Financial Reporting

Cash Flow Statement Reconciliation Template

Reconcile cash flow statement to GL ending cash balance. Tie operating, investing, and financing activities to supporting detail.

How to use this template

1

Pull GL cash balances

Extract beginning cash, ending cash, and all cash-related GL accounts from trial balance.

2

Build operating activities section

Start with net income and adjust for: depreciation, amortization, deferred taxes, changes in working capital accounts.

3

Build investing activities section

Detail capital expenditures, asset disposals, acquisitions, and other non-operating investments made during the period.

4

Build financing activities section

Document debt borrowed and repaid, equity issued or repurchased, and dividends paid.

5

Reconcile and tie to GL

Verify: Beginning cash + operating + investing + financing = ending cash. Tie ending cash to GL balance.

Why use this template

  • Explains how business generated or used cash during period
  • Identifies quality of earnings and sustainability of results
  • Shows liquidity and capital allocation decisions
  • Critical for understanding true financial health beyond accrual results

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