Calculating the cash flow statement (TFT)

This guide shows you how to generate the TFT (Tableau des Flux de Trésorerie — Statement of Cash Flows) of SYSCOHADA revised 2019 and how to read its three sections to understand how your company generated and used its cash. While the income statement measures accounting performance, the TFT measures cash performance — two concepts that are often very different for an SME.

Note

Terminology. The TFT replaced the former TAFIRE (Tableau Financier des Ressources et des Emplois) in the 2019 SYSCOHADA revision. If you are looking for “TAFIRE”, it is now the TFT that fills that role in SynkriaOps.

Tip

An accounting profit of 7,500,000 XAF does not mean you have 7,500,000 XAF in the bank. The TFT explains why: late-paying customers, growing inventories, or capital investments all absorb part or all of the profit.

Accessing the TFT

From the navigation bar: Financial Statements → TFT.

Select the fiscal year. The TFT is calculated over the full fiscal year (unlike the balance sheet, which can be generated at an intermediate date T).

The TFT generated from your entries: operating, investing, financing and the net change in cash.

Checking the prerequisites before generating

1. Balanced fiscal year — The trial balance must show ΣD = ΣC. Check in the trial balance.

2. Fixed assets recorded — Acquisitions and disposals during the year must be posted in class 2 with the corresponding depreciation (account 28xxx).

3. Class 16 accounts up to date — New borrowings (debit 521, credit 162) and repayments (debit 162, credit 521) must be posted.

4. Correct N-1 opening balances — The TFT compares balances N and N-1. Opening balances must be accurate.

Reading the three sections of the TFT

Section 1 — Operating flows

Operating flows measure the cash generated (or consumed) by the company’s normal business activity.

Starting point: Self-Financing Capacity (SFC / CAF)

SFC = Net result + Depreciation and provisions − Provisions written back

Depreciation is an accounting expense with no actual cash outflow — it is therefore added back to the net result to obtain the potential cash flow.

Change in Working Capital Requirement (ΔWCR)

Change	Effect on cash
Increase in inventories	Consumes cash
Increase in trade receivables	Consumes cash (customers paying later)
Increase in trade payables	Generates cash (paying suppliers later)

Operating cash flow = SFC ± ΔWCR

Section 2 — Investing flows

Investing flows trace capital decisions: acquisition or disposal of long-lived assets.

Transaction	Effect
Equipment purchase (debit 241)	Use = cash outflow
Vehicle purchase (debit 244)	Use = cash outflow
Asset disposal (credit 24xxx)	Resource = cash inflow

Investing cash flow = Disposals − Acquisitions

A negative investing cash flow (outflows > inflows) is generally a positive signal: the company is investing in its growth. A zero or positive investing flow (disposals > acquisitions) means the company is divesting — worth monitoring.

Section 3 — Financing flows

Financing flows trace relationships with capital providers (shareholders and banks).

Transaction	Effect
Capital increase	Resource = cash inflow
New bank loan	Resource = cash inflow
Loan repayment	Use = cash outflow
Dividend payment	Use = cash outflow

Financing cash flow = (Capital + New loans) − (Repayments + Dividends)

Verifying the net change in cash

Net change in cash = Operating flows + Investing flows + Financing flows

This figure must correspond exactly to the difference between the closing cash balance at 31/12/N and 31/12/N-1 (sum of class 5 accounts: bank accounts + petty cash + current accounts).

Reading a full example

TFT of a Cameroonian SME for fiscal year 2025:

Line	Amount (XAF)
SECTION 1 — OPERATING
Net result	7,500,000
+ Depreciation (681)	2,800,000
= Self-financing capacity (SFC)	10,300,000
− Increase in inventories	−1,700,000
− Increase in trade receivables	−2,700,000
+ Increase in trade payables	+2,550,000
= Operating cash flow	8,450,000
SECTION 2 — INVESTING
Computer equipment acquisition	−1,800,000
Delivery vehicle acquisition	−4,500,000
Disposal of old equipment	+800,000
= Investing cash flow	−5,500,000
SECTION 3 — FINANCING
Bank loan repayment	−3,200,000
Dividends paid	−1,200,000
= Financing cash flow	−4,400,000
= NET CHANGE IN CASH	−1,450,000
Opening cash (N-1)	14,600,000
Closing cash N (verification)	13,150,000

Interpretation: despite a profit of 7,500,000 XAF, cash decreased by 1,450,000 XAF. The company invested 6,300,000 XAF in fixed assets and returned 4,400,000 XAF to capital providers. Operations are generating solid cash (8,450,000 XAF) but investment and financing decisions have temporarily absorbed more than that flow.

Tip

Always verify that the cash figure calculated by the TFT matches the balance of cash accounts in your N balance sheet (accounts 521xxx + 571xxx). A discrepancy indicates an inconsistency in the posted data.

Fixing common errors

Error	Likely cause	Solution
Net change in cash ≠ Δ balance sheet cash	Fixed asset purchase booked as an expense by mistake	Reclassify to a class 2 account via a corrective journal entry
Negative SFC	Net loss or depreciation not posted	Check depreciation entries for the year
Zero financing flow	Loans/repayments booked as journal entries without using account 162	Check class 16 entries in the general ledger
Empty TFT	No N-1 fiscal year available	Normal for the first year — the TFT requires two balance sheets

See also

• Calculating the SYSCOHADA balance sheet — The TFT connects the N and N-1 balance sheets by explaining the change in cash.
• Calculating the income statement — Net result is the starting point for the SFC calculation.
• Statement of changes in equity (TVCP) — The other statement of changes required by SYSCOHADA revised 2019.
• Liasse and SYSCOHADA notes (1 to 47) — The notes that mandatorily accompany the financial statements.