Close & reporting
Prepaid schedules
Insurance, software subscriptions and annual Commercial Registration or MISA licence renewal fees paid up front for a Saudi business, spread across the months they actually cover instead of hitting one month's profit and loss all at once for no operating reason.
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.
A lump payment does not have to become a lump expense
An annual insurance premium, a yearly software subscription, or a Commercial Registration renewal paid once should not land as one oversized cost in the month it happened to be paid. Spreading it across the months it actually covers is what keeps a monthly profit and loss comparable from one period to the next.
What we actually maintain
A schedule lists every prepaid item, its term and its monthly release amount, with a journal entry each month releasing the correct share to expense, the prepaid asset balance reconciled to that schedule, and a flag raised on anything approaching renewal or expiry before it lapses unnoticed.
The items that show up here most in Saudi Arabia
Annual insurance premiums, a Commercial Registration renewal, a MISA investment licence fee and yearly software subscriptions make up most of what typically sits on a Saudi prepaid schedule.
A bookkeeping decision, not a tax one
Spreading a cost this way changes how it appears in your management books; it does not automatically decide how the same cost is treated for Zakat or corporate income tax, which stays a decision for you or your ZATCA-licensed tax agent when the return itself is prepared. A senior reviewer checks the schedule alongside the rest of the monthly close.
Questions
Frequently asked questions: Prepaid schedules
Is the prepaid schedule reconciled to the balance sheet each month?
Yes, the prepaid asset balance is checked against the schedule every month as part of the close.
Does a prepaid schedule change our Zakat or CIT return?
It affects your management books, not automatically your tax treatment. You or your tax agent decide how prepaid amounts are handled when the return is prepared.
Does this cover a Commercial Registration or MISA licence renewal?
Yes, an annual Commercial Registration or MISA investment licence renewal is a common item, spread across the months the licence period actually covers.
What typically ends up on a prepaid schedule?
Annual insurance premiums, yearly software licenses, prepaid rent and retainers are the most common items.
Does a prepaid schedule change my tax return?
It affects your books, not automatically your tax treatment; your tax preparer decides how prepaid amounts are handled for tax purposes.
What is included in prepaid schedules?
Prepaid schedules covers prepaid expense schedule listing each item, term and monthly amortization and monthly journal entries releasing the correct amount to expense. The exact scope is agreed and set out in writing before work starts, so you know precisely what is and is not covered before the first deliverable arrives.
How is prepaid schedules priced?
Pricing for prepaid schedules 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.
Related services
- Close & reportingAccrualsExpenses and revenue recorded in the period they actually happen, even when the invoice or cash has not moved yet, so the month's numbers reflect that month's activity.
- 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
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.