Close & reporting
Accruals
Expenses and revenue recorded in the period a Saudi business actually incurs or earns them, even when the invoice or WPS payroll transfer has not moved yet, so each month's numbers reflect that month's real activity rather than whenever the paperwork happened to arrive.
Management report
Illustrative client · August 2026
SAR
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Recording the cost in the month it actually happened
A utility bill, a professional fee or a WPS payroll run often relates to work already done before the invoice or the Mudad transfer clears. Accruing it means the month that actually earned or incurred the cost carries it, rather than whichever month the paperwork happened to land.
What sits on the accrual list
A recurring list of items, utilities, professional fees and WPS payroll among them, gets reviewed and refreshed every month, accrued revenue is recorded for work delivered but not yet invoiced, and each prior month's accrual reverses cleanly once the real invoice or payment shows up. Anything new or unusual added during the period gets a short note explaining why.
Where WPS payroll and GOSI fit in
A pay period that spans month end still needs an accrual, so labour cost lands in the month the work was genuinely done rather than the month the Mudad transfer actually clears, and the GOSI contribution tied to that same pay run is accrued alongside it rather than left for the following month.
Part of the close, not a separate exercise
Accruals get reviewed every month as one line item inside the regular month-end close, alongside prepayments and fixed asset entries, rather than run as a disconnected task on its own calendar. A senior reviewer checks the list before the period is marked final.
Questions
Frequently asked questions: Accruals
Are accrued revenue and accrued expenses handled the same way?
Yes, both are recorded in the period the activity happened, then reversed once the actual invoice or payment lands.
Does WPS payroll through Mudad need an accrual?
Where a pay period spans month end, yes, so labour cost and its GOSI contribution land in the month the work was actually done rather than when the Mudad transfer clears.
How often does the accrual list get reviewed?
Every month, as part of the close, so a recurring item that has changed in size or frequency gets caught before it distorts a period's numbers.
Why record an expense before the bill arrives?
So the month it belongs to carries the cost, rather than the month the invoice happens to show up, which can be weeks later.
Do accruals apply if I run cash-basis books?
Not for tax reporting, but many cash-basis businesses still want an accrual view for management decisions, which we can maintain alongside the cash-basis books.
How is accruals priced?
Pricing for accruals depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
What software works with accruals?
Accruals 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.
Related services
- Close & reportingPrepaid schedulesInsurance, software subscriptions and other costs paid up front spread across the months they actually cover, instead of hitting one month's profit and loss all at once.
- Close & reportingMonth-end closeA repeatable monthly close that ties every account back to source records and hands you a finished set of financials on a predictable date each month.
Industries
- Construction and job costingBookkeeping for contractors and builders who need cost and profitability tracked by job, not just by month.
- ManufacturingBookkeeping for small and mid-size manufacturers tracking raw materials, work in process and finished goods inventory.
- Professional servicesBookkeeping for professional service firms such as engineering, architecture and IT consulting billing clients by project or retainer.
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.