The cash flow statement

The Cash flow tab of Reports shows where cash came from and where it went, for each company, their sum and the group. It is built entirely from the books you upload — no separate input is needed.

The indirect method

Indirect is the default. It starts from the net profit and turns it into cash:

1. Cash flows from operating activities — the net profit after tax; reporting-only adjustments and the non-cash items added back (depreciation, impairment, fair-value changes, deferred tax and the current income tax expense, and the interest expense when interest paid is classified as financing); the change in each working-capital item from the balance-sheet movements (inventories, receivables, advances, payables, accruals, provisions, and Change in VAT and other tax balances, split by tax type into of which VAT and the other taxes); income taxes paid. Total: Cash flow from operations.
2. Cash flows from investing activities — purchases of intangible assets, of property, plant & equipment, investment property, development, loans granted, investments and deposits, and other non-current assets. Total: Cash flow from investing, followed by Free cash flow.
3. Cash flows from financing activities — see below. Total: Cash flow from financing.
4. Effect of exchange-rate changes on cash, Other non-cash movements / reconciliation, Net cash flow in period, Cash at beginning and Cash at end.

Cash at beginning plus the net cash flow always equals cash at end. Anything the movements cannot explain — for example a local account mapped across the cash boundary — is shown on the reconciliation line; click it to see what it is made of. An overdrawn bank account stays in cash here, while the balance sheet shows it as a short-term borrowing.

Indirect or Direct

The Indirect | Direct switch beside the tabs changes only the operating section; investing and financing are the same in both.

Direct takes the bank and cash postings and classifies each by the account it was paid or received against:

• Cash received from customers
• Cash paid to suppliers
• Cash paid to and for employees
• VAT and other taxes paid (net) — the payments to the tax office
• Other operating receipts and payments, Income taxes paid, and Interest paid when interest paid is classified as operating (otherwise interest stays in financing, as in the indirect view)
• Difference to the indirect method — cash the two methods put in different places, mostly investments or loans paid through supplier accounts. Click it to see the investing or financing lines and partners behind it.

Cash flow from operations is the same figure in both views: the direct lines plus the difference add up to it. Below it, the direct view repeats the indirect reconciliation of net profit to cash flow from operations. Where a company's books have no cash postings for the years of a column, its direct lines are estimated from the P&L and the balance-sheet movements and marked ◦; click such a figure to see the conversion.

Financing and debt

Financing shows each kind of funding on its own line: Bank loans drawn and Bank loans repaid (gross, not netted), overdrafts and short-term bank loans, bonds, Intercompany loans received / (repaid), lease liabilities, Loans from shareholders & related parties received / (repaid), other financial liabilities, interest paid, share capital, Profit distributions paid and other equity movements. A transfer between retained earnings and a fund in the same month is not cash and does not appear.

Whether interest paid counts as operating or financing is a group setting, shown to admins under Settings → Group profile as Interest paid classification.

Reporting-only adjustments

On Books + adjustments, an adjustment journal made only for reporting (for example an allocation of central costs) changes the profit but not the cash. Its effect is added back on Reporting-only adjustments (no cash effect) right below the net profit, so every other line equals the cash flow of the books alone.

Net-debt reconciliation

At the bottom, the Net-debt reconciliation follows the financial debt — bank loans, overdrafts, bonds and leases — from the beginning to the end of the period: drawn, repaid, other cash movements, non-cash movements and exchange-rate effects. Then Net bank debt at beginning, Less: free cash flow (reduces net debt), Add: dividends, equity and other financing flows, the non-cash effects and Net bank debt at end (financial debt less cash).

Intercompany loans, loans from owners and trade payables are never part of net bank debt.

Free cash flow

The statement's Free cash flow line is cash flow from operations plus the whole investing section; the Ratios tab's Free cash flow margin (simple FCF) uses this line. On the Home dashboard, the Cash flow tile's free cash flow is narrower: cash flow from operations less capital expenditure only (purchases of property, plant & equipment and intangible assets), so loans granted or deposits do not reduce it. The Balance sheet tile's Net bank debt (or Net cash) is the net-debt reconciliation's Net bank debt at end. See Home dashboard.

Good to know

• In a presentation currency such as EUR, cash flows are translated at each month's ČNB average and cash balances at the closing rate; share capital, profit distributions and other equity movements are translated at the rate of their posting date. The difference is the Effect of exchange-rate changes on cash. See Exchange rates.
• The cash flow tab has no signs or dimension filters: every line is signed as its cash effect, + in and − out.
• Most figures drill down to the accounts and postings behind them (Drill-down); the net-debt reconciliation lines are arithmetic on balances and other lines and do not.