--- title: "Direct vs. Indirect Cash Flow: Which One Your Startup Actually Needs" description: Direct and indirect cash flow explained for founders — what each method shows, the pros and cons, and which one your startup should use (and when). image: https://blog.ursaconsultants.com/hubfs/05-direct-vs-indirect-cash-flow.png --- 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# Direct vs. Indirect Cash Flow: *Which One Your Startup Actually Needs* Both methods land on the identical cash figure — the choice is about how you want to see it. What each one shows, which one investors expect, and how to use both to run the company. **Ursa Consultants**Startup Finance7 min read The short answer The direct method lists actual cash in and out — collections, payroll, rent — and is the view you run the company on. The indirect method starts from net income and reconciles it to cash, and it's the format investors and boards expect. The operating cash total is identical either way, so this isn't a fight over the "right" number. Use both, for different jobs: one clean monthly statement (indirect) and one forward-looking 13-week cash view (direct). That's it. The stakes ## Why cash flow is the number that keeps you alive Running a business without watching cash flow is like driving cross-countr same as money in the bank. You can book revenue you haven't collected yet, and owe expenses that you haven't paid for yet. Cash flow is what reconciles the story your income statement tells with the balance in your account. The refresher ## A 30-second refresher on the cash flow statement The cash flow statement shows how cash actually moved over a period, in three buckets: - **Operating** — the day-to-day business. - **Investing** — buying or selling assets. - **Financing** — raising or repaying money. The direct and indirect methods only differ in how they present the operating section — the total cash figure is identical either way. So this isn't a fight over the "right" number; it's a choice about how you want to see it. ### Direct method A straight list of actual cash in and out — collections, suppliers, wages, rent. You can literally see where the money went. Run the business ### Indirect method Starts at net income and reconciles it to cash via non-cash items and working capital. Ties to your other statements. Report the business Method one ## The direct method **What it is:** a straight list of actual cash inflows and outflows — cash collected from customers, cash paid to suppliers, wages, rent. - **Pros:** intuitive; you can literally see where the money went; ideal for operational, near-term cash management. - **Cons:** on its own, a pure cash-in/cash-out view shows you when cash moved, not when you earned the revenue or incurred the cost. A customer paying in March for work you did in January looks like a March event. That gap is where margins, timing, and unit economics hide. - **Best for:** running the business day to day, especially a rolling 13-week cash forecast. Method two ## The indirect method **What it is:** it starts with net income and adds back non-cash items (like depreciation) and changes in working capital (accounts receivable, accounts payable, inventory) to arrive at cash. - **Pros:** ties directly to your income statement and balance sheet; fast to produce from standard accounting software; it's what most investors and boards expect to see. - **Cons:** it isn't where you look for performance either — the statement's job is to reconcile profit to cash, not to show how the business is doing — and it's less literal about where the cash actually went. - **Best for:** monthly, board, and investor reporting. The purpose ## What the cash flow statement is actually for Here's the part most founders miss: almost no one reads the cash flow statement to judge performance — not your board, not your investors. Its job is to reconcile your P&L (which is built on accruals) with the actual change in cash in the bank. Performance and unit economics live in the P&L and the accruals behind it — deferred revenue, accrued liabilities, accrued comp — not in the cash flow statement. The reading ## How to read the indirect statement (quickly) Start at net income, then read the adjustments as a translation from profit into cash: 1. **Current asset lines — receivables, inventory, prepaid expenses.** A positive line means that asset went down, and the cash came back to you. A negative line means the opposite: cash went into it, because you invoiced without collecting or bought stock that is still sitting there. 2. **Liability lines.** A positive liability line means you booked expenses you haven't paid for yet — so the cash is still sitting in your account. > Read that way, the statement stops being a wall of numbers and becomes a simple story: here's how last month's profit turned into — or out of — real cash. The verdict ## So which should your startup use? Both — for different jobs, and that's not a cop-out: The reporting view ### Indirect — monthly financials Use the indirect method for your monthly financials and anything you hand to investors — it shows how your profit becomes cash, reconciles to your other statements, and it's the format they expect. The operating view ### Direct — 13-week cash forecast Use a direct-style 13-week cash flow to actually run the company — to answer, in real time, whether you can hire, make the next raise, or afford a given bet. Most founders don't need to agonize over the accounting choice. You need one clean monthly statement (indirect) and one forward-looking cash view (direct). That's it. The doorway ## Where this leads: cash vs. accrual Direct vs. indirect is really a doorway to a bigger question every founder eventually faces: cash vs. accrual accounting — and how "GAAP-ish" your books actually need to be for your stage. Most founders think in cash terms, but that commission your rep earned two months ago still belongs in the month it was earned. We pick that up in [the next post in this series]([POST%204%20URL]). The habit ## The move that matters most Pick your reporting method, then build a simple 13-week cash forecast and update it every week. That forward view — not last month's statement — is what tells you when to hire, when to raise, and when to hold. It's the single highest-leverage finance habit an early-stage founder can build. ![](data:image/png;base64,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) Key takeaway The cash flow statement reconciles profit to cash — it doesn't judge performance. Report monthly with the indirect method, run the company on a direct-style 13-week forecast, and update that forward view every week. ## Want the shortcut? Grab our free 13-week cash-flow template — or, if you'd rather hand this off entirely, that's exactly what we do. Talk to Ursa at [info@ursaconsultants.com](mailto:info@ursaconsultants.com). [Get the free template]([TEMPLATE%20URL]) [Talk to Ursa](mailto:info@ursaconsultants.com) ![Ursa Consultants bear mark — ursa-bear.png](data:image/png;base64,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) Written by Ursa Consultants Fractional finance for founders — service, integrity, commitment. We build and run the forecasts in this series for startups every week. [info@ursaconsultants.com](mailto:info@ursaconsultants.com) Related in this series - [Post 2 · Read the statementHow to Read a Cash Flow Statement]([POST%202%20URL]) - [Post 3 · Manage cash forwardBurn Rate, Runway & the 13-Week Forecast]([POST%203%20URL]) - [Post 4 · Go deeperCash vs. Accrual: the "GAAP-ish" Spectrum]([POST%204%20URL]) [Skip to content](https://blog.ursaconsultants.com/blog/direct-vs-indirect-cash-flow#main-content) ![](https://blog.ursaconsultants.com/hs-fs/hubfs/05-direct-vs-indirect-cash-flow.png?width=1200&height=630&name=05-direct-vs-indirect-cash-flow.png) # Direct vs. Indirect Cash Flow: Which One Your Startup Actually Needs ![Bruno the Bear](https://app.hubspot.com/settings/avatar/b76369ea60201be87a5829b088dc4ab3) Bruno the Bear October 1, 2026 ## Share this post [mailto:https%3A%2F%2Fblog.ursaconsultants.com%2Fblog%2Fdirect-vs-indirect-cash-flow](mailto:https%3A%2F%2Fblog.ursaconsultants.com%2Fblog%2Fdirect-vs-indirect-cash-flow) ## Keep reading ### [![](https://blog.ursaconsultants.com/hs-fs/hubfs/13-sustainable-business-people-first.png?width=1200&height=630&name=13-sustainable-business-people-first.png) How to Build a Sustainable Business with a People-First Approach — Ursa Consultants Inc](https://blog.ursaconsultants.com/blog/blog/how-to-build-a-sustainable-business-with-a-people-first-approach) ### [![](https://blog.ursaconsultants.com/hs-fs/hubfs/08-cash-vs-accrual-accounting-for-taxes.png?width=1200&height=630&name=08-cash-vs-accrual-accounting-for-taxes.png) Cash vs. Accrual Accounting for Taxes – Which One Should You Choose? — Ursa Consultants Inc](https://blog.ursaconsultants.com/blog/blog/cash-vs-accrual-accounting-for-taxes-which-one-should-you-choose) [![Ursa Consultants](https://blog.ursaconsultants.com/hs-fs/hubfs/Ursa%20Logo%20Lockup%2007-2023.png?width=1776&height=594&name=Ursa%20Logo%20Lockup%2007-2023.png "Ursa Consultants")](http://ursaconsultants.com) - Home - Products - Pricing - Blog - Company --- Privacy Policy · Legal · © 2026 Ursa Consultants. 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