Close & reporting
Cash flow statements
A statement of cash flows built from a Canadian business's actual accrual books, showing where cash came from and went across operating, investing and financing activity, forecast alongside the quarterly personal tax instalment dates an owner who draws income personally has to fund.
Management report
Illustrative client · August 2026
CAD
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
What the statement shows
A monthly statement of cash flows, built by the direct or indirect method depending on what a lender or investor asks for, reconciles net income to operating cash flow and tracks the cash position against a rolling weekly or monthly forecast. Notes call out the largest swings in operating, investing or financing activity each month.
Building in personal instalment dates
An owner who draws income personally from the business, whether as a sole proprietor or a shareholder taking dividends, has quarterly personal tax instalment payments due March 15, June 15, September 15 and December 15. Those dates are real cash outflows and belong in the forecast alongside payroll, rent and supplier payments, not treated as a surprise every quarter.
Which method, and why it matters
Most monthly reporting uses the indirect method starting from net income, which is faster to produce and easier to tie back to the P&L. We use the direct method when a lender or investor specifically asks for it, since some credit teams want to see cash receipts and payments by category rather than a reconciliation.
A bank balance is not a cash flow statement
A bank balance tells you today's number, not why it moved or where it is heading. A cash flow statement and a rolling forecast show both, which matters most in the months instalments, GST/HST remittances and payroll all land close together.
Questions
Frequently asked questions: Cash flow statements
Do personal tax instalments show up in the cash flow forecast?
Yes, for an owner drawing income personally. Quarterly instalments are due March 15, June 15, September 15 and December 15, and we build those dates into the forecast as real cash outflows.
How far ahead does the rolling forecast look?
Typically 13 weeks on a rolling basis, extended if a lender or investor needs a longer view.
Can the statement split out multiple entities or currencies?
Yes, where a group runs more than one entity or bills in more than one currency, each is shown separately before rolling up.
What activities does the statement break out?
Operating, investing and financing activity, each shown separately with notes on the largest swings each month.
What exactly is included in cash flow statements?
Monthly statement of cash flows, direct or indirect method, and reconciliation of net income to operating cash flow. This work runs inside Google Sheets or Excel, whichever your business already has in place, and it rolls into your regular monthly close rather than sitting off to the side as a separate, unreconciled process.
Isn't my bank balance enough to know my cash position?
A bank balance tells you today's number, not why it moved or where it is heading; a cash flow statement and forecast show both.
Direct or indirect method, which do you use?
Most monthly reporting uses the indirect method starting from net income; we use the direct method when a lender or investor specifically asks for it.
What software works with cash flow statements?
Cash flow statements runs inside Google Sheets or Excel, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
How do we get started with cash flow statements?
Getting started with cash flow statements begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
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Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.