Business Zakah Inventory and Evidence Workbook
A business Zakah calculation is only as reliable as the inventory, receivable, cash and liability evidence behind it. An annual workbook should reconcile the chosen Shariah method to accounting records without presenting one universal formula for every business.
This checklist is general information, not tax, accounting or Shariah advice. Obtain a qualified Shariah opinion and professional accounting support for the actual business.
1. Record the valuation date
State the Islamic or other approved calculation date, reporting currency and exchange rates. Use the same cut-off across cash, inventory, receivables and liabilities.
2. Identify the calculating entity and owners
Record the company, partnership or sole proprietor and who bears the Zakah obligation under the adopted method. Separate business assets from owners’ personal assets.
3. Reconcile bank and cash
List every account, till, wallet and payment processor. Reconcile balances to statements and the ledger, including deposits in transit and uncleared items.
4. Classify inventory
Separate goods held for sale from equipment, consumables, work in progress and assets used by the business. Record quantity, valuation method, damaged or obsolete stock and source evidence.
5. Review receivables
Age customer balances and record disputed, doubtful or written-off amounts. Document the rule used for collectability and later recoveries.
6. Review investments and foreign currency
List shares, funds, commodities, crypto assets and foreign balances with value date and Shariah status. Avoid duplicating amounts already included in another account.
7. Record payables and liabilities
List supplier balances, payroll, taxes, finance and other obligations. Apply only liabilities permitted by the adopted Shariah method and document timing assumptions.
8. Handle owner and related-party balances
Reconcile shareholder loans, drawings, partner accounts and related-company balances. Confirm which entity owes each amount and Workbook controls
Lock approved formula cells, retain a read-only final version and record preparer and reviewer names with dates. Keep source docPreserve change history.uments in an indexed folder and use consistent references in the workbook. Where a classification is uncertain, flag it for scholarly or professional review rather than hiding it inside a formula.avoid netting without evidence.
9. Identify non-compliant income
Record interest or other impermissible receipts separately, the adopted purification treatment and payment evidence. Do not count purification as Zakah without qualified guidance.
10. Calculate and review
Show each workbook line, source document, classification and formula. Have a second person check arithmetic, double counting and omitted accounts.
11. Record payment and recipients
Keep approval, date, amount, recipient or distribution agent and proof of payment. Verify eligibility and governance without exposing unnecessary personal information.
12. Reconcile the next year
Carry forward unresolved receivables, inventory adjustments, recoveries and prior payments. Explain material movements and update the methodology only through documented advice.
Minimum workbook tabs
Method and assumptions
Cash and bank reconciliation
Inventory classification
Receivables and collectability
Liabilities
Owner and related-party accounts
Purification record
Calculation and payment evidence
Official starting points
Practical outcome: every number in the Zakah calculation should trace to an accounting record, valuation, classification decision and adopted Shariah method.
