corporate financial statements play a prominent role in guiding corporate decisions and achieving financial balance.
In this context comes the role of accredited financial offices in the Kingdom of Saudi Arabia, the most important of which is CFOONLINE,
which is considered the most prominent financial office in the Kingdom, as it constitutes a reliable partner for Saudi companies from various sectors.
Our experience and competencies are evident in preparing and analyzing financial statements and providing multiple services that meet customers’ needs accurately and professionally.
corporate financial statements
Financial statements are financial reports that show the financial position of companies and help evaluate their performance and financial conditions.
The financial statements consist of three main sections:
- Statement of financial position
- And the comprehensive income statement
- And the statement of cash flows.
Small business financial statements: characteristics and analysis
Small companies have special financial statement characteristics, as their operations are less complex.
Here are some important points about small business financial statements:
| Characteristics of small companies in financial statements |
|---|
| 1. Reducing complex processes. |
| 2. Focus on core costs and revenues. |
| 3. Few complex financial transactions. |
Financial statements of Saudi contracting companies: challenges and tips
Let us learn about the financial statements of a contracting company.
In general, contracting companies in Saudi Arabia face specific challenges due to the nature of this industry.
To overcome these challenges, the following tips should be taken into consideration:
| Tips for preparing financial statements for Saudi contracting companies |
|---|
| 1. Document all contracts and financial transactions accurately. |
| 2. Allocating a financial department specialized in analyzing project costs. |
| 3. Follow up on changes in local regulations and laws. |
Analysis of the financial statements of Almarai Company and Jarir Company: a case study
To understand the process of analyzing the financial statements, let us have a look at Almarai Company and Jarir Company:
Almarai Company:
| Financial indicators | 2022 | 2021 |
|---|---|---|
| Total revenues (million riyals) | 10,000 | 9,500 |
| Net profit (million riyals) | 1,500 | 1,300 |
| Total assets (million riyals) | 8,000 | 7,200 |
| Total liabilities (million riyals) | 2,500 | 2,800 |
Jarir Company:
| Financial indicators | 2022 | 2021 |
|---|---|---|
| Total revenues (million riyals) | 5,000 | 4,800 |
| Net profit (million riyals) | 800 | 700 |
| Total assets (million riyals) | 4,000 | 3,600 |
| Total liabilities (million riyals) | 1,500 | 1,600 |
Financial statements of Saudi and Egyptian companies: convergence and difference
Financial statements of companies in Saudi Arabia and Egypt show some convergence and difference due to economic factors and local legislation.
The impact of these factors is evident in a set of financial indicators:
| A comparison between the financial statements of Saudi and Egyptian companies |
|---|
| 1. Revenue growth in Saudi Arabia is higher by 10%. |
| 2. The debt-to-equity ratio in Egypt is higher. |
| 3. Similarity in the structures of the financial position statements between the two countries. |
How to prepare financial statements: steps and instructions
Here are important steps to prepare financial statements accurately and professionally:
- Collect financial data: Collect all necessary financial data, such as revenues, expenses, assets, and liabilities.
- Prepare the statement of comprehensive income: Analyze the income and expenses to get the net profit.
- Prepare statement of financial position: Estimate assets and liabilities to understand the correctness of the company’s financial position.
- Preparing a statement of cash flows: Analyzing cash flows to see how the company is managing money.
Consolidated financial statements: standardization and reporting
Consolidated financial statements contribute to unifying accounting standards and improving transparency in financial reports.
This helps balance companies and makes it easier to compare the performance of different companies.
Statement of financial position: analysis of the structure and position of the company
The statement of financial position shows the distribution of assets, liabilities, and equity in the company. Through it, the company’s stability and attractiveness to investors can be determined.
Statement of comprehensive income: understanding the company’s financial performance
The statement of comprehensive income displays a variety of items that affect a company’s financial performance,
which helps evaluate the company’s strength in achieving profit and sustainable growth.
Financial statement software: tools and applications
There is a group of specialized accounting programs that help prepare and analyze financial statements efficiently. Of which:
- X Program: Provides an easy-to-use interface for quickly entering financial data and creating reports.
- Y Software: Contains advanced analysis features that help in analyzing financial data in effective ways.
Top related articles:
_Financial statements, the most important details of filing and depositing statements, and forms
_ Analysis of financial statements in Saudi Arabia for the year 2023
_Standards for preparing financial statements in Saudi Arabia: foundations and concepts
_Preparing financial statements in professional ways in Saudi Arabia
Frequently asked questions about financial statements
The following are the most frequently asked questions regarding corporate financial statements:
-
What are financial statements and why are they important?
Financial statements are reports that show the company’s financial position and performance. Includes lists such as:
- Statement of financial position
- And the comprehensive income statement
- And the statement of cash flows.
They are important for making informed decisions and understanding a company’s financial health.
-
Is the analysis of financial statements of small companies different from large companies?
Yes, analyzing the financial statements of small companies usually differs from large ones due to different complexities.
In small companies, each analysis can have a huge impact on the overall results.
-
What are the most important steps in preparing consolidated financial statements?
The steps include the following:
- Collect financial data.
- Analysis of revenues and expenses.
- Preparing lists of financial position and comprehensive income.
- Then analyze these lists to understand the company’s performance.
-
How can I analyze the company’s financial position statement?
The statement of financial position can be analyzed by calculating the ratio of debt to equity and the ratio of liquid assets to total assets.
These ratios help in understanding the sustainability of the company’s financial position.
-
What are the components of the comprehensive income statement and how can they be used in evaluating the company’s performance?
Its components include the following:
- Revenues
- Expenses
- and extraordinary returns and losses.
They can be used to evaluate a company’s ability to generate sustainable profits and analyze the factors that influence its performance.
-
Are there specific programs that help in preparing financial statements?
Yes, there are many accounting programs, such as Program X and Program Y, that help facilitate and organize the process of preparing and analyzing financial statements. Features vary by software.
In conclusion:
The role of accredited financial offices in Saudi Arabia in providing integrated corporate financial statements and analyzing them with high accuracy is no secret.
Through their experience and extensive knowledge of local laws and regulations, they contribute to guiding companies towards achieving their financial goals and sustaining their success.
If you seek excellence in preparing and understanding financial statements and benefiting from accurate analyses,
then cooperation with CFOONLINE, the certified financial office, will be the ideal choice to ensure sustainable financial success.
Do not hesitate to contact us to inquire about our various services designed specifically to meet your company’s needs and help you reach the highest levels of financial performance.
Most important sources:
