Is accounting mandatory in the UAE?

How to avoid fines, and therefore financial losses?

I hope that everyone has already returned from the holidays, during which you had a good rest, gained strength and ideas, and entered the New Year 2024 with inspiring plans and interesting tasks. And since you are here with me, I correctly understand that accounting is also present in your plans.

Therefore, I have prepared information on the basics for you and invite everyone interested to take up the elimination of accounting illiteracy.

Let’s start with the most important question – is accounting mandatory in the UAE?

According to Federal Law No. 7 of 2017, all UAE companies are required to do accounting and maintain accounting records for at least the last 5 years.

Failure to comply may result in a fine of AED5,000 or more.
Accounting books must be maintained by accountants in accordance with local laws and regulations as well as International Financial Reporting Standards (IFRS).

Accounting and reporting can also be outsourced to UAE accounting firms such as Consorata.

With corporate tax changes, the need for professional bookkeeping in accordance with international standards becomes even more important.

That’s why we offer our clients flexible accounting solutions to suit any business need, and hiring the services of accounting firms allows you to focus more on your company’s operations and business goals.

Maintaining proper books of accounts in accordance with UAE regulations will ensure accurate receipt and disbursement of cash and other transactions.

In addition, it helps to plan cash requirements, prevent insolvency and bankruptcy, support budget planning and forecasting, which contribute to effective financial management.

Remember, accounting must be done so that it puts finances in order.
To be continued…