Bookkeeping vs Accounting in the UAE | Wonso
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 – day‑to‑day recording of money in and out. Needs accuracy and speed.
Accounting – interpreting that data, producing statements, handling tax and audit.
UAE law demands both: books must be kept for at least five years and firms over AED 50 million revenue need audited IFRS statements.
Wonso + QuickBooks Online covers the daily grind and hands clean data to your accountant.
Why the distinction matters in the Emirates
Whether you run an eCommerce store in Sharjah or a design studio in Dubai, the FTA can ask for ledgers, invoices, and bank reconciliations on short notice. Bookkeeping gives you the raw data. Accounting turns that data into VAT returns, corporate‑tax filings, and investor‑ready reports. Skip either piece and you risk fines or a blown due‑diligence. (ibrgroup.ae, capstone-books.com)
What is bookkeeping?
Bookkeeping is the capture and coding of every transaction – sales, expenses, payroll, bank fees – in real time. The goal is a clean ledger that agrees with the bank feed each day.
Key tasks:
Enter invoices and receipts
Match bank transactions
Post payroll journals
Maintain the chart of accounts
Wonso shortcut
Connect Wonso to QBO and the AI suggests categories, flags VAT rate errors, and finds duplicate entries before they spread.
What is accounting?
Accounting starts where bookkeeping ends. Accountants review the ledgers, adjust for accruals, depreciation, and FX revaluations, then prepare the financial statements and tax returns.
Key tasks:
Prepare income statement, balance sheet, cash‑flow
File VAT and corporate‑tax returns
Produce management reports and KPIs
Liaise with auditors and banks
Wonso shortcut
Need a trial balance for Q1? Type "export trial balance Q1" and Wonso produces an IFRS‑formatted file your accountant can sign off today.
UAE compliance checkpoints
Threshold | Requirement | Role mainly responsible |
|---|---|---|
VAT registration – taxable supplies above AED 375 000 | VAT return every quarter | Bookkeeper enters correct VAT codes, accountant reviews before filing |
Corporate tax – profit above AED 375 000 | Annual tax return and supporting financials | Accountant prepares, bookkeeper supplies data |
Audited statements – revenue above AED 50 million or QFZP | IFRS audit, yearly | Accountant manages audit, bookkeeper supports data requests |
The audit trigger is now law under Ministerial Decision 82 of 2023. Ignore it and you invite penalties plus reputational pain. (mof.gov.ae, taxsummaries.pwc.com)
Who should you hire and when?
Stage | Typical revenue | You need | Why |
Solo founder | < AED 375 k | Bookkeeper 1–2 days a month or Wonso only | Keep costs low but stay organised |
Growing SME | AED 1‑10 m | Part‑time bookkeeper weekly + external accountant quarterly | VAT filings and investor deck |
Scale‑up | > AED 10 m | Full‑time bookkeeper + controller + audit firm | Board reporting and audit readiness |
Five steps to close your gap
Turn on bank feeds in QBO. No manual CSV uploads.
Connect Wonso. AI reviews each new transaction and learns from your edits.
Lock periods monthly. Bookkeeper hits reconcile, Wonso highlights uncoded items.
Invite your accountant. They get read‑only data and can post adjusting journals without breaking the audit trail.
Export audit pack in one click. Balance sheet, P&L, and lead schedules ready for the auditor.
Bottom line
Bookkeeping and accounting are two gears in the same machine. In the UAE that machine faces VAT, corporate tax, and ever‑stricter audit rules. With Wonso sitting on QuickBooks Online you can keep both gears turning without hiring a platoon of finance staff.
