Recent research conducted by CIPFA has found that the biggest bugbear for accountants, in the production of the annual accounts, is the completion of the Cash Flow Statement.

Given the increasing pressure to close the accounts and to report results earlier, the process of producing an accurate, FRS 1 (revised) and SORP compliant Cash Flow Statement can prove to be a lengthy process for practitioners.

In response to this need, CIPFA has developed an automated Cash Flow Statement Toolkit (CFST) with a detailed guidance manual and training to support implementation. The CFST consists of a number of excel worksheets that guide the practitioner through the step-by-step processes required to achieve a balanced FRS 1 (revised) and SORP compliant Cash Flow Statement and associated notes.

The worksheets are set up to calculate cash flow figures and export these to other cells or worksheets throughout the CFST as appropriate, thereby avoiding the need to re-calculate or re-input figures. The Toolkit also provides a complete worked example for reference and guidance. In recognition of the risks associated with the use of spreadsheets, the CFST is populated with control checks and balances to ensure accuracy. Helpful cell comments and tips are included throughout the CFST to facilitate the prompt preparation of the Cash Flow Statement.

The Guidance manual provides a comprehensive step-by-step guide for completion of the worksheets. It also includes a number of helpful tips to increase practitioners’ awareness of non-cash items and other entries that need to be identified and adjusted for, to provide correct input data and an accurate and balanced Cash Flow Statement.

The Cash Flow Statement Toolkit has been successfully piloted with eight local authorities across the United Kingdom. All pilot authorities found the CFST to be an invaluable, user-friendly aid for the production of an accurate Cash Flow Statement and easily auditable working papers. They confirmed that the CFST dramatically reduced the amount of time, resources and effort required to produce the Cash Flow Statement.

Those authorities investing in the Toolkit will be entitled to a delegate place at a one-day workshop that will provide practical detailed guidance on the preparation for, and completion of, the Cash Flow Statement.

The cost of this Toolkit is £1,500 plus VAT and includes:

• A CD ROM containing all excel worksheets with appropriate formulae, prompts and macros
• A worked example
• Detailed guidance manual (on CD ROM and hard copy)
• Attendance of one delegate at a one-day workshop which will be held at various locations across the UK in early 2008.

Important Features of the Toolkit

• Significantly reduces the time taken to prepare the Cash Flow Statement during times of prime resource competition in the Finance section
• Ensures that figures are entered only once into CFST worksheets to keep errors and omissions to a minimum
• Is simple to understand and apply, even in the most complex circumstances
• Identifies areas in the financial statements’ working papers that may need further analysis
• Promotes a structured approach to the preparation of the Cash Flow Statement
• Provides a comprehensive set of easily auditable working papers
• Can be imported quickly and accurately into the core financial statements
• Streamlines what is a very time consuming, manual and often protracted process.