Accounting Services RFP Template (Hiring a CPA Firm in Saudi Arabia)

Choosing an accounting firm is a financial and operational decision that affects your company for years. Pick a weak firm and you will pay ZATCA penalties, file returns late, and may uncover errors in your books two or three years down the line, exactly when partners and investors are asking for clean financial statements. Pick an overpriced firm that does not actually deliver value, and you drain your budget for nothing in return.

The real problem is that most small and mid-sized business owners in Saudi Arabia request accounting proposals in an unstructured way: one phone call, a quick quote, a decision within a week. The result: they cannot compare the true scope of service, they do not understand why one firm charges SAR 1,500 per month and another charges SAR 8,000 for the same work, and they do not put clear terms in the contract, only to discover later that essential services (like the annual Zakat return or a ZATCA review) are not included in the agreed price.

This template fixes the problem at its root. It gives you a structured Request for Proposal (RFP), weighted numerical evaluation criteria, ready-to-use interview questions, and standard contract clauses drawn from the Saudi market, so you can choose the right firm for your size and sector with a considered decision, not a guess.

When your company actually needs an external accounting firm

Many companies rely on a part-time individual accountant or on the owner themselves for years, then suddenly find themselves facing a tax or legal problem because they kept postponing the decision. There are clear signs that the time has come to move to a professional accounting firm.

Moving on from an individual accountant

An individual accountant is fine in the first or second year of the business, when invoices are few and headcount is under five. But once monthly transaction volume passes 150 invoices, or your annual revenue exceeds SAR 1 million, that individual becomes a single point of failure: if they get sick, travel, or leave, your books stop completely. An accounting firm gives you service continuity and a team with mixed skills (bookkeeping, tax, internal audit, advisory).

Expansion and opening new branches

If you open a second branch in another city, or add a new legal entity (a sister company, a foreign-market branch), you need a firm that can consolidate financial statements, handle cost allocation between entities, and produce consolidated management reports. An individual accountant rarely has this capability.

A new tax registration or a new compliance requirement

When you cross the SAR 375,000 annual threshold and enter VAT registration, or when you join phase two of e-invoicing, or when you cross the Zakat threshold, mistakes become expensive. The e-invoicing penalty alone starts at SAR 5,000 per violation and can reach SAR 50,000 for repeat offenses. A professional firm gives you continuous compliance.

Onboarding an investor or applying for bank financing

When you raise an investment round, apply for financing from a local bank, or enter a partnership with a strategic investor, you will be asked for audited financial statements for at least two years. An individual accountant cannot prepare certified audited statements. You need a firm licensed by the Saudi Organization for Chartered and Professional Accountants (SOCPA).

Types of external accounting services available

Before requesting a proposal, you need to define exactly which type of service you need. Mixing service types is the number-one reason prices differ between firms in ways that seem irrational.

Operational bookkeeping

This is the core, most-requested service: invoice entry, bank reconciliation, journal entries, month-end close, monthly trial balance. A good firm charges between SAR 1,500 and SAR 4,000 per month for small companies (under 200 transactions per month), and between SAR 4,000 and SAR 9,000 for mid-sized companies.

External audit

Issuing a statutory auditor’s report on the annual financial statements, legally required for every limited liability company and every joint stock company. Only a SOCPA-licensed firm can perform it. Fees range from SAR 7,000 for very small companies to SAR 80,000 and above for large companies. This report is a separate deliverable from day-to-day bookkeeping.

Tax advisory

Tax planning, reviewing complex transactions before execution, responding to ZATCA queries, representing the company in objections and appeals. Priced hourly (SAR 400 to SAR 1,500 per hour) or as a fixed monthly retainer.

Incorporation and registration

Setting up the legal entity, obtaining the commercial registration, opening the company file with ZATCA, VAT registration, GOSI registration, opening the labor file with the Ministry of Human Resources. A one-time service, ranging from SAR 3,000 to SAR 15,000 depending on entity type.

Zakat and income tax returns

Preparing the annual Zakat return, calculating the correct Zakat base, filing through the ZATCA portal, and managing any Zakat audit. Ranges from SAR 2,500 to SAR 12,000 per return.

Payroll

Monthly payroll preparation, GOSI calculations, integration with Mudad payroll platform for Wage Protection System transfers, employee certificate issuance. Priced at SAR 20 to SAR 60 per employee per month.

Components of an effective RFP

A structured RFP tells firms exactly what you want, so they send back comparable proposals. A vague request (“send me a quote for accounting”) returns proposals that differ wildly in scope and cannot be compared.

Part one: company profile

• Actual business activity: retail, services, manufacturing, construction, technology. The activity drives accounting complexity (inventory, long-term contracts, revenue recognition).
• Legal entity: sole proprietorship, limited liability, joint stock, branch of a foreign company.
• Approximate annual revenue: by band (under SAR 500K, SAR 500K to SAR 3M, SAR 3M to SAR 10M, over SAR 10M).
• Headcount: affects payroll service pricing.
• Number of branches and entities: affects consolidation complexity.
• Current tax status: VAT-registered or not, in phase two of e-invoicing or not.

Part two: requested scope of work

A detailed list of services, with frequency (monthly, quarterly, annual, on demand) and approximate volume (number of invoices, number of employees, number of bank accounts).

Part three: technical requirements

• Accounting system in use: does the firm use a cloud platform like Qoyod, a desktop application, or Excel?
• E-invoicing integration: is the system certified for ZATCA phase two?
• Data access: can you log into the system anytime and see your numbers live, or do you wait for manual monthly reports?

Part four: clear deliverables

What do you expect monthly, quarterly, and annually? For example: monthly income statement, trial balance, product or branch profitability analysis, quarterly VAT report, annual Zakat return.

Part five: required components checklist

Component	Description	Required / Optional
Company profile	Activity, entity, revenue, employees	Required
Detailed scope of work	Every service with its frequency and volume	Required
Itemized pricing per service	Bookkeeping, returns, audit, advisory	Required
Assigned team	Team names, qualifications, monthly hours	Required
Technology used	System name, ZATCA certification, client access	Required
References	3 prior clients in the same sector	Required
Draft contract	Attached as an annex	Required
Professional indemnity insurance	Valid policy document	Optional
Transition plan	How books will be handed over from the prior accountant	Required

Weighted evaluation criteria for proposals

The most common mistake: picking the cheapest firm. The second most common: picking the most famous name. Both are wrong. The right approach is a weighted scoring matrix that accounts for price, experience, sector specialization, technology, and certifications.

Suggested evaluation matrix

Criterion	Weight	Scoring method
Total annual price	20%	Lowest price = 20, other proposals scored proportionally
Experience (years in business)	10%	More than 10 years = 10, 5 to 10 = 7, under 5 = 4
Sector specialization	15%	3+ clients in your sector = 15, one client = 8, none = 0
Technology and cloud system	15%	Cloud system with client access and ZATCA-certified = 15
SOCPA certification	10%	Licensed = 10, unlicensed = 0 (if you need audit)
Size of assigned team	10%	Dedicated senior accountant + support team = 10, single accountant = 5
References and reputation	10%	3 references verified by phone = 10
Responsiveness during the proposal stage	5%	Reply within 48 hours + detailed proposal = 5
Professional indemnity insurance	5%	Valid policy = 5

How to use the matrix

For each proposal, assign points per criterion, then total them up. The proposal with the highest total wins. This protects you from an emotional decision and ensures price is not the only factor. Example: a firm at SAR 60,000 per year specialized in your sector and using a cloud system may beat a firm at SAR 45,000 that does not understand your sector and runs on Excel.

The price weight varies by company size

For very small companies (revenue under SAR 500,000), raise the price weight to 35% and lower sector specialization to 8%. For mid-sized companies (SAR 3M to SAR 10M), flip the equation: price 15%, sector specialization 25%, because a single mistake by a non-specialist can cost you many times the price difference.

Questions to ask in the firm interview

Before signing, request a meeting (in person or via video) with the responsible partner and the senior accountant who will own your file. Do not settle for the sales rep. These questions reveal the gap between serious firms and firms that lead with sales.

Questions about the team and methodology

• Who will personally own my file? Ask for the senior accountant’s name and CV, do not accept “our team”.
• How many clients does the senior accountant currently manage? More than 25 means your file will not get enough attention.
• What is the continuity plan if the senior accountant leaves? A second accountant should already know your file.
• How often will we meet each month? At least one monthly meeting to review the numbers together.

Questions about actual work

• Show me a full month-end close report for a client in my sector: how it looks, the level of detail, the charts (with client data redacted).
• Show me a sample prior Zakat return: it reveals their accuracy and explanatory depth.
• What is your confidentiality policy? Request a signed NDA before handing over any data.
• What is your approach to e-invoicing phase two? Is the system officially certified by ZATCA?

Questions about sector knowledge

• Name three accounting challenges specific to my sector: hesitation means they do not understand your sector.
• Give me an example of a complex transaction in my sector you handled, and how you handled it.
• What KPIs do you track for clients in my sector? (Profit margin, inventory turnover, waste ratio.)

Questions about contract and pricing

• Does the price include the annual Zakat return? Many firms exclude it, then charge for it later.
• Does it include responding to ZATCA queries?
• What is the hourly rate for work outside the agreed scope?
• What triggers an annual price increase? Is it tied to workload or inflation?

The difference between large firms, mid-sized firms, and independent accountants

There is no absolute “best” option, only the option best suited to your company’s size and stage.

Large firms (global and regional names)

Suited to very large companies (revenue above SAR 50 million), companies preparing for an IPO, or companies with government partnerships that require internationally recognized names. Very expensive: starts at SAR 100,000 per year for basic bookkeeping and can exceed SAR 500,000 for a full audit. Drawback: your file is often handed to a junior accountant, and the partner you met in sales rarely touches it.

Mid-sized firms (10 to 50 employees)

The best fit for most small and mid-sized companies in Saudi Arabia. They combine professional capability with personal attention. The partner or manager personally tracks your file, pricing is reasonable (SAR 40,000 to SAR 150,000 per year for a full package), and they are typically deeply specialized in one or two sectors.

Independent accountants or very small firms (1 to 5 employees)

Suitable for sole proprietorships and startups in their first or second year. Low cost (SAR 12,000 to SAR 30,000 per year). Drawbacks: limited capability, continuity risk, difficulty with complex cases (Zakat, audit, consolidation). Once your revenue exceeds SAR 2 million, this becomes a high-risk choice.

Saudi market pricing for accounting services

The pricing below is drawn from real proposals reviewed for companies in Riyadh, Jeddah, and Dammam over the past six months. Prices vary by 20 to 30% based on city and firm reputation.

Company size	Annual revenue	Monthly bookkeeping	Quarterly VAT return	Zakat return	Annual audit
Micro	Under SAR 500K	SAR 1,000 to 2,000	SAR 800 to 1,500	SAR 2,500 to 4,000	SAR 5,000 to 9,000
Small	SAR 500K to 3M	SAR 2,500 to 5,000	SAR 1,500 to 3,000	SAR 4,500 to 7,500	SAR 10,000 to 18,000
Mid-sized	SAR 3M to 10M	SAR 6,000 to 12,000	SAR 3,000 to 6,000	SAR 8,000 to 14,000	SAR 20,000 to 45,000
Large	SAR 10M to 50M	SAR 14,000 to 30,000	Included in package	SAR 15,000 to 30,000	SAR 50,000 to 110,000

Factors that raise the price

• Multiple branches or entities: each extra entity adds 30 to 50% to the base price.
• Monthly transaction volume: more than 500 monthly transactions pushes you into a higher pricing tier.
• Import and export operations: customs transactions add 15 to 25%.
• Complex inventory: manufacturers and FIFO / standard-cost businesses cost more.
• Work with government bodies: government project accounting requires specialized reporting.

Standard contract clauses

A written contract protects you from later disputes. Do not accept a verbal agreement or an email exchange. These clauses should appear in every accounting engagement.

Term and renewal

The typical term is one calendar year, renewable. Insist on an explicit auto-renewal clause with a 60-day prior notice window to cancel. Avoid multi-year contracts at the start.

Early termination

You should have the right to terminate with 30 to 60 days’ notice without additional fees. Some firms set harsh terms that make leaving expensive (3 months of fees). Reject these clauses.

Handover of records on exit

An explicit clause requiring the firm to hand over all records, journal entries, electronic files, and system access rights within 14 days of contract end. This clause matters: some firms stall the handover to lock you in.

Confidentiality

An explicit NDA covering all financial and commercial data. The confidentiality period should not be less than 5 years after contract end.

Professional indemnity insurance

Request a copy of a valid policy. The reasonable minimum is SAR 500,000 for small companies and SAR 2 million for mid-sized companies. This insurance protects you if a firm error triggers a ZATCA penalty.

Liability cap

Firms typically cap liability at the annual fees. Push to raise it to two or three times annual fees, especially if the scope includes large tax filings.

Additional fees

Request a clear schedule of extra fees: additional advisory hours, attendance at a ZATCA meeting, ad-hoc reports, restating prior-year statements. Listing these prices in the contract prevents surprises.

ZATCA requirements for your accounting firm

ZATCA does not require you to use a specific firm to file your returns, but it does require the accounting system to be certified, invoices issued to comply with e-invoicing requirements, and records kept in a legally compliant way.

System certification for phase two of e-invoicing

If your company falls within a phase-two wave, the accounting system the firm uses must be officially certified by ZATCA. Ask the firm: what is the name of the system? Do you have the phase-two certification letter from the authority? Is the system integrated with the Fatoora platform via API?

Six-year record retention

Saudi regulations require all accounting records and invoices to be kept for 6 years. Ask the firm to spell out in the contract how and when you receive a copy (monthly, annually, at contract end).

Arabic-language books

Statutory books and returns must be in Arabic. Confirm the system fully supports Arabic reporting.

Compliance with IFRS

Financial statements in Saudi Arabia must be prepared under IFRS for large companies and IFRS for SMEs for small and mid-sized companies. Confirm the accountants have real, hands-on experience with these standards.

Red flags that should make you reject a proposal

These are warning signs that strip the firm of credibility and expose you to real risk.

• Price more than 30% below market average: nobody delivers professional service at half price. Either the firm uses unqualified staff, or it relies on hidden fees later.
• Refusal to provide references for verification: a serious firm is proud of its clients and welcomes the call.
• No cloud system: in 2026, a firm still relying on Excel or legacy desktop software is professionally behind.
• The partner refuses to meet you and sends only a sales rep: they will not see your file and will not know your situation.
• No draft contract provided before approval: signals a lack of professionalism, or an intent to slip unfair terms in at the last moment.
• Exaggerated promises of tax savings: legal tax planning has limits. Anyone promising “50% VAT reduction” is either breaking the law or overselling.
• No professional indemnity insurance: every serious firm carries it.
• Slow response to the RFP, more than a week: if they are slow in the sales stage, imagine after signing.
• Proposal does not specify what is in scope and what is out: a single-line price with no service detail is a trap.
• A proposal with spelling and arithmetic errors: if they do not care about the proposal you are reading, how will they care about the accuracy of your books?

The most common mistakes when selecting an accounting firm

Mistake one: relying on a personal recommendation alone

Your friend may run a simple company while yours is complex. A recommendation is a good starting point but not the final decision. Request proposals from at least three firms and compare.

Mistake two: focusing on total price without scope

SAR 30,000 looks cheaper than SAR 45,000, but if the first excludes the Zakat return (SAR 4,000 extra) and responding to ZATCA queries (SAR 5,000 extra), the real price is SAR 39,000 or more.

Mistake three: not visiting the firm in person

Before signing, visit the office. Actual headcount, the level of organization, the type of clients you see in the waiting area, all of it tells you the truth about the firm.

Mistake four: signing without legal review of the contract

An accounting engagement is a legal document. A simple lawyer review (SAR 1,500) often costs far less than any unfair clause you discover later.

Mistake five: changing firms every year

Switching firms is costly in time and operations (data handover, the new team learning your sector, rebuilding reports). Do not switch without a substantive reason. Invest in a long-term relationship with an annual performance review.

Mistake six: not defining clear touchpoints

“Call us anytime” is not a clause. Spell out in the contract: a fixed monthly meeting, a monthly report by the 10th of the following month, the VAT return at least 10 days before the deadline, the Zakat return at least 15 days before.

How Qoyod integrates with your accounting firm and lowers its cost

Qoyod is not a replacement for your accounting firm, it is a tool that makes the work between you and the firm faster and cheaper. Most companies running on a cloud accounting platform like Qoyod receive lower proposals because the system cuts manual hours by 40 to 60%.

Automatic data entry, not manual

In a traditional setup, the owner sends WhatsApp photos of invoices to the accountant, who keys them into Excel one by one. That eats hours every month. With Qoyod, invoices are created directly in the system at the point of sale, so the accountant does not re-enter them, only reviews them.

Direct integration with phase two of e-invoicing

Qoyod is officially certified for phase two. Every sales invoice is sent automatically to the ZATCA Fatoora platform. The penalty risk from e-invoicing non-compliance disappears.

Concurrent access for you and the firm

The firm logs in with its own credentials, sees your books in real time, posts journal entries, prints the trial balance, and closes the month. You see the same numbers live from your phone. No information gap.

Tax-ready reports in one click

The quarterly VAT return, the report of taxable and exempt sales, the purchases report, all generated with one click instead of being assembled by hand from 50 Excel files.

Fewer firm hours means a lower price

A firm’s proposal is built on the expected number of hours. If you can show the firm that you use Qoyod and generate invoices and expenses from the system, the firm cuts the estimate from 30 hours per month to 12 hours, and lowers the price by the same proportion. To see available plans, visit the pricing page.

Support 24 hours, 7 days a week

If your firm is outside working hours and you need to issue an urgent invoice, the Qoyod support team is available 24 hours, 7 days a week. Your operations do not stall waiting on your firm’s schedule.

Frequently asked questions

How many firms should I request proposals from before deciding?

3 to 5 firms is the sweet spot. Fewer than 3 leaves you with no comparison baseline; more than 5 drains your evaluation time without added insight. Mix the slate: one firm recommended by a friend, one found via Google search, one specialized in your sector, one small firm and one mid-sized firm.

Can I negotiate the price after receiving the proposal?

Yes, negotiation is normal and expected. But do not negotiate price alone, negotiate scope: ask to include the Zakat return at the same price, or two free monthly advisory hours, or a two-year price freeze. That is far more valuable than a 5% discount.

What happens to the person who used to enter data manually if I move to a cloud system?

In reality, 80% of Saudi companies do not employ a full-time data-entry clerk; they rely on the individual accountant or an admin. Moving to a cloud system does not eliminate jobs, it frees that person’s time for analytical work instead of mechanical entry.

How do I know the firm is not selling my data to a competitor?

Request an explicit NDA before handing over any file. Ask that your assigned team works exclusively on your file and not on competitor files in the same sector. For sensitive sectors (tech, pharma, financial), include a clear conflict-of-interest clause.

What if the firm promises me large tax savings?

Be very cautious. Legal tax planning takes advantage only of allowed exemptions and deductions. If the firm promises reductions not backed by an explicit statutory provision, you are looking at a future audit risk from ZATCA that could cost you twice the “savings” in penalties and interest.

Do I need an accounting contract if my company already has a full-time in-house accountant?

Yes, in two cases: the external annual audit (mandatory for limited liability companies) and specialized tax advisory. Even if your in-house accountant is excellent, you need an independent third party for the audited statements and for complex situations.

How long does it take to move from one firm to another?

30 to 60 days for a small company, 60 to 120 days for a mid-sized one. Steps include: receiving files from the prior firm, installing the new system if needed, training the team, the first month-end close. Plan the transition for the start of a fiscal quarter, not in the middle of filing season.

What if I discover after signing that the firm is not honoring the contract?

Document every delay or error in writing by email. Give them a chance to correct via a formal 15-day notice. If the failures continue, trigger the early-termination clause. Make sure you receive all your data within 14 days of termination, per the clause you signed. Start talking to a replacement firm before making the final termination decision.