Accounting and Bookkeeping Services in Dubai (UAE)
Companies incorporated in onshore jurisdictions are typically required to prepare and file annual accounts. Often these accounts must also be audited.
Companies incorporated in offshore jurisdictions or free zones are typically required to keep financial records that are sufficient to show and explain the company’s transactions and allow the financial position of the company to be determined with reasonable accuracy.
Outsourcing your accounting requirements to Sovereign’s in-house team of highly-qualified professional chartered accountants will provide your company with comprehensive accounting services in Dubai and across the UAE that are tailored to your needs and budget.
Bookkeeping Services in Dubai
Sovereign Dubai currently provides accounting and bookkeeping services to a wide variety of clients in the Dubai, ranging from start-ups and medium-sized enterprises (SMEs) to large businesses and complex international group structures.
Our accounting and bookkeeping services are based on a client’s current activity and requirements. As a business develops, we have the flexibility to increase our support to match business growth.
Our accounting and bookkeeping services in Dubai include the following:
Financial Reporting
A financial statement is a formal record of the financial activities of a business. It shows the financial position (assets, liabilities and shareholders’ equity) and financial performance (profit and loss) of a company.
This assists management in its decision-making and planning and also assists third-parties, such as partners, lenders and suppliers, to make decisions about your business. Sovereign Dubai can provide clients with a complete set of financial statements that includes:
- Statement of Financial Position (Balance Sheet)
- Statement of Comprehensive Income (Income Statement/Profit & Loss Statement)
- Cash Flow Statement
Audit services
An audit is an objective, independent verification of a company’s financial statements that increases their value and credibility. Sovereign Dubai works with various local and international audit firms and will assist in matching a client or business consultants to an auditor, based on the requirement and budget.
As part of our accounting services, we will provide full support during audit by liaising with the auditors, preparing the schedules and confirmation letters for auditors and attending to auditor questions.
Sovereign works with approved local and international audit firms to provide clients with audit services in Dubai. We provide full support by liaising with the auditors, preparing schedules and confirmation letters and attending to questions.
Management Accounting
Management accounting is the process of preparing management reports and accounts that provide the accurate and timely financial and statistical information that is required by managers to make day-to-day and short-term decisions.
Maintaining Cash Books
A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger.
Tax and VAT services
A tax return is used to report income and file tax returns with the local tax authorities. Our tax services include preparation and other tax consultants, filing of tax returns and dealing with any enquiries from the local tax authorities that may arise.
Corporate Tax: The UAE government issued the new Corporate Tax Law in December 2022, which provided the legislative basis for the introduction and implementation of a Federal Corporate Tax (CT) in the UAE, effective for financial years starting on or after 1 June 2023. Sovereign Dubai can assist clients with their CT registration and compliance in the UAE.
VAT: Sovereign Dubai also provides specialist VAT services. We will assist companies with VAT registration, maintaining VAT records, preparing and submitting VAT returns and providing guidance assurance services on VAT compliance.
Withholding Tax in the UAE: The UAE does not impose withholding tax on domestic or cross-border payments, including dividends, interest, royalties, and service fees. While local law is WHT-neutral, businesses should still consider the UAE’s double tax treaties (DTTs), which may reduce or eliminate foreign WHT on income received abroad.
Transfer Pricing Rules in the UAE: The UAE’s Corporate Tax Law includes formal transfer pricing (TP) rules for transactions with related parties, both local and international. These must follow the arm’s length principle and use accepted TP methods such as CUP, Resale Price, and TNMM. Companies must maintain local and master file documentation and ensure they disclose related party transactions annually.
Benefits of Accounting Outsourcing in the UAE
Hiring a dedicated in-house accountant in the UAE involves significant obligations and costs related to visas, salary, labour contract fees, mandatory medical insurance, gratuity provisions, annual leave, training costs and overtime costs.
The fixed monthly fees for our accounting firm and bookkeeping services in Dubai will be tailored to a client’s specific requirements and will be far more cost effective.
Sovereign Dubai’s accounting team comprises professionally qualified chartered accountants with experience in accounting firms across diverse sectors and expert knowledge of local accounting laws and regulations to ensure your business remains compliant with all necessary regulations.
As your business grows, your accounting needs will evolve. The flexibility of accounting outsourcing means that Sovereign can adjust its services to meet these changing needs and provide you with scalable solutions from business setup.
Our qualified accountants and finance professionals can either visit a client’s premises on a weekly or monthly basis to complete the books, or clients can submit supporting documentation digitally to our office and we can provide our accounting expertise and bookkeeping services remotely.
Onboarding Documentation
The following documents will be required for onboarding due diligence procedures to Sovereign’s accounting and bookkeeping advisory services:
- Business licence and registration information
- Copies of passport, visa and proof of address for the manager on the licence
Ongoing Documentation
Once onboarded, clients will need to provide the following documents in a timely manner to enable us to prepare accurate and current reports:
- Cash receipts and deposit slips
- Cash disbursements and bank statements
- Supplier invoices received
- Details of Sales Invoices raised
- Copies of purchase/lease contracts and loan agreements
- Copies of contracts/agreements with customers
- Detailed list of company assets (description, date of acquisition, original cost and current value)
- Other documents necessary for correct account reporting
Accounting Services for Businesses in Dubai (UAE) – FAQs
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Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
