Accurate, audit-ready bookkeeping is now essential in the UAE. With corporate tax live and VAT enforcement maturing, businesses must maintain structured books, retain records for defined periods, and be able to substantiate filings on request. In practice, that demands a compliance-first bookkeeping model aligned to VAT and Corporate Tax rules, supported by timely management reporting. Under UAE law, VAT records must be retained for at least five years (longer for certain assets), and corporate tax records for seven years from the end of the relevant tax period.
What “Good” Bookkeeping Looks Like in the UAE (2025)
1) Rigorous transaction capture and audit trail
Sales, purchases, payments, receipts, journals, credit notes, and supporting documents recorded with clear references (invoice numbers, dates, counterparties), mapped to a UAE-appropriate chart of accounts.
2) VAT-compliant documentation
Tax invoices, tax credit notes, and VAT categorization (standard, zero-rated, exempt) applied correctly; evidence retained for the statutory period (e.g., VAT: 5 years; capital assets often 10 years).
3) Corporate tax readiness
Books prepared under IFRS/IFRS for SMEs with reconciliations that directly support the corporate tax return. Record-keeping for 7 years enables the FTA to readily ascertain taxable income.
4) Monthly closings and reconciliations
Bank, cash, AR/AP, intercompany, and VAT control account reconciliations with month-end journals (accruals, prepayments, depreciation) to ensure completeness and cut-off integrity.
5) Management reporting that informs decisions
Timely P&L, balance sheet, cash flow, AR/AP ageing, and KPIs (gross margin, DSO/DPO, operating cash cycle) to support pricing, collections, and working-capital actions.
Scope of Bookkeeping Services (Designed for UAE SMEs)
- Monthly / Quarterly Bookkeeping: Transaction posting, reconciliations, ledgers, and trial balance preparation.
- Accounts Receivable & Payable: Invoicing, supplier statement matching, payment scheduling, and receivables tracking.
- VAT Support: VAT coding, control account reconciliation, and documentation packs prepared in line with FTA standards.
- Corporate Tax Support: Schedules aligning book results to taxable income; documentation preserved for seven years per Article 56.
- Fixed Assets & Inventory: Registers, capitalization policy, depreciation, and capital-asset record retention.
- Year-End Audit Assistance: Lead schedules, reconciliation packs, and coordination with auditors.
- Cloud-Based Bookkeeping with Zoho Books:
As an authorized Zoho Partner, U & Us Fin Solutions implements and manages bookkeeping workflows through Zoho Books — a secure, FTA-accredited cloud platform ideal for UAE businesses.- Real-time dashboards and transaction automation
- Built-in VAT modules compliant with FTA filing formats
- Document storage for audit and tax purposes
- Remote access for management and accountants
Integrating Zoho Books allows our clients to monitor finances, review VAT summaries, and approve transactions from anywhere — improving both transparency and control.
Why Bookkeeping Is a Compliance Lever — Not Just a Cost
- Penalty avoidance & faster audits: Clean books with proper retention materially cut audit timelines and reduce risk of administrative penalties.
- Tax certainty: Clear evidence supports VAT treatment and corporate tax adjustments, minimizing disputes.
- Financing & growth: Lenders and investors rely on reconciled management accounts and consistent cash flow visibility.
- Operational control: AR/AP ageing and margin analysis drive collections discipline and pricing decisions.x
Our Delivery Model (How We Work)
- Discovery & Policy Alignment: We review your entity structure, sector specifics, and existing controls to define the chart of accounts, tax codes, and documentation standards that match UAE rules.
- Monthly Close Cadence: Fixed cut-off dates for document submission; we run reconciliations, pass adjusting entries, and issue a close pack (TB, VAT and CT schedules, KPIs).
- Evidence & Retention: We maintain an auditable trail and archive to meet 5-year VAT and 7-year corporate tax retention obligations.
- Quarterly Reviews with Management: Narrative analysis of trends, cash-conversion cycle, and tax exposure signals.
FAQs (UAE-Specific)
How long must we keep records?
At least 5 years for VAT (longer for capital assets) and 7 years for corporate tax after the end of the tax period.
Do free-zone entities need the same level of bookkeeping?
Yes. Corporate tax and VAT compliance rely on accurate, retained books irrespective of location or regime; documentation must substantiate status and claims.
What standards should books follow?
IFRS/IFRS for SMEs are the reference frameworks for corporate tax computations and reliable reporting
If you need VAT-compliant, corporate-tax-ready bookkeeping supported by cloud-based Zoho Books, our team will structure and manage your complete financial workflow — ensuring accuracy, accessibility, and compliance.
Contact us today for a personalized consultation that will streamline your bookkeeping and ensure compliance, paving the way for your business’s growth