A monthly financial report is a short document the accountant or finance manager sends to management after month-end close: what we sold, what we earned, how liquidity and debt moved, and what we propose. Enter two months of income statement and balance sheet figures in the table above, and the financial ratios and their trend appear. Then open the Financial performance report tab to find the report written from the same figures.
In the example, monthly sales are SAR 1,240,000.00 and net profit is SAR 147,400.00, a net profit margin of 11.9% against 10.2% the month before. The current ratio is 1.76, the quick ratio 1.07 and debt to equity 0.82.
How to use the financial report template
- From the income statement, copy net sales, cost of sales, operating expenses, depreciation, finance cost and zakat.
- From the balance sheet at period end, copy current assets, inventory, total assets, liabilities and equity.
- Enter the previous period in its column, and budget figures in advanced mode if you have them.
- Open the Financial performance report, choose monthly or weekly, add your notes, then download it.
What a monthly financial report is and what it contains
The report here has four parts: a summary of sales, gross profit and net profit against the previous period; a table of key ratios marked improved or declined; your notes; and, in advanced mode, recommendations. It goes to the general manager, the board or the partners. The Word download lets you edit the wording before sending, and the PDF is ready to circulate.
How to write a clear financial report for management
Lead with the result, then the cause, then the action, and put every figure next to its comparison: "net profit SAR 147,400.00, a margin of 11.9% against 10.2%" says more than a number alone. Pick five or six ratios you track every month and keep them fixed. A useful note names the cause in riyals, like the example's "inventory fell by SAR 30,000 and the quick ratio improved". If you want the report in Excel, the Summary sheet of the analysis file holds the same figures and ratios with their formulas.
Financial analysis inside the report
Current ratio = current assets ÷ current liabilities: 2,850,000 ÷ 1,620,000 = 1.76. The quick ratio leaves out inventory: 1.07. Debt to equity is 0.82, so each riyal of owners' money is matched by 82 halalas from creditors. EBIT is SAR 160,700.00, and EBITDA, adding back depreciation, is SAR 184,700.00. DuPont analysis in advanced mode breaks down return on equity: 11.9% × 0.2296 × 1.82 = 5%. That makes the file a ready financial analysis template in Excel for a company comparing its month with the previous one or with budget.
How to cut the time it takes
Close the month first with depreciation, accruals and the stock count, then take the income statement and balance sheet from one ledger and copy them into the same table in the same order each month. When the statements come from an accounting system where each transaction is recorded once, what remains is writing the notes and recommendations.
Common mistakes
- Comparing monthly ratios with full-year ratios, especially return on assets and on equity.
- Calculating ratios from balances before month-end entries are posted.
- Ignoring earnings quality: high profit with weak operating cash means receivables or stock are building up.
Accounting notes
The ratios are management analysis tools, not a legal requirement. Their figures come from statements prepared under the standards endorsed by the Saudi Organization for Chartered and Professional Accountants (SOCPA), and zakat is the period's estimate as booked. Bank facilities may set a minimum current ratio or a maximum debt ratio; check the facility agreement itself.
When report figures come from several spreadsheets
Microtec accounting software brings sales, purchasing, inventory and finance into one place for businesses in Saudi Arabia.
Frequently asked questions
How often should a financial report be prepared?
Monthly, after close, within the first working days of the following month. Fast-moving businesses add a short weekly report, available in the tool by choosing Weekly.
Which indicators matter most in a monthly financial report?
Net profit margin, current and quick ratios, debt to equity and return on equity, together with sales growth and net profit against budget.
Should the report be attached to the financial statements?
Yes. Attach the month's income statement and balance sheet; the report explains them and does not replace them. The Excel file from the Financial ratios tab holds the figures behind the ratios.
How do I present the financial report to the board?
One page: the summary and the ratios with their trend, then three notes and recommendations, each with an owner and a date. Details go in the attachments for anyone who asks.