Ahmed Bin Abdulqader ـ nabd–alhadath
Zoho, a global technology company, today announced that its finance and operations suite has achieved 55% growth in recurring revenue in Saudi Arabia in 2023. The company also announced the addition of key accounting and tax compliance capabilities in its accounting solution Zoho Books, including direct integration with Zakat, Tax, and Customs Authority’s (ZATCA) systems, helping businesses simplify routine financial tasks, and ensure regulatory compliance.
“Zoho is proud to support Saudi businesses in their journey toward e-invoicing compliance with ZATCA’s Phase 2 regulations. Our integrated finance and operations suite, with its real-time e-invoicing capabilities and advanced accounting features, is designed to help businesses not only stay compliant but also streamline their financial processes for greater efficiency and growth,” said Prashant Ganti, Head of Product Management, Finance and Operations BU, Zoho.
“This year’s significant revenue growth in Saudi Arabia reflect businesses’ understanding and recognition of the value of our solutions to meet the evolving regulatory requirements and drive digital transformation. As the Kingdom continues to modernise its tax and accounting infrastructure, Zoho remains committed to delivering innovative, scalable solutions that empower businesses to succeed in today’s fast-paced environment,” said Saran B Babu, Regional Director, MEA, Zoho.
ZATCA is rolling out e-invoicing Phase 2 in waves based on the annual revenue of businesses in the Kingdom of Saudi Arabia. This recent regulation requires businesses to use accounting software that directly integrates with ZATCA systems to increase compliance and transparency. By December 31st, 2024, businesses with an annual turnover exceeding SAR 25M must comply with Phase 2 regulations. Additionally, businesses with a turnover greater than SAR 15M must be compliant by January 31st, 2025. Zoho Books, a ZATCA-approved VAT and e-invoicing accounting application, now provides the capability to directly push e-invoices to the ZATCA system in real-time, easing e-invoicing compliance obligations for businesses.
Zoho Books has also added some advanced features including, revenue recognition to help businesses automatically recognize revenue based on contractual obligations or when the service is delivered, and fixed asset management which allows recording of asset details, automatic depreciation calculations, and generate forecast reports, simplifying the bookkeeping process. Progress-based invoicing allows businesses to invoice customers for the duration of a project incrementally, improving the cash flow.
Businesses in the construction industry can create invoices to reflect the retention amount or the amount withheld based on contract terms until specific conditions are met. Once the retention amount is paid, the invoice and payments are automatically adjusted. If the conditions are not met, businesses can write-off the retained amount. The Profit Margin Scheme feature is also made available, allowing businesses to automatically calculate VAT on profit margins for the sale of second-hand goods, ensuring compliance with VAT requirements, eliminating manual effort.
Zoho Inventory has introduced advanced warehouse management capabilities such as enhanced location tracking and labelling, stock counting, stock out alerts, and role-based access to the warehouse operations. These updates offer better inventory control, ensure accurate stock levels, and provide faster order processing. Additionally, the solution now supports the moving average inventory valuation method, helping businesses calculate the total asset value for products that have fluctuating prices. Furthermore, the product’s mobile apps empower warehouse employees to perform their tasks on the go, improving productivity.
For accountants:
Zoho Practice, a practice management application for accounting firms, has introduced Workpapers to simplify audit and compliance workflows. It allows firms to fetch financial statements of the clients who use Zoho Books, enabling easy comparison, adjustments, document management, and collaboration for reviews and approvals.
The new self-service portal enables accountants to collaborate with clients that use third-party accounting software, facilitating document requests, digital signatures, and communication.
The latest version of Zoho Practice also enables accountants to easily create and manage ledgers for clients who don’t have a full accounting system, maintaining a single source of truth. Furthermore, advanced capabilities like workflow automation, custom functions, and scheduling options help customise operational workflows.
