Financial statements from the trial balance

What does this tool do?

You upload the trial balance as exported from your accounting system, and the tool builds five outputs from it:

• Income statement from revenue down to net profit.
• Statement of financial position compared with the opening balances.
• Statement of cash flows using the indirect method.
• Statement of changes in equity.
• Estimated Zakat for the business.

It also gives you a dashboard of ratios (current ratio, quick ratio, margins, collection days and inventory days) and written recommendations for the business owner. The tool helps the accountant who needs to prepare monthly or annual statements quickly, and the business owner who wants to read the numbers without waiting.

How to use the tool

1. Export the trial balance from your system as Excel (xlsx or xls) or CSV, or a text-based PDF.
2. Drag the file onto the tool page or click to choose it. If the file has more than one sheet, the tool reads the sheet with the most rows.
3. The tool detects the header row and the columns automatically. If it cannot, it asks you to identify each column from a list.
4. Review the “Account classification” tab. Any unclassified account is highlighted, and when you change a classification all the statements update instantly.
5. Move between the tabs, then download all the statements in a formatted Excel file or print them.

Required columns: account name, plus debit and credit columns. The full format has six columns: opening balance (debit/credit), period movement (debit/credit), and closing balance (debit/credit). The closing balance alone is also enough, or the period movement alone. The account number column is optional, but it helps exclude parent (summary) accounts whose balance equals the total of their sub-accounts, so amounts are not counted twice.

The tool ignores “Total” and “Sum” rows, reads numbers in brackets as negative, and accepts Arabic numerals such as ١٢٣٤.

How the statements are built from the trial balance

• Classification: each account is classified automatically from the words in its name, such as “Cash”, “Customers”, “Accumulated depreciation” and “Salaries”. The account number is not used for classification because charts of accounts differ between systems.
• Income statement: net revenue − cost of sales = gross profit, then − operating expenses = operating profit, then ± other income and expenses and finance costs = net profit before Zakat.
• No cost of sales account: if there is only a purchases account, cost is calculated using the periodic inventory system: purchases − returns + opening inventory − closing inventory.
• Financial position: net profit for the period is added to equity, then the tool checks that assets = liabilities + equity.
• Cash flows: net profit + depreciation ± the change in working capital, then investing and financing activities. The tool compares the result with the cash balance in the trial balance and shows the reconciling difference.

Worked example: a trading company's trial balance

A condensed trial balance for a trading company for a full year, with opening and closing balances:

The tool classified all fourteen accounts automatically, and the trial balance is balanced (670,000 debit = 670,000 credit). The resulting income statement:

In the statement of financial position: total assets 280,000, liabilities 40,000, and equity 240,000 (capital 200,000 + net profit 40,000), so the statement balances.

Worked example: ratios, cash flows and Zakat

From the same trial balance, the tool calculates the following ratios:

Operating cash flow = net profit 40,000 + depreciation 10,000 − increase in customers 15,000 − increase in inventory 10,000 + increase in suppliers 5,000 + increase in output VAT 5,000, for a total of 35,000, which equals the change in cash from 50,000 to 85,000.

Estimated Zakat: sources of funds 200,000 + net profit before Zakat 40,000 − net fixed assets 70,000 = a Zakat base of 170,000. Zakat is 4,250 SAR using the Hijri year (2.5%), or 4,381.75 SAR using the Gregorian year (2.5775%). For the Sharia calculation for individuals, use the Zakat calculator.

Points to check before relying on the results

• Review the classification: automatic classification is based on the account name, so vague names may need manual classification. Unclassified accounts appear as a separate line in the statement of financial position.
• Opening balances: if you upload closing balances only, no comparative figures or statement of cash flows will appear.
• Periodic inventory: if the inventory balance in the trial balance has not changed from the opening balance, cost of sales may be overstated until the closing stock count is recorded.
• Day-based ratios: these are calculated on 365 days. If the trial balance covers a period shorter than a year, the days will appear higher than they really are.
• Zakat: a simplified estimate for guidance only; it does not include adjustments to net profit or the Hawl condition. The actual calculation follows the Implementing Regulations for Zakat Collection.

The trial balance file is read inside your browser and is not uploaded to our servers or stored. To see the full result and download the Excel file, we ask for your name, mobile number and email once only.

Frequently asked questions

Content last reviewed: 2026-10-26