Updated:
Separate business and personal
Open a dedicated business bank account and card, and run every business payment through them. It is the single biggest time-saver at year end.
A monthly routine
Set a fixed day each month to close the previous month.
- Record all sales invoices and receipts
- Record purchase invoices and expenses, with the VAT split
- Reconcile every bank and card account to the statement
- Chase overdue customer invoices
- Review the profit and loss and cash position
Keep the right documents
Keep tax invoices, receipts, contracts and bank statements in a digital archive for at least the legal minimum — for example 5 years for UAE VAT, 7 years for UAE corporate tax and 6 years for UK companies.
Use cloud software
Cloud accounting software with bank feeds reduces manual entry and supports VAT returns and e-invoicing where required. Choose one that supports your country’s VAT and e-invoicing rules.
Frequently asked questions
Cash or accrual?
Most companies use accrual accounting for financial statements; some small businesses can use cash basis for some purposes. Ask your accountant.
How long should monthly bookkeeping take?
For a small business with good habits, a few hours a month.
When should I outsource?
When the books fall behind, you register for VAT, or you spend more time on records than on customers.
Sources: Record-keeping rules from the FTA (UAE), ZATCA (KSA) and HMRC/Companies House (UK).
General information as at the date above, not advice. Rules change — confirm your position with a qualified accountant.