Question 1

Is bookkeeping mandatory for UAE companies?

Accepted Answer

Yes, all UAE companies are required to maintain proper accounting records for at least 5 years. With the introduction of corporate tax, accurate bookkeeping is essential for tax compliance, financial reporting, and audit readiness.

Question 2

What accounting standards are used in the UAE?

Accepted Answer

UAE companies must follow IFRS (International Financial Reporting Standards) for financial reporting. Small businesses may use IFRS for SMEs. Compliance with these standards is mandatory for corporate tax filing and audit purposes.

Question 3

How much do bookkeeping services cost in Dubai?

Accepted Answer

Professional bookkeeping services in Dubai start from AED 500/month for basic packages (up to 50 transactions). Comprehensive packages including VAT filing, financial reporting, and audit support range from AED 1,500-5,000/month depending on transaction volume.

Question 4

Do small businesses need an audit in the UAE?

Accepted Answer

Mainland LLCs must have their accounts audited annually by a registered auditor. Free zone audit requirements vary by zone. With corporate tax, all companies with revenue above AED 50 million must be audited. Smaller companies benefit from voluntary audits for credibility.

Question 5

What is the difference between bookkeeping and accounting?

Accepted Answer

Bookkeeping involves recording daily financial transactions (invoices, receipts, payments). Accounting encompasses bookkeeping plus financial analysis, reporting, tax planning, and strategic advisory. AxisOne DC offers both services under comprehensive packages.

Question 6

Can AxisOne DC handle payroll processing?

Accepted Answer

Yes, AxisOne DC offers payroll processing services including salary calculation, WPS (Wage Protection System) compliance, end-of-service benefits calculation, and monthly payroll reports. Packages are available for companies of all sizes.

Question 7

What financial reports will I receive?

Accepted Answer

AxisOne DC provides: monthly profit & loss statements, balance sheets, cash flow statements, aged receivables/payables reports, bank reconciliation reports, and annual financial statements prepared according to IFRS standards.

Question 8

How does the WPS (Wage Protection System) work?

Accepted Answer

WPS is a UAE government system that ensures timely and full payment of employee wages. Employers must register with WPS and process salaries through approved banks or exchange houses. Non-compliance results in fines and inability to process new visas.

Question 9

When should I start bookkeeping for my new business?

Accepted Answer

You should start bookkeeping from day one of your business operations. Early record-keeping ensures accurate financial data for VAT registration, corporate tax filing, bank financing applications, and potential audits.

Question 10

Can I outsource my accounting to save costs?

Accepted Answer

Yes, outsourcing accounting is the most cost-effective option for SMEs in Dubai. It eliminates the need for a full-time accountant (AED 8,000-15,000/month salary) while providing professional-grade services starting from AED 500/month with AxisOne DC.

Accounting & Bookkeeping