What it is
Cash basis statements report cash received and paid. Modified cash basis adds specific items the entity chooses, commonly capitalized equipment with depreciation, investments and debt. Because it is not GAAP, the statements and the accountant’s report call out the basis, and the note lists every modification.
This workbook has a statement of assets, liabilities and equity arising from cash transactions, a statement of revenue collected and expenses paid, an equity rollforward, and a proof of cash that carries opening cash through receipts, payments, investing and financing to the closing cash. Each tie-out feeds a Checks tab.
When to use it
- Presenting statements for a small business, a church, a club or a professional practice that keeps cash records.
- Compiling statements on a modified cash basis for a lender.
- Checking that the cash record is complete using a proof of cash.
What’s inside
- Statement of assets, liabilities and equity arising from cash transactions
- Statement of revenue collected and expenses paid, with an equity rollforward
- Proof of cash from opening to closing cash
- Modified cash basis rows for equipment, depreciation and debt
- Instructions and a Checks tab
Standard cited
This template follows AU-C 800 / AR-C 80. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What is the difference between cash basis and modified cash basis?
Pure cash basis records only cash received and paid. Modified cash basis adds items the entity elects, such as capitalizing equipment, recording depreciation or debt, or carrying investments at fair value. Disclose each modification in the notes.
Why does the proof of cash exclude depreciation?
Depreciation is on the statement as an expense under a modified basis, but it is not a cash payment, so the proof of cash takes it out.
Do these statements need an accountant’s report?
Compiled, reviewed and audited cash basis statements each have their own report form. An accountant need not be independent to perform a compilation under AR-C 80, but the report says so if the accountant is not, and it identifies the basis of presentation.
Related templates
- Bank Reconciliation Template (Excel)
- Compilation Report and Management Letter Shells (AR-C 80)
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Last updated 11/05/2026. All free templates.