Cash flow accounting (CFA) is a formal term which originated in the UK accounting theory literature of the early 1970s. It has become an important part of the language of worldwide accounting practice. CFA describes a system of accounting designed to provide information about the periodic cash inflows and outflows of a reporting entity.

CFA statements are communicated to a variety of internal and external decision makers, and take different forms depending on their specific needs. For example, CFA statements for internal management purposes usually include information on forecast and actual cash flows. However, CFA statements for external use are based solely on historical data required by regulation.

CFA data describe physical movements of cash resources to and from a reporting entity. They are derived from its cash transactions, and accounted for without adjustment for accruals or allocations. CFA avoids many of the measurement problems inherent in conventional accounting. However, CFA data require to be classified for reporting purposes. The main categories of cash flow describe the operating, investing and financing activities of a reporting entity. When articulated in report form, they provide a decision maker with information useful for assessing the liquidity performance of the entity and its management. More specifically, a CFA statement describes the extent to which the entity is dependent on internal and external cash funding, and the uses to which such funding is put by its management.

CFA statements are distinguishable from conventional financial statements, which describe a reporting entity's financial performance in terms of profit and financial position. Conventional statements describe its overall financial performance and, in particular, its profitability. CFA statements focus on the liquidity aspects of that performance. Thus, in practice, CFA statements form part of a total package of financial information. However, in theory, they have been considered as a complete system of financial accounting and reporting.