Record Keeping Policy

Under the UAE Federal Law, you should keep your financial records and statements. You must ensure those 

records are intact for at least five years. The Ministry of Finance recommends keeping records for 

ten years to prove tax compliance.

Cash Receipts

Transactions of up to AED 1,000 need evidence supported by a receipt. Receipts must be in the name of 

the business. They must include the date of issue, signature of the person issuing the receipt, and recipient.

You must also indicate the amount and nature of the transaction. The details are essential for proof of transactions. 

They also improve accounting accuracy.

Bank Transactions

All bank transactions need the support of a bank statement. The statement must include the date of the transaction 

and the name and address of the business receiving the funds. You also need to include the amount and nature of the 

transaction. Companies can keep an electronic record of the statements. Keeping these records helps in accurately 

preparing an annual budget and profit and loss accounts.

VAT Returns

Businesses operating in UAE must comply with Value Added Tax (VAT) regime, effected on January 1st 2018. 

The new tax applies to all companies in UAE, whether your services are local or outside UAE.

Businesses are required to register for VAT if they meet the eligibility criteria. Taxes in Dubai can 

be a complex matter. As such, your business should adopt a VAT Return Policy that makes sense. It should 

be in line with industry best practices.

Other Supporting Documents

Other supporting documents include invoices, credit notes and contracts. Also, include bank statements 

for businesses that are not registered for VAT.

The above documents should be in their original form. Copies of the documents are not acceptable.

How to Keep Your Business Accounting Records in 

Order in Dubai

Many small businesses attempt to do their books. This is common when a firm doesn’t want to spend 

money on accounting firms. Business owners also think they can keep things more “in-house.”

However, this often leads to a lot of stress and time wasted. Accounting is complex and a full-time job 

in itself. If you are running a business, you likely already have enough on your plate.

Instead of doing everything by yourself, consider the following options:

Hiring Accounting Staff

This involves getting an in-house permanent accounting employee. Depending on your company’s size, 

you can hire one or a team of accountants. The hiring process involves posting the job offer on your 

website or job websites.

You interview several candidates until you find the perfect fit. Some of the qualifications you should look for 

include experience in reconciliation, monitoring/recording accounts payable and accounts receivables transactions, 

basic bookkeeping and financial reporting. If you are lucky to find a reliable accounting staff member, they can 

handle all accounting operations. Alternatively, you can use outsourced accounting services in the UAE.

Outsourcing Accounting Services

Accounting outsourcing is the transfer of accounting functions to third party accounting firms. This includes services 

like bookkeeping, tax preparation and financial statement preparation. You can outsource these services to an 

independent professional firm that specializes in that particular industry.

Outsourced accounting services take over the day-to-day tasks of your accounting department. You can 

choose to outsource all accounting operations or some hectic ones. Here are some of the most popular outsourced 

accounting services:

Payroll

Accounts Payable

Accounts Receivable

Bookkeeping

When dealing with virtual accounting companies, you have to do it electronically.

Budgeting

Budgeting is the process of planning your finances. It involves determining how much money you will make and 

how much you will spend.

Tax Accounting

Tax accounting is the process of preparing tax returns for your business. The firm will also calculate income taxes payable 

by your business. Tax accounting is different from financial accounting. You are better off having an expert who does 

both of these accounting tasks.

A company may outsource their accounting because they don’t have the staff to handle these tasks. Whatever the reason, 

it can be a more cost-effective alternative than hiring permanent employees.

Benefits of Outsourcing Business Accounting Services in Dubai

Hiring the right accounting firm can be your first step towards outsourcing business accounting services in Dubai. 

These firms have expert accountants. You can easily outsource your bookkeeping or accounting services online. 

Below are critical reasons for outsourced accounting services in Dubai:

Cost-Effective

Outsourcing your accounting and finance operations is cost effective. There is no need to pay someone on a full-time basis. 

One full-time employee could cost you up to AED 293,638 per year.

Hiring permanent employees to manage your accounts attracts the following expenses:

• Pension
• Health insurance costs
• Hiring costs
• Training and professional development

Remember, you might need to hire several employees to manage your accounts. 

This translates to higher salary costs.

Outsourcing cuts these overhead costs and makes your business is more profitable. Outsourced accounting services can be 

done on a contractual basis. With the tight economy, business owners are looking for cost-effective solutions.

Get Experts and Professionals

Outsourcing accounting services to a professional accounting agency allows you to work with experts. Every business 

needs an accounting expert. All successful companies have someone on their team who stays on top of their numbers.

You need to know how much money you are making and how much you are spending. Accounting experts help with 

the following:

• Research and development of financial models
• Consulting on operational improvements
• Implementation of business process re-engineering tools

A competent accountant knows how to align your accounts with the business goals. An expert helps you grow your 

business, reduce costs and make smart decisions. They will also provide the expertise that helps you manage

tax and legal issues.

Choose a competent accounting company. You can check their offshore company licenses to confirm their credibility.

Stay Focused on Your Business

Bookkeeping is one of the most critical aspects of an organization. It is the documentation of financial transactions 

and records. Accounting and bookkeeping are tedious and complex jobs.

There are several reasons behind this complexity.

The accountant has many responsibilities to fulfil. They need to ensure all transactions are documented and accounted for. 

This can be overwhelming when the company has a lot of transactions taking place.

There are many types of documents that need to be maintained. These include cash receipts, bank statements, and cheque 

stubs. The accountant needs to ensure that all these documents are stored safely, and the information is easily accessible. 

It will require more than 60 hours per week to manage your accounting. This draws your attention from other business 

operations like customer service, partnerships, and others.

Outsourcing your accounting operations frees up time for other operations. It allows you to focus on important 

business operations.

Meet Statutory Requirements and Regulations

Have you ever opened your mail to find a letter from the taxman? The reason behind this letter is that you may 

not have filed your taxes.

The UAE has introduced VAT in 2018 and is planning to introduce corporate tax in 2023. It is best to make sure your 

company’s books are in order and updated to prepare for any tax audit or reporting requirements. 

This can help you ensure your business complies with the country’s tax regulations, among other corporate requirements.

Here are some legal benefits of outsourcing your accounting:

• Meet statutory and regulatory requirements
• Avoid penalties and interest charges by paying bills on time
• Have an easier time staying in compliance with all filing deadlines
• Reduce the risk of facing a lawsuit for non-compliance with laws and regulations