finance-cashflow

> **Templates and analytical tools only - not personalized financial, tax, accounting, or legal advice.** The **indirect method assumes accrual basis**. Cash-basis filers without AR/AP/deferred-revenue movements should use the direct-method template below. Review with a CPA before sharing externally. # Finance - Cash Flow Statement Generate a cash flow statement from net income and working capital changes, organized by operating, investing, and financing activities. ## Required first prompt - basis of accounting Ask before generating: > **Basis of accounting**: `cash` / `accrual` / `modified cash` - REQUIRED. > > - **Accrual** → use the **indirect method** (default below). Net income reconciled to operating cash flow via working-capital deltas. > - **Cash basis** → use the **direct method** (template at end of this skill). There is no AR/AP/deferred-revenue to reconcile; net income already equals cash from operations from a tax-book perspective. Indirect method on cash-basis books produces nonsense. > - **Modified cash** → either, depending on which items are accrued; flag each accrued category and reconcile. The cash-flow header MUST display `basis_of_accounting: <selected>` and `method: indirect | direct`. ## When to use - Monthly or quarterly cash flow reporting - Understanding the difference between profit and cash (a business can be profitable but cash-poor) - Preparing financials for a lender or investor - Identifying where cash is being consumed or generated #...