Accountants in Saudi Arabia

One of the most complex steps to start a business in Saudi Arabia is to complete all required steps and procedures when the company is being incorporated. Because of this, and many other reasons, accounting is an important aspect of operating. Accountants in Saudi Arabia must respect several regulations no matter the size of the enterprise they work for. Simply put both individuals and companies must comply with obligations related to accounting services in Saudi Arabia.

In this article, we will mention all you need to know about the main accounting regulations and services available in Saudi Arabia. Even though businesses need accountants to run successfully most of the time, some do not know which ones to hire. In this way, our accountants in Saudi Arabia invite you to discover everything there is to know about accounting. We will cover:

  1. What are accountants in Saudi Arabia and what do they do?
  2. Accounting firms in Saudi Arabia
  3. What do accounting firms specialize in?
  4. General benefits that accountants provide to a business
  5. How does the taxation system work in Saudi Arabia?
  6. How can we help you hire a good accountant for your company?

What are accountants in Saudi Arabia and what do they do?

At first glance, accounting seems like a straightforward job; however, it is not quite as it seems. Saudi accountants solve more problems than you may think. For instance, accountants in Saudi Arabia leverage assets, manage budgets, achieve financial efficiencies, maximize investments, etc.  Simply put, an accountant is a professional that is in charge of keeping and interpreting financial records.

Usually, accountants are put together with bookkeepers, but there is a difference. Bookkeepers need at least an associate degree and they record financial transactions. On the contrary, accountants have, at least, earned a bachelor’s degree in accounting. Accountants tend to interpret financial information instead of just gathering it. Simply put, accountants can be bookkeepers but bookkeepers cannot be accountants in Saudi Arabia.

The responsibilities of every Saudi accountant vary based on the company they work for. However, some of the most common and general ones include:

  • Preparing important financial reports as well as maintaining them.
  • Evaluating financial operations. They do this to recommend better practices, strategize solutions, identify issues, and generally improve efficiency in the organization.
  • Conducting forecasting as well as risk analysis assessments.
  • Ensuring that financial documents are accurate. Furthermore, they also secure their compliance with the relevant laws and regulations of Saudi Arabia.
  • Preparing tax returns as well as making sure that the company pays its taxes properly and on time.
  • Offering guidance to the company on profit maximization, cost reduction, and revenue enhancement.

Moreover, accountants in Saudi Arabia are legally obligated to act completely honestly. Furthermore, they also need to avoid any type of negligence in their practices. Because of this, they instantly become responsible for making sure that the financial records of their clients comply perfectly with any relevant laws and regulations in Saudi Arabia. To understand more about your legal obligations, hire the best legal services.

Accounting firms in Saudi Arabia

We talked about accountants that offer accounting services. However, a fact not commonly known is that there are accounting firms. In summary, these are companies that specialize in offering accounting and bookkeeping services for companies in Saudi Arabia. They can handle the following:

  • The payroll of the company they work for.
  • Accounts receivable and payable.
  • Tax and VAT registration services.
  • Auditing services.

Simply put, accounting firms ensure the accuracy and legality of the financial transactions of their clients. Moreover, they help individuals/businesses use financial statements so they can understand their finances´ health. If they work specifically with a business, accountants in Saudi Arabia offer information to investors that show how the company performs periodically.

Nevertheless, you must not confuse accounting firms in Saudi Arabia with Certified Public Accountants (CPAs). CPAs are accountants that pass a state licensing exam. More commonly, they require minimum education requirements such as a bachelor’s degree. Simply put, all CPAs are accountants, but not all accountants can be CPAs.

What do accounting firms specialize in?

Tax planning and preparation

Accountants offer their tax and VAT registration services in Saudi Arabia. However, tax preparation is much more than it seems. Accounting firms prepare state and federal corporate tax returns. Furthermore, they also prepare documentation for the end of the year. Additionally, accounting firms in Saudi Arabia can obtain authority from their client to represent their interests. They represent interests regarding notices, audits, or information requests.

In addition to this, business owners need to establish business entities so they create tax scenarios favorable for them. Accounting firms and accountants in Saudi Arabia help businesses identify solutions. Thanks to this, they aid business owners in creating entities and make the best tax sense for the client company.

On the other hand, estate planning needs are unique to every business owner. Accounting firms also help them find and identify which estate planning needs they have. In other words, accounting firms in Saudi Arabia can help businesses develop the right mix of business entity creation and family trust establishment. Accounting firms work with estate planning attorneys, financial planners, and insurance agents.

Operational bookkeeping and payroll

One of the main aspects that make a business successful is providing the product or service to its client successfully. However, another main aspect that business owners tend not to control is the financial aspects of the company. Thankfully, accounting firms in Saudi Arabia help companies to fulfill this aspect. Copies of the business bank accounts are sent to the firms to maintain an accurate cash flow record. They also create profit and loss statements.

In addition to that, as we previously mentioned, these firms assist with accounts receivable. They also manage outgoing money, including vendor payments and payroll processing. Lastly, they also ensure that the company completes the required federal paperwork for onboarding employees and other contractors. They do this so the companies can issue payment documents properly at the end of the year. Simply put, accounting firms offer bookkeeping services for companies in Saudi Arabia.

Business development and valuation

Lastly, accounting firms in Saudi Arabia are integral when it comes to creating valuation reports for a business. Furthermore, these firms also are integral to obtaining audits that financing firms need. For example, businesses seeking a loan or funding from a private investor require a firm´s services. Moreover, this legitimacy is necessary for any potential mergers or purchases of the company.

In these particular cases, accounting firms can look at the company´s revenue of the previous years, as well as the book of business and other growth patterns. Thanks to this, they can determine a reasonable value for the company. Consequently, the company gives this value to potential investors and buyers.

Moreover, some accounting firms in Saudi Arabia help recently opened businesses with pro forma financial statements and projections. Businesses benefit from it since they can use pro forma financials for initial funding or expansion. On the other hand, accounting firms use industry data along with their client´s company financial stories to calculate other data.

General benefits that accountants provide to a business

Saving time and money

A good Saudi accountant can claim tax deductions for your company since their skills are in providing tax and VAT registration services. Thanks to this, they can reduce a company´s taxable income and, therefore, how much they have to pay. They assist companies with understanding the ins and outs of operating expenses or staffing.  In short, they can spot opportunities that help your company boost its profit greatly in the long run.

As for “time-wise”, it all goes back to the phrase “time is money”. For business owners running a company, this phrase is as true as it can be. However, accountants in Saudi Arabia can save valuable time for a company. This allows the company´s employees and business owners to focus on a specific task.

Hiring a Saudi accountant is an inversion that might seem risky at first. However, a good accountant will save you a lot of time and money, outweighing the fees if you did not have one. For instance, bookkeeping services for companies in Saudi Arabia are one of the most commonly sought services from accountants.

Providing a good system as well as corporate compliance

Getting clean accounts for your business greatly improves the chances of it running smoothly as well as avoiding mistakes. Thanks to this and other reasons related to this, accountants in Saudi Arabia are highly sought after. A Saudi accountant can and will help their clients to set up a good system with accounting software. This keeps the company´s finances in 1 online space that is easily accessible at any given time.

As for corporate compliance, they also help improve it. Corporate compliance means ensuring that your business complies with every law, regulation, code, and standard in Saudi Arabia. One of these laws to follow is meeting tax deadlines. Accountants and accounting firms help their clients with statements of business activities and installment activities and tax returns. Simply put, companies can relax knowing that is taken care of.

Business improvements and growth

Many business owners that start their businesses seek accountants in Saudi Arabia to help them. Whether they are feeling stuck after some years, keen to grow the business, or for other reasons, a Saudi accountant can greatly help a business grow. For example, they help a business to develop a business plan, financial modeling or provide profitability strategies.

Moreover, accounting firms in Saudi Arabia also give advice when it comes to business structures. It goes to the point that, in some cases, they can even advise you to change the structure as you grow. After all, the right structure helps you assure that you do not pay excessive taxes. Consequently, this allows you to protect yourself and your assets as well as manage risks.

Make good business decisions for your company

Last, but not least important, a Saudi accountant can help business owners to value and weigh their options to ensure that their client makes a good decision. One of the most common examples that business owners can see is when it comes to selling a business. In these cases, accountants help with business evaluations, preparing financial reports and documentation, and forming exit strategies.

Accountants in Saudi Arabia do all of this to ensure that their client gets the most out of their asset. Furthermore, they also ensure they do not end up with unexpected tax bills. Similarly, when it comes to buying a business, the accountant helps differently. In these cases, accountants help their clients liaise with 3rd party and evaluate the business to ensure that they are acquiring a good investment.

How does the taxation system work in Saudi Arabia?

In the previous points of this article, you saw that we mentioned tax and VAT registration. Now, you might start wondering just how the Saudi taxation system works. Mainly, Saudi Arabia has no individual income tax scheme. Moreover, the government does not impose income tax if it derives from only being employed in Saudi Arabia. However, they tax non-employment income as an entity.

Additionally, there are other taxes you need to take care of in the Saudi taxation system. These are:

  • Firstly, there is the corporate tax, which the government applies at a 20% rate. Moreover, they add a 2.5% Zakat (charitable donation that they calculate basing it on the surplus income).
  • Secondly, there is the VAT (value-added tax) which the government introduced in 2018. Nevertheless, it has a really low rate of only 5%.
  • Last but not least, there is the social insurance tax. This is levied at a 2% rate for non-residents, while Saudi residents get 12%.

Lastly, you need to take into consideration the taxation of foreign investors in Saudi Arabia. Firstly, foreign investors from non-GCC countries do not pay the Zakat. Secondly, there is the case of the partnerships between Saudi and foreign enterprises that pay taxes according to provisions regarding the Zakat. In this case, Saudi and GCC nationals pay this levy, while the foreign company only pays income tax.

How can we help you hire a good accountant for your company?

Accounting services always fulfill several requirements for companies to operate peacefully in the country. They offer tax, VAT, and bookkeeping services for companies. However, you might have problems hiring an accountant for your company; that is where we come in. Many consider our company as one of the best accounting firms. Just contact us and we will ensure that you hire a great accountant.

In addition, if you are looking for more than just accounting, we have all the solutions to make your business thrive. With us, you can find the greatest company formation services as well as a series of solutions related to immigration.

In the same vein, our packages include visa services, and so much more. What are you waiting for?

Would you like to receive more information about accounting services for small companies in Saudi Arabia? Then you can call us at the following number: +971 58 515 8876. In addition to this, you are completely free to email us at By contacting us in any of these ways, a member of our team will be ready to assist and guide you.

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