Top Accounting Software for Small Businesses in 2025

Managing your business finances is key to success, especially in Saudi Arabia, where rules are constantly evolving. With the Vision 2030 plan driving economic growth, many businesses are switching to the best accounting software to stay organized and compliant with new regulations like VAT and ZATCA guidelines.

The accounting software market in Saudi Arabia is set to grow 9.1% annually, reaching nearly half a billion SAR by 2029. This rapid growth means there are more options than ever, but choosing the right solution can feel overwhelming.

The right accounting software can simplify operations, reduce errors, and ensure compliance. But with so many options, how do you identify the best fit for your unique business needs?

Below, we've compiled a list of top accounting software tailored for small businesses in Saudi Arabia, complete with their features, pros, cons, and pricing.

Why Your Small Business Needs Accounting Software

In 2024, managing finances is more critical than ever for small businesses. Using spreadsheets or paper records can lead to errors, missed opportunities, and wasted time. Accounting software helps by automating tasks like income tracking, invoicing, and tax calculations, letting you focus on growing your business.

In Saudi Arabia, where VAT and Zakat regulations must be followed, choosing the right software ensures you remain compliant and avoid penalties. Additionally, as your business expands, good accounting software can scale with you, making it easier to manage complex financial tasks.

For example, Al Haram Retail Chain, a leading retailer in Saudi Arabia, used HAL ERP to easily switch to e-invoicing compliance. With automated VAT calculations and full ZATCA compliance, they made their accounting process faster and more accurate. Read the full case study to know more. 

Importance of Choosing the Right Accounting Software

Choosing the right accounting software is key to your business’s success. The right software improves efficiency, reduces mistakes, and keeps you compliant with tax laws. The wrong choice, on the other hand, can create additional complexities and lead to costly mistakes.

Here are the top reasons you need the right accounting software:

• Accurate Financial Tracking: Automate processes to eliminate human errors and keep your books accurate and up-to-date.
• Time Efficiency: Save hours on manual calculations, allowing you to focus on strategy and growth.
• Real-Time Reporting: Access detailed financial reports instantly to make proactive, informed decisions.
• Scalability: As your business grows, your accounting software can scale to handle increasing complexity without disruption.
• Tax Compliance: Stay compliant with Saudi Arabia’s evolving VAT and Zakat regulations, avoiding costly penalties.

Let’s now explore some of the best accounting software options for small businesses in Saudi Arabia.

The Best Accounting Software for Small Businesses

Here's a look at some of the best accounting software options available to small businesses in Saudi Arabia:

1. HAL Accounting Software

HAL is one of the best accounting software for small businesses in Saudi Arabia. Developed with local needs in mind, it ensures full VAT and ZATCA compliance while offering robust financial management tools. It helps automate accounting tasks, streamline reporting, and maintain financial accuracy. 

In addition to core accounting functions, HAL offers modules for inventory management, HR and payroll, and project management, making it a comprehensive ERP solution.  

Key Features: 

• WhatsApp Integration for task and report management
• ZATCA-Compliant for e-invoicing
• Track income and expenses to keep cash flow steady
• Syncs with local systems like Foodics, TotalPay
• Bulk Processing for managing expenses and transfers
• Easy Reconciliation with auto-bank statement matching
• 360° Analytics for financial insights
• Quick invoicing and e-commerce integrations (Shopify, Salla)

Pricing: The Gold Plan starts from 1,999 SAR / year/user

Check the detailed pricing here.

Read the reviews by customers.

2. QuickBooks Online

QuickBooks is a well-known accounting software trusted by over 4.5 million businesses worldwide. It’s designed to help small businesses stay organized, offering features like invoicing, expense tracking, payroll management, and tax calculation. It’s a great option for businesses in Saudi Arabia looking for an all-in-one solution. 

However, many users struggle with bank syncing issues in QuickBooks, leading to delays and discrepancies in their financial records.

Key Features:

• Scalable for all business sizes
• Seamless integrations with CRMs and e-commerce tools
• Cloud-based access for anytime use
• Mobile app support for on-the-go management
• Invoice creation, expense tracking, and VAT compliance for Saudi businesses

3. Xero

Xero is an online accounting software from New Zealand that is made for small and growing businesses. In the Middle East, it offers its Global version, which is a non-localized version of its accounting software. This means Xero is not compliant with the e-invoicing regulation in Saudi Arabia, and it's also not available in Arabic. Despite these limitations, Xero is a good choice for businesses needing more than basic bookkeeping without the complexity of larger enterprise systems. Key Features:

• Cloud-based with Mobile Access
• Payroll & App Integrations to add tools like CRM or inventory management
• Best for High-Value Transactions ideal for tracking large, complex deals
• Bank reconciliation
• Multi-currency support for international transactions
• Real-time financial reporting

Pricing:  Early Plan: $240 /year/user

4. FreshBooks

FreshBooks is a cloud-based solution specializing in invoicing, time tracking, and expense management. It's suitable for small service-based businesses like consultants or freelancers. However, the mobile version lacks some features and detailed reports available on the desktop, which could be a downside for businesses needing quick, in-depth financial insights.

‍Key Features:

• Professional invoice generation
• App Integrations connecting payment processors, CRMs, and more
• Time tracking for projects
• VAT calculation and submission
• Client payment tracking

Pricing: Plus Plan: $360 /year/user

5. Wafeq

Wafeq is an advanced accounting software designed for Saudi businesses that is fully compliant with ZATCA’s e-invoicing rules. It supports both Arabic and English, making it ideal for small businesses and accounting firms in the region. Wafeq automates tasks like VAT filing and integrates smoothly with local systems like Foodics and Salla.Key Features:

• Automated reports in English and Arabic
• ZATCA-compliant VAT returns for easy filing
• Syncs with Foodics and Salla
• Custom invoices with logos and stamps
• Quick data entry using a spreadsheet interface

Pricing: Plus Plan: 1,188 SAR /year /user

6. Qoyod

Qoyod is a Saudi-based SaaS accounting platform made for small businesses in the Middle East. It offers features like invoicing, expense tracking, and financial reporting with an intuitive interface. Qoyod is a great choice for businesses looking for a simple and cost-effective accounting solution with regional support.Key features: 

• VAT-compliant for accurate tax reporting
• Automatic calculations for taxes, profits, and salaries
• Real-time tracking of income, expenses, and profits
• Easy invoice creation and customization
• Multi-user access for teams

Pricing: 

• Basic plan: 1,200 SAR / year/user 

7. Daftra Accounting 

Daftra is an all-in-one cloud accounting solution designed for small to mid-sized businesses in Saudi Arabia. Based in the MENA region, it is tailored for over 50 industries, covering everything from sales to inventory management, and can be accessed anytime, anywhere.Key Features: 

• Simple invoicing and expense tracking
• Real-time financial reporting (P&L, balance sheet)
• VAT and tax compliance
• Multi-currency support for international transactions
• Automated bank reconciliation

Pricing: Premium Plan: $480 /year /user

8. Sage Business Cloud Accounting

Sage offers cloud accounting software that helps businesses manage finances, track sales, and automate tasks. Its user-friendly design and wide range of features make it a top choice for companies in Saudi Arabia.Key Features: 

• Invoicing and expense tracking
• Multi-currency and multi-country support
• VAT/GST compliance
• Bank reconciliation
• Integration with payment gateways
• Mobile access via the app
• Cloud-based for remote access

Pricing: Start: $132 /year /user

9. ZohoBooks

Zoho Books is another popular accounting software, particularly for small businesses looking for an affordable option. It offers invoicing, expense tracking, inventory management, and VAT/GST compliance. Zoho Books is also known for its integration capabilities with other Zoho apps.However, it might not be suited for businesses with complex financial needs or specific local tax compliance requirements in Saudi Arabia.Key Features: 

• Invoicing, expenses, and banking management
• Real-time P&L, balance sheet, and cash flow reports
• Automated recurring invoices and payments
• Integration with Zoho apps and third-party tools
• VAT/GST compliance and tax reporting
• Manage up to 1,000 invoices

Pricing: Plus Plan: 1,440 SAR /year /user

10. TallyPrime

TallyPrime is a widely used accounting software in the GCC region that offers comprehensive features for invoicing, inventory management, and financial reporting. It has a one-price solution without charging extra for additional features. Trusted by 2 million businesses globally, TallyPrime is an ideal choice for small businesses that prefer an on-premise solution. Key Features: 

• Full accounting, including ledgers & payables
• Access reports & send invoices via WhatsApp
• Real-time financial reports like P&L and balance sheets
• Automated tax calculations & filing
• Cloud and offline access

Pricing: Silver Edition: Approximately $636 /year/user

11. Kashoo

Kashoo is another simple, cloud-based accounting software that helps small businesses manage their finances. It offers real-time profit and loss reports, automatic categorization of income and expenses, and integrations with bank accounts and credit cards. It comes with a flat monthly fee and supports an unlimited number of users, making it good value for money.Key Features: 

• Real-time profit & loss and balance sheet reports
• Automatic income and expense categorization
• Bank and credit card integration
• Multi-currency support
• Tax tracking and VAT reporting
• Export data to QuickBooks or other software

Pricing:

• $324 /year  (14-day free trial)

12. Odoo Accounting 

Odoo is an open-source software suite that includes accounting, CRM, inventory management, and more. Its modular system allows businesses to scale their solutions as they grow. It’s great for businesses that want a fully integrated system with powerful accounting features for both small and larger operations.Key Features 

• Integration with Odoo CRM, sales, and inventory
• Multi-currency support for global transactions
• Automated invoicing and payment reminders
• Easy VAT tax management
• Customizable chart of accounts

Pricing:

• Free for one app 

Standard plan: starts at 3,380 SAR /year /user

See how HAL compares to Odoo here.

13. SAP Business One

SAP Business One is an ERP solution designed for small to mid-sized businesses that need advanced financial and business management tools. As a scalable, enterprise-level solution, it’s ideal for businesses planning for growth and seeking a comprehensive system to handle accounting, inventory, and more.

Key Features:

• Integrated accounting for general ledger, payables, and receivables
• Real-time financial reporting and analytics
• Automated invoicing and billing
• Multi-currency support for global transactions
• Customizable financial reports

Pricing:

Pricing is available upon request.

Now that we’ve covered the best software options let’s take a look at some key features you should consider when choosing accounting software for your small business.

Key Features to Look for in Accounting Software

When choosing accounting software for your small business, it’s important to focus on the features that will make your life easier. Here are the key features to look for:

1. Tracking Income and Expenses: Your software should automatically categorize transactions, providing a clear and accurate view of your finances.

Example: QuickBooks Online automatically categorizes transactions, ensuring accurate records.

2. Invoicing: Look for software that allows you to quickly create and send invoices, with customizable templates and automatic overdue reminders.

For example, HAL offers customizable invoices and integrates with payment processors like HyperPay, letting clients pay instantly. 

3. Payment Processing: Choose software that integrates with payment systems like  Hyper Pay and Total Pay, allowing you to accept payments directly within the platform.
4. Bill Management: Good software should help you track vendor bills, set reminders for due dates, and process payments online.
5. Cloud-Based Accessibility: Cloud-based software allows you to access your accounts from anywhere, on any device, offering flexibility for business owners on the go.
6. User-Friendliness: Opt for software with an intuitive interface that’s easy to use, even for non-accountants, and offers responsive customer support.
7. Security: Ensure the software provides robust security features, including encryption and user access controls, to protect sensitive financial data.
8. Automation: Look for software that automates routine tasks, like invoicing, bank reconciliations, and tax calculations, to save time and reduce errors.
9. Multi-Currency Support: If you deal with international clients or suppliers, multi-currency support ensures accurate transactions and reporting across different currencies.
10. VAT Compliance: As mentioned before, VAT compliance is non-negotiable for businesses in KSA. Look for software that can calculate VAT, generate VAT-compliant invoices, and adhere to ZATCA regulations for e-invoicing. 

Now that you know the key features to look for, let’s explore some alternative methods for managing your business finances if accounting software isn’t right for you.

Exploring Alternatives to Accounting Software

While accounting software is typically the best solution for most businesses, there are a few alternatives you can consider based on your specific needs and budget.

1. Using Spreadsheets and Manual Methods:  For micro-sized businesses or startups with limited budgets, spreadsheets seem like a practical option. Programs like Microsoft Excel or Google Sheets allow you to track income, expenses, and basic reports. 

While spreadsheets may work in the short term, they lack the automation and accuracy of dedicated accounting software, making them inefficient for long-term use.

2. Hiring External Accountants: If you prefer not to handle accounting yourself, hiring an accountant is an option. They can manage your finances and offer expert advice. However, hiring an accountant can be expensive, and you’ll still need a system to share your financial data with them.
3. Free Software Alternatives: If your budget is tight, you may want to explore free accounting tools that offer basic functionality. There are free accounting software options like ZohoBooks that offer basic features like invoicing and expense tracking. These tools are less feature-rich than paid options, but they are good for basic tracking and invoicing. You can always upgrade as your business grows.

While these alternatives can work in some cases, most small businesses will benefit more from investing in proper accounting software.

Conclusion

We’ve explored the top accounting tools in Saudi Arabia. The best accounting software helps you manage your finances, stay compliant with local laws, and make better decisions. But the real value comes from choosing software that fits your business's unique needs, budget, and goals. 

For example, QuickBooks is great for simplicity, Zoho Books helps growing businesses automate tasks, and Xero is perfect for global needs. Each tool offers something valuable for different business types.

Get Started with HAL Accounting Software

After reviewing several options, it’s clear that HAL is the best accounting software for small businesses in Saudi Arabia. At HAL, we understand the unique accounting challenges businesses in Saudi Arabia face and have designed our solution with those needs in mind.

HAL ERP is fully compliant with Saudi Arabia’s tax regulations, including VAT and Zakat, so you can be confident your business stays compliant. We offer a complete set of features— from invoicing to real-time financial reporting—all in one easy-to-use platform. 

Above all, HAL ERP is designed to simplify accounting so you can focus on growing your business without worrying about financial complexities. Our software is simple to use and customizable, and it keeps you updated with features like WhatsApp integration for instant notifications.

If you’re looking for a reliable accounting solution, HAL is your go-to option. Check out our testimonial to see how HAL ERP has transformed small businesses across Saudi Arabia. Book a demo now and get started with HAL Accounting!