the option to consider dividend and interest receipts as investing activities instead. <\/p>\n\n\n\n<p>Companies may also consider dividend and interest payments as financing activities.<\/p>\n\n\n\n<p>However, IAS7 requires companies to maintain consistent classification between reporting periods.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-disclosures\"><strong>Disclosures<\/strong><\/h2>\n\n\n\n<p>Non-cash investing and financing doesn\u2019t appear on the cash flow statement. <\/p>\n\n\n\n<p>However, IAS7 requires companies to disclose these activities in other financial statements.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-recent-ias7-changes-to-cash-flow-statement-preparation-2024\"><strong>Recent IAS7 changes to cash flow statement preparation (2024)<\/strong><\/h4>\n\n\n\n<p>An<a href=\"https:\/\/www.ifrs.org\/news-and-events\/news\/2024\/04\/new-ifrs-accounting-standard-will-aid-investor-analysis-of-companies-financial-performance\/\" target=\"_blank\" rel=\"noreferrer noopener\"> April 2024 amendment to IFRS<\/a> reflects a potentially significant change to using the indirect method for preparation. <\/p>\n\n\n\n<p>Instead of choosing from several different starting points, companies will be required to use the operating profit or loss subtotal. <\/p>\n\n\n\n<p>This change applies to annual periods starting on or after <strong>01 January 2027<\/strong>.<\/p>\n\n\n\n<p>This IFRS change is designed to standardise cash flow statements.<\/p>\n\n\n\n<p>It will allow investors to analyse and compare cash flow statements more easily, enabling them to make more informed decisions.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-cash-flow-statement-templates\"><strong>Cash flow statement templates<\/strong><\/h2>\n\n\n\n<p>Download our <a href=\"#gate-f259afc7-9a84-42cf-afe3-d2c6e58ee80a\">cash flow statement templates as Excel spreadsheets<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-3-main-sections-of-a-cash-flow-statement\"><strong>What are the 3 main sections of a cash flow statement?<\/strong><\/h2>\n\n\n\n<p>Whether a company uses IFRS or Generally Recognised Accounting Practice (<a href=\"https:\/\/www.asb.co.za\/grap-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">GRAP 2<\/a>) for public entities, a cash flow statement consists of three main components:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-operating-activities\"><strong>Operating activities<\/strong><\/h3>\n\n\n\n<p>Operating activities refer to the company\u2019s primary revenue-producing activities. <\/p>\n\n\n\n<p>Think of them as standard business activities that generate cash inflows and outflows.<\/p>\n\n\n\n<p>Revenue covers cash coming into the business from goods and services, and out of the business to wages, operating expenses and income tax payments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-investing-activities\"><strong>Investing activities<\/strong><\/h3>\n\n\n\n<p>Investing activities refer to investments the company makes using cash, <em>not <\/em>debt. <\/p>\n\n\n\n<p>However, for investment companies, investments are reflected in the company\u2019s operating activities.<\/p>\n\n\n\n<p>Investing activities cover buying and selling long-term assets. <\/p>\n\n\n\n<p>The buying and selling of investments such as IP rights or contracts and the collection and issuance of loans from the business to subsidiaries of the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-financing-activities\"><strong>Financing activities<\/strong><\/h3>\n\n\n\n<p>Financing activities refer to cash investments in the company. <\/p>\n\n\n\n<p>They include cash inflows from raising funds and cash outflows from repaying debt.<\/p>\n\n\n\n<p>Cash flow from financing activities can come from receiving financing from investors, issuing payments to shareholders or repaying debt principal.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Cash flow statement template<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Download our cash flow statement Excel templates<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-f259afc7-9a84-42cf-afe3-d2c6e58ee80a\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"577\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Cash-flow-template-image-577x810.jpg\" class=\"single-cta__image\" alt=\"An example of a cash flow statement.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Cash-flow-template-image-577x810.jpg 577w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-cash-and-cash-equivalents\"><strong>What are cash and cash equivalents?<\/strong><\/h2>\n\n\n\n<p>Cash flow statements reflect a company\u2019s balance of cash and cash equivalents at the beginning and end of the reporting period. <\/p>\n\n\n\n<p>These statements also show the total change from the beginning to the end of the period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cash\">Cash<\/h3>\n\n\n\n<p>Cash includes both currency and demand deposits. <\/p>\n\n\n\n<p>The latter refers to money held in bank accounts from which the depositor can withdraw at any time without significant financial risk or penalty.<\/p>\n\n\n\n<p>In addition to domestic currency, cash can also include foreign currency. <\/p>\n\n\n\n<p>The value of any foreign currency should reflect the exchange rate on the date the company received the cash.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cash-equivalents\"><strong>Cash equivalents<\/strong> <\/h3>\n\n\n\n<p>Cash equivalents are investments designed to meet short-term cash commitments. <\/p>\n\n\n\n<p>These highly liquid investments have a maturity date of 3 months or less after acquisition.<\/p>\n\n\n\n<p>In addition, they can easily convert into known cash amounts. <\/p>\n\n\n\n<p>As a result, cash equivalents have a very low risk of changes in value.<\/p>\n\n\n\n<p>Cash equivalents can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Money market funds, government bonds, and corporate bonds that meet the definition above and maintain an insignificant risk of changes in value<\/li>\n\n\n\n<li>Shares that were acquired just prior to maturity and that have a firm redemption date<\/li>\n\n\n\n<li>Bank overdrafts that are part of the company\u2019s cash management strategy, meaning the company regularly fluctuates between positive and negative demand deposit balances<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-the-difference-between-an-income-statement-and-a-cash-flow-statement\"><strong>What\u2019s the difference between an income statement and a cash flow statement?<\/strong><\/h2>\n\n\n\n<p>As two of the three main types of financial statements, both cash flow and income statements offer insight into a company\u2019s financial performance. <\/p>\n\n\n\n<p>Yet they do so from different perspectives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cash-flow-statements\">Cash flow statements<\/h3>\n\n\n\n<p><strong>Cash flow statements<\/strong> confirm how liquid a company is. <\/p>\n\n\n\n<p>They reflect cash paid and received, revealing how much cash a company has on hand at the end of a reporting period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-income-statements\">Income statements<\/h3>\n\n\n\n<p><strong>Income statements<\/strong> also called profit and loss (P&amp;L) statements confirm how profitable a company is. <\/p>\n\n\n\n<p>They reflect revenue and expenses accrued during a reporting period, including non-cash accounting like depreciation and amortisation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-isn-t-included-in-a-cash-flow-statement\"><strong>What <em>isn\u2019t<\/em> included in a cash flow statement?<\/strong><\/h2>\n\n\n\n<p>A cash flow statement doesn\u2019t reflect:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Debt instruments<\/strong> that have a maturity date of more than 3 months after acquisition and that carry significant risk of changes in value.<\/li>\n\n\n\n<li><strong>Most shares<\/strong> as they have a significant risk of changes in value and they aren\u2019t convertible to a preset amount of cash.<\/li>\n\n\n\n<li><strong>Cryptocurrency and gold<\/strong> because they aren\u2019t readily convertible to predetermined amounts of cash.<\/li>\n\n\n\n<li><strong>Restricted cash and cash equivalents<\/strong> that a company can\u2019t readily access because of legal restrictions or financial controls, such as funds owned by a subsidiary.<\/li>\n\n\n\n<li><strong>Non-cash transactions<\/strong> that don\u2019t have a direct effect on a company\u2019s cash inflows or outflows<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Sage <a href=\"https:\/\/www.sage.com\/en-za\/accounting-software\/financial-reporting\/\" target=\"_blank\" rel=\"noreferrer noopener\">financial reporting software<\/a> can help with your reporting and the management and growth of your business.<\/p>\n\n\n\n<p>Our <a href=\"https:\/\/www.sage.com\/en-za\/accounting-software\/cash-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash management software<\/a> also automates tasks and provides real-time, reliable cash flow visibility.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-za\/sage-business-cloud\/intacct\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sage Intacct<\/a> has 150 built-in financial reports enabling you to easily create custom reports and leaving you with more time to focus on your business and prepare your financial statements.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Cash flow statement template<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Download our cash flow statement Excel templates<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-f259afc7-9a84-42cf-afe3-d2c6e58ee80a\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"577\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Cash-flow-template-image-577x810.jpg\" class=\"single-cta__image\" alt=\"An example of a cash flow statement.\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2025\/07\/Cash-flow-template-image-577x810.jpg 577w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Download our cash flow statement template for Excel, then learn how to prepare your statement and the differences between the direct and indirect method.<\/p>\n","protected":false},"author":1774,"featured_media":71284,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[25,27],"tags":[294,313,189,339,209,214],"business_type":[2,5],"lilypad":[],"context":[],"industry":[],"persona":[15,16],"imagine_tag":[51,52,63,353,68,73,85,86],"coauthors":[401],"class_list":["post-74214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-accountants","tag-bookkeeping","tag-financial-insights","tag-profit-loss","tag-staying-competitive","tag-trending-topics","business_type-small-business","business_type-accountants"],"sage_meta":{"region":"en-za","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2023\/09\/GettyImages-549776535.jpg","imagine_tags":{"51":"Accountants","52":"Accounting software","63":"Business intelligence","353":"Costs and cash flow","68":"Grow your business","73":"Money Matters","85":"Small business","86":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/74214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1774"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=74214"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/74214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/71284"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=74214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=74214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=74214"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=74214"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=74214"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=74214"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=74214"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=74214"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=74214"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=74214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}