Introduction

Under the rapid economic development that Saudi Arabia is experiencing as part of Vision 2030, accounting and auditing services have become essential for all companies and institutions. Accounting firms in the Kingdom vary in terms of size and services offered, and business owners face challenges in selecting the appropriate firm for their needs.

What is the Saudi Organization for Certified Public Accountants (SOCPA)?

The Saudi Organization for Certified Public Accountants (SOCPA) is the regulatory body for the accounting and auditing profession in Saudi Arabia. The organization was established under Royal Decree No. M/12 dated 13/5/1412 AH, and aims to:

• Regulate the practice of accounting and auditing professions
• Raise the level of certified public accountants and auditors
• Develop accounting and auditing standards in the Kingdom
• Issue licenses for professional practice

SOCPA plays a central role in ensuring the quality of accounting and auditing services in the Kingdom, and classifies licensed firms into different categories based on the type of services provided.

Types of Accounting Firms Accredited by SOCPA

1. Firms Licensed to Provide Accounting Services

These firms provide basic accounting services such as:

• Bookkeeping and preparation of financial statements
• Preparation of internal financial reports
• Design of accounting systems
• Financial consulting

There are many accounting firms of this type in various cities of the Kingdom, especially in Riyadh, the economic capital of the Kingdom.

2. Firms Licensed to Provide Accounting and Auditing Services

These firms provide more comprehensive services and include certified public accountants and auditors accredited by SOCPA. In addition to basic accounting services, they provide:

• Account review and auditing
• Issuance of certified audit reports
• Audit certificates for financial statements

Certified public accountants and auditors firms are among the most demanded types of firms in the Saudi market, especially for medium and large companies.

3. Zakat and Tax Service Provider Firms

These firms specialize in:

• Calculating corporate Zakat (Islamic tax)
• Preparing tax returns (Value Added Tax and Income Tax)
• Providing tax consulting
• Representing clients before the Zakat, Tax and Customs Authority

With the implementation of Value Added Tax in the Kingdom, demand has increased for immediate accounting firms that provide quick tax services.

4. Firms Licensed to Provide Value Added Tax Services (Recent Development)

In an important recent development, the Zakat, Tax and Customs Authority (ZATCA) has issued separate and specialized licenses for providing Value Added Tax services. This new specialization reflects the complexity of VAT systems and the need for specialized expertise in:

• Advanced Electronic Invoicing: Implementing electronic invoicing systems and connecting them with the FATOORA platform
• Integration with Point of Sale Systems: Ensuring cashier systems comply with tax requirements
• Managing Exemptions and Exceptions: Dealing with complex VAT cases
• Specialized Tax Auditing: Reviewing companies' compliance with VAT requirements
• Representation before the Authority: In cases specifically related to Value Added Tax

This development is very important for companies, especially those dealing with complex business operations or multi-sector activities.

Classification of Accounting Firms by Size

1. "Big 4" Firms

These firms are among the largest accounting companies in Saudi Arabia and globally, and include:

• Deloitte
• PricewaterhouseCoopers (PwC)
• Ernst & Young (EY)
• KPMG

These firms are characterized by:

• Prestigious global reputation
• Extensive experience in auditing large corporations
• Large team of specialists
• Relatively high prices

2. Second-Tier International Firms

These come after the Big Four in the ranking of accounting firms in Saudi Arabia, and include:

• Grant Thornton
• BDO
• Baker Tilly
• Moore

These firms provide:

• High quality approaching Big 4 firms
• More competitive prices
• Diverse services for medium and large companies

3. Large Local Firms

There are many large local accounting companies in Riyadh, Jeddah, and Dammam that serve a wide range of Saudi companies. They are characterized by:

• Deeper understanding of the local environment
• Strong relationships with Saudi regulatory authorities
• Reasonable prices compared to international firms

4. Medium and Small Firms

These firms constitute the largest part of accounting firms in the Saudi market and primarily target small and medium enterprises. They are abundant in major cities such as accounting firms in Riyadh and accounting firms in Jeddah.

When to Choose Each Type of Accounting Firm?

Choosing Big 4 Firms:

• Companies listed on the stock market
• Multinational companies
• Companies planning for public offerings
• Companies requiring internationally certified financial reports

Choosing Second-Tier International Firms:

• Large companies with limited budgets
• Companies seeking future international expansion
• Companies needing specialized services at reasonable prices

Choosing Large Local Firms:

• Medium and large local companies
• Companies needing deep understanding of Saudi regulations
• Government and semi-government institutions

Choosing Medium and Small Firms:

• Small and medium enterprises
• Startups
• Individual business owners

Choosing VAT Service Licensed Firms:

• Companies with complex tax business operations
• Institutions needing advanced electronic invoicing implementation
• Companies facing VAT compliance challenges
• Businesses requiring advanced integration with point of sale systems
• Institutions needing specialized consulting on tax exemptions and exceptions

Average Accounting Service Prices (Approximate Range)

Note: The following prices are estimates and may vary according to company size and operational complexity.

1. Monthly Bookkeeping:

• Big 4 Firms: 5,000 - 15,000 SAR
• Second-Tier International Firms: 3,000 - 8,000 SAR
• Large Local Firms: 2,000 - 5,000 SAR
• Medium and Small Firms: 1,000 - 3,000 SAR
• Mezan (Digital Solution): 200 - 500 SAR

2. Annual Financial Statement Preparation:

• Big 4 Firms: 20,000 - 60,000 SAR
• Second-Tier International Firms: 15,000 - 40,000 SAR
• Large Local Firms: 10,000 - 25,000 SAR
• Medium and Small Firms: 5,000 - 15,000 SAR
• Mezan (Digital Solution): Included in monthly subscription

3. Annual Account Review and Auditing:

• Big 4 Firms: 50,000 - 300,000+ SAR
• Second-Tier International Firms: 30,000 - 150,000 SAR
• Large Local Firms: 20,000 - 80,000 SAR
• Medium and Small Firms: 10,000 - 40,000 SAR

4. Zakat and Tax Services:

• Big 4 Firms: 25,000 - 100,000+ SAR
• Second-Tier International Firms: 15,000 - 60,000 SAR
• Large Local Firms: 10,000 - 40,000 SAR
• Medium and Small Firms: 5,000 - 20,000 SAR
• Mezan (Digital Solution): Automated reports included in subscription

5. Specialized VAT Services (New Licenses):

• Advanced Electronic Invoicing Implementation: 15,000 - 50,000 SAR (one-time)
• Point of Sale Systems Integration with ZATCA Requirements: 10,000 - 30,000 SAR
• Specialized VAT Consulting: 3,000 - 15,000 SAR monthly
• VAT Compliance Review: 20,000 - 80,000 SAR annually
• Representation in VAT Cases: 5,000 - 25,000 SAR per case

Mezan: The Digital Alternative to Traditional Accounting Firms

With the digital transformation taking place in the Kingdom, cloud-based accounting solutions like Mezan have emerged to provide a modern and cost-effective alternative for small and medium enterprises.

Advantages of Using Mezan Compared to Traditional Firms:

1. Much Lower Cost: Simple monthly subscription compared to high fees of traditional firms.
2. Time Saving: Instant report generation compared to long waiting periods with accounting firms.
3. Accuracy and Flexibility: Reducing human errors and ability to access data from anywhere.
4. Integration with Point of Sale: Mezan provides an integrated system for accounting and point of sale (cashier), making it a comprehensive solution.
5. Automatic Compliance: Automatic updates to comply with the latest requirements of the Zakat, Tax and Customs Authority.

When to Choose Mezan Instead of Traditional Accounting Firms?

Mezan is particularly suitable for:

• Startups and small projects
• Store and restaurant owners
• Companies with limited budgets
• Businesses needing instant financial reports
• Institutions preferring easy-to-use digital solutions

Conclusion

Saudi Arabia offers a diverse range of accounting companies that meet various business needs. Choosing the appropriate type depends on company size, budget, and specific requirements.

However, digital transformation opens new horizons for small and medium enterprises through solutions like Mezan, which provide a cost-effective and user-friendly alternative compared to traditional accounting firms.

Whether you are looking for an accounting firm in the Kingdom or certified public accountants and auditors, or considering transitioning to digital solutions, understanding the available options will help you make the best decision for your business.

Statement of Those Licensed to Practice the Profession