Cash Flow Statement (Indirect Method)
A Cash Flow Statement (Indirect Method) starts with net profit and adjusts for non-cash items and working capital movements. Our UK-specific template helps landlords, business owners, accountants, and finance teams clearly reconcile profit to cash — making financial reporting accurate, compliant, and lender-ready.
- Indirect Method Cash Reconciliation
- Profit to Cash Bridge
- Working Capital Movement Tracking
- Cash Increase / Decrease Analysis
Get Full Visibility into Your Property Cash Flow
Everything you need to understand why profit and cash differ in your rental business — not just headline profit figures.
- Starts with net profit from rental operations.
- Adjusts for non-cash items such as depreciation and accruals.
- Tracks changes in rent receivable, payables, and prepaid expenses.
- Separate visibility for operating, investing, and financing cash flows.
- Opening and closing cash balance reconciliation.
- Designed for UK landlords, property investors, and statutory reporting.
CASH FLOW STATEMENT
Indirect Method - UK Property Portfolio
COMPANY INFORMATION
Company/Business Name: [Name]
Reporting Period: [Month/Year]
Period Start: [Date]
Period End: [Date]
Business Type:
☐ Landlord/Property Portfolio
☐ SME Business
☐ Startup
1. OPERATING ACTIVITIES
Cash received from and paid to operating activities
Cash Receipts from Operating Activities:
Rent received from tenants: £[Amount]
Customer receipts: £[Amount]
Sales receipts: £[Amount]
Other operating receipts: £[Amount]
Total Cash Receipts: £[Amount]
Cash Payments for Operating Activities:
Payments to suppliers: £[Amount]
Wages and salaries: £[Amount]
Management fees: £[Amount]
Maintenance and repairs: £[Amount]
Insurance payments: £[Amount]
VAT payments: £[Amount]
PAYE payments: £[Amount]
Overheads and utilities: £[Amount]
Marketing expenses: £[Amount]
Software subscriptions: £[Amount]
Total Cash Payments: £[Amount]
Net Cash from Operating Activities: £[Amount]
(Total Receipts - Total Payments)
2. INVESTING ACTIVITIES
Cash flows from purchase and sale of assets
Cash Payments for Investing Activities:
Property purchases: £[Amount]
Refurbishments: £[Amount]
Equipment purchases: £[Amount]
Systems and technology: £[Amount]
Product development: £[Amount]
Total Cash Payments: £[Amount]
Cash Receipts from Investing Activities:
Asset sales: £[Amount]
Property sales: £[Amount]
Total Cash Receipts: £[Amount]
Net Cash from Investing Activities: £[Amount]
(Total Receipts - Total Payments)
3. FINANCING ACTIVITIES
Cash flows from borrowing, equity, and capital
Cash Receipts from Financing Activities:
Mortgage drawdowns: £[Amount]
Loan proceeds: £[Amount]
Equity funding: £[Amount]
Owner capital introduced: £[Amount]
Founder capital: £[Amount]
Total Cash Receipts: £[Amount]
Cash Payments for Financing Activities:
Mortgage repayments: £[Amount]
Loan repayments: £[Amount]
Dividends paid: £[Amount]
Drawings: £[Amount]
Total Cash Payments: £[Amount]
Net Cash from Financing Activities: £[Amount]
(Total Receipts - Total Payments)
4. CASH FLOW SUMMARY
Net Cash from Operating Activities: £[Amount]
Net Cash from Investing Activities: £[Amount]
Net Cash from Financing Activities: £[Amount]
Net Increase/(Decrease) in Cash: £[Amount]
Opening Cash Balance: £[Amount]
Net Increase/(Decrease) in Cash: £[Amount]
Closing Cash Balance: £[Amount]
(Opening Balance + Net Change)
Why You Need a Cash Flow Statement Under Indirect Method
Essential benefits of using an indirect method cash flow template for your property portfolio.
Cash Flow Statement Essentials Under Indirect Method
Landlords
Property portfolio cash flow essentials
Explains why rental profit does not always equal cash available.
SMEs
Small and medium enterprise cash management
Provides a clear audit trail from profit to cash for HMRC and lenders.
Startups
Early-stage company cash flow tracking
Helps investors understand cash burn beyond accounting losses.
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Cash Flow Statements Made Simple
Stop guessing why profit doesn’t match cash. Use our Indirect Method Cash Flow Statement Template to reconcile profit to cash with clarity and confidence.
Frequently Asked Questions
The indirect method starts with net profit and adjusts for non-cash items and working capital changes to arrive at net cash flow.
No, it is not mandatory under UK rules. However, it is widely used in statutory accounts and financial reporting.
Yes, it is commonly used by UK landlords for year-end accounts. It is also helpful for mortgage applications and lender reviews.
Yes, it directly reconciles figures from both the profit and loss account and the balance sheet. Together, they provide a complete financial picture.
It is usually prepared annually for statutory reporting. Some landlords also prepare it quarterly or monthly for better cash flow analysis.