Internal financial statements for companies in Saudi Arabia

We can provide

Internal financial statements for companies in Saudi Arabia

Through our CBD Accounting & Tax Consultancy office, along with the range of services offered by our specialists,

we can assess the financial performance of your business and provide insights that empower you to make smarter and more informed decisions at every step.

What are the financial statements and how many?

Financial Statements: These are various records that reflect the financial condition of your company. They are the expertise of accountants,

and one of their key advantages is the ability to identify the trajectory of your company’s growth.

The five financial statements

There are five types of financial statements:

Balance Sheet

It is the most important list that shows the company’s financial position, as it provides accurate financial data about the value of each of the company’s assets and liabilities.

The items on this list are:

The assets are: 1. Current 2. Non-current
Obligations, which are: 1. Current obligations 2. Non-current obligations
Property rights

Income Statement

It calculates the net profits or losses incurred by the company over a specific period of time.

Its most important items are:

Revenues
Sales cost
expenses

Statement of Changes in Equity

It explains the changes in property rights by making cash settlements between the initial balance and the final balance of the accounts, by increasing or subtracting losses, profits or losses from the value of initial property rights.

Its most important items are:

The beginning balance of the term
Additions or reductions of capital during a period
Personal withdrawals
End-of-term balance

Cash flow Statement

It is a list that summarizes the company’s cash operations and its modified cash or its cash flows into and out of the company, and all flows from the various activities in the company are clarified.

These activities are:

Operational activities
investment activities
financing activities

Not to Financial Statement

They are the complementary and related notes to the financial statements, as they are used to provide more detailed information,

explain the accounting policies that are followed in the company, and show the financial health of the company, and the opinion and observations of the financial auditor of these lists are mentioned.

The notes list items on the financial statement are:

supply basis
Accounting policies
Asset depreciation
Inventory valuation
Subsequent events

Now that we have identified the types of internal financial statements for companies, it is worth getting acquainted with their forms.

Forms of accounting financial statements,Internal financial statements for companies

We have clarified the forms of accounting statements in the following example:

Statement	Partial amount	The total amount
assets
Assets
box	xxx
accounts receivable	xxx
Arrest papers	xxx
goods	xxx
total current assets
Fixed assets		xxx
lands	xxx
Equipment and tools	xxx
cars	xxx
total fixed assets
intangible assets		xxx
goodwill	xxx
business relationship	xxx
Intellectual property rights	xxx
Total intangible assets
Total intangible assets		xxx
Prepaid expenses	xxx
accrued revenue	xxx
Insurance recoveries	xxx
Total other debit balances		xxx
Total assets		xxx
Obligations and equity
short-term liabilities
accounts payable	xxx
Short term loans	xxx
Payment papers	xxx
Total short-term liabilities		xxx
Long term commitments
long term loans	xxx	xxx
Total long-term liabilities
Other credit balances
deserved payments	xxx
Previously received revenue	xxx	xxx
Total other credit balances
Property rights
Capital on 1/1	xxx
profits and losses	xxx
Personal withdrawals	xxx
net equity		xxx
The sum of liabilities and equity		xxx

In our article, we mentioned the internal financial statements of companies in Saudi Arabia, the most important points, and now let us explain how to analyze the financial statements.

How do you analyze financial statements?

There are three main methods for analyzing financial statements: the horizontal method, the vertical method, and the relative method.

Horizontal analysis of the financial statements

By studying the company’s performance over several accounting periods, by comparing the information included in the financial statement in the current period with its counterpart information in financial statements for previous accounting periods, and by finding growth or decline rates, the analyst can evaluate the company’s performance as a whole.

Vertical analysis of financial statements

The analyst studies each statement separately and converts the list information into ratios.

Ratio analysis of financial statements

This type studies financial information and compares it with other information in the same list in the form of ratios. Among the most important financial ratios that can be studied are:

Liquidity ratios
Lift ratios
profit percentages

We have reached the end of the article, and these were the most important points of the internal financial statements of companies in Saudi Arabia,

which is one of the many services provided by our office, CBD Accounting and Tax Consultancy, the approved financial office in Saudi Arabia.

Among the most important sources: en.wikipedia.org.