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How to Outsource Bookkeeping for Your Company in the UAE!

Save Time, Reduce Costs, and Stay Compliant with Professional Financial Support

In today’s fast-moving business world, managing finances accurately and efficiently is essential—especially in a dynamic market like the United Arab Emirates (UAE). However, not every business has the resources or expertise to handle bookkeeping in-house. This is where outsourcing comes in.

Whether you’re a startup in Dubai, an SME in Abu Dhabi, or a growing business in Sharjah, outsourcing bookkeeping can help you save time, reduce operational stress, and ensure that your records meet UAE tax regulations, including Value Added Tax (VAT) and Corporate Tax.

This comprehensive guide will walk you through everything you need to know about how to outsource bookkeeping in the UAE—from understanding your needs to choosing the right provider and maintaining a smooth, productive relationship.

What Is Bookkeeping and Why Does It Matter?

At its core, bookkeeping is the process of recording and organizing your business’s financial transactions. It forms the backbone of financial health, making it easier to:

  • Track income and expenses
  • Prepare accurate financial statements
  • File tax returns on time
  • Make better business decisions

In the UAE, where regulatory compliance is becoming stricter each year, having clean books is not just best practice—it’s a legal necessity.

Why Outsource Bookkeeping in the UAE?

Let’s face it—keeping accurate books can be time-consuming. Hiring a full-time accountant is an option, but it’s often costly, especially for smaller companies. Outsourcing offers a practical and scalable solution.

Key benefits include:

  • Cost savings on salaries, benefits, and overhead
  • Access to skilled professionals who understand UAE laws
  • Compliance with VAT and Federal Tax Authority (FTA) guidelines
  • Focus on core operations instead of admin tasks
  • Flexible service models that grow with your business

Looking for trusted help? Visit HaGroup—a reliable source for business setup and outsourced services in the UAE.

Step-by-Step Guide to Outsourcing Bookkeeping in the UAE:

Now, let’s explore how do you outsource your bookkeeping in a way that’s smart, secure, and stress-free.

Step 1: Define Your Business Needs

Before reaching out to any provider, it’s important to know what you want from an outsourced bookkeeping service.

Ask yourself:

  • What financial tasks need outsourcing?
    (e.g., transaction recording, bank reconciliation, payroll, VAT filing)

  • Do you require monthly reports, financial forecasting, or just basic bookkeeping?

  • Are you using any accounting software like Xero, Zoho Books, QuickBooks, or Tally?

  • Do you need support with audits or tax filing?

Tailoring your needs upfront helps you choose the right provider and avoid hidden surprises later.

Step 2: Look for Experienced Bookkeeping Firms in the UAE

Once you know your needs, begin researching accounting firms in Dubai and other UAE regions. Focus on those with:

  • Proven experience working with UAE-based businesses

  • Strong knowledge of UAE financial laws, especially VAT and the upcoming corporate tax rules

  • Cloud-based accounting tools for real-time reporting

  • Positive client reviews and testimonials

Some well-known firms to consider include:

  • Farahat & Co.
  • KGRN Chartered Accountants
  • Xact Accounting
  • Emirates Chartered Accountants
  • SimplySolved

You can also check specialized Bookkeeping & Accounting services tailored to UAE businesses, ensuring local compliance and expert support.

Step 3: Request Proposals and Compare

Contact your shortlisted firms and ask for detailed proposals. These proposals should include:

  • Scope of services
  • Pricing structure (hourly, monthly, or package-based)
  • Technology stack (accounting tools they use)
  • Reporting frequency
  • SLAs (Service Level Agreements)
  • Data security measures

Tip: Always choose a firm that offers transparent pricing and is open to customizing packages to your business needs.

Step 4: Sign a Service Agreement (SLA)

Once you select a firm, ensure you draft and sign a detailed Service Level Agreement (SLA) that clearly outlines:

  • The exact services being provided
  • Deliverables and timelines
  • Communication protocols
  • Confidentiality and data protection policies
  • Exit clauses or termination policies

This agreement safeguards your interests and sets expectations on both sides.

Step 5: Onboarding and Access

To begin working, your outsourced team will require:

  • Access to your accounting software or will set one up
  • Copies of your trade license, VAT certificate, and bank statements
  • Any prior financial records or ledger files
  • Information about payroll, receivables, and payables

If you’re using cloud accounting, they may help you migrate your data safely.

Important: Make sure you use secure login portals or platforms with two-factor authentication to share sensitive information.

Step 6: Maintain Communication and Oversight

Outsourcing doesn’t mean detaching from the process. A good provider will:

  • Share monthly reports (profit/loss, cash flow, balance sheets)
  • Inform you of any regulatory changes affecting your business
  • Help you file VAT returns or prepare for audits
  • Keep you updated on unusual transactions or discrepancies

Schedule monthly or quarterly review calls to stay informed.

What Services Are Usually Included?

Here’s what typical accounting services in UAE outsourcing packages may include:

ServiceDescription
Transaction RecordingInput of daily sales, purchases, and expenses
Bank ReconciliationMatching internal records with bank statements
VAT FilingPreparation and submission of VAT returns to FTA
Payroll ManagementSalary calculations, WPS files, leave tracking
Financial ReportingMonthly/quarterly P&L, balance sheet, cash flow
Budgeting & ForecastingPlanning future expenses and income
Audit SupportOrganizing records and liaising with auditors

 

How much does it cost to outsource bookkeeping?

The cost of outsourcing bookkeeping in the UAE depends on a few things. These include how big your company is, how many financial transactions you have, what kind of accounting software or tools you use, and how much help you need. 

For example, a business that needs full support with reports, payroll, and VAT will usually pay more than a company that just needs basic bookkeeping.

Typical pricing ranges:

  • AED 800–1500/month for startups
  • AED 1500–3000/month for SMEs
  • Custom pricing for larger enterprises

Many firms also offer hourly rates (AED 75–150/hour) or project-based pricing.

What Are the Risks—and How to Avoid Them?

While outsourcing has many advantages, it’s wise to be aware of potential risks:

RiskHow to Avoid
Data breachesWork with ISO-certified firms with strong cybersecurity
MiscommunicationSet up regular check-ins and detailed reports
Lack of controlUse cloud dashboards to monitor performance in real-time
VAT non-complianceChoose providers familiar with UAE VAT laws

 

FAQs: Outsourcing Bookkeeping in UAE

1. Is outsourcing bookkeeping legal in the UAE?

Yes, absolutely. Outsourcing bookkeeping is legal and common in the UAE. Just ensure you partner with a registered and reliable provider.

2. Do outsourced firms handle VAT filing?

Yes, most bookkeeping firms also offer VAT registration and return filing services compliant with FTA guidelines.

3. Can I outsource just part of my bookkeeping?

Yes. Many firms offer customizable packages where you can outsource only specific services like payroll, reconciliation, or reporting.

4. What if my company is not VAT registered yet?

Bookkeeping firms can help you evaluate VAT thresholds and assist with VAT registration if required.

5. How do I protect my data when outsourcing?

Choose providers that use encrypted software, secure file-sharing platforms, and adhere to GDPR or ISO27001 standards.

Final Thoughts:

Outsourcing bookkeeping in the UAE isn’t just a cost-saving move—it’s a strategic decision that empowers your business to stay compliant, agile, and focused. By choosing the right service provider, setting up clear expectations, and maintaining open communication, you can streamline your financial management without the hassle of hiring in-house staff.

Whether you’re just starting out or scaling rapidly, outsourced bookkeeping gives you access to the skills and tools needed to manage your finances professionally—so you can get back to what you do best: growing your business.