This free accounting Excel template is a cash book: a record of every riyal that comes into the business or goes out, with its date, description, category and payment method. It works out the cash and bank balances after each line, totals income and expenses by category into a monthly statement, and includes a daily sheet for anyone who closes the day with one line.
In the grocery example shown: income of SAR 21,425.50 and expenses of SAR 18,797.35 give a net result of SAR 2,628.15 for the month, with SAR 6,165.00 left in the cash drawer and SAR 18,963.15 in the bank.
What is Excel accounting software, and is it enough for your business?
It is a workbook with ready formulas that does the job of a cash journal: running balances, a SUMIF total for every category and a settings sheet holding the VAT rate. It is enough when you have a few dozen transactions a month, one person keeps the books, you do not sell on credit and you do not track stock quantities. Answer four questions before relying on it: does more than one person work on the accounts? Do you have two or more branches? Do you track what customers and suppliers owe? Are you registered for VAT? A single "yes" means the file will soon become a burden.
How to start bookkeeping in the file
- Enter the cash and bank balances at the start of the period in the first two lines with the category "Opening balance", so they are not counted as income. In the example: SAR 4,000.00 in the drawer and SAR 18,500.00 in the bank.
- Record a sale on the day it happens under Money in and pick the payment method: cash sales of SAR 3,250.00 bring the drawer to SAR 7,250.00, and Mada sales of SAR 7,870.50 bring the bank to SAR 26,370.50.
- Record an expense under Money out with its category: SAR 7,420.00 of stock paid by transfer takes the bank down to SAR 18,950.50 and is added to purchases in the summary.
- When you deposit drawer cash at the bank, choose "Deposit to bank" with the method "Cash". Cash goes down, the bank goes up, and the amount never shows as an expense.
- At month end open the Income and expenses tab and download it as a PDF to sign, or keep it with the Excel file.
What goes in each column
| Column | What you enter |
|---|---|
| Description | What happened and with whom: "Stock from the food supplier", not just "Purchases". |
| Category | Four income lines and nine expense lines; the summary is built from these. |
| Payment method | Cash changes the cash balance; Mada, card and bank transfer change the bank balance. |
| Approx. VAT | In advanced mode, VAT is backed out of VAT-inclusive amounts when you choose "Yes". |
Daily sheet and the contractor example
The second tab suits a shop that closes each day with a single figure: cash sales, Mada and card sales and the day's expenses, then the daily net and the running total. The example covers seven days with sales of SAR 41,757.00 and expenses of SAR 2,582.35. Among the ready examples, a small contractor receives a progress payment of SAR 57,500.00 and spends SAR 44,800.00 on materials, labour and equipment, so the month's net is SAR 12,700.00, with SAR 150.00 left of the site cash float.
Common mistakes when keeping accounts in Excel
- Duplicate entries: one bill recorded twice, from the bank statement and from the receipt. The sign is a bank balance that no longer matches the statement, so check the document number before entering a line.
- Breaking formulas by pasting over the balance cells. Add lines below the last one and never type into the two balance columns.
- Mixing income with receipts: opening balances, bank deposits and loans move cash but are neither income nor expenses.
- No backup: save a copy named after the month somewhere else once the month is closed.
Accounting and VAT notes
The VAT in the file is an estimate: the VAT-inclusive amount × 15 ÷ 115. The 15% rate can be changed in the settings and follows the Saudi VAT Law [verify with ZATCA]. VAT registration is mandatory once annual taxable supplies exceed SAR 375,000 and voluntary from SAR 187,500, and the VAT return is prepared from your tax invoices, not from this book.
When to move from an Excel file to an accounting system
Move when invoices pile up, when several users or branches share the books, when e-invoicing applies to you, or when stock needs to follow sales. Microtec accounting software is an ERP system for businesses in Saudi Arabia that brings sales, purchasing, inventory, finance and HR into one place.
Frequently asked questions
Is the accounting Excel template completely free?
Yes. You use it on the page and download the Excel file with its formulas and a PDF at no cost. We ask for your name, email and mobile number once before your first download, and what you type stays in your browser on this device.
Does the file handle VAT?
In advanced mode it estimates output and input VAT from the amounts you mark as VAT-inclusive. It is an approximate figure for monitoring; your VAT return is prepared from your tax invoices.
Does it work as free accounting software for a contractor?
It works for a small contractor tracking cash: pick the contractor example, record progress payments under "Project payments" and the site float in cash. It does not cost each project separately or track retentions.
Can I move my data to an accounting system later?
Yes, because the data sits in regular columns. Enter the cash and bank balances on your start date as opening balances and map each category to an account in your chart of accounts.