# Preparing the Cash Flow Statement

> Source: https://help.getedara.com/en/articles/5335382-preparing-the-cash-flow-statement · Category: Accounting › Cash flow setup · Last updated: 2026-07-25 · العربية: https://help.getedara.com/ar/articles/5335382-%D8%A5%D8%B9%D8%AF%D8%A7%D8%AF-%D9%82%D8%A7%D8%A6%D9%85%D8%A9-%D8%A7%D9%84%D8%AA%D8%AF%D9%81%D9%82%D8%A7%D8%AA-%D8%A7%D9%84%D9%86%D9%82%D8%AF%D9%8A%D8%A9

A cash flow statement is a financial report that shows the impact of operating, investing, and financing activities on the company’s cash and cash equivalents during a specific period. It helps you understand the company's cash flow and assess its ability to generate and use cash for operations, investments, and financing, supporting more accurate financial decisions.

## Preparing the Cash Flow Statement

This process is completed through three main steps:

### 1- Selecting Balance Sheet Accounts Linked to Cash Flows

1. Go to the “Accounting” module.
2. Open the “Cash Flow Setup” page.
3. Select “Assets” then click on “▶”.
4. Select “Liabilities” then click on “▶”.
5. Select “Owners Equity” then click on “▶”.

![1- Selecting Balance Sheet Accounts Linked to Cash Flows — Select “Owners Equity” then click on “▶”.](https://help.getedara.com/images/fin-reports/5335382/01.en.gif)

### 2- Creating Cash Flow Sections

1. Set sections to “Please Select”.
2. Click on “ **🖉** ”.
3. Enter the section name “Adjusted Net Profit”.
4. Make sure the field “Display order: 1” is selected.
5. Click on “ **Save** ”.
6. Create another section named “Operating Activities” using the same previous steps.
7. Set “Display order: 2”.
8. Set the section total name to “Cash Flow from Operating Activities”.
9. Click on “ **Save** ”.
10. Create another section named “Investing Activities”.
11. Set “Display order: 3”.
12. Set the section total name to “Cash Flow from Investing Activities”.
13. Click on “ **Save** ”.
14. Create another section named “Financing Activities”.
15. Set “Display order: 4”.
16. Set the section total name to “Cash Flow from Financing Activities”.
17. Click on “ **Save** ”.
18. Reload the page.

![2- Creating Cash Flow Sections — Reload the page.](https://help.getedara.com/images/fin-reports/5335382/02.en.gif)

### 3- Directing Accounts to the Created Sections

1. Click on “ **+** ” next to “Assets”.
2. Select “Operating Activities” next to “Current Assets”.
3. Click on “ **Update Changes** ”.
4. Click on the “+” next to “Current Assets”.
5. Select “Please select item” next to both “Cash in Treasury” and “Cash in Banks”.
6. Click on “ **Update Changes** ”.
7. Click on “ **+** ” next to “Liabilities”.
8. Select “Operating Activities” next to “Current Liabilities”.
9. Click on “ **Update Changes** ”.

![3- Directing Accounts to the Created Sections — Click on “Update Changes”.](https://help.getedara.com/images/fin-reports/5335382/03.en.gif)

1. Select "Investing Activities" in front of "Fixed Assets," excluding accumulated depreciation, if their accounts are assigned to the fixed asset's node.
2. Click on “ **Update Changes** ”.
3. Next to “Equity”, select “Financing Activities”.
4. Click on “ **Update Changes** ”.

![3- Directing Accounts to the Created Sections — Click on “Update Changes”.](https://help.getedara.com/images/fin-reports/5335382/04.en.gif)

> **Notes:**
>
> 1. Make sure that all transactions are posted before operating the cash flow statement to ensure accurate results in the report.
> 2. You can ensure that the settings are correct by comparing net cash flow with the cash and bank account balances in the “ [General Ledger](https://help.getedara.com/en/articles/16082997-reviewing-cash-flow-statement-sections-using-the-general-ledger) ” for the same period (Trial balance of).

## Frequently asked questions

**How do I check that the cash flow statement setup is correct?**

You can ensure that the settings are correct by comparing net cash flow with the cash and bank account balances in the “[General Ledger](https://help.getedara.com/en/articles/16082997-reviewing-cash-flow-statement-sections-using-the-general-ledger)” for the same period (Trial balance of).