Bookkeeping
Accrual basis bookkeeping
Accrual basis bookkeeping for Saudi companies: income is recognised when earned and costs when incurred, not only when cash moves, in line with IFRS or IFRS for SMEs as endorsed by SOCPA. Debtors, creditors and accruals are kept current each month, giving a trial balance the annual Qawaem filing and Zakat return can be built from directly.
Bank reconciliation summary
Illustrative client · August 2026
SAR
| Account | Difference | Status | ||
|---|---|---|---|---|
| Operating account··4821 | 184,220.16 | 184,220.16 | 0.00 | Reconciled |
| Reserve account··0937 | 60,000.00 | 60,000.00 | 0.00 | Reconciled |
| Company card··1006 | (12,418.52) | (12,418.52) | 0.00 | Reconciled |
| Card processor clearing | 8,905.40 | 8,905.40 | 0.00 | Reconciled |
| Payroll clearing | 0.00 | 0.00 | 0.00 | Reconciled |
Last weekly runFri 28 Aug, every account agreed to its statement.
Two open itemsTwo card receipts requested from you, marked on the card account until they arrive.
Illustrative. An example of the document, not a client's figures.
Why Saudi companies use accrual accounting
Financial statements filed in the Kingdom follow IFRS as endorsed by SOCPA for larger entities, and IFRS for SMEs for smaller ones, replacing the Saudi GAAP framework that has since been phased out. Both are built on accrual accounting: revenue recognised when earned, costs when incurred, and a balance sheet carrying debtors, creditors, accruals and prepayments rather than a cash total.
What changes month to month
We record sales when they are invoiced through Fatoora, not only when the customer pays, and post supplier bills when they arrive rather than when they are settled. Accruals are raised for costs incurred but not yet billed, and prepayments are spread across the periods they relate to, so no single month is skewed by timing.
Feeding the Zakat base and taxable income
An accrual trial balance is what the Zakat base for the Saudi and GCC ownership share, and the taxable income for the non-Saudi share, are actually computed from, since both regimes rest on the company's real financial position rather than its cash movements. We flag during onboarding how the ownership split affects which balances matter most.
Getting to Qawaem and the audit
A reconciled accrual trial balance feeds the annual financial statements filed through the Ministry of Commerce's Qawaem platform, and the audit-ready file an independent SOCPA-licensed auditor works from. We hand over the trial balance and the IFRS financial statements; we do not audit or sign them ourselves.
Where this starts
If your books have been kept loosely on a cash basis or have gaps, catch-up bookkeeping rebuilds the debtor, creditor and accrual balances first, so the switch to accrual does not lose comparability against prior periods.
Questions
Frequently asked questions: Accrual basis bookkeeping
Does every Saudi company have to use accrual accounting?
Yes, for statutory financial statements; IFRS and IFRS for SMEs as endorsed by SOCPA are both built on accrual principles.
Can you convert our cash-basis history to accrual?
Yes, we rebuild debtor, creditor and accrual balances for prior periods so the switch does not break comparability.
Who reviews the accrual figures before they reach ZATCA or the auditor?
The figures are reviewed by a senior reviewer and a corporate CFO before they reach you, and an independent SOCPA-licensed auditor performs the audit itself.
Do accruals affect our Zakat base differently from our corporate tax figure?
Yes, the Zakat base and taxable income are computed under different rules on top of the same accrual trial balance, which is why the split by ownership share matters from month one.
Why would my business need accrual instead of cash basis?
A bank covenant, an investor, or growth past a revenue threshold often requires accrual reporting under your region's accounting framework.
Can you convert cash-basis history into accrual?
Yes. We rebuild receivables, payables and accruals for prior periods so the switch does not lose comparability.
What software works with accrual basis bookkeeping?
Accrual basis bookkeeping runs inside QuickBooks Online or Xero, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
How do we get started with accrual basis bookkeeping?
Getting started with accrual basis bookkeeping begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
Related services
Industries
- Startups and VC-backed companiesBookkeeping and reporting for early-stage, venture-backed companies watching burn, runway and investor reporting closely.
- ManufacturingBookkeeping for small and mid-size manufacturers tracking raw materials, work in process and finished goods inventory.
- Construction and job costingBookkeeping for contractors and builders who need cost and profitability tracked by job, not just by month.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.