Accounting & Bookkeeping Services in UAE
Structured Accounting Support for UAE Businesses
Accurate financial records are the foundation of every compliant and well-managed business in the UAE. At Farahat & Co., we provide professional accounting and bookkeeping services aligned with IFRS and UAE regulatory requirements — helping businesses maintain clean records, meet VAT and corporate tax obligations, and make informed financial decisions with confidence.
Our accounting services cover:
- Bookkeeping and maintenance of financial records
- Preparation of financial statements and reports
- VAT reporting and reconciliation
- Corporate tax support and documentation
- Payroll processing and accounting
- Audit preparation and financial review
- Bank reconciliation and error identification
Accounting Regulations in the UAE
Businesses operating in the UAE are required to maintain financial records in line with internationally recognised accounting standards. The UAE follows International Financial Reporting Standards (IFRS), which are overseen globally by the International Federation of Accountants (IFAC). Government organisations and state-owned entities are additionally required to comply with applicable public sector accounting standards.
The key principles underpinning UAE accounting regulations include:
- Revenue recognition: income is recognised when it is actually earned, and expenses are recorded when they are incurred, regardless of when cash is received or paid
- Fair value measurement: assets and liabilities are generally measured at fair value, with the exception of leases and certain financial instruments, which are measured at amortised cost using the effective interest rate method
What Are The Policies/Guidelines For The Record-Keeping Accounting?
The UAE Federal Law requires the business to maintain financial records and statements unaltered for a minimum of five years is crucial. A 10-year time limitation is set by the Ministry of Finance for tax compliance.
- Documented transaction record: Documentation backed by a receipt is required for every transaction above AED 1,000. The company name, date of issuance, the signature on the receipt, and the identification of the beneficiary should be on the receipt. Additionally, the quantity and nature of the transaction must be stated. To offer transaction evidence, the data is necessary to increase accounting accuracy.
- Transactions A Record: A bank statement is necessary for each financial transaction. The statement has to include the transaction date, the organization receiving the funds’ name and address, and other pertinent information. Additionally, the quantity and nature of the transaction must be stated. Companies may keep an electronic copy of the reports.
- Corporate Tax registration: Mandatory registration for corporate tax is declared by the UAE Finance Ministry. A deadline is given to get registration, failing which an AED 10000 fine will be imposed as per cabinet decision no.3/2024 and 10/2024.
- Tax VAT Reimbursements declared effective January 1, 2018, companies doing business in the United Arab Emirates will have to comply with the Value Added Tax (VAT) system. Every UAE-based business, regardless of where they provide services, has to pay the new tax. Companies that meet the requirements are required to register for VAT. Taxes may be paid timely to avoid consequences.
- Additional Corresponding Documents: Contracts, credit notes, and invoices are some other supporting documentation. Add bank statements for companies that do not have a VAT registration as well. The aforementioned files need to be in their original format. The papers cannot be accepted in copies.
Our Outsourced Accounting & Bookkeeping Services
Outsourcing your accounting and bookkeeping to a professional firm gives your business access to structured financial management without the overhead of an in-house team. At Farahat & Co., our services cover the full scope of day-to-day and periodic accounting requirements.
- Bookkeeping and Transaction Recording: We maintain accurate records of all financial transactions, including regular updates, bank reconciliations, and ledger management ensuring your books are always current and audit-ready.
- Payroll Management: We handle your monthly payroll processing, including payslip preparation, payroll reports, and gratuity calculations in line with UAE labour law requirements.
- Accounts Payable: We manage your supplier payments and bill processing with accuracy and attention to detail, ensuring all payables are recorded correctly and settled on time.
- Accounts Receivable: We manage the collection and recording of customer payments, keeping your receivables up to date and reducing the risk of cash flow issues from delayed or missed collections.
- Financial Statements and Audit Preparation We prepare financial statements in line with IFRS requirements — including balance sheets, profit and loss statements, cash flow statements, and general ledgers and keep your records ready for annual audit at all times.
- Budgeting and Financial Planning We assist with budget preparation and financial forecasting, giving management a clear view of projected income and expenditure to support better planning and decision-making.
Why Outsource Your Accounting & Bookkeeping?
Outsourcing accounting and bookkeeping to a professional firm is one of the most practical decisions a growing business in the UAE can make. It reduces costs, improves accuracy, and frees up management to focus on running the business.
Cost Efficiency Maintaining a full-time, in-house accounting team carries significant overhead — salaries, benefits, training, and associated employer costs. Outsourcing provides access to a complete accounting function at a fraction of the cost, with no long-term staffing commitments.
Access to Qualified Professionals Outsourcing gives your business access to certified accountants and financial specialists with direct experience in UAE regulations. Their expertise supports better financial decision-making, cost management, and business planning — without the need to recruit and retain specialist staff in-house.
VAT and Corporate Tax Compliance With VAT in effect since 2018 and corporate tax since 2023, businesses in the UAE must maintain accurate, up-to-date records to meet their filing and reporting obligations. A professional accounting firm ensures your books are always compliant, reducing the risk of penalties and keeping you prepared for any FTA review.
More Time for Your Business Accounting and bookkeeping are time-intensive responsibilities. Outsourcing these functions allows business owners and management to redirect their time and attention to growth, operations, and client relationships.
Access to Current Technology Professional accounting firms use up-to-date accounting software and cloud-based tools — giving your business the benefits of modern financial technology without the need for additional investment or system upgrades.
What Do Our Bookkeeping Services Include?
Our bookkeeping services cover the full range of day-to-day financial record management, ensuring your accounts are accurate, organised, and compliant with UAE requirements and IFRS standards.
- Transaction Recording: All financial transactions including sales, purchases, receipts, payments, returns, and discounts — are recorded accurately and with clear supporting documentation.
- Ledger Management: We maintain detailed ledgers across accounts payable, accounts receivable, the general ledger, and relevant sub-accounts, in line with IFRS and applicable UAE standards.
- Bank Reconciliation: Bank statements are regularly reconciled against accounting records to identify errors, discrepancies, and unusual transactions before they become larger issues.
- Payroll Management: We handle all payroll processing — including salaries, benefits, deductions, and end-of-service calculations — in full compliance with UAE labour law requirements.
- Financial Reporting: We prepare profit and loss statements, balance sheets, and cash flow statements, giving management an accurate and timely view of the business’s financial position.
- VAT and Corporate Tax Support: We maintain VAT and corporate tax records and prepare the required supporting documentation in line with Federal Tax Authority requirements keeping your business audit-ready at all times.
Why Accurate Bookkeeping Matters for UAE Businesses
Reliable bookkeeping is not just an administrative task — it is the foundation of sound financial management and regulatory compliance. For businesses operating in the UAE, accurate records directly affect how the business performs, reports, and grows.
- Regulatory compliance: UAE law requires businesses to maintain accurate financial records for FTA audits, DED licensing, and corporate tax reporting. Poor records can result in penalties and compliance issues
- Informed decision-making: accurate, up-to-date financials give management the reliable data they need to make sound business decisions
- Cash flow management: clear visibility into income and expenditure helps businesses avoid liquidity issues and plan ahead with confidence
- Business performance tracking: well-maintained records allow management to monitor profitability, track cost centres, and assess the efficiency of investments
- Audit readiness: organised books keep your business prepared for FTA reviews, corporate tax checks, internal audits, and investor evaluations at any time
- Stakeholder confidence: professional financial management builds credibility with investors, lenders, and banks, supporting better access to financing and business opportunities
What Are the Regulations/Policies for Bookkeeping in the UAE?
The UAE is regulated by a few laws and regulations in bookkeeping:
- Federal Decree-Law No. 2 of 2015 (Commercial Companies Law): Demands that proper accounting recordings should be done to all commercial entities.
- Federal Decree-Law No. 8 of 2017 (VAT Law): Requires VAT records-keeping of five years.
- Cabinet Decision No. 40 of 2017: Specifies the retention, documentation, and reporting requirements for VAT, including electronic invoices and five-year record retention.
- Federal Decree-Law No. 7 of 2017 (Excise Tax Law): The businesses involved with excisable goods should keep appropriate records.
- Dubai Economic Department (DED) Licensing Requirements: The business must provide annual financial statements according to the licensing requirements.
Benefits of Professional Bookkeeping Services
Working with a professional bookkeeping firm delivers practical advantages that go well beyond keeping records in order.
- Accuracy: reduces the risk of human error in financial records, ensuring your books reflect the true position of the business at all times
- Time saving: frees business owners and management from the demands of day-to-day record-keeping, allowing them to focus on running and growing the business
- Cost efficiency: helps avoid penalties arising from non-compliance with FTA requirements, licensing obligations, and corporate tax regulations
- Scalability: professional bookkeeping systems can handle increasing transaction volumes as your business grows, without compromising accuracy or reporting quality
- Financial planning support: well-maintained records provide a reliable basis for budgeting, forecasting, and strategic investment decisions
- Real-time access: modern cloud-based bookkeeping tools provide up-to-date financial data and proactive reporting, giving management a current view of the business at any time
Cost of Bookkeeping in Dubai
Bookkeeping costs depend on business size, number of transactions, industry, reporting needs, and use of cloud automation.
- Small businesses and Startups: AED 1,500-AED 3500/month.
- Medium Enterprises: AED 3,500 – AED 7,500/month.
- Large Corporations: AED 7,500 and above per month, based on volume of transactions and reporting need.
- Cloud-Based Bookkeeping: It is often charged on a per transaction or per user basis with packages available that are flexible to SMEs.
How cloud bookkeeping solutions works for small businesses
- Automated Transaction Recording: Links bank statements, invoices, and receipts automatically.
- Real-Time Dashboard: Shows up-to-date revenue, expenses, and cash flow.
- Multi-User Access: Teams and accountants can access records remotely, which enhances collaboration.
- Connection with the Payment Gateways and POS Systems: Makes reconciliation and report easily.
- Compliance Tracking: Generates VAT reports automatically and ensures FTA rules are followed.
How effective is bookkeeping for e-commerce businesses ?
- Sales Channel Integration: Tracks unusual activity, duplicate sales, and inconsistencies across channels to catch fraud early and maintain correct VAT records.
- Inventory Management: Assists in keeping the stock level and cost under check.
- Automated VAT Hits: Makes sure that the right tax is computed in various regions.
- Revenue Analysis: Gives information on products that have been profitable, seasonal and customer behavior.
- Fraud Prevention: Monitors unusual patterns, duplicate transactions, and inconsistencies across multiple sales channels to detect fraud early and ensure accurate VAT reporting.
What to Look for in a Bookkeeping Service Provider?
Choosing the right bookkeeping firm is an important decision for any UAE business. Here is what to consider before making your choice:
- UAE regulatory knowledge — the firm should have a solid understanding of VAT, corporate tax, and excise tax legislation, as well as applicable reporting requirements
- Industry experience — look for a firm that understands your specific business model, whether you operate in retail, real estate, trading, e-commerce, or another sector
- Technology and systems — the firm should use reliable, up-to-date accounting software and cloud-based tools that provide accurate, accessible, and timely financial data
- Transparent pricing — fees and scope of work should be clearly defined from the outset, with no hidden charges
- Responsive client support — you should have direct access to your accountant and receive timely, clear responses to queries and concerns
- Reputation and references — look for a firm with a strong track record, verifiable client references, and an established presence in the UAE market
Frequently Asked Questions
What do accounting and bookkeeping services include in the UAE?
Is bookkeeping mandatory for businesses in Dubai?
How often should bookkeeping be updated?
What is the difference between accounting and bookkeeping?
Can I outsource my accounting and bookkeeping in Dubai?
What documents are required for bookkeeping services?
How much do accounting and bookkeeping services cost in Dubai?
How do accounting services help with VAT and corporate tax compliance?
Do small businesses need professional accounting services?
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