Why strong accounting processes matter more than ever

Businesses that invest in structured accounting systems and maintain year-round discipline lead with clarity and drive growth

- By Chiranti Sengupta

As companies adapt to the UAE's corporate tax (CT) regime, operational and compliance challenges continue to surface, particularly for SMEs and start-ups.

Limited resources, lack of specialised expertise, and competing financial priorities often complicate their efforts to stay compliant. In this environment, building a robust accounting and auditing system is not just about meeting regulatory obligations; it is also essential for driving financial efficiency and long-term growth.

"The introduction of corporate tax has significantly elevated the role of accounting and auditing for the UAE businesses. With the government now effectively a stakeholder in corporate profits through a 9 per cent tax, companies must ensure every transaction is accurately recorded, compliant with the new tax laws and decrees," says Elie Karaky, Managing Director, EK Finance.

According to Karaky, the stakes are high. "Stronger internal controls, timely reconciliations, and continuous monitoring have become essential to avoid compliance risks."

Inaccurate accounting or misclassification of transactions under the new tax regime can result in financial penalties and even reputational fallout. "Violations such as filing inaccurate corporate tax returns can attract administrative penalties, interest charges, and in some cases, legal action," he adds.

To meet these new standards, businesses need more than just compliance, they need robust accounting systems that actively support growth and efficiency. This includes structured processes, tech integration, and strategic financial planning across the fiscal year.

Compliance starts with structure

Filing corporate tax returns in the UAE demands a foundational shift in how financial data is recorded and reported.