Value Proposition: The Cash Flow Statement is not just prepared by posting “bank movements”; what is required at closing is a file that links net income to cash movements (Operating/Investing/Financing) and explains working capital differences, along with a clear Cash Flow Schedule and a testable Tie-out.

In 20 Seconds: What Will You Get?

• Practical Explanation for building Cash Flow from Adjusted TB step by step (not theoretical).
• Cash Flow Template (Excel) ready: Operating/Investing/Financing with customizable items.
• Working Capital Bridge: Analysis of changes in AR/AP/Inventory and their impact on cash.
• Non‑Cash Adjustments Schedule: Depreciation/Provisions/FX/Revaluation… as supporting schedules.
• Capex & FA Schedule: Separating asset purchases/sales from depreciation (to ensure Investing is accurate).
• Debt/Equity Movements: Linking financing (Loans/Facilities/Distributions/Capital Increase) to the Financing item.
• Tie-out & Review Checklist: Ensure that Cash Flow matches cash movements (Opening/Closing) and the source of each number.

CTA related to outputs: Receive Cash Flow Template + Working Capital Bridge + Tie-out + Checklist + Closing Pack Index.

Suitable For

• Financial Reporting / GL: For preparing Cash Flow from TB in a reviewable and deliverable manner.
• Controller / CFO Office: To transform financial statements into practical Cash Flow Analysis that supports management and banks.
• FP&A: To use the resulting Cash Flow as an input for Cash Flow Management and financing decisions.

Not Suitable For

• Those looking for rulings or details on cash threshold or Zakat obligations on cash — this is a jurisprudential topic for individuals outside the scope of the product.
• Those wanting a “banking program” that automatically pulls all movements and generates Cash Flow without accounting preparation and linking to TB.

Without the Pack / With the Pack (Short Comparison)

Before Use: 5 Symptoms That Cash Flow Will Be “Unexplainable”

• Net income is positive but cash is negative, and there is no Working Capital Bridge explaining the difference (AR/AP/Inventory).
• Fixed assets are treated as a single number without separating Capex from depreciation, resulting in incorrect Investing.
• Loans/Facilities appear as a balance change only, without separating Drawdowns/Repayments/Interest within Financing.
• Cash movements (Opening/Closing cash) do not match the balance sheet or Bank reconciliation summary.
• There is no Tie-out file linking each item in Cash Flow to its source (TB/BS/Schedules), hindering the review.

How to Prepare the Cash Flow Statement Practically?

Step 1: Preparation and Gathering Reports

• Establish Adjusted TB and a copy of the balance sheet and income statement for the period (clear cut-off).
• Gather supporting files: Customer/Vendor movements, inventory, fixed assets (FA rollforward), loans/facilities, and any distributions/financing.
• Determine the classification of items (Operating/Investing/Financing) according to your company’s presentation policy.

Step 2: Build Supporting Schedules + Classification

• Run the Cash Flow Schedule (Indirect) starting from Net Profit then Non‑cash adjustments then Working capital changes.
• Prepare a Capex schedule for assets (Additions/Disposals) and link it to the Investing item.
• Prepare Debt/Equity movements and link them to Financing, separating interest as Operating (or according to the approved presentation policy).

Step 3: Tie-out + Review + Deliver Closing Pack

• Link Opening/Closing cash to the balance sheet and to the Bank reconciliation summary (to prove that Cash Flow “closes”).
• Run Tie-out for each item: its source TB/BS/Schedule + document clear exceptions (Exception list).
• Compile the Closing Pack: template + schedules + Checklists + Pack Index with Prepared/Reviewed.

Pack Components (Clear Inventory)

1. Guide (Cash Flow Statement Explanation)
   • Practical Purpose: Transform the topic from “explanation” to operational steps within the closing.
   • When to Use: First application + when training a new employee or changing the presentation policy.
   • Resulting Guide: Runbook that can be attached within the closing file as a reference for methodology.
2. Cash Flow Statement Template (Indirect)
   • Practical Purpose: Produce a Cash Flow Statement (Operating/Investing/Financing) consistently and repeatedly.
   • When to Use: Quarter/Year-End (Core) + Month-End when needed.
   • Resulting Guide: Cash Flow output versioned (v1/v2) ready for printing and delivery.
3. Working Capital Bridge (AR/AP/Inventory)
   • Practical Purpose: Cash Flow Analysis by interpreting the difference between profit and cash (changes in working capital).
   • When to Use: Every period preparing Cash Flow.
   • Resulting Guide: Bridge schedule linking changes to the period’s balance sheet and accounts.
4. Non‑Cash Adjustments Schedule
   • Practical Purpose: Separate non-cash items (Depreciation/Provisions/FX/Unrealized) instead of listing them as “numbers without explanation.”
   • When to Use: In every preparation, especially Year-End.
   • Resulting Guide: Schedule linking each Adjustment to its accounts in TB and/or memo.
5. Capex & Fixed Assets Movement
   • Practical Purpose: Adjust Investing: purchase/sale of assets + their cash impact, separated from depreciation.
   • When to Use: Quarter/Year-End, and sometimes monthly.
   • Resulting Guide: Capex schedule + Tie-out to FA rollforward/GL.
6. Debt/Equity Movements (Financing)
   • Practical Purpose: Document financing: withdrawals/repayments/distributions/capital increases and link them to Financing.
   • When to Use: When there is financing activity + Year-End.
   • Resulting Guide: Financing schedule + References to bank statements/letters or distribution decisions.
7. Tie-out & Validation Checks
   • Practical Purpose: Prove that Cash Flow “closes” and that each item has a verifiable source.
   • When to Use: Before final version approval.
   • Resulting Guide: Tie-out report + Exception list + Repair status.
8. Review Checklist + Pack Index
   • Practical Purpose: Operate the file as a delivery: Prepared/Reviewed + month version + index of pack contents.
   • When to Use: When issuing a “Release” version.
   • Resulting Guide: Completed checklist + Pack index + Version control.

What Should Be Included in the Delivery?

• 01-Runbook (PDF/DOCX): Practical explanation of the methodology + definition of classifications + check points.
• 02-Cash Flow Template (XLSX): Cash Flow Template (Indirect) + customizable items.
• 03-Working Capital Bridge: Schedule of AR/AP/Inventory changes + their sources (BS/TB) + explanation of differences.
• 04-Non‑Cash Adjustments: Schedule of depreciation/provisions/variances… linking each item to accounts in TB.
• 05-Capex/FA Schedule: Additions/Disposals + linking to FA rollforward/GL + cash impact.
• 06-Financing Schedule: Loans/Facilities/Distributions/Capital Increase + proof sources.
• 07-Tie-out Report: Opening/Closing cash ↔ BS + linking items to their sources + Exceptions.
• 08-Review Checklist: Review checklist before release + result of each item.
• 09-Pack Index & Sign-off: Version + Prepared/Reviewed + Date + Reporting period.
• 10-Archiving Map: File naming and archiving path (Year/Period/Version) to establish the final version.

After Implementation (Two Points Only)

• Operational Outcome for the Team: Preparing Cash Flow becomes a fixed step within the closing: TB → Schedules → Cash Flow → Tie-out → Release instead of last week’s efforts.
• Control/Audit Outcome: Traceability: Each item in the list is linked to a supporting schedule and source TB/BS with documented Exceptions and Version/Sign-off within the Closing Pack.

FAQ — Questions Before Purchase

Is this product just an “explanation” or does it produce a practical model?

It is an operational explanation + Cash Flow Template (Excel) + supporting schedules + Tie-out. The goal is to produce a deliverable statement, not just theoretical material.

Is it suitable for any ERP?

Yes. Because the basic inputs are Exports: TB/BS/P&L + AR/AP/Inventory movements + Asset/Financing schedules, and the outputs are Excel files that can be linked without integration.

Does it rely on the Indirect Method or the Direct Method?

The basis is Indirect as it is the most commonly used for preparing statements from TB. The Direct method can be added as an internal analysis if collection/payment data is available accurately.

What is the minimum data required to get started?

Adjusted TB + Balance Sheet at the beginning/end of the period + Net Profit + Opening/Closing cash balance. To enhance the quality of the statement: changes in AR/AP/Inventory + Capex/FA + loan/financing movements.

Does it support “Cash Flow Management” and not just statement preparation?

Yes, partially: because you will produce Cash Flow Analysis through the Working Capital Bridge and financing/investment items. However, detailed forecasting (Forecast) is usually a separate Treasury product/package.

Is it useful for “Company Valuation via Cash Flows” (DCF)?

It helps because the classified Cash Flow and the Tie-out provide a clean basis for analysis. However, the DCF model itself (WACC/Terminal value) is not within the scope of this product.

Does this product relate to cash threshold or Zakat on cash?

No. These are jurisprudential topics for individuals. The product is intended for companies to prepare and deliver Cash Flow Statements.

Is it suitable for Month-End?

Yes, if your management needs Cash Flow monthly or for banks/facilities, but the stronger use is usually Quarter/Year-End where an official statement is required within the reports.

Ready to prepare Cash Flow with a reviewable delivery instead of “unexplainable” numbers?

Outputs: Cash Flow Template + Bridges/Schedules + Tie-out + Review Checklist + Pack Index.