--- title: "Cash Flow Statements in Cardiff | Luminaire Accounts" description: "Clear cash flow statement that shows where money comes from and goes, so you can plan payments, VAT and growth with confidence." canonical: "https://hlsaccounting.co.uk/services/cash-flow-statement" --- Bookkeeping Services # Cash Flow Statement We prepare clear, compliant cash flow statements that show exactly where your money is going and help you stay on top of your business liquidity. Serving small businesses and sole traders across Cardiff and South Wales, we turn your transactions into a financial snapshot you can actually use. 10 Years experience 200+ Clients supported Monthly Statements available ![Studio photo of a blank structured cash flow statement sheet centered on a desk, with money stacks and arrows showing inflow on the left and outflow on the right, plus a calculator and pen in the lower corners.](/_next/image?url=%2Fapi%2Fmedia%2Ffile%2Fcash-flow-statement-inflow-outflow-studio-photo.png%3Fv%3D1773238947100&w=1536&q=75&dpl=dpl_DEc4fGhEc1SCRZZutzoEsRuDy1CJ) ## What we cover From basic monthly statements to comprehensive forecasting, we handle every aspect of cash flow reporting to give you the visibility you need. ### Operating Activity Tracking We track cash movements from your day-to-day business operations, showing income from sales and payments to suppliers. ### Investing & Financing Analysis We document asset purchases, loan movements and equity changes to give you the complete cash picture. ### Direct Method Statements Line-by-line tracking of individual cash transactions, ideal for smaller businesses with straightforward cash movements. ### Indirect Method Statements Adjusting your net income for non-cash items, perfect if you use accrual accounting and need a complete three-statement view. ## How we handle your cash flow statements A cash flow statement tracks every pound moving in and out of your business over a set period. It sits alongside your profit and loss and balance sheet to show your actual liquidity, not just your profitability. We prepare yours to HMRC standards, making sure you understand where your cash is going and whether you have enough to meet your obligations. > We turn your transaction records into a clear view of your cash position. We start by gathering your bank statements, receipts and payment records. Then we categorise each transaction into operating activities (your core business), investing activities (equipment, vehicles, property) and financing activities (loans, equity, dividends). The result is a three-section statement showing your net cash flow and explaining exactly why your bank balance changed. More information Most small businesses we work with choose the direct method because it is simpler and shows actual cash receipts and payments line by line. If you use accrual accounting or need something investors or lenders will scrutinise, we will prepare an indirect method statement that adjusts your net income for non-cash items like depreciation and changes in working capital. You might be profitable on paper but still struggle to pay bills. A cash flow statement reveals that disconnect. It shows whether late customer payments, stock build-up or equipment purchases are tying up your cash. We highlight these pressure points and suggest practical steps to improve your position. ### What's included - Monthly, quarterly or annual cash flow statements in a format you can follow - Clear categorisation of operating, investing and financing activities - Comparison against previous periods to spot trends - Notes explaining any significant movements or unusual transactions - Integration with your profit and loss and balance sheet for a complete financial picture We work with businesses across Cardiff, Barry, Penarth, Pontypridd and the wider South Wales area. Whether you run a salon in Cathays, a building firm in the Valleys or a shop in the city centre, we know the local cashflow challenges you face: seasonal trade, delayed payments from larger clients, managing VAT quarters. Once your statement is ready, we walk you through it. No jargon, no assumptions that you have an accounting degree. You will understand where your cash came from, where it went, and what it means for the months ahead. ### While you're here - [Month-End Close / Year-End Close](/services/month-end-close-year-end-close)→ - [Bank Reconciliation](/services/bank-reconciliation)→ - [Balance Sheet](/services/balance-sheet)→ ## You might also need Bookkeeping Services ### Profit & Loss Statement Preparation Clear profit and loss statements prepared from your records, with plain-English insight into margins, overheads and true profitability for the period. [Profit & Loss Statement Preparation→](/services/profit-and-loss-statement-preparation) Bookkeeping Services ### Making Tax Digital (MTD) Bookkeeping Compliance Making Tax Digital bookkeeping compliance, including software setup, digital record-keeping, reconciliations and MTD VAT submissions, with clear deadline reminders. [Making Tax Digital (MTD) Bookkeeping Compliance→](/services/making-tax-digital-mtd-bookkeeping-compliance) Bookkeeping Services ### Receipt Management & Paperless Accounting Go paperless without the stress. Capture receipts by phone or email, keep them organised and matched to transactions, and make VAT and year-end accounts much simpler. [Receipt Management & Paperless Accounting→](/services/receipt-management-and-paperless-accounting) Bookkeeping Services ### Accounts Payable & Receivable Management Stay on top of customer invoices and supplier bills. We track debtors and creditors, chase overdue payments, schedule payments and share clear monthly summaries. [Accounts Payable & Receivable Management→](/services/accounts-payable-and-receivable-management) Bookkeeping Services ### Bank Reconciliation We reconcile your bank to your bookkeeping records, fix mismatches and clear uncleared items, so your figures are reliable for VAT, accounts and cash flow. [Bank Reconciliation→](/services/bank-reconciliation) Bookkeeping Services ### QuickBooks Setup & Training Get QuickBooks set up for your business, with bank feeds, VAT settings and invoicing, plus practical training so you can keep your books tidy each week. [QuickBooks Setup & Training→](/services/quickbooks-setup-and-training) ## Before you get started Here are the questions we hear most often about cash flow statements and how we prepare them. How often should I have a cash flow statement prepared? Most small businesses benefit from monthly statements so you can spot problems early. Quarterly works if your cash position is stable, and annual is the minimum for tax and compliance purposes. What is the difference between a cash flow statement and a profit and loss? A profit and loss shows your income and expenses, which can include invoices not yet paid. A cash flow statement only tracks actual money moving in and out of your bank, so it shows your real liquidity. Do I need to provide anything to get started? We need your bank statements for the period, records of any loan or asset transactions, and ideally access to your accounting software if you use one. We will guide you through exactly what we need. Can you prepare a cash flow forecast as well as a statement? Yes. A cash flow statement looks backwards at what happened, while a forecast projects forward. We can prepare both to help you plan ahead and avoid cash shortages. Will this help me with my tax return? Absolutely. HMRC expects accurate records, and a proper cash flow statement ensures your figures are correct and well documented. It also makes year-end accounts much smoother. What method do you use, direct or indirect? For most sole traders and small businesses we use the direct method because it is clearer and easier to follow. If you have investors or use accrual accounting, we will discuss whether the indirect method suits you better. How much does it cost? It depends on your transaction volume and how often you need statements. We will give you a fixed quote once we understand your business. No surprises, no hourly rates creeping up. Can you explain the statement to me once it is done? Yes, we always walk you through it. You will understand what each section means, why your cash position changed, and what you should watch going forward.