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Industries

Agencies and consultancies

Short answer

Finbryn keeps books for Saudi marketing agencies, design studios and consultancies billing on retainers and project fees, spreading retainer income across the period it covers and flagging related-party transactions between group entities. We work inside Xero, with figures ready for Zakat, corporate tax and Transfer Pricing Disclosure obligations.

Management report

Illustrative client · August 2026

SAR

Reviewed before sending
Profit and loss
LineAugJul
Revenue142,380131,904
Cost of sales(51,260)(48,115)
Gross profit91,12083,789
Payroll(46,300)(45,900)
SoftwareNoted(6,480)(5,490)
Rent(8,000)(8,000)
Other operating(9,215)(9,870)
Net income21,12514,529

Reviewer's note

Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.

Illustrative. An example of the document, not a client's figures.

Exceptions report

Where the books usually hurt

  • Retainer income gets booked as cash received instead of spread across the service period it covers

  • Contractor and subcontractor payments pile up in accounts payable without a clear view of project margin

  • Client-reimbursable expenses get mixed into firm overhead instead of billed back out

  • Utilization and project profitability questions come up in client reviews and the books cannot answer them

Retainer income booked wrong distorts every month

A retainer paid upfront covers a period of work, not a single point in time. An agency that books the full payment as income the month it lands overstates that month and understates the rest of the retainer term, and the distortion compounds the more clients an agency runs on retainer at once.

Finbryn spreads retainer income across the period it is earned rather than the period it is received, so the profit and loss reflects work actually delivered. Contractor and freelance payments, which agencies rely on heavily, are tracked against the project or client they relate to, so it is clear which engagements are carrying margin and which are being run at a loss.

MISA-licensed foreign firms and GCC group structures

Many agencies operating in Saudi Arabia are branches or subsidiaries of a foreign group, holding an investment licence from the Ministry of Investment (MISA) before their Commercial Registration exists, or a GCC subsidiary of a US or UK parent billing that parent for local delivery work. Either arrangement creates related-party transactions between the Saudi entity and its parent or sister companies, and a Transfer Pricing Disclosure Form has to be filed alongside the Zakat or income tax return whenever those transactions exist.

Where ownership is mixed between Saudi/GCC and foreign shareholders, the Saudi/GCC share of the agency is taxed as Zakat at 2.5% of the Zakat base and the foreign share as corporate income tax at 20%, each computed separately and filed within the same 120-day window after year end.

Working with Finbryn

Our delivery team reconciles the books weekly and closes on a fixed monthly cycle, with figures reviewed by a senior reviewer and a corporate CFO before delivery. Zakat, income tax and Transfer Pricing Disclosure filings are prepared by our team and filed by the taxpayer or a licensed tax agent. Pricing is published on our pricing page, with terms set out in your engagement letter, and agencies switching providers or catching up after a gap start with a scoped catch-up project ahead of ongoing monthly bookkeeping.

Questions

Frequently asked questions: Agencies and consultancies

Do you spread retainer income across the period it covers?

Yes. Retainer payments are recognised over the period they relate to rather than booked as income the month they land in the bank.

We are a MISA-licensed foreign agency billing our parent company. Does that need extra reporting?

Yes, where transactions between your Saudi entity and its parent or sister companies exist, a Transfer Pricing Disclosure Form is prepared alongside your Zakat or income tax return.

How do you handle mixed Saudi and foreign ownership in the same agency?

The Saudi and GCC-owned share is computed for Zakat at 2.5% of the Zakat base, and the foreign-owned share for corporate income tax at 20%, filed as separate calculations within the same window.

Do you track profitability by client or project?

Yes. Income and direct costs can be tagged by client or project so margin is visible each month, not just for the agency as a whole.

Can you track profitability by client or project?

Yes, income and direct costs can be tagged by client or project so margin is visible each month.

Do you handle a mix of employees and contractors?

Yes, payroll coordination and contractor payments are both part of the monthly bookkeeping.

What are the common bookkeeping challenges for a agencies and consultancies business?

Beyond the basics, client-reimbursable expenses get mixed into firm overhead instead of billed back out and utilization and project profitability questions come up in client reviews and the books cannot answer them come up often in this industry. We build the chart of accounts and reconciliation process around those specific patterns rather than a generic template that ignores how the business actually operates.

What software do you support for agencies and consultancies?

We work inside QuickBooks Online and Xero, along with the other tools listed on this page that are common in the agencies and consultancies industry. If you have no file yet, we set one up in your name so you own it from day one.

Next step

Talk to the team that would run your books

A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.