Financial Statements · القوائم المالية

Income Statement (Profit & Loss)

Monthly figures — all amounts in IQD

What is an income statement? It shows whether your business made a profit or a loss during a specific period. It starts with your revenue (sales), deducts all costs, and arrives at your net profit.

Think of it as your business's report card — it tells you how much you earned and how much you spent to earn it.

Revenue (Sales)

Item	Amount (IQD)
Main product / service sales
Other revenue
Total Revenue	0

💡 Revenue is money received from customers — not money promised or owed to you.

Cost of Goods Sold (COGS)

Item	Amount (IQD)
Raw materials / inventory purchased
Direct labour (production workers)
Other direct costs
Total COGS	0

💡 COGS are the direct costs of making or buying what you sell. If you sell goods, include what you paid for them.

Operating Expenses

Item	Amount (IQD)
Rent
Staff salaries
Electricity / generator / water
Transport / delivery
Marketing / advertising
Other expenses
Total Operating Expenses	0

💡 Operating expenses are the costs of running your business day-to-day — whether you sell anything or not.

Financing Costs

Item	Amount (IQD)
Loan interest payments

Income Statement Summary

Gross Profit (Revenue − COGS)	0
Gross Profit Margin	—
Operating Profit (Gross Profit − Expenses)	0
Net Profit (after interest)	0
Net Profit Margin	—

Gross Profit

—

Revenue minus cost of goods sold

Operating Profit

—

Profit before financing costs

Net Profit

—

What the business actually keeps

Net Margin

—

Balance Sheet

As at end of month — all amounts in IQD

What is a balance sheet? It shows what your business owns (assets), what it owes (liabilities), and what belongs to you as the owner (equity) — all at a single point in time.

The golden rule: Assets = Liabilities + Owner's Equity. This must always balance — if it doesn't, something is missing or entered incorrectly.

ASSETS — What your business owns

Current Assets (converted to cash within 1 year)
Cash & bank balance
Accounts receivable (money owed to you)
Inventory / stock on hand
Prepaid expenses
Total Current Assets	0
Fixed Assets (long-term)
Equipment & machinery
Vehicles
Property / land
Other fixed assets
Total Fixed Assets	0
TOTAL ASSETS	0

LIABILITIES & EQUITY — How assets are funded

Current Liabilities (due within 1 year)
Accounts payable (money you owe suppliers)
Short-term loans / overdraft
Accrued expenses (owed but not yet paid)
Total Current Liabilities	0
Long-term Liabilities
Long-term bank loans
Other long-term liabilities
Total Long-term Liabilities	0
TOTAL LIABILITIES	0
Owner's Equity
Capital invested by owner
Retained earnings (accumulated profit)
Net profit this period	0
TOTAL EQUITY	0
TOTAL LIABILITIES + EQUITY	0

⚠️ Balance sheet does not balance yet — enter your figures above.

💡 If Total Assets ≠ Total Liabilities + Equity, check for missing entries. Common mistakes: forgetting retained earnings or the current period's profit.

Working Capital

—

Current Assets minus Current Liabilities

Current Ratio

—

Debt-to-Equity Ratio

—

Owner's Equity %

—

Share of assets funded by the owner

Cash Flow Statement

Monthly figures — all amounts in IQD

Profit is not the same as cash. A business can be profitable on paper but run out of cash — and a business can have cash but be making a loss. The cash flow statement explains why.

It tracks cash moving in and out of three areas: your daily operations, your investments in equipment, and your financing (loans).

⚠️ Many SMEs fail not because they are unprofitable — but because they run out of cash. Customers who owe you money, stock you haven't sold, and loans you haven't repaid all affect your cash even when your income statement looks healthy.

Operating Cash Flow

Item	Amount (IQD)
Net profit (from income statement)	0
Change in receivables (+ if collected, − if increased)
Change in inventory (+ if sold down, − if stocked up)
Change in payables (+ if delayed payment, − if paid early)
Net Operating Cash Flow	0

💡 If this is much lower than your net profit, it means cash is tied up in receivables or inventory.

Investing Cash Flow

Item	Amount (IQD)
Equipment / asset purchased (enter as negative)
Equipment / asset sold
Net Investing Cash Flow	0

Financing Cash Flow

Item	Amount (IQD)
Loan received
Loan repayment (principal only)
Owner drawings / withdrawals (enter as negative)
Net Financing Cash Flow	0

Cash Flow Summary

Opening cash balance
Net cash change this period	0
Closing cash balance	0

Operating Cash Flow

—

Net Cash Change

—

Closing Balance

—

Cash in hand at end of period

Profit vs Cash Gap

—

Financial Ratios

What are financial ratios? They convert your financial statements into simple numbers that tell you how healthy your business is — and how a bank or investor would see it.

These ratios are calculated automatically from the figures you entered in the previous tabs.

Profitability Ratios

Ratio	Value	Benchmark	What it means
Gross Profit Margin	—	> 30% is healthy for most SMEs	How much of each sale is left after direct costs
Net Profit Margin	—	> 10% is good; > 20% is strong	What percentage of revenue becomes profit
Return on Assets (ROA)	—	> 5% monthly is strong	How efficiently assets generate profit

Liquidity Ratios

Ratio	Value	Benchmark	What it means
Current Ratio	—	> 1.5 is safe; below 1.0 is a warning sign	Can you pay your short-term debts with your current assets?
Quick Ratio	—	> 1.0 is safe	Same as current ratio but excludes inventory (less liquid)
Cash Ratio	—	> 0.5 — can you pay urgent bills immediately?	Cash on hand vs short-term liabilities

Leverage Ratios

Ratio	Value	Benchmark	What it means
Debt-to-Equity	—	Below 2.0 is generally acceptable	How much of the business is funded by debt vs the owner
Debt-to-Assets	—	Below 50% means owner funds most assets	What percentage of assets are financed by debt

💡 Ratios are most useful when compared over time. Track these monthly and watch the trend — improving ratios tell a stronger story to a lender than a single snapshot.

Financial Summary

A one-page snapshot of all three statements — ready to print or share.

Income Statement

Total Revenue—

Total COGS—

Gross Profit—

Total Expenses—

Net Profit—

Cash Flow

Operating Cash Flow—

Investing Cash Flow—

Financing Cash Flow—

Closing Cash Balance—

Balance Sheet

Current Assets—

Fixed Assets—

Total Assets—

Total Liabilities—

Total Equity—

Key Ratios

Gross Margin—

Net Margin—

Current Ratio—

Debt-to-Equity—