How much are the basic accounting fees?

Smart financial management starts with solid accounting; it’s the backbone of every successful business. Accounting services manage and track each and every record of financial transactions and operations of a business which is crucial for smart decision making, business scaling, compliance and deal making. That being said, accounting can be intricate to handle as it is prone to mistakes and requires an expert accountant to professionally handle these services. Hiring an accountant externally or internally both comes with certain costs that oftentimes can be heavy in the pocketbook specifically for SMEs and startups. It is important to fully calculate the cost of each accounting service, thoroughly checking the factors that affect the accounting fees, and implementing best practices to minimize costs. This blog dives into all these key aspects to help companies comprehensively understand the basic accounting fee in Saudi Arabia but first let’s see why your business need these services.

Understanding Basic Accounting Services

As a business owner you might be handling a lot on a day-to-day basis, which often leads to overlooking the importance of effective accounting services. However, without proper financial management it’s just not possible to run a business successfully. Regardless of the size of industry, it is important to hire a professional accountant to make informed decisions, prepare financial statements, and comply with filing taxes correctly. Some of the basic accounting services include:

• Bookkeeping (recording daily transactions)
• Bank reconciliations
• Accounts payable and receivable management
• Payroll processing
• VAT filing and compliance
• Financial statements preparation (income statement, balance sheet, cash flow)

These services create the foundation of any financial system and are crucial for businesses to maintain transparency, comply with regulations, and make informed decisions. In KSA, with the introduction of VAT and the e-invoicing mandate (Fatoora), businesses must ensure compliance to avoid penalties. It not just demands professional experts for accurate filing and bookkeeping but also needs accounting software integration to make certain that all financial services adhere to the legal laws. As a result, businesses are increasingly investing in professional accounting to manage these risks effectively.

Factors Affecting Accounting Fees in KSA

Prior to hiring an accounting firm, businesses must understand that price ranges fluctuate depending on certain factors. Which includes:

• Business Size and Complexity: Small businesses and startups generally deal with less transactions and fewer financial complexities; therefore, they pay less for accounting services as compared to large enterprises which needs full-fledged accounting services which incur more fees.
• Scope of Services Required: Basic accounting fee costs less than full time fee which includes audit support, strategic advisory, and budgeting.
• Frequency of Service: Monthly services cost more than quarterly or annual service packages. Additionally, many businesses demand regular updates, which may also increase costs.
• Experience and Reputation of the Accounting Firm: If you hire a reputable firm with certified accountants, it will cost more than regular local firms.
• Use of Technology: Firms that offer tech savvy services, with cloud solutions, block chain technology and automation tools; facilities also offer competitive pricing structures.
• Location: Hiring accounting firms located in expensive cities or areas also impacts the rates; the better the location the higher the rates.

Apart from these factors, it is important to understand that if businesses choose a freelance accountant over full-time accounting firms it would also cost them less, but they may lack professionalism and regulatory knowledge.

Typical Price Ranges for Basic Accounting in KSA

As we have mentioned above that price ranges vary depending on several factors, we have come up with the average basic accounting fee in Saudi Arabia. Based on market trends and surveys from local firms, the following are typical price ranges:

• Freelance Accountant or Part-Time Bookkeeper: SAR 500 – SAR 1,500/month
• Small Accounting Firms (Basic Services): SAR 1,000 – SAR 3,000/month
• Mid-Tier Firms (Full Accounting Services): SAR 3,000 – SAR 8,000/month
• Top-Tier Firms or Big Four (Customized Solutions): SAR 10,000+/month

Many commercial hubs like Riyadh and Jeddah occupy a wide range of firms from local companies to big four international competitors. Businesses have more options to pick their desired services in these areas. While smaller cities and remote areas have limited options. Remote accounting via cloud software is becoming popular for businesses in these regions.

Choosing the Right Accounting Service Provider

To have the maximum benefit from the amount provided, it is mandatory to have in-depth research before boarding the right accounting service provider with professional offerings.

1. Licensing and Certification: It is important to make sure that the provider is registered with a certified professional chartered accountant.
2. Industry Experience: Choose a firm with previous experience in your industry, to make sure that they fully understand your unique compliance and reporting needs.
3. Technology Stack: Look for the software and cloud-based platforms they are using like QuickBooks, Xero, or Zoho Books, which offer transparency and real-time access.
4. Service Agreement: they should have a clear service agreement with transparent pricing, scope of their services, reporting timelines, and confidentiality policies.
5. Client Testimonials and Reviews: look for online reviews from platforms like Google and LinkedIn, also ask for client references.
6. Trial Period or Consultation: Many firms offer free consultation or trail services. Always go for these firms to practically have an idea of how it would have an impact on your business.
7. Location and Language: To make sure of effective collaboration it is important to hire a firm that offer support in Arabic and/or English and are accessible geographically.
8. Turnaround Time: How promptly they respond to queries and deliver their reports, it is also essential to know to avoid any hurdles in compliance and audits.
9. Cost Transparency: Their fee structure should be transparent with no additional or hidden charges. Always request a detailed quotation with each service, including the add-on.
10. Data Security and Confidentiality: They should offer robust security measures to ensure that their customers’ confidential financial data is in safe hands.

How to Reduce Accounting Costs?

In today’s high-cost business environment, it’s crucial to trim expenses where needed to maximize financial gains. Here we will mention a few key aspects that businesses can implement to cut down their accounting costs.

• Use cloud accounting tools to streamline day to day accounting process
• Automate repetitive tasks like payroll, bank feeds, and invoicing to reduce manual labor errors
• Organize documentation by categorizing receipts, invoices, and bank statements in order.
• Hire bundle services with a single service provider for maximum profitability and better pricing
• Negotiate annual contracts for better discounts and priority services
• Train internal staff to reduce support from external accountants and to understand their services accurately.
• Review regularly and reassess your accounting needs and provider performance.

SS&CO Accounting Services Riyadh, Saudi Arabia

SSCOKSA is one of the top providers of accounting services Riyadh, Saudi Arabia. We not just have a few of the most skilled accountants on the team, but we are also well equipped with cutting-edge technological solutions. Our pricing structures are flexible with transparent rates for each services including:

• Bookkeeping services with accuracy and compliance
• Vat, zakat and corporate tax registration & filing
• Financial statement preparation
• Payroll management with security of data
• Through preparation of audit support
• Business advisory & financial planning for scaling effortlessly
• Cloud accounting setup & support with accounting systems

To have a clearer picture of our services and pricing models, you can always book a free consultation. By understanding our pricing structures, negotiating smartly, and leveraging our modern accounting tools, businesses in KSA not just stay compliant and informed but also focus on what matters most: growth and sustainability.