How to choose an accountant or accounting company in the UAE

Choosing an accountant in the UAE requires special attention: it is important to determine whether the company needs an in-house specialist or outsourced accounting support. At the same time, the accountant must know not only IFRS and the basics of financial accounting, but also the specifics of local legislation, including VAT, Corporate Tax and corporate reporting requirements.

In this article, we will examine the main criteria for choosing an accountant or accounting firm in the UAE: qualifications and licensing, experience in interacting with the FTA, and the ability to take into account ESR, UBO and other business obligations.

Which is better: an in-house accountant or an accounting firm

In-house accountant

Suitable for companies with a large volume of daily transactions — for example, from 200–300 transactions per month, and constant internal reporting. At the same time, the business incurs additional expenses for salary, visa, health insurance, workplace and specialist training.

Outsourced accounting firm

More often suitable for small and medium-sized businesses. The client gets access to a team of accountants, tax consultants, auditors and lawyers without the need to maintain their own financial department.

What to look for when choosing an accountant in the UAE

1. Experience in the UAE and your industry

Work experience in another country does not always mean understanding the legislation and business practices of the UAE. An accountant must know:

• VAT and Corporate Tax requirements

• how to use the EmaraTax portal

• features of Mainland and Free Zone companies

• requirements for financial reporting

• rules for preparing documents for audit

• bank requirements for transaction confirmation

• UAE labor law

• rules for preparing benchmarking documents

It is also important to consider industry experience. Accounting for a trading company differs from accounting for an IT business, a restaurant, a real estate agency or a consulting company.

2. Knowledge of VAT and Corporate Tax

An accountant must understand not only the process of filing returns, but also the tax logic of transactions. The specialist must be able to:

• determine the tax status of a transaction

• properly account for input and output VAT

• evaluate the necessity of tax registration

• prepare data for Corporate Tax

• check supporting documents and prepare them, if necessary (such as Expense Vouchers, Resolutions, Orders, etc.)

• identify tax risks

• explain the consequences of the transaction for the company

• suggest ways to optimize taxes

If the accountant only files returns on the basis of the client's data without checking the documents, it can lead to mistakes in the form of fines, penalties and additional expenses. 

3. Having an FTA Registered Tax Agent is a big advantage

When an accountant and a registered tax agent work in the same team, tax issues are resolved faster and more comprehensively: the accountant maintains records, and the tax agent, if necessary, gets involved in interacting with the FTA and more complex tax compliance issues.

4. Availability of a legal license

Accounting and tax issues are often related to legal documents. For example, the following may be required when accounting operations:

• contracts with clients and suppliers;

• loan agreements

• shareholder agreements

• corporate resolutions

• documents on dividend payments, including when there is a need to pay dividends in unequal shares

• related party agreements.

Therefore, having a legal department and a license to provide legal services in an accounting firm is a major advantage.

5. List of services and contract terms

Before starting work, it is necessary to get an exact list of services included in the cost.
Accounting support can include:

• bookkeeping

• processing of bank transactions

• income and expense accounting

• preparation of management accounts

• VAT registration and filing of returns

• Corporate Tax registration and returns

• preparation of financial statements

• audit support

• operating with the EmaraTax portal

• handling internet banking

Clarify separately which services are paid additionally.

6. Organization of accounting and communication

Find out who will manage your company and control the quality of work. A good accountant should regularly inform the client about missing documents, upcoming deadlines and possible risks, as well as the correctness of executed documents.

How much do accounting services cost in the UAE

In the UAE market, you can find offers starting from 990 AED per month. Typically, this is a basic flat rate package for a company with a small number of operations, for example:

• up to 20–30 transactions per month

• one bank account

• one currency

• no employees and no payroll calculations

• no VAT returns

• no international operations

• no related party transactions

• without the preparation of financial statements and audit support.

A low price in itself does not mean low quality, but it is important to check in advance what exactly is included in the tariff. VAT Return, Corporate Tax Return, book restoration, payroll, financial statement preparation and answers to FTA inquiries may be paid separately.                                                                                

Also check if support in Russian is available and whether you can communicate directly with an accountant or a tax specialist. If communication is handled in English only, variations in pronunciation and professional terminology can complicate discussions on accounting and tax matters.

The cost of accounting support increases with an growth in the number of transactions, bank accounts and currencies, VAT registration, employees, loans, investments, assets, international operations and related party transactions. 

Therefore, it is better to compare not the monthly rate, but the full cost for the year, taking into account VAT returns, Corporate Tax Return, reporting, audit and consultations.