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Close & reporting

Cash flow statements

Short answer

A statement of cash flows built from a Saudi company's actual accrual books, showing where riyals came from and went across operating, investing and financing activity, rather than relying on a bank balance that only tells you today's number and nothing about a VAT payment already on its way out.

Management report

Illustrative client · August 2026

SAR

Reviewed before sending
Profit and loss
LineAugJul
Revenue142,380131,904
Cost of sales(51,260)(48,115)
Gross profit91,12083,789
Payroll(46,300)(45,900)
SoftwareNoted(6,480)(5,490)
Rent(8,000)(8,000)
Other operating(9,215)(9,870)
Net income21,12514,529

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.

What a bank balance cannot tell you

A trading company can have a genuinely good month and still watch its account balance fall, because a large supplier payment, a VAT settlement and a customer invoice all happened to land in the same week. A statement of cash flows is what separates that kind of timing noise from an actual problem.

What the statement actually shows

Cash movement gets split across operating, investing and financing activity each month, with a bridge running from net income down to real operating cash, your live position measured against a rolling forecast, and a note on whichever single item, a VAT or Zakat payment included, moved the number most.

Indirect by default, direct on request

Most Saudi clients get the indirect method, starting from net income and adjusting for non-cash items and working-capital swings. Where a lender or investor specifically wants the direct method instead, we build that version for them rather than forcing one format on every reader.

The same figures your other reports already use

Everything here comes from the same closed ledger behind your KPI dashboard and management report, so the cash figure never quietly disagrees with itself across three different documents. A senior reviewer checks the statement before it reaches you, on the same monthly schedule as the rest of your close.

Questions

Frequently asked questions: Cash flow statements

Isn't our bank balance enough to know our cash position?

A bank balance tells you today's number, not why it moved or where it is heading, including a VAT or Zakat payment already committed. A cash flow statement and forecast show both.

How far ahead does the cash forecast look?

Clients often run a rolling weekly or monthly forecast, extended further where the business is managing toward a specific cash runway.

Why can profit be positive while cash flow is negative in the same month?

Profit includes non-cash items like depreciation and accrued revenue not yet collected, while cash flow reflects money actually moving, including a VAT payment. We explain the gap rather than leaving it as a confusing mismatch.

Isn't my bank balance enough to know my cash position?

A bank balance tells you today's number, not why it moved or where it is heading; a cash flow statement and forecast show both.

Direct or indirect method, which do you use?

Most monthly reporting uses the indirect method starting from net income; we use the direct method when a lender or investor specifically asks for it.

What software works with cash flow statements?

Cash flow statements runs inside Google Sheets or Excel, 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 cash flow statements?

Getting started with cash flow statements 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.

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.