To prepare financial statements you usually need: bank statements, sales and purchase invoices, expense and payroll records, the asset register and loan agreements, and the previous year's financial statements.
Why start early?
Financial statements are the basis of the zakat return and of any financing application. Every missing document delays preparation and leaves less time for review before statutory deadlines.
Core documents
- Statements for all bank accounts for the full year
- Sales and purchase invoices
- Expense records and payroll sheets
- Fixed asset register and the purchase invoices for those assets
- Loan and lease agreements
- Year-end inventory count, if you hold inventory
- Prior-year financial statements, if any
Which standards are the statements prepared under?
Financial statements are prepared under International Financial Reporting Standards (IFRS) as endorsed by the Saudi Organization for Chartered and Professional Accountants (SOCPA), or under IFRS for SMEs as endorsed in Saudi Arabia, for entities to which it applies.
Source: IFRS Foundation: jurisdiction profile on the use of IFRS in Saudi Arabia
Tips that save time
- Keep personal bank accounts separate from business accounts
- Sort documents by month and keep them in a clear digital format
- Note any unusual transaction during the year, along with the reason for it
Official sources
This is general information for awareness purposes and does not constitute professional advice on your specific situation. Regulatory requirements may change, so please check the official source or contact us before making any decision.