Accounting and Bookkeeping Services in the UAE
UAE bookkeeping and accounting obligations: record-keeping rules, corporate tax and VAT filing, IFRS requirements, outsourcing costs and how to choose a provider.
Business Setup AE editorial review Last reviewed 2026-09-09
Quick answer
UAE companies must keep accounting records for at least seven years and prepare financial statements that support corporate tax and VAT filings. Records must follow IFRS, or IFRS for SMEs where eligible. Outsourced bookkeeping typically costs AED 500–3,000 a month depending on transaction volume, VAT registration and reporting frequency.
- Record retention
- 7 years minimum
- Standard
- IFRS or IFRS for SMEs
- Corporate tax return
- Within 9 months of financial year end
- VAT returns
- Quarterly or monthly
- Outsourced cost
- AED 500 – 3,000 per month
- Audit
- Required by many free zones and above revenue thresholds
Bookkeeping stopped being optional in the UAE when corporate tax arrived. Every taxable person must maintain records sufficient to determine taxable income, keep them for seven years, and file a corporate tax return within nine months of the financial year end. VAT-registered businesses layer quarterly or monthly returns on top.
The practical consequence is that a UAE company needs a consistent chart of accounts, reconciled bank data and documented supporting evidence from day one — not a scramble at year end. Free zones with audit requirements will not renew a licence without audited statements.
This page covers the legal obligations, the difference between bookkeeping, accounting and audit, realistic outsourcing costs, and what to check before appointing a provider.
| Business profile | Monthly volume | Monthly fee (AED) |
|---|---|---|
| Solo consultancy, no VAT | Under 20 transactions | 500 – 900 |
| Small service company, VAT registered | 20 – 100 | 900 – 1,800 |
| Trading company | 100 – 400 | 1,800 – 3,500 |
| Multi-entity or e-commerce | 400+ | 3,500 – 8,000 |
What the law requires
- Maintain accounting records and supporting documents for at least seven years
- Prepare financial statements on an accruals basis under IFRS, or IFRS for SMEs where eligible
- Register for corporate tax and file within nine months of the financial year end
- File VAT returns on the FTA-assigned cycle once registered
- Keep transfer pricing documentation where related-party thresholds are met
- Maintain UBO and shareholder registers with the licensing authority
Bookkeeping, accounting and audit compared
| Service | Purpose | Frequency | Typical cost (AED) |
|---|---|---|---|
| Bookkeeping | Record and reconcile transactions | Monthly | 500 – 3,000 / month |
| Management accounting | Reporting and decision support | Monthly / quarterly | 1,500 – 6,000 / month |
| Tax compliance | VAT and corporate tax filings | Quarterly / annual | 1,000 – 8,000 per filing |
| External audit | Independent opinion on statements | Annual | 5,000 – 25,000 per year |
Cash basis is not enough
Many small UAE companies run on bank-statement bookkeeping — categorising what came in and out. That fails corporate tax scrutiny, because taxable income is computed on an accruals basis with adjustments for depreciation, provisions, related-party transactions and non-deductible expenses.
Accrual records also matter at bank review and licence renewal. Where an audit is required, an auditor cannot issue a clean opinion on incomplete records without significant remediation cost.
Who this option suits best
- Newly licensed companies setting up compliance from day one
- VAT-registered trading and e-commerce businesses
- Free zone companies facing an annual audit requirement
- Founders preparing for bank review or investment
- Groups with related-party transactions
Step-by-step process
- 1
Set the financial yearAt setup
Declared at incorporation; it drives corporate tax and audit deadlines.
- 2
Build the chart of accounts1 week
Structure it around your activity and tax reporting needs.
- 3
Connect banking and document flowOngoing
Feed statements, invoices and receipts into one system monthly.
- 4
Close and reconcile monthlyMonthly
Bank, receivables, payables and VAT positions reconciled each month.
- 5
File VAT returns on cycleQuarterly
Quarterly or monthly, per the FTA assignment.
- 6
Prepare statements, audit and tax returnWithin 9 months of year end
Financial statements, audit where required, then the corporate tax filing.
Documents required
- Bank statements for all corporate accounts
- Sales invoices and credit notes
- Purchase invoices and expense receipts
- Payroll records and WPS files
- Lease, loan and related-party agreements
- Fixed asset register
Realistic timeline
| Stage | Duration |
|---|---|
| Monthly close | 5 – 10 days after month end |
| VAT return | 28 days after tax period end |
| Annual financial statements | 1 – 3 months after year end |
| Corporate tax return | Within 9 months of year end |
Bookkeeping is priced on transaction volume and VAT status, not company size. Beware fixed 'all-inclusive' quotes that exclude the audit and the corporate tax return.
Common mistakes and how to avoid them
Leaving bookkeeping until year end
Fix: Monthly closes cost less than reconstructing twelve months under deadline pressure.
Mixing personal and company accounts
Fix: Separate accounts; commingling causes disallowed expenses and audit qualifications.
Ignoring related-party transactions
Fix: Document them at arm's length; transfer pricing rules apply above thresholds.
Assuming free zone means no accounting
Fix: Record-keeping and corporate tax filing apply to free zone entities too.
Discarding receipts
Fix: Seven-year retention is a legal requirement, digital copies included.
Compliance after licensing
- Corporate tax registration with the FTA — 9% applies on taxable profit above AED 375,000; 0% below it. Small Business Relief may apply to revenue under AED 3m.
- VAT registration is mandatory once taxable turnover passes AED 375,000 in 12 months, and voluntary from AED 187,500.
- Economic Substance Regulations (ESR) notifications for relevant activities such as holding, IP, headquarters and distribution.
- Ultimate Beneficial Owner (UBO) register kept with the licensing authority and updated within 15 days of any change.
- Anti-Money Laundering (AML) registration on the goAML portal for designated non-financial businesses and professions.
- Annual licence and establishment-card renewal, plus audited financials where the free zone or activity requires them.
Regulators referenced: Ministry of Economy (UAE) · Dubai Department of Economy and Tourism (DET) · Abu Dhabi Department of Economic Development (ADDED) · Federal Tax Authority (FTA) · General Directorate of Residency and Foreigners Affairs (GDRFA) · Ministry of Human Resources and Emiratisation (MOHRE)
Frequently asked questions
Is bookkeeping mandatory in the UAE?
How much does accounting cost in Dubai?
Do free zone companies need accounts?
Which accounting standard applies?
When is the corporate tax return due?
People also ask
Can I do my own bookkeeping?
Yes, if records meet accrual standards and support the tax return. Most owners outsource once VAT registration or audit requirements begin.
What happens if records are incomplete?
Penalties apply for failing to keep records, and an auditor may qualify or refuse an opinion, which can block licence renewal.
Is an audit the same as bookkeeping?
No. Bookkeeping records transactions; an audit is an independent opinion issued by a licensed audit firm on the resulting statements.
Founder checklist
- Confirm your financial year end and first tax period
- Set a chart of accounts before the first transaction
- Separate personal and corporate banking
- Diarise VAT return dates and the nine-month tax deadline
- Check whether your free zone requires audited statements
- Store records securely for seven years
Why you can trust this guide
- Independent marketplace — Business Setup AE does not form companies and takes no commission on provider pricing
- Every listed provider holds a valid UAE trade licence and publishes fixed prices
- Costs reviewed against 2026 published government schedules
- Written and reviewed by advisers who have processed UAE licences and residence visas
Editorial ownership: Business Setup AE Editorial Team. See our editorial and corrections policy and package verification method.
Related guides and services
Official government sources
Fees, thresholds and licensing rules on this page are checked against these official UAE government and regulator sources.
- Federal Tax Authority — record keepingRecord retention, filing cycles and taxable income rules
- Ministry of Economy — UAEFederal commercial registration, trade names and company law
- u.ae — official UAE government portalGovernment guidance on starting a business and licence categories
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