Statement of Cash Flows for a Church of Nonprofit

The statement of cash flows provides information about the cash receipts and distributions of a church or nonprofit. It also shows the extent to which the resources of an organization were obtained from, or used in operating, investing, or financing activities.

The statement of cash flows can be prepared with two different methods:

• Direct method: begins by listing all sources of cash from operations during the period and subtracts all operating outflows of cash to arrive at the net cash flow.

• Indirect method: starts with the change in net assets from your statement of activity and adjusts backwards to reconcile the change in net assets to the net cash flows.

See explanations and examples of church financial statements and a sample of a chart of accounts in the Basic Church Accounting ebook. Also, learn how to properly record some common church financial transactions in a double entry bookkeeping system.

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