There is no single best accounting software for every business. The best one for yours meets the requirements of the Zakat, Tax and Customs Authority (ZATCA), covers what your business actually does, and has a cost you know before you subscribe. This guide sets out what to compare.
1. ZATCA compliance comes first
E-invoicing is mandatory for VAT-registered businesses, and phase 2 requires the software to be integrated with ZATCA's Fatoora platform. Ask every vendor:
- Does it issue standard and simplified tax invoices, credit notes and debit notes that are phase 2 compliant?
- Can you onboard the e-invoicing device with Fatoora from inside the software?
- Does it show each invoice's ZATCA status, with rejection reasons and a way to resubmit?
For the details of both phases, see our e-invoicing guide (Arabic).
2. Features by business type
| Business | What you usually need |
|---|---|
| Trading and retail | Inventory, barcodes, point of sale, offers and discounts |
| Services and offices | Quotations, invoices, collections and VAT reports |
| Contracting and projects | Projects, cost centers, custody and expense tracking |
| Restaurants and cafes | Point of sale, digital menu, tables and kitchen |
| Businesses with staff | Payroll, leave, end-of-service awards and WPS wage files |
| More than one branch or company | Multiple branches or companies, with permissions and reports for each |
3. Cloud or installed software?
Cloud software runs in the browser and on the phone from anywhere, and updates automatically when ZATCA requirements change, with no server to run. Installed software often comes with a one-time license, but the server, backups and updates stay your responsibility. For small and medium businesses, cloud software is usually simpler and cheaper to run.
4. Compare the full cost, not the starting price
- How many users are included, and the price of each extra user.
- How many branches, and whether point of sale or extra modules cost more.
- Implementation fees and data migration from your current software.
- The difference between monthly and annual billing.
5. Questions to ask before you subscribe
- Is there a full free trial?
- Is the interface in Arabic and English, and does it work on the phone?
- What support channels and hours are offered?
- Will they help you move your data and set up your accounts?
Software widely used in Saudi Arabia
Cloud programs widely used in Saudi Arabia include Qoyod, Daftra, Wafeq and 123 ERP, alongside global systems such as Zoho Books, Odoo and SAP Business One, and traditional installed software. They differ in scope, pricing and implementation, so compare them against the criteria above and try more than one before you decide.
When 123 ERP fits
- You want cloud software compliant with ZATCA e-invoicing phases 1 and 2 and integrated with the Fatoora platform.
- You need accounting, sales, purchases, inventory, point of sale, HR and projects in one system, with more than 75 reports.
- You run more than one branch or more than one company.
- You want to start with the Invoicing plan at 49 SAR a month and move to a bigger plan when you need it.
If your business is large and needs deep custom development, compare global systems too. You can try 123 ERP free for 14 days before you decide.