Bookkeeping Basics for UAE Founders
A blunt look at how generative tech is eating routine finance work, where it still trips today, and how Wonso’s human‑plus‑AI approach lets you double down on your core trade.
Written by
Kari Honkanen
Snapshot
Bookkeeping is the daily record of every dirham that moves through your business.
In the UAE you must keep books for at least five years and reconcile VAT quarterly.
A simple chart of accounts, clean source documents, and monthly reconciliations cover 80 percent of the work.
Wonso on QuickBooks Online automates the rest, so you can focus on sales not spreadsheets.
Why bookkeeping basics matter in the Emirates
Dubai may market itself as paper‑light, yet the Federal Tax Authority can demand ledgers, invoices, and bank statements with two working days notice. Corporate tax is now live, and audited IFRS statements kick in once revenue tops AED 50 million. Ignore the basics and you risk fines, blocked funding rounds, and sleepless nights.
The five pillars of solid books
1. Chart of accounts
Think of it as the map. Each sale, expense, asset, and liability must land in the right bucket.
Wonso shortcut
Connect Wonso and the AI proposes a UAE‑ready chart of accounts that matches VAT codes out of the box.
2. Source documents
Invoices, receipts, contracts. Keep them scanned and linked to each transaction. The FTA accepts digital copies, so cloud storage is fine.
Wonso shortcut
Email a supplier invoice to your Wonso inbox. The AI reads the PDF, extracts the VAT rate, and files it in QuickBooks.
3. Bank feeds and reconciliation
Turn on bank feeds in QuickBooks. Reconcile every line against the ledger weekly. Differences caught early are easy to fix.
Wonso shortcut
Wonso highlights unmatched transactions and suggests links. One click clears the mess.
4. VAT coding
UAE VAT runs at 5 percent, with zero‑rated and exempt lines. Get the code wrong and you will overpay or underpay.
Wonso shortcut
The AI flags unusual VAT rates and asks for confirmation before posting.
5. Month‑end close
Lock the period, run the income statement, balance sheet, and cash‑flow. This habit catches errors before audit season.
Compliance checkpoints at a glance
Rule | Who enforces | What you must keep | How long |
|---|---|---|---|
VAT records if taxable supplies above AED 375 000 | FTA | Ledgers, tax invoices, receipts | 5 years |
Corporate tax if net profit above AED 375 000 | FTA | Adjusted financial statements | 7 years |
Audit if revenue above AED 50 million or free‑zone rule | Ministry of Economy | Full IFRS statements | permanent |
Quick start checklist
Open QuickBooks Online and enable multi‑currency if you invoice in USD.
Connect Wonso. The AI creates starter accounts and imports bank history.
Upload or email last year’s invoices. Wonso attaches them automatically.
Reconcile bank feed weekly.
Close the month within five working days.
Summary
Great ideas die under sloppy administration. In the UAE, missing a VAT deadline or losing a receipt can derail a funding round faster than a weak pitch deck. Master these basics, let Wonso handle the grunt work, and keep your focus where it belongs – building the business.
