Bookkeeping is the foundation of everything else: VAT returns, corporate tax filings, bank loan applications, investor due diligence. Under UAE law, businesses must maintain accurate books of accounts for a minimum of five years (Federal Decree-Law No. 47 of 2022 and the VAT Executive Regulations). "Accurate" means complete records in Arabic or English, with supporting documentation for every entry. A spreadsheet is not sufficient for a growing UAE business — proper cloud accounting software is the standard.
Watch out: FTA penalty for failure to maintain adequate records: up to AED 50,000. This is separate from any penalty for incorrect VAT or tax filings that result from poor records.
See also: Audit Trail, Chart of Accounts (COA), Accrual Accounting
