Qawaem Platform Guide: How to Submit Financial Statements in Saudi Arabia

What is the Qawaem Platform?

The Qawaem platform is an electronic system that enables automatic submission of financial statements using XBRL (eXtensible Business Reporting Language) format to ensure standardization and accuracy in data. The platform is available through the website qawaem.bc.gov.sa and is managed by the Ministry of Commerce in cooperation with the Saudi Business Center. The platform includes services such as inquiring about submission status, uploading statements, and reviewing them by specialized accounting staff before final approval.

Platform Importance

• Transparency: Provides a unified database that helps evaluate the financial performance of establishments.
• Efficiency: Reduces paperwork and speeds up the electronic submission process.
• Compliance: Ensures adherence to the Companies Law, where statement submission is required for commercial registration renewal or obtaining other services.
• Support for Small Companies: Allows establishments exempt from auditing (such as micro and small companies) to submit directly without a legal accountant.

How to Register and Access the Platform

To access the Qawaem platform, you must register through the National Access Portal (Nafath), which requires an Absher account or a business account. The steps are as follows:

1. Visit the Website: Go to qawaem.bc.gov.sa.
2. Login: Choose "Login" and use Nafath (using ID number or commercial registration).
3. Verification: Enter the verification code sent to your mobile or email.
4. Create Account if Needed: For new establishments, you can create an account linked to a valid commercial registration.

The platform is free and requires a valid commercial registration for submission.

How to Submit Financial Statements: Detailed Steps

Financial statements are submitted either directly by the establishment (for those exempt from auditing) or through auditors. Submission must be in XBRL format and includes the statement of financial position, income statement, cash flow statement, and statement of changes in equity, in addition to explanatory notes.

General Submission Steps:

1. Login: Through Nafath as mentioned above.
2. Select Service: Click on "Submit Financial Statement Upload Request".
3. Create Statements: Choose "Create Financial Statements", then specify the report type (such as "Exempt from Auditing" for small companies).
4. Enter Data: Enter financial details in electronic forms, or upload a ready XBRL file.
5. Verification and Review: Ensure data accuracy, then send the request for review.
6. Approval: After review by the platform, statements are approved electronically without need for paper documents.

For Exempt Companies (Micro and Small):

• If the number of workers is less than 9 (including the establishment owner), direct submission is possible without a legal accountant.
• Exemption continues for a certain period (such as 3 years in some cases), with nominal fees if required.

For Large or Listed Companies:

• The auditor uploads statements after auditing.
• Deadline: For listed companies, quarterly statements within 30 days from quarter end, and annual within 3 months from fiscal year end.

Requirements and Deadlines

• Requirements: Valid commercial registration, certified financial statements (if required), and use of XBRL format. Statements must comply with International Financial Reporting Standards (IFRS) adopted in Saudi Arabia.
• Deadlines: For example, companies whose fiscal year ended on December 31, 2024, were required to submit their statements by June 30, 2025. For other companies, within 6 months from the end of the fiscal year.
• Penalties: Non-submission may lead to commercial registration suspension or financial fines.

Tips and Common Mistakes

• Tips: Use XBRL conversion tools if you use Excel. Make sure to review data before sending. For beginners, watch instructional videos on YouTube or TikTok for practical steps.
• Common Mistakes: Not updating commercial registration, data entry errors, or ignoring deadlines, leading to request rejection.
• Support: You can inquire about submission status through the platform, or contact Ministry of Commerce support.

Frequently Asked Questions About Qawaem Platform

1. Is using the Qawaem platform free?

Yes, the Qawaem platform is free to use and requires no fees for registration or submitting financial statements. All you need is a valid commercial registration and a Nafath account.

2. What documents are required for submission?

You need a valid commercial registration, financial statements in XBRL format, and for large companies, a certified auditor's report. Statements must comply with international accounting standards adopted in Saudi Arabia.

3. What if I cannot submit by the specified deadline?

Failure to submit by the specified deadline may lead to commercial registration suspension or financial fines. It's recommended to contact the Ministry of Commerce to know the required procedures in case of delay.

4. Can small companies submit without a legal accountant?

Yes, micro and small companies (less than 9 workers) are exempt from auditing and can submit directly without needing a certified legal accountant.

5. How can I convert my financial statements to XBRL format?

You can use online conversion tools or accounting software that supports XBRL export. You can also enter data directly into electronic forms on the platform.

6. Can statements be modified after submission?

After statements are approved by the platform, they cannot be modified. Therefore, it's very important to carefully review data before final submission.

7. How can I check the status of statement submission?

You can inquire about submission status directly through the platform after logging in, or contact Ministry of Commerce support.

Conclusion

The Qawaem platform represents a qualitative leap in financial statement management, transforming the process from paper-based to fully electronic, saving time and effort. By following the mentioned steps, any establishment can submit its statements easily and accurately. For updates, visit the official website or consult a certified accountant. This platform ensures compliance and transparency, enhancing stakeholder confidence in financial data.