Scaling a small business is exciting, but finance tasks multiply fast. This accountancy services checklist is designed for growing SMEs that want tighter controls, clean books, clear insights, and reliable compliance in the UAE. It also highlights key areas of tax accounting to ensure accurate filings and optimized obligations. Use it to spot gaps, prioritize next steps, and decide what to keep in-house and what to outsource.
Why a checklist matters for scaling SMEs
As revenue, headcount, and transaction volumes rise, risks rise too. Missing a filing, delaying reconciliations, or making ad hoc tax decisions can cost cash and credibility. A well designed finance checklist helps you:
- Standardize close processes and reduce errors.
- Produce decision-ready reports that support growth.
- Stay compliant with tax and regulatory requirements in Dubai and across the UAE.
- Free leadership time by outsourcing specialist work to experts.
UAE compliance, at a glance for 2025
SMEs operating in the UAE face a maturing tax and compliance framework that rewards readiness.
- UAE VAT has been in place since 2018, generally at 5 percent. See guidance from the Federal Tax Authority.
- UAE Corporate Tax applies to financial years starting on or after 1 June 2023, with a standard headline rate of 9 percent for most businesses. See UAE Ministry of Finance corporate tax guidance.
- Additional obligations can apply based on activity and structure, including Economic Substance Regulations, Ultimate Beneficial Owner disclosures, payroll through the Wages Protection System, and Anti Money Laundering requirements for designated non financial businesses and professions. For payroll, review MoHRE WPS guidance. For global financial reporting standards, refer to the IFRS Foundation.
This article is general guidance. Always check current rules and your specific licensing authority’s requirements before acting.
The essential accountancy services checklist for growing SMEs
Use the sections below to assess your current setup. If an item is missing or only partially covered, mark it as a priority.
1) Foundational bookkeeping and internal controls
Accurate day to day accounting is the base for all tax and management reporting.
- Maintain a documented chart of accounts that reflects your revenue streams and cost drivers.
- Implement monthly bank, credit card, and payment gateway reconciliations with clear sign off.
- Use three way matching for purchases (purchase order, goods received, invoice) when feasible.
- Separate duties for raising payments, approving them, and recording them.
- Capture and archive source documents digitally, and retain records as required by the FTA.
- Set a monthly close calendar with realistic deadlines and responsibilities.
2) Management reporting and planning
Investors and lenders care about repeatable reporting, not one off spreadsheets.
- Produce monthly management accounts, profit and loss, balance sheet, cash flow, within a set close timeline.
- Track budget versus actuals and rolling forecasts, and review with leadership.
- Monitor core KPIs such as gross margin, operating expenses as a percentage of revenue, cash runway, receivable days, payable days, and inventory days.
- Prepare a 13 week cash flow forecast and update it weekly in fast growth or low visibility periods.
3) Tax compliance in the UAE
Tax rules are evolving, so build processes, not just checklists.
- VAT readiness, determine registration status, set up tax codes, and verify tax invoice formats and required fields.
- VAT returns, file on the required cycle, usually quarterly for many SMEs, reconcile VAT control accounts, and maintain audit trails for input tax claims and reverse charge transactions where applicable.
- Corporate Tax readiness, register, map accounting policies to tax adjustments, and maintain fixed asset and depreciation registers aligned with tax requirements.
- Corporate Tax filings, prepare returns and calculations with supporting schedules, and document positions on deductions, exemptions, and any reliefs that may apply.
- Transfer pricing, identify related party transactions and ensure arm’s length pricing, maintain intercompany agreements and TP documentation where relevant.
For definitions, rates, and filing mechanics, consult the Federal Tax Authority and UAE Ministry of Finance.
4) Payroll and people
Getting payroll right builds trust with your team and regulators.
- Enroll in the Wages Protection System where required and ensure timely salary payments.
- Maintain employee files, contracts, visa status, and leave balances.
- Calculate gratuity and other accruals correctly and book them monthly.
- Reconcile payroll to the general ledger and bank statements at each period close.
5) Statutory reporting and audit readiness
Even if an audit is not mandatory, audit ready books reduce financing friction.
- Prepare annual financial statements in line with IFRS or IFRS for SMEs as required by your licensing authority or free zone.
- Maintain a fixed asset register with capitalization and impairment policies.
- Schedule stock counts and reconcile variances if you hold inventory.
- Keep a documented file for auditors and lenders, trial balance, lead schedules, and supporting documents.
6) Regulatory filings beyond tax
Some filings are triggered by your activity, ownership, or free zone rules.
- Economic Substance Regulations, assess relevant activities and file annual ESR Notification and, if applicable, ESR Report.
- Ultimate Beneficial Owner disclosures, maintain UBO registers and file updates as required.
- Anti Money Laundering, if you are a DNFBP such as a real estate broker, precious metals dealer, company service provider, or accountant, implement AML policies, risk assessments, and training, and maintain a suspicious activity reporting process.
7) Banking and treasury
Strong treasury processes protect cash and speed collections.
- Maintain updated bank mandates and dual authorization for payments.
- Use approved pay run cycles, and lock payment files after approval.
- Reconcile collections from payment gateways and point of sale systems weekly.
- Review cash concentration, excess balances, and interest yield options monthly.
8) Technology and data
Choose tools that reduce manual work, improve accuracy, and scale with you.
- Implement cloud accounting integrated with bank feeds, invoice OCR, and expense management.
- Use a document management process with access controls and regular backups.
- Configure approval workflows in your finance systems, and avoid shadow spreadsheets for official numbers.
- Create a data retention schedule aligned with FTA and regulator requirements.
9) Growth, projects, and funding
Growth plans depend on solid numbers and clear visibility.
- Build a driver based financial model for hiring plans, pricing, and capacity.
- Track unit economics by product, project, or location, and report contribution margins.
- Prepare lender or investor data rooms, and update covenant compliance schedules if you have facilities.
10) Governance and risk
Finance policies help avoid surprise costs and disputes.
- Maintain a delegation of authority for spending and contracting.
- Standardize vendor onboarding, KYC, and contract storage.
- Document revenue recognition policies and discount approvals.
- Create an incident log for accounting, tax, and system issues, and record remediation steps.
Your monthly, quarterly, and annual rhythm
Use this high level calendar to time key activities.
| Area | Key actions | Typical frequency |
| Bookkeeping | Post transactions, reconcile banks, review payables and receivables | Monthly |
| Management reporting | Management accounts, KPIs, budget versus actuals review | Monthly |
| Payroll | Process pay run, WPS submission if required, reconcile payroll | Monthly |
| VAT | Prepare and file return, reconcile VAT ledgers, retain documentation | Monthly or Quarterly |
| Corporate Tax | Book tax adjustments, review provisions, update fixed asset and TP files | Quarterly |
| Statutory accounts | Year end close, IFRS financial statements, audit readiness | Annually |
| Regulatory | ESR Notification and Report if applicable, UBO updates, license renewals | Annually or as required |
Outsource or build in house
There is no one size fits all answer. A blended model usually wins for SMEs.
Consider outsourcing when:
- You need senior expertise in tax, IFRS, or audit, but not full time.
- You want faster setup of systems, processes, and compliance calendars.
- You experience peaks in workload around audits, VAT periods, or funding rounds.
Consider building in house when:
- Transaction volumes are high and daily coordination with sales, operations, and procurement is essential.
- You need real time analysis and on site support for inventory, projects, or cash collections.
Many SMEs keep bookkeeping and management reporting in house, and outsource tax, year end reporting, and advisory tasks to a specialist firm.
How ADS Auditors supports growing SMEs
ADS Auditors is an award winning consultancy in Dubai that helps SMEs stay compliant and scale with confidence. Our team provides:
- VAT support, from registration to filing and health checks.
- Corporate tax consultancy and filing support.
- Accounting services and monthly close assistance.
- Company formation and bank account opening support.
- Anti money laundering and Economic Substance Regulation guidance.
- A practical compliance calendar tool to help you track deadlines.
- Technology integration to streamline your finance stack.
If you want a tailored plan for your stage and sector, speak with the experts at ADS Auditors.
Quick copy and use checklist
Work through this list and mark any gaps for immediate action.
- Chart of accounts and monthly close calendar documented.
- All bank, card, and gateway accounts reconciled monthly with sign off.
- VAT controls in place, correct tax invoices, return schedule, and reconciliations.
- Corporate tax registration complete, tax file organized, and positions documented.
- Payroll processed on time, WPS compliant where required, gratuity accrued.
- Annual IFRS financial statements prepared, audit file ready.
- ESR and UBO assessments completed, filings submitted when applicable.
- Delegation of authority and vendor onboarding policy in place.
- 13 week cash forecast and monthly KPI dashboard reviewed by leadership.
- Finance systems integrated, document retention and backup policy defined.
Frequently Asked Questions
What should SMEs prioritize first when upgrading finance?
Start with accurate bookkeeping, bank reconciliations, and a monthly close calendar. These enable clean VAT filings, reliable management reports, and smoother audits.
When do we need to register for VAT in the UAE?
Registration depends on your taxable supplies and imports and the statutory thresholds. Review current thresholds and exemptions with the Federal Tax Authority or consult a registered tax agent.
Do free zone companies pay UAE corporate tax?
Free zone entities can have specific provisions and conditions under the UAE Corporate Tax regime. The application depends on your activities and compliance with qualifying criteria. Review official guidance from the UAE Ministry of Finance and get tailored advice.
What is WPS and do we need it?
The Wages Protection System is the mandated electronic salary transfer system for eligible employers. Many UAE employers must pay through WPS. Check your status with MoHRE and your free zone authority.
Do we need an audit?
Audit requirements depend on your licensing authority, company size, and banking covenants. Many free zones and lenders require audited financial statements annually. Confirm with your regulator and bank.
What is ESR and does it apply to us?
Economic Substance Regulations apply to entities that undertake relevant activities. You may need to file a Notification and, if applicable, a Report each year. Conduct an ESR assessment based on your activities.