Financial statements and analysis
Financial position, income, cash flows, financial ratios, closing
What you will find in this section
How to read the balance sheet, the income statement and the cash flow statement, which financial ratios a small business owner needs, and a practical year-end closing checklist.
Statement of financial position: how to read it in 10 minutes
A quick, structured way to read the statement of financial position: what to look at first and which questions to ask about each line item, with a solved statement for a trading business.
Financial statements and analysisThe income statement: from revenue to net profit
A step-by-step explanation of the layers of the income statement: net sales, gross profit, operating profit, then net profit after Zakat, with a complete solved statement.
Financial statements and analysisThe statement of cash flows: why are you making a profit but have no cash?
An indirect-method example for a business that made a profit of 400 thousand SAR while its cash fell by 210 thousand: where the money went and how to read the three sections.
Financial statements and analysisThe most important financial ratios for small business owners
Eight ratios are enough to understand your business's position: liquidity, profitability, inventory turnover and collection period, calculated on realistic figures for a trading business.
Financial statements and analysisYear-end closing: a practical checklist for accountants
An ordered checklist for closing the financial year: counts and reconciliations, adjusting entries, closing entries, then the statutory deadlines for Zakat and the Qawaem platform.
