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Many small companies in Qatar set next year’s budget by taking this year’s figures and adding a percentage. The result is easy to produce and hard to use. It does not show which month salaries, rent and tax will strain the bank balance, or what happens if a large customer pays late.
A better model starts from a few drivers that the owner understands, such as volumes, prices, headcount and payment terms. It turns the budget into a cash forecast by moving each line to the month in which money actually moves, and it puts the fixed dates set by law in first.
This guide explains the difference between a budget and a cash forecast, how to build a 12-month model and a 13-week weekly view, the payment dates to plan around in Qatar with the rule behind each, and how to review the model every month.
- Budget
- 12 months
- Cash view
- 13 weeks, rolled weekly
- Withholding tax due
- By the 15th
- Law checked
- 16 October 2026
The short answer
In short
- Build the year from drivers, such as volume, price, headcount and payment terms, not from last year plus a percentage.
- Turn the budget into a monthly cash forecast by moving each line to the month in which cash actually comes in or goes out.
- Keep a 13-week weekly cash view for the next quarter, starting each week from the bank balance.
- Put the fixed dates in first: salaries every month through the Wage Protection System (WPS), withholding tax by the 15th of the next month, and the tax return and payment within four months of the year end. Then compare actual results with the budget every month.
Budget, forecast and cash forecast: three different tools
The three words are often used as if they meant the same thing, but they answer different questions. The budget is the agreed plan for the year, set before it starts, and it stays fixed as the target against which actual results are compared. The forecast is the latest view of how the year will end, so it is updated as the year goes on. The forecast changes; the budget does not.
A cash forecast is different again. It shows the money expected to come in and go out, by month or by week, and so it includes items that never appear in profit, such as loan repayments, capital spending, owner drawings and deposits. It also leaves out items that are not cash, such as depreciation and the end of service accrual.
A simple way to lay out a cash forecast is to follow the three blocks of a cash flow statement under IAS 7: operating, investing and financing activities. Trading receipts and payments sit in the first block, equipment and other capital spending in the second, and loans, capital and dividends in the third.
Step 1: list your drivers
A driver is a quantity that explains a line of the budget. A good model has a short list of them, written on one assumptions sheet that the owner reviews and signs off. Changing a driver should change every figure that depends on it.
Revenue drivers depend on the type of business. A trading company usually works from units sold multiplied by price, by product group, with the gross margin for each. A service company uses billable staff multiplied by billable days and the rate charged. For a contracting company, the driver is contract value multiplied by stage of completion, together with the timing of certification and payment by the client.
Costs and cash have their own drivers. Staff costs follow headcount by role and salary band, with planned joiners and leavers, while premises follow the rent and running costs for each site under each lease. For suppliers, the drivers are purchase volumes and the payment terms agreed with each main supplier. For customers, use the number of days they actually take to pay, not the days on the invoice.
For new projects, a separate model is often needed; see our feasibility studies service. The model is only as reliable as the books behind it, so the monthly routine in bookkeeping for SMEs in Qatar comes first.
Step 2: build the 12-month budget
Lay the budget out with one column for each month and a total column. Use the same lines as the chart of accounts, so that actual results can be compared line by line. The table shows a typical structure.
| Line | What goes in it | Driver |
|---|---|---|
| Revenue | Sales by stream or product group | Volume and price, billable days or contract stage |
| Cost of sales | Purchases, direct labour and subcontractors | Volume and margin |
| Staff costs | Salaries, allowances, end of service accrual, residence and visa costs, medical cover | Headcount and salary bands |
| Premises | Rent and utilities | Leases and sites |
| Licences and renewals | Commercial registration, trade licence, tax card, ICV certificate where relevant | Expiry dates |
| Professional fees | Audit and tax return preparation | Engagement letters |
| Finance costs | Interest and bank charges | Facility terms |
| Depreciation | Wear of equipment, vehicles and fit-out | Fixed asset register |
| Income tax | Corporate income tax on the year’s profit, where it applies | Taxable profit |
If the chart of accounts does not match these lines, fix that first. Our accounting system setup service covers a chart of accounts that matches the budget.
Step 3: convert the budget into a monthly cash forecast
Profit and cash rarely move in the same month. A sale made in March may be paid in May; a year’s rent may be paid in one cheque. To convert the budget, take each line and move it to the month in which the cash actually moves.
| Line | When cash moves | Rule or source |
|---|---|---|
| Sales | After the credit days customers actually take | Customer terms and history |
| Supplier payments | After the agreed payment terms | Supplier terms |
| Salaries | Monthly, by transfer to each worker’s bank account through WPS | Labour Law Art. 66 |
| Withholding tax on payments to non-residents | By the 15th of the month after the month of payment | Income Tax Regulations Art. 24 |
| End of service | When an employee leaves | Labour Law Art. 54 |
| Rent | As set in each lease | Lease |
| Residence and visa costs | When permits are issued or renewed | Permit dates |
| Commercial registration | In the 30 days before it expires | Commercial Register Law Art. 5 |
| Corporate income tax | On the day the return is filed, within four months of the year end | Regulations Art. 29; Law Art. 20 |
| Loan instalments | As set in the facility letter | Facility letter |
| Capital spending | When equipment is paid for | Purchase orders |
| Owner drawings and dividends | After the general assembly approves them | Company decision |
Each month then follows one line of arithmetic: opening cash plus receipts, less payments, gives closing cash. Closing cash becomes the next month’s opening cash. Set a minimum cash buffer that the owner is comfortable with, and mark any month where the forecast falls below it.
Who must withhold tax, and at what rate, is covered in withholding tax in Qatar. The return itself is covered in how to file a corporate income tax return.
Step 4: the 13-week cash forecast
A monthly forecast can hide a short gap. If salaries go out in the first week and the main customer pays in the fourth, the month may look fine while the payroll week does not. A 13-week forecast shows the next quarter week by week.
- 1
Start from the bank
Begin each week with the actual bank balance, not the figure the model expected.
- 2
List known receipts
Enter expected receipts customer by customer, using what each one has actually paid in the past.
- 3
Place the fixed payments
Put in the payroll week, supplier payment runs, the withholding tax payment week, rent dates and loan instalments.
- 4
Check the buffer
Mark any week where closing cash falls below the minimum buffer, and decide what to do about it now.
- 5
Roll forward
At the end of each week, drop the week just finished, add a new week at the end and compare the forecast with what happened.
The 13-week view is a short-term working tool. The 12-month model stays the tool for the year as a whole, and the two should agree on the totals.
Fixed dates to put in first
Some payments and filings in Qatar have dates set by law. Put them into the model before anything else, so that the rest of the plan fits around them.
| When | What | Source |
|---|---|---|
| Every month | Salaries paid by bank transfer through WPS | Labour Law Art. 66 |
| Every month | Withholding tax for the previous month paid by the 15th | Regulations Art. 24 |
| Within four months of the year end | Corporate income tax return filed and tax paid the same day; 30 April for a 31 December year end | Regulations Art. 29; Law Art. 20 |
| At least 60 days before the return deadline | Last date to ask the GTA for an extension of up to four months | Regulations Art. 30 |
| Within two months of the year end | LLC managers prepare the annual accounts | Companies Law Art. 251 |
| Within one month after that | LLC accounts and auditor’s report sent to the Ministry and partners | Companies Law Art. 251 |
| Within four months of the year end | LLC general assembly | Companies Law Art. 250 |
| On each expiry date | Commercial registration renewal, tax card and ICV certificate | Commercial Register Law Art. 5; GTA; icv.qa |
Qatar’s working week runs from Sunday to Thursday (Amiri Decision No. 57 of 2025), so a deadline can fall on a Friday or Saturday. Plan the payment for the last working day before it. The 2027 dates are set out in the Qatar compliance calendar 2027.
Scenarios and the monthly review
Build a base case, a low case and a high case from the same model by changing two or three drivers, such as sales volume or customer payment days. Changing every line by hand makes the cases hard to compare.
The review itself is a routine. Every month, compare actual results with the budget line by line and write a short explanation for each large difference, then update the forecast for the rest of the year, keeping the original budget unchanged for comparison. Every week, roll the 13-week cash view forward from the bank balance. When a gap appears, look at collections, supplier terms and the timing of planned spending, and arrange any finance early, before the gap arrives.
Our budgeting and forecasting service covers this monthly review.
What to do next
Start with the assumptions sheet and the fixed dates, then build the 12 months and the first 13 weeks. Many owners ask for accounting consultancy in Qatar only for the first model and then update it themselves each month. If you need support, our budgeting and forecasting and bookkeeping services describe how we help, and our business plans and financial models service covers models for banks and investors. See also our pages for SMEs and start-ups. If a bank has also asked for your accounts, see audited financial statements in Qatar. To discuss your needs, request a proposal.
Frequently asked questions
What is the difference between a budget and a cash flow forecast?
A budget is the year’s plan for income and costs. A cash flow forecast shows when money actually comes in and goes out, including loan repayments and capital spending, and leaves out items that are not cash, such as depreciation and the end of service accrual.
What is a 13-week cash flow forecast?
A weekly forecast of receipts and payments for the next quarter, updated every week starting from the actual bank balance. It shows short gaps, such as a payroll week before a large customer payment, that a monthly view can hide.
How often should an SME update its forecast?
Compare actual results with the budget every month and update the forecast for the rest of the year, keeping the original budget for comparison. Update the 13-week cash view every week. Larger or fast-growing companies may review some lines more often.
Which payments in Qatar have fixed dates?
Salaries are paid monthly by bank transfer through WPS (Labour Law Article 66). Withholding tax is paid before the 16th of the following month (Executive Regulations Article 24). The corporate tax return is filed, and the tax paid, within four months of the year end (Regulations Article 29; Law Article 20).
Should end of service benefits be in the cash forecast?
Accrue them in the budget every month, because the cost builds up with each year of service (Labour Law Article 54). In the cash forecast, they appear only in the month an employee is expected to leave and be paid.
Do I need a VAT line in my Qatar budget?
No. There is no VAT law in force in Qatar, so the budget has no VAT line. Keep lines for withholding tax on payments to non-residents and for corporate income tax where it applies to the company.
Do banks ask for a budget or cash forecast?
Banks often ask for one with a facility request or renewal, and the bank decides the format and the period. Ask for its template early. Our business plans and financial models service covers models prepared for banks and investors.
Sources
Laws and regulations
- Law No. 14 of 2004, Labour Law (Al Meezan)
- Income Tax Law and Executive Regulations, 2024 edition (General Tax Authority)
- Law No. 11 of 2015, Commercial Companies Law (Al Meezan)
- Law No. 25 of 2005 on the Commercial Register (Al Meezan)
- Amiri Decision No. 57 of 2025 on working days and official holidays (Al Meezan)
Accounting standards
This article is general information, not accounting or tax advice for your company. Any figures in a model are estimates, not promises. The laws and regulations cited were checked on 16 October 2026; English descriptions of Arabic legal texts are our own. A firm that prepares your budget and accounts cannot also audit them.