Cash Flow Statement

Cash Flow Statement Software — Track Every Dollar In and Out

Record a payment and see your cash position update instantly. Operating, investing, and financing activities — all auto-generated from your general ledger.

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Cash Flow Statement = Operating + Investing + Financing

Example: $65,000 received from clients − $38,500 in expenses − $15,000 equipment purchase + $10,000 owner investment = $21,500 net cash increase. iBill generates this automatically from your GL entries — no signup required to explore.

The Three Sections of a Cash Flow Statement

A cash flow statement tracks how cash moves through your business, organized into three categories

Operating Activities

Cash from your core business operations. This includes payments received from clients, expenses paid for supplies and services, GST/HST remittances, and payroll. Operating cash flow is the most important indicator of whether your business generates enough cash to sustain itself day-to-day.

Investing Activities

Cash spent on or received from long-term assets. This includes purchasing equipment (GL 1600), vehicles, computers, and other capital assets tracked through CCA depreciation. When you sell an asset, the proceeds appear here too. Investing activities show how you are building or liquidating your business infrastructure.

Financing Activities

Cash from owners and lenders. This includes owner capital contributions (GL 3100), owner draws, loan proceeds, and loan repayments. Financing activities show how your business is funded beyond its own operations — whether through the owner's pocket or external borrowing.

Cash Flow Statement Features

Everything you need to understand where your cash comes from and where it goes

Auto-Generated from GL

Your cash flow statement is built directly from general ledger journal entries. Every payment received, expense paid, and asset purchase flows into the correct cash flow category automatically — no manual data entry or spreadsheets needed.

Cash-Basis Reporting

iBill uses accrual accounting for revenue display. Sales tax timing follows the Excise Tax Act s.168 rule (earlier of invoice date or payment date). Your tax preparer determines which basis applies to your filing.

Real-Time Updates

Every time you record a client payment, pay an expense, or purchase equipment, your cash flow statement updates instantly. No waiting for month-end. You always know your current cash position and how it has changed.

Period Comparison

Compare cash flow across periods — this month vs. last month, this quarter vs. last quarter, or any custom date range. Spot trends in operating cash flow, identify seasonal patterns, and track whether your business is becoming more or less cash-positive over time.

Export to PDF & Excel

Export your cash flow statement to a professional PDF for your accountant, banker, or loan application — or to Excel for custom analysis. Both formats show the full operating, investing, and financing breakdown with period totals.

CRA Audit Trail

Every line item on your cash flow statement links back to its source journal entry with entry number, date, and description. This gives you full traceability for CRA audits under ITA s.230 — every dollar in and out is documented and verifiable.

See Where Your Cash Goes

Every payment, expense, and asset purchase flows into your cash flow statement automatically. No spreadsheets, no guesswork.

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Cash Flow Statement Example

A sample cash flow statement showing how operating, investing, and financing activities are presented

Sample Business — Cash Flow Statement

For the period January 1 – March 7, 2026

OPERATING ACTIVITIES

Cash received from clients

$65,000.00

Cash paid for expenses

($38,500.00)

GST/HST remitted

($4,200.00)

Net Operating Cash Flow

$22,300.00

INVESTING ACTIVITIES

Equipment purchased (GL 1600)

($15,000.00)

Net Investing Cash Flow

($15,000.00)

FINANCING ACTIVITIES

Owner capital contribution (GL 3100)

$10,000.00

Owner draws

($5,000.00)

Net Financing Cash Flow

$5,000.00

Net Increase in Cash

$12,300.00

Cash, beginning of period

$30,200.00

Cash, end of period (GL 1200)

$42,500.00

Ending cash ties to the balance sheet: The $42,500 ending cash balance matches GL 1200 (Cash and Bank) on the balance sheet. iBill ensures this reconciliation automatically — if a journal entry affects cash, it appears on both statements.

Why Cash Flow Matters for Your Business

Profitable businesses can still run out of cash. A cash flow statement shows you the full picture.

Cash vs. Profit

Your income statement might show a profit, but if clients pay late and expenses are due now, you could still be short on cash. The cash flow statement reveals timing differences between earning revenue and actually receiving payment — critical for managing payroll, rent, and supplier bills.

Loan & Credit Applications

Banks and lenders want to see your cash flow statement alongside your balance sheet and income statement. Positive operating cash flow demonstrates that your business generates enough cash to service debt — often more important to lenders than reported profit.

CRA Compliance

The CRA requires businesses to maintain accurate financial records under ITA s.230. A cash flow statement helps verify that reported income matches actual cash received, that expenses are documented, and that asset transactions are properly recorded. iBill links every cash flow entry to its source journal entry.

Cash Flow Statement FAQs

What is a cash flow statement?

A cash flow statement is a financial statement that shows how cash moves in and out of your business over a specific period. It is divided into three sections: operating activities (day-to-day business), investing activities (asset purchases and sales), and financing activities (loans, owner draws, and capital contributions). Unlike the income statement, it tracks actual cash movement — not accrued revenue.

What are the three sections of a cash flow statement?

The three sections are: (1) Operating Activities — cash from core business operations such as payments received from clients and expenses paid; (2) Investing Activities — cash used to buy or sell long-term assets like equipment, vehicles, and capital assets; (3) Financing Activities — cash from owner capital contributions, owner draws, and loan proceeds or repayments. Together, they explain the total change in your cash balance for the period.

How does iBill generate a cash flow statement automatically?

iBill generates your cash flow statement directly from your general ledger journal entries. Every payment received, expense paid, asset purchased, and owner draw is categorized into the correct cash flow section automatically. The statement updates in real time as you record transactions — no manual data entry or spreadsheets needed.

What is the difference between cash basis and accrual basis for cash flow?

Cash-basis accounting records revenue when cash is received and expenses when cash is paid. Accrual-basis records revenue when earned and expenses when incurred, regardless of payment timing. iBill uses accrual accounting for revenue display. Sales tax timing follows the Excise Tax Act s.168 rule. Your tax preparer determines which basis applies to your filing.

Why is a cash flow statement important for CRA compliance?

The CRA requires businesses to maintain accurate financial records under ITA s.230. A cash flow statement helps demonstrate that your reported income matches actual cash received, that business expenses are legitimate and documented, and that asset acquisitions and dispositions are properly recorded. iBill's audit trail links every cash flow line item to its source journal entry for full traceability.

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