For small businesses in Saudi Arabia, accounting costs vary significantly based on the service model chosen—ranging from automated digital platforms to full-service professional firms. The Saudi Organization for Chartered and Professional Accountants (SOCPA) and the Zakat, Tax and Customs Authority (ZATCA) set strict compliance standards, meaning professional oversight is often a necessity rather than a luxury.
The following sections break down the market rates for different accounting solutions.
1. Outsourced Monthly Retainer Models
Most small businesses opt for an outsourced retainer, where a third-party firm handles the books for a fixed monthly fee. This is the most common model for SMEs.
Digital/Cloud Accounting Platforms:
Cost: SAR 200 – SAR 600 per month.
Scope: These are tech-first solutions (like Qoyod, Wafeq, or Zoho Books localized for KSA). The fee typically covers the software subscription and basic automated bookkeeping. You often have to enter the data yourself, with minimal human review.
Local Accounting Firms (SME Focus):
Cost: SAR 1,500 – SAR 3,500 per month.
Scope: Includes a dedicated accountant who manages your entries, reconciles bank statements, files VAT returns quarterly, and ensures Zakat compliance. This tier usually limits the volume of transactions (e.g., up to 100 invoices/month).
Mid-Tier Professional Firms:
Cost: SAR 4,000 – SAR 8,000+ per month.
Scope: Designed for growing businesses with higher complexity. Services include detailed management reporting, payroll processing, inventory management support, and advisory services.
2. Project-Based and One-Time Fees
Certain accounting requirements are not covered in monthly retainers and are billed separately as annual or one-off projects.
Annual Financial Audit:
Cost: SAR 10,000 – SAR 25,000 per year (for small entities).
Details: All foreign-owned companies and certain Saudi entities must submit audited financial statements to the Ministry of Commerce (Qawaem program). The fee depends on turnover and balance sheet complexity.
VAT Return Filing (Ad-Hoc):
Cost: SAR 500 – SAR 1,500 per filing.
Details: If you do not have a monthly retainer, firms charge per quarter to review your data and submit the VAT return to ZATCA.
Zakat & CIT Filing:
Cost: SAR 2,000 – SAR 5,000 per year.
Details: Preparation and submission of the annual Zakat and Corporate Income Tax (CIT) declaration.
E-Invoicing Setup:
Cost: SAR 1,000 – SAR 5,000 (One-time).
Details: Configuration of compliant invoicing software to link with ZATCA’s Fatoora portal (Phase 1 and Phase 2 compliance).
3. In-House Accountant Costs
Hiring a full-time accountant is generally more expensive than outsourcing but offers immediate access to financial data.
Junior Accountant (Expat):
Salary: SAR 3,500 – SAR 6,000 per month.
Hidden Costs: Visa fees, health insurance, annual ticket, and end-of-service benefits.
Senior Accountant (Saudi National):
Salary: SAR 6,000 – SAR 10,000+ per month.
Benefits: Helps with Saudization (Nitaqat) ratings but requires a higher salary baseline.
Chief Accountant / Finance Manager:
Salary: SAR 15,000+ per month.
Role: Strategic planning and team management, usually unnecessary for micro-businesses.
Factors Affecting the Fees
Quotes from accounting firms are rarely fixed; they fluctuate based on the following variables:
Volume of Transactions: A business with 50 monthly invoices pays significantly less than a retail store with 1,000 daily transactions.
Revenue Size: Higher revenue often triggers higher audit and Zakat filing fees due to the increased risk and workload.
Inventory Complexity: Businesses with physical stock (retail/manufacturing) require more complex cost accounting than service-based businesses (consulting/agencies).
Entity Type: Foreign-owned companies (MISA licensed) have stricter reporting requirements (audit is mandatory) compared to simple Sole Proprietorships owned by Saudi nationals.
Software Status: If your books are currently messy or non-existent (backlog accounting), firms will charge a "cleanup fee" ranging from SAR 5,000 to SAR 20,000 to bring records up to date before starting a retainer.
