It’s the time for the businesses in the UAE to ensure that they have completed the necessary
accounting procedures as the financial year come to an end. Proper measures should be
taken to ensure e?iciency and smoother transitions for the coming financial year. The
businesses should be aware about the necessary regulatory requirements to set up strong
future growth and potential results. This article is detailed about helping UAE businesses in
managing the year – end accounting step wise.
1. Finalizing Your Financial Statements
The first step for all the businesses completing the financial is year to prepare the
financial statements. These include the balance sheet, income statement, and cash flow
statement, which must be accurate. Ensuring the trial balance should be error free
before proceeding. Using accounting softwares to ease the process and ensuring
accuracy can maximize the potential for mistakes.
2. Addressing Tax Provisions
As the incorporation of corporate tax, 2025 seems to be a potential year for all the
businesses in the UAE. The companies should be aligned with UAE tax laws and IFRS
standards, ensuring the tax liabilities are accurately accounted. To avoid mistakes,
companies should approach an expert for navigating corporate tax filing and ensure
compliance with the new regulations.
3. Revisiting Your Revenue Recognition Policies
At the year-end, business in the UAE should follow IFRS 15 when recognizing revenue. It
is essential for business to carefully assess the revenue recognition process as it’s very
important to record the income once the service is completed, not after receiving the
cash. Also, it is very important to review any deferred revenue, especially for products or
services provided in the fiscal year.
4. Reconciliation of Accounts
At the year-end, the most vital task is reconciliation as it will help to catch discrepancy
easily after matching your bank statements, account receivable, petty cash and other
ongoing transactions. To avoid last minute mess up, conducting monthly reconciliation
would help in maintaining accuracy of the financial records throughout the year.
5. Inventory Verification and Adjustment
It is always better to keep a tap on stock while ending the year. Specially for businesses
keeping a count of the inventory, segregating the records for any obsolete or unsellable
inventory and making sure the remaining stock is valued according to IFRS standards.
6. Prepare for Audits
Auditing is also an integral part when presenting financial information fairly. Auditing can
be a stressful process without proper preparation. Gathering all the information and vital
documents in advance like reconciliations, tax filings, and financial records to avoid
delays and discrepancy. Making the task easier, documents should be stored in
designated folders, clearly marked and easily accessible during audit.
7. Review Accounts Payable and Receivable
Minimizing the outstanding debts can only be achieved by reviewing the accounts
payable and receivable before closing the books. To overcome this, a proper aging
analysis has to be done to identify over-dues and old debts. Making necessary
adjustments like noting o? uncollectible amounts and recognizing debt expenses.
8. Adjust Your Books for Depreciation and Prepayments
While making the adjustments, the value of depreciation should be calculated on fixed
assets and adjust for prepayments. The true value of assets and liabilities should be
accurately measured and reflect true value of the assets in the accounts. Keeping a
detailed checklist for the final adjustments to avoid discrepancies.
9. Review Transfer Pricing
Transfer pricing ensures transactions between related entities are priced at market value,
following the arm’s length principle. With the UAE’s Corporate Tax Law (2023),
businesses must comply with transfer pricing rules to avoid penalties and tax
adjustments. Proper documentation, including master and local files, is required for
accurate reporting of related-party transactions. Compliance with OECD guidelines
strengthens the UAE’s alignment with global standards, reinforcing its credibility as a
trusted business hub.
10.Plan for the Future with Strategic Reporting
Reflecting what you have done and improvising from it for a better business outcome.
The management should actually look into actual outcomes with the budgeted figures.
Spotting the gaps, and spotting the trends can actually help in planning the coming year.
Using insights from the financial reports to make changes for the next year for a strategic
decision-making.
11.Document and Secure Your Records
UAE businesses are legally required to retain financial records for at least seven years.
Ensure all records, both digital and physical, are organized and securely stored. A wellmaintained record system not only facilitates smoother audits but also keeps you
compliant with regulatory requirements. Utilize cloud-based storage solutions for
secure, easily accessible archiving of financial documents.
12.Evaluate Risk Management and Operational Systems
Not only managing the accounts but taking a moment to evaluate the business’s risk
management and operational activities. Reviewing the cybersecurity measures, and
future business plans. After a comprehensive review identifying the areas of
improvement for the next financial year.
The Importance of a Year-End Accounting Checklist
A solid year-end checklist serves as a roadmap to ensure that your business stays
compliant and well-prepared for the year ahead. By addressing each key task—from tax
provisions and inventory adjustments to financial reporting and audit preparation—you
can streamline your year-end accounting process and avoid Avoidable strain.
At Set Hub, we provide expert support to businesses across the UAE in handling their
accounting, tax filings, and financial planning. Ensure compliance and streamline your
year-end accounting—get in touch with us today!
