Agencies Accounting & Tax Services in Saudi Arabia

Our Saudi agency accounting services are tailored for the needs of various service-based firms in the Kingdom:

• Advertising & Marketing Agencies: Firms managing large campaign budgets and needing to differentiate between their service fees and third-party media costs.
• Creative & Branding Studios: Agencies developing creative assets and campaigns for Saudi clients, requiring meticulous tracking of project costs and freelance talent payments.
• Public Relations (PR) Agencies: Firms managing retainers and event budgets for government and corporate clients, requiring transparent and compliant financial reporting.
• Management & Strategy Consultancies: Professional service firms advising on Vision 2030 projects, who need to ensure accurate billing and compliance with all local tax laws.

While professional financial oversight is always beneficial, specialized agency accounting becomes mission-critical at several key stages in the KSA market:

• When You Win Your First Major Contract: Managing a significant government or corporate project requires a robust system for cost tracking, compliant invoicing, and cash flow management.
• When You Hire Staff or Use Foreign Contractors: This triggers GOSI (social insurance) and Mudad payroll obligations for local staff and requires managing withholding tax on payments to foreign contractors.
• When You Register for VAT: Once your turnover exceeds SAR 375,000, you must register for VAT and begin issuing ZATCA-compliant e-invoices for all transactions.
• When You Need to Understand Profitability: To determine if a client or project is truly profitable, you must be able to accurately allocate all associated costs, including staff time and overheads.

Outsourcing your agency's accounting provides access to specialized skills that are essential for operating in the KSA, delivering ROI through compliance and efficiency.

• Small Agency / Boutique Firm: SAR 7,000 - SAR 15,000 per month. This typically includes ZATCA-compliant bookkeeping, VAT returns, payroll for a small team, and basic project reporting.
• Growing Agency: SAR 15,000 - SAR 30,000 per month. This level adds more detailed KPI analysis, cash flow forecasting, and management of more complex client accounts and withholding tax.
• Established Agency: Custom pricing starting from SAR 30,000+, often including fractional CFO services for strategic planning and financial leadership.

Agencies in Saudi Arabia face significant compliance risks that can result in heavy penalties and operational disruption:

• ZATCA E-invoicing Non-Compliance: Failure to issue invoices in the correct ZATCA-specified format is a primary compliance risk and can lead to immediate penalties.
• Withholding Tax Violations: Failing to withhold tax on payments to foreign contractors (e.g., freelance creatives, software providers) is a major red flag for ZATCA and carries significant penalties.
• VAT Errors: Incorrectly applying VAT to services or failing to file accurate quarterly returns can lead to substantial fines.
• Project Unprofitability: Without accurate cost tracking, agencies can easily under-price large contracts, leading to financial losses and cash flow problems.

Agency leaders excel at creativity and client strategy, not at navigating ZATCA's intricate e-invoicing specifications or Saudi withholding tax law. Outsourcing the finance function to YourLegal allows you to focus on your core business while we ensure your financial operations are bulletproof.

We implement ZATCA-approved accounting systems to provide real-time insights into your project profitability and ensure every invoice is compliant. Our local team of experts manages your VAT, withholding tax, and payroll compliance, ensuring you meet all deadlines and optimize your tax position. By transforming complex financial data into clear, actionable reports, we empower you to make smarter decisions on pricing, staffing, and business development, helping you build a more profitable and resilient agency in the heart of the Middle East's most exciting market.