Each territory you enter will have its own accounting challenges, and the middle east is no different. Working with our local experts can help you to overcome the challenges and head for success.
Accounting in the UAE is not triggered by tax filing requirements but is more of a corporate law requirement.
The UAE does not have any federal tax on income and wages, resulting in fewer accounting requirements prescribed by the government compared to countries that do levy tax. Yet even in a tax- free environment it is critical to create an accounting structure that produces accurate information and analysis as a base for strategic decision-making.
Based on recent company laws, company management is responsible for having accounts that give a true and fair view of the company to its shareholders. More and more authorities have imposed the requirements to file the audited financial statements as part of the company license renewal requirements.
Entities with regulated activities in the UAE - for example, entities that are regulated by the Central Bank, DFSA - are obliged to file their accounts on the regular basis with the regulator. This can be on quarterly to annual basis.
Bookkeeping and reporting services
Considering the nature of the entity's operation, we estimate that the following monthly bookkeeping services are required:
- Monthly bookkeeping in the local applicable GAAP and IFRS with the local adjustments when necessary
- Preparation of monthly financial reporting (in either our own format or yours if you let us know requirements)
- Prepare sales journal, purchase journal and other journal entries
- Record all payments and funds received
- Record all accounts receivable and accounts payable
- Record all assets purchased and related depreciation
- Record prepayment and accruals
Let us know your requirements, and we will prepare a reporting package to suit. The completed report package will be submitted to you before the 18th of the following month, provided all the necessary information and documents are prepared and made available to us on a timely basis. The report shall include:
- Balance sheet
- Income statement
- Trial balance
- Bank reconciliation statement
- General ledger listing
- Balance sheet and selected expenses schedules
- Petty cash report
- Clients monthly reporting package, if required
The computation of the accounts are based on the relevant records/documents, information and explanation supplied to us. The control, accuracy and completeness of is therefore the responsibility of you and your company management.
Accounts payable service
As part of our accounting services, we can also support clients who do not have a UAE bank account to manage accounts payables. Since the local entity will be a newly established company, a payment frequency of two times in a month will be sufficient.
- Invoice review and preparation for payment documentation
- Setting up payment in the TMF Group banking system
- Payment approval by management and senior staff
- Payment documents administration and reconciliation with the accounts payable list
- Client and supplier correspondence
To view more about TMF Group in the UAE click here