# Indirect method

> Indirect method — Presenting operating cash flows by starting from net income and adjusting for non-cash items and changes in working capital — the method most entities use. ASC 230 also calls it the reconciliation method.

Source: https://lopifi.com/glossary/indirect-method
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

---

**What is indirect method?** In accounting, indirect method means presenting operating cash flows by starting from net income and adjusting for non-cash items and changes in working capital — the method most entities use. ASC 230 also calls it the reconciliation method.

## Words this system refuses for it

- cash reconciliation (a bank reconciliation is a different control)

- **Category:** Statements
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Rendered by:** [cash-flow-statement](https://lopifi.com/md/components/cash-flow-statement)
- **Related:** working-capital, reconciliation, net-income