Our Process Follows Cash Movement, Not Memorised Templates
Cash flow statements expose gaps in understanding very quickly. I've seen students prepare neat-looking statements that still lose marks because the logic behind adjustments wasn't clear. Good cash flow work isn't about filling rows – it's about tracing how money actually moves. Our process follows that thinking, step by step, the way a careful accountant would.
1. Understanding the Given Financial Information First
We begin by reading the question slowly – balance sheets, income statements, notes, and additional information. We identify what has changed, what hasn't, and which figures affect cash. This step prevents blind adjustments later.
2. Choosing the Correct Method (Direct or Indirect)
Before calculations begin, we confirm which method is required. Many students mix formats or apply the wrong structure. We stick strictly to the method asked, following university-preferred layouts. Format errors cost marks even when numbers are right.
3. Converting Profit into Operating Cash Flow
For the indirect method, we carefully adjust net profit for non-cash items and working capital movements. Every addition or subtraction is explained in simple terms – no unexplained figures. This is where most statements fail, so we slow it down.
4. Classifying Investing and Financing Activities Clearly
Asset purchases, disposals, loans, share capital, dividends – each item is classified deliberately. We explain why an item is operating, investing, or financing, instead of assuming it's obvious. Examiners check this closely.
5. Checking Cash Balance Reconciliation
Once all sections are complete, we reconcile opening and closing cash balances. If something doesn't match, we trace it back calmly instead of forcing numbers. Accuracy comes before speed.
6. Final Review as an Examiner Would
Before delivery, we review the entire statement as if we were marking it. Are adjustments logical? Is classification consistent? Would the explanation earn method marks? If anything feels unclear, it's refined – quietly and carefully.









