Cash Collected vs Accrual Net Profit Bridge

Executive CFO Bridge
Executive Owner's Bridge answering: 'Why is the cash in our bank accounts different from our P&L Net Profit?'
Trial BalanceProfit & LossMulti-Branch P&LBalance SheetCash FlowEgypt VAT ReturnDeferred PackagesCash vs Accrual Bridge
Net Cash Surplus

EGP 884,000

In Drawers & CIB/QNB Banks
Unearned Packages & VAT

EGP 27,600

Cash held for future sessions
Unsettled POS & InstaPay

EGP 8,692.60

Awaiting bank batch deposit
Accrual Net Profit (P&L)

EGP 637,590

True earned clinic profit
Visual Cash-to-Accrual Profit Bridge (EGP)
Step-by-Step Reconciliation Schedule

1. Net Cash Deposited in Drawers & Corporate Banks

Physical EGP cash + settled CIB/QNB deposits after cash OPEX & supplier payouts

EGP 884,000

2. Less: 14% VAT Collected on Behalf of ETA (GL 2310)

Cash collected from patients that belongs to Egyptian Tax Authority, not clinic profit

EGP -143,902.60

3. Less: Upfront Unearned Session Packages (GL 2210)

6-session Laser & PRP packages paid upfront — deferred until sessions are performed

EGP -27,600

4. Plus: Unsettled Visa POS & InstaPay in Transit (1130 / 1140)

Earned treatment sales swiped on POS terminals awaiting T+1 QNB/CIB bank settlement

+EGP 8,692.60

5. Less: Non-Cash Medical Laser Depreciation (GL 6280)

Monthly wear-and-tear charge on Candela/Morpheus8 devices (zero immediate cash outflow)

EGP -122,000

6. Plus: Bulk Injectable Stock Purchased Ahead of Consumption (1310)

Cash paid for cold-chain Botox/Filler vials capitalized in Inventory until injected

+EGP 38,400

7. Equals: True Accrual Net Operating Profit (P&L)

Matches Profit & Loss Statement bottom line exactly

EGP 637,590