Why Monthly Accounting Is Crucial for Small Businesses

Better cash flow visibility and control

Cash flow is the lifeblood of any small business. If you don’t know what’s coming in or going out, you risk running out of money, bouncing payments, or missing opportunities.

With monthly accounting, you gain:

• A clear understanding of income and expenses

• Insight into which months are strong or slow

• Early warnings about cash shortages

We create easy-to-read cash flow reports that help you predict and plan, so you never get caught off guard.

Staying compliant with Bahrain tax and labor laws

Bahrain’s tax system is relatively simple—but that doesn’t mean it’s lax. VAT returns, payroll compliance, and record-keeping requirements must be followed closely, especially by VAT-registered companies.

With our monthly service, we ensure:

• Your books are always ready for VAT submission

• Payroll entries and staff records follow WPS guidelines

• Your ledgers meet MOICT (Ministry of Industry and Commerce) standards

This keeps you in good standing with:

• NBR (National Bureau for Revenue)

• LMRA (Labour Market Regulatory Authority)

• MOICT and banks

Avoiding penalties, missed filings, and audit stress

Nothing’s more stressful than getting a call from your auditor or tax advisor asking for documents you can’t find. Disorganized books lead to:

• Missed VAT returns

• Failed audits

• Penalties and CR renewal delays

With monthly accounting, your records are always:

• Up to date

• Organized

• Audit-ready

We even provide backup documentation and working papers, so you can face any inspection with confidence.

What Our Monthly Accounting Package Includes

Our monthly accounting package is built to cover all the essentials a small business needs—without unnecessary fluff or hidden fees.

Here’s what you get every month:

Bookkeeping and transaction recording

We record and categorize:

• Sales invoices

• Purchase bills

• Bank and cash transactions

• Petty cash and expense receipts

Whether you use POS systems, Google Sheets, or just WhatsApp receipts—we organize your data properly into:

• Income accounts

• Expense categories

• Asset and liability ledgers

You can finally forget about Excel chaos and receipt piles.

Monthly P&L, balance sheet, and cash flow

Each month, we prepare:

• Profit & Loss Statement – shows your income, expenses, and net profit

• Balance Sheet – summarizes your assets, liabilities, and equity

• Cash Flow Report – tracks actual cash movements, not just accounting numbers

These reports help you answer key questions like:

• “Am I really making money?”

• “Where is my cash going?”

• “Can I afford to expand next quarter?”

We break down your numbers into simple, visual reports that even non-finance founders can understand.

Bank reconciliations and expense classification

We make sure your bank statements match your books every month—line by line. This helps:

• Catch errors early

• Prevent fraud or duplicates

• Ensure accuracy in VAT and year-end filings

We also sort your expenses into the right buckets (office, fuel, rent, marketing) so you can:

• Track spending trends

• Set budgets

• Know where to cut or invest

Designed for Small and Micro Businesses in Bahrain

Our monthly accounting service is not a one-size-fits-all solution. We tailor it for the unique challenges of Bahrain’s small businesses, including those with:

• Limited staff

• Unpredictable sales cycles

• No dedicated finance team

Freelancers, startups, and home-based businesses

If you’re a:

• Freelancer offering services like design, consulting, or coaching

• Startup building your product while managing early-stage revenue

• Entrepreneur running a business from home

We help you build clean, investor-friendly financial records—even if you’re just getting started.

Retailers, cafés, and service providers

Own a:

• Grocery store

• Boutique

• Restaurant or food truck

• Salon or spa

We handle your:

• POS integration

• Daily sales batching

• Supplier expense tracking

• Staff payroll entries

We understand the fast pace of retail and food businesses—and we make sure your books keep up.

VAT-registered or exempt businesses

Whether you crossed the BHD 37,500 threshold or voluntarily registered for VAT, your financials must meet NBR standards.

We ensure:

• VAT is applied and tracked correctly

• All taxable and exempt revenues are separated

• Input VAT is claimed where eligible

Even if you’re under the threshold, keeping monthly books saves you time, stress, and money down the road.

Monthly Accounting for Compliance with MOICT & NBR

Bahrain’s regulatory landscape is straightforward—but non-compliance can lead to serious delays and penalties.

We keep your monthly records aligned with all major authorities, including:

Proper documentation for tax and audit

Every recorded transaction comes with:

• Invoice or receipt support

• Categorization for VAT or non-VAT

• Date, vendor, and payment method tracking

This makes year-end filing or audit prep a breeze.

Ledger maintenance aligned with Bahrain Commercial Law

We maintain your:

• General Ledger

• Sales Ledger

• Purchase Ledger

• Cash and bank books

All structured according to MOICT guidelines and audit preferences.

VAT tracking and return preparation (if applicable)

If you’re VAT-registered, we:

• Track your input and output VAT monthly

• Prepare reconciliation reports

• Share pre-filled return data every quarter

This avoids VAT shocks or last-minute stress, and gives you time to plan for payments or refunds.

Real-Time Financial Visibility with Monthly Reports

Profit & Loss to track business health

Every month, you’ll receive a complete P&L statement, giving you insights into:

• Total revenue vs expenses

• Profit margins by month

• Seasonal or monthly sales trends

This allows you to:

• Identify top-performing services or products

• Cut unnecessary costs

• Make strategic pricing or investment decisions

We help you understand your profit—not just your revenue—so you can grow intelligently.

Balance sheet to understand assets and liabilities

Your balance sheet shows where your business stands financially at a snapshot in time. It includes:

• Cash on hand

• Outstanding invoices

• Loans or credit card balances

• Owner’s equity

It’s especially important when:

• Applying for loans

• Renewing your CR

• Pitching to investors

Our reports are formatted in MOICT-compliant formats, so they can be used for year-end filing, audits, or compliance reviews.

Cash flow reports to prevent liquidity issues

You may be profitable on paper but still have cash flow issues—especially when clients delay payments. That’s why our monthly accounting includes a clear cash flow report that shows:

• Inflows from sales or collections

• Outflows like rent, salaries, and vendor payments

• Ending cash balance each month

With this, you can plan payments, schedule purchases, and avoid last-minute borrowing.

VAT Tracking and Return Support

Categorizing VAT inputs and outputs

We ensure every transaction is:

• Tagged with the correct VAT code

• Tracked by date and vendor

• Separated by standard, zero-rated, or exempt categories

This makes it easy to:

• Calculate your VAT liability

• Claim maximum input VAT

• Stay audit-ready with fully documented records

Monthly tracking to avoid surprises at quarter-end

Rather than scrambling to gather data every three months, we update your VAT books monthly. This gives you:

• Visibility into expected VAT payments

• Time to fix errors before filing

• Peace of mind that everything is on track

If you’re not VAT-registered yet, we help track your turnover so you’ll know when you’re required to register.

NBR audit-ready records and reconciliation

We prepare:

• Purchase and sales ledgers

• VAT summary reports

• Bank reconciliations

• Matching documents and invoices

If the NBR audits your business, you’ll have everything in place to comply—without panic.

Why Choose Fama for Monthly Accounting in Bahrain

Local expertise with small business focus

We work with hundreds of Bahrain-based small businesses, including:

• Salons and barber shops

• Cafés, bakeries, and food trucks

• E-commerce brands

• Freelancers and agencies

That means we:

• Understand local tax and business laws

• Know what banks and auditors expect

• Customize your reports to your needs

You’re not just a number to us—you’re a partner.

Bilingual team (English and Arabic)

Whether your documents are in Arabic or English, we:

• Translate them as needed

• Prepare bilingual reports

• Help you understand your numbers in your language

This is essential when dealing with government, banks, and partners.

Flat monthly pricing—no surprises

We don’t charge by the hour or hide fees. You’ll get:

• A clear monthly rate

• Transparent add-ons (if any)

• Scalable plans as your business grows

Starting at just BHD 40/month, we make professional accounting accessible to every small business in Bahrain.

Flexible Tools: Excel, Zoho, QuickBooks & More

We adapt to your current system

Still using Excel? No problem. Using QuickBooks or Zoho? We’re already experts. We support:

• Excel or Google Sheets

• QuickBooks Online

• Zoho Books

• Xero

• Tally

We’ll even help migrate you to a new system if needed.

Can recommend cloud software if needed

Need more automation? We can help set up tools that:

• Track expenses

• Issue invoices

• Sync with bank accounts

This helps you save time and reduce manual work.

Access reports from your mobile or laptop

We deliver reports via:

• Email

• Google Drive

• Client dashboards

So you can access your financials anytime, anywhere.

How Our Monthly Accounting Process Works

Step 1: Collect and organize documents

Each month, we’ll ask for:

• Bank statements

• POS or sales reports

• Purchase invoices

• Payroll records (if applicable)

You can upload them easily via email, WhatsApp, or a shared folder.

Step 2: Record, reconcile, and review

We:

• Enter all transactions

• Reconcile your bank and cash accounts

• Review the data for errors or gaps

We’ll also flag missing documents or inconsistencies, so your records are clean and complete.

Step 3: Share monthly reports and insights

By the 10th of each month, you receive:

• P&L Statement

• Balance Sheet

• Cash Flow Report

• VAT Summary (if applicable)

Plus, we share brief commentary explaining what’s working and what needs attention.

Transparent Monthly Pricing for Every Business Size

Add-ons available:

• Payroll processing: BHD 20–40/month

• VAT filing support: BHD 30–60/quarter

• CFO advisory: Custom quote

No contracts. No surprise charges. Just solid accounting.

Benefits Beyond Just Numbers

Easier business decisions and budgeting

When your numbers are accurate and up to date, you can:

• Create realistic budgets

• Plan for expenses

• Invest with confidence

Our reports empower you to steer your business like a pro.

Smoother investor or bank interactions

Need a loan or investment? Our clean financials help you:

• Apply for financing

• Attract serious investors

• Prove your business value with data

You’ll look more professional, credible, and ready to scale.

Peace of mind and more time to focus on growth

You didn’t start your business to chase invoices and reconcile banks. Let us handle the numbers so you can:

• Focus on customers

• Grow your team

• Enjoy your business again

Book Your Free Accounting Consultation

Ready to get your financials organized and stress-free?

Book a free 30-minute consultation with our accounting team today. We’ll:

• Review your current system

• Suggest improvements

• Provide a custom quote

No obligation. No pressure. Just clarity.

FAQs

1. What documents do I need to provide each month?

Just your sales, purchases, bank statements, and any payroll data. We handle the rest.

2. Can I cancel or pause the service anytime?

Yes, our monthly packages are flexible and can be paused or canceled with 15 days’ notice.

3. Will I have a dedicated accountant?

Yes, each client is assigned a dedicated accounting lead who knows your business.

4. Is this service suitable for VAT-exempt businesses?

Absolutely. We serve both VAT and non-VAT registered businesses in Bahrain.

5. How long does it take to get the monthly reports?

Reports are delivered within 7–10 business days after receiving your monthly documents.