Canadian Cash Flow Statement Template
A free Canadian cash flow statement template covering operating, investing and financing activities, aligned to ASPE.
- Accounting standard
- ASPE (CPA Canada Handbook, Part II)
- Financial year
- Corporation-chosen fiscal year-end (up to 53 weeks); many use 31 Dec
- Currency
- CAD (C$)
- Filed with
- Corporations Canada (annual return); CRA (T2)
| 2026 | 2025 | |
|---|---|---|
| Cash flows from operating activities | C$97,000 | C$97,000 |
| Net income | C$100,000 | C$100,000 |
| Depreciation and amortization | C$30,000 | C$30,000 |
| Change in non-cash working capital | C$8,000 | C$8,000 |
| Income taxes paid | C$25,000 | C$25,000 |
| Cash flows from investing activities | (C$50,000) | (C$50,000) |
| Purchase of property, plant and equipment | C$50,000 | C$50,000 |
| Cash flows from financing activities | C$5,000 | C$5,000 |
| Proceeds from long-term debt | C$20,000 | C$20,000 |
| Dividends paid | C$15,000 | C$15,000 |
| Net increase in cash and cash equivalents | C$52,000 | C$52,000 |
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How to Fill In a Canadian Cash Flow Statement Template
A cash flow statement shows how cash actually moved through a Canadian business during the period, split into operating, investing and financing activities. It answers a question the income statement cannot: whether a profitable business is actually generating cash, or whether that profit is tied up in receivables, inventory or capital spending.
Banks and lenders in Canada often ask for this statement alongside the income statement and balance sheet because it shows debt-servicing capacity more directly than net income alone.
What is a cash flow statement?
A cash flow statement reconciles net income to the actual change in cash and cash equivalents over a period, by adjusting for non-cash items and reclassifying cash movements into operating, investing and financing categories.
What to include
- Net income — the starting point, taken from the income statement.
- Depreciation and amortization — a non-cash expense added back because it reduced net income without using cash.
- Change in non-cash working capital — the net effect of movements in receivables, inventory and payables on cash.
- Income taxes paid — actual cash tax payments made during the period.
- Purchase of property, plant and equipment — cash spent on capital assets, an investing outflow.
- Proceeds from long-term debt — cash received from new borrowing, a financing inflow.
- Dividends paid — cash distributed to shareholders, a financing outflow.
- Net increase in cash and cash equivalents — the total movement across all three sections for the period.
Step-by-step guide
- Start with net income for the period, taken directly from the income statement.
- Add back depreciation and amortization, since these reduced net income but did not use any cash.
- Adjust for the change in non-cash working capital — an increase in receivables or inventory uses cash, while an increase in payables frees up cash.
- Deduct income taxes actually paid in cash during the period to complete the operating activities section.
- Enter investing activities, such as cash spent purchasing property, plant and equipment, or proceeds from selling capital assets.
- Enter financing activities, including proceeds from new long-term debt, loan repayments and dividends paid to shareholders.
- Let the template total all three sections into the net increase or decrease in cash for the period, and check that this ties to the actual movement in your bank balance.
Canada-specific rules
Under ASPE (CPA Canada Handbook, Part II), a cash flow statement is one of the primary financial statements a Canadian private corporation should prepare alongside the income statement and balance sheet, using either the direct or indirect method for operating activities — this template uses the more common indirect method, starting from net income.
While Corporations Canada and the CRA do not always require a full set of financial statements to be physically attached for the smallest private corporations, lenders and landlords frequently request a cash flow statement to assess whether the business generates enough cash to service its debts — keeping one current is good practice even where it is not a strict statutory filing requirement.