Transfer Pricing in UAE

The United Arab Emirates (UAE) joined the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on May 16, 2018.

The introduction of the Corporate Tax Regime in the UAE, effective June 1, 2023, would also bring Transfer Pricing Regulation, mandating arm’s-length transactions between connected parties.

The United Arab Emirates (UAE) joined the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on May 16, 2018.

By accepting the Inclusive Framework, the United Arab Emirates has committed to implementing BEPS basic standards, including Transfer Pricing Documentation and Country-by-Country Reporting (“CbCR”).

What is Transfer Pricing?

“Transfer Pricing” refers to the transaction price between two connected parties. In a tax context, this type of transaction is conducted between two affiliated businesses and is frequently referred to as a “Controlled” transaction. Therefore, “Transfer Pricing” is the price at which a business transfers:

Physical commodities
Intangible goods or
Provides services to affiliated businesses.

Transfer pricing refers to all pricing arrangements made between linked parties.

What is the Arm's Length Price?

The arm’s-length price (ALP) of a transaction between two affiliated firms is the price that would have been paid if the transaction had occurred between two equivalent independent and unconnected parties, where the primary consideration was commercial.

Transfer Pricing Documentation

Businesses are required to comply with transfer pricing standards and documentation requirements derived from the OECD Transfer Pricing Guidelines.

Transfer pricing documentation will help taxpayers demonstrate that their transactions comply with the arm’s length principle, so preventing transfer pricing problems. If the amount and complexity of a company’s international and domestic activities expand, transfer pricing concerns will arise, resulting in a considerable increase in compliance expenses for taxpayers.

In this regard, it is observed that clear and broadly approved documentation norms can reduce compliance expenses that might otherwise result from a transfer pricing disagreement. To address such challenges, a company must have the necessary resources, such as an in-house or outsourced tax expert with knowledge of transfer pricing rules and foreign transactions.

Generally, a self-declaration about conformity with TP requirements must be provided online alongside the tax return.

Why Transfer Pricing?

Transfer Pricing regulations are applicable under the following conditions:

When businesses in the same country are divided into multiple departments or divisions and

Business Management demands the identification of value-generating company activities.
A division of the group offers services or transfers items to another division of the same company, and it is necessary to determine the profitability of each division;

In the case of international transactions:

When transactions involving tangible supplies, services, finances, or intellectual property occur between companies that share ownership and control.

Documentation Model Under OECD Guidelines

In accordance with OECD transfer pricing rules, authorities use a three-tiered strategy for transfer pricing paperwork, which includes:

Master file – contains standard data for all MNE group members

Local file — transactions involving local taxpayers

Country by Country Report – Global allocation of the MNE group’s income and taxes paid, indicators of the location of the MNE group’s economic activities.

Local File

In accordance with applicable laws and regulations, business entities that engage in transactions with linked parties must keep accurate records and files. The local file for OECD recommendations includes:

Regional Entity

Description of local entity’s management structure
A thorough overview of the firm and its strategies
Key competitors

Controlled Transactions

A detailed description of material-controlled transactions and their context
Amount of intra-group payments and receipts for individually controlled transaction category.
Identification of related businesses and their relationships.
Copies of all significant interfirm agreements
Comparability and functional analysis with a focus on changes relative to past years
A description of the most appropriate transfer pricing systems and the justification for their selection.
A summary of the underlying assumptions of the method selection
A listing and summary of comparable uncontrolled transactions
A description of all comparative modifications made
A summary of the financial data used in the implementation of the chosen TP methodology.

Financial data

Financial information and an allocation schedule are utilized for the TP approach
A summary of financial data schedules for comparable uses and their source.

TP Methods under OECD guidelines

By selecting and implementing the most applicable transfer pricing method, the arm’s length price for a controlled transaction can be established. Five transfer pricing strategies are recognized by OECD

Traditional Transaction Method

Comparable Uncontrolled Prices Process
Resale Price Technique
Cost Plus Procedure

Transactional Profit Method

Transactional Profit Splitting Method
Transactional Net Margin Method

Financial data

Financial information and an allocation schedule are utilized for the TP approach
A summary of financial data schedules for comparable uses and their source.

Companies should select an acceptable transfer pricing technique by examining a variety of variables, such as the availability of information, the strengths and weaknesses of the transfer pricing method, the method’s suitability in light of the types of the transactions, etc. Once the transfer pricing method and a credible comparative are identified, a range of arm’s length pricing can be determined.

There may also be an option in the rules to use methods other than the approved Transfer Pricing Methods listed above, provided the Taxable Person can determine a reliable measure of an Arm’s-Length price and supporting documentation and the proposed method satisfies the requirements of UAE tax law.

Advisory

We can give you advice and help with all of your TP needs and make sure that the policies are strong and aligned with value creation, designing new prices, or reviewing your current policies..

We can provide an inclusive range of services to help our clients optimize their tax planning through effective transfer pricing policies. We specialize in developing and implementing efficient transfer pricing policies that are compliant with the regulations of the countries involved in the transaction.

Documentation and Reporting

We provide comprehensive services to ensure that our clients are compliant with all the transfer pricing regulations in the UAE. Once an audit plan is approved, we begin our fieldwork by conducting walk-throughs, inquiries, and questionnaires to collect necessary information and data. Furthermore, we keep our clients updated with the progress of the audit process and its status at all times. We also make sure to use data analysis techniques to identify any discrepancies or issues, if any, and apply corrective actions accordingly.

frequently asked questions

Do all domestic and international transactions have to follow the rules of the UAE Transfer Pricing Regulations?

Yes, the current announcement says that transfer pricing applies to all transactions between related parties.

Is it true that small and medium-sized businesses and new businesses in the UAE don't have to have TP documentation?

No, there are no exceptions for SMEs or new businesses. Based on what we know now from MoF, TP documentation is required for transactions with related parties that meet a certain threshold.

Can the entity use any other method other than those that are internationally accepted.

Yes, if the business can show that the specified methods can't be used in a reasonable way to get an arm's-length result.

Why Choose ADEPTS

Expertise and Experience

At Adepts Chartered Accountants, our team consists of highly skilled professionals with extensive experience in managing complex regulatory and accounting standards. We are proficient in both local and international regulations, ensuring our services are accurate and fully compliant.

Tailored Solutions

Recognizing the unique nature of each Business, we offer customizable services designed to align with your specific needs and business objectives. We collaborate closely with you to understand your requirements and deliver solutions that achieve optimal results.

Time and Cost Efficiency

By choosing our services, you benefit from significant savings in time and resources. Our solutions are engineered to be cost-effective, providing high-quality support without the need for substantial internal investment.

Accuracy and Compliance

We prioritize accuracy and compliance in every aspect of our service. Our meticulous approach and rigorous procedures ensure precision and adherence to standards, reducing the risk of errors and the potential for non-compliance penalties.

Dependable Service

Dedicated to delivering reliable and consistent services, we aim to build long-term relationships with our clients based on trust, integrity, and mutual respect.

Corporate Tax

services

Corporate Tax

Transfer Pricing in UAE

The United Arab Emirates (UAE) joined the OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) on May 16, 2018.

Corporate Tax Advisory

The Corporate Tax is a direct tax applied on the net income or profit of corporations and businesses.

Feasibility Studies Services

Give your business a wide overview of the roadmap and recommendations that are viable to your business

These days, businesses operate at a very fast pace. Both client demands and competitive pressures are increasing. Companies are always looking for new methods of creating products, developing marketing strategies and devising new policies to generate revenue. However, this can only be done if the individual and the business conduct feasibility studies before introducing a new project. We provide professional feasibility studies in all key business areas. Our consultants in the United Arab Emirates will recommend to you all the possibilities to succeed or fail with your newer proposals.

What is a Feasibility Study?

A feasibility study is conducted to evaluate whether a project is feasible for a business. The idea is evaluated based on various considerations to assess the success of the proposed idea. The feasibility study ensures effective control of the business and indicates the profit margin of the project.

Why are Financial Feasibility Studies Necessary?

Before initiating a project, you must first evaluate the financial feasibility. Feasibility studies deliver statistical information and guarantee that your idea is worth pursuing. Your company must know whether the project will be feasible and whether it will be profitable for your company. Despite the probability for financial growth of your creative business idea, there are also many risks associated with the suggestion.

Without carefully exploring the feasibility of your ideas, you will lead to many financial mistakes. Feasibility studies are therefore carried out to assess market competition, cost and income projections, target viability and many other factors necessary for the project development.

Important Elements of a Feasibility Study

Below are the phases to establish the feasibility of a project

Market Analysis

In this phase, the situations of the market are thoroughly studied, including the analysis of dominant and future market conditions, the prevailing market players are recognized and to bridge the gap, their strengths and shortcomings are determined. The product/service you want to introduce is compared with the existing products/services, distinguishing features that create a competitive edge over the existing products / services is understood and analysis is made of whether your product/service solves any ‘need’ of the market.

Financial Study

This phase of a feasibility study revolves around the analysis of below:

start-up costs
operating cost legal costs
capital expenditure
fixed and variable cost
profitability and expected ROI
financing methods and costs related to the financing options
customer and supplier payment terms are also determined to ensure healthy cash flow

Technical Aspect

In this phase, the essential resources for the company are analyzed. The requirements of hardware / Software, availability of Capital investments and whether a change can be accommodated with the capital being invested are some of the most important aspects in this phase.

Schedule

At this stage, the time frame for organizing the business is decided. An achievable business plan must be developed within a set time frame as the market is very active and the business plan should be set to reality within the stipulated time frame to meet the company’s goals.

Do feasibility studies add value to your business?

In-depth feasibility studies can determine potential problems and hazards. It delivers an outline of whether the project will be successful or not in the long term. It helps you to understand the financial, operational and other organizational impacts after all factors have been taken into account. Well-researched project execution has a better chance of success and revenue. With a feasibility study, you have the chance to control customers by indicating the statistical and graphical projection of the analysis. As a result, your business will gain more value and investors will have more confidence to invest in your company.

In order to carry out a proper financial feasibility study, you need to use a business consultancy or a service to get an independent opinion on your project. We have comprehensive experience in developing business plans and carrying out feasibility studies.

Benefits of hiring experts for feasibility study services in the UAE

Our feasibility study services offer a variety of excellent benefits to individuals and organizations. Some of these include:

Increases chances of success
In-depth insight into various parameters
Better decision-making
Identification of new opportunities
Helps to choose the right direction
Reduces risks and financial losses
Narrows business plans
Gain competitive advantage

How do our feasibility studies service works?

Adepts offers exclusive feasibility study services across the UAE. Our team has outstanding expertise and takes a critical look at the influencing factors. When we undertake a feasibility analysis of a project, we first try to comprehend its business plan, business potential, and other technical aspects. We conduct in-depth market research and explore customer behavior about your brand and the products or services you offer. Our experts provide extensive reports and presentations to business investors. We also develop spreadsheets and financial charts to help you apprehend the likelihood of success and failure. We guarantee that the information we have researched gives you the confidence to participate in the project.

What are the benefits of our feasibility study approach?

Deep industry experience and understanding of the markets give our clients valuable insight into the main factors driving the markets. Such an understanding of the market enables you to make precise business decisions and provide services of high-quality standards, tailor-made according to your needs, with the purpose of leading you to complete success.

For top-notch feasibility study services in UAE, Contact us.

frequently asked questions

How are Feasibility Studies conducted?

A Feasibility Study starts with a preliminary analysis by preparing an outline of the project plan. You will also need to prepare a projected income statement. After, you must conduct a market survey or research. The data from the market survey will help you come up with the answer to your study.

Is it possible for me to conduct the study on my own?

Yes, it is possible for you to conduct a study on your own, but it will depend on the nature of the study and the resources available to you. Conducting a study on your own can be a challenging task, as it requires a significant amount of planning, organization, and attention to detail.

What does a typical feasibility study report include?

A typical feasibility study report includes an analysis of the technical, financial, market, and organizational aspects of a proposed project. The report typically includes an introduction and executive summary that provides an overview of the project, its scope and objectives. The report then goes on to detail the methodology used in the study, as well as the results and conclusions. Technical feasibility includes details on how the project will be implemented, including engineering, design, and construction. Financial feasibility includes an analysis of the project costs and revenue potential, as well as a risk assessment. Market feasibility includes an analysis of the demand for the project, as well as a competitive analysis. Organizational feasibility includes an analysis of the resources and capabilities needed to implement and manage the project.

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Dedicated to delivering reliable and consistent services, we aim to build long-term relationships with our clients based on trust, integrity, and mutual respect.

Inventory Verification Service in UAE

"Inventory is money sitting around in another form," - Rhonda Adam

Inventory Verification significantly reduces the company’s inventory loss, assuring management that the inventory presented in the financial statements is reliable. Inventory is the most valuable asset of any business and the most vulnerable to extortion, fraud, waste, and damage.

In accordance with International Accounting Standards (IAS 2), inventory is the asset held for selling in the regular business course, in producing goods for resale and in the form of materials or supplies to be consumed in the process of producing goods or providing services. Per IAS 2, inventory is measured at lower of cost or net realizable value.

What is Stock Taking or Inventory Verification?

Inventory Verification or Stocktaking is the physical examination of a store’s stock or inventory at regular intervals. Inventory Verification or Stocktaking is performed periodically, typically when accounts are closed / financial statements are prepared for external purposes.

Goals of Inventory Verification

Confirm the accuracy of store records.
Prepare the organization’s final financial statements.
Disclose instances of fraud, theft, and stock loss.
Identify any flaws in the system of storage and inventory management.

Purpose of Conducting Inventory Verification

The primary objective of inventory verification is to determine the presence of the current stock and its realizable value. Inventory can be an asset with several day-to-day moves, so daily inventory verification is a tedious chore for any organization.

Stock management is essential to accomplishing overall business objectives. Stock management is the process of managing and maintaining an appropriate stock or inventory level in a firm and ensuring that stock is available when needed. Physical stock control describes:

Receiving
Movement
Inventory Storage
General Physical Inventory Management

Types of Inventories

Raw materials

The goods needed to create the company’s product are referred to as raw materials.

Work in progress

In a firm, semi-manufactured or semi-finished products are referred to as work in progress.

Finished goods

In a firm, semi-manufactured or semi-finished products are referred to as work in progress.

Stocks

The firm’s unsold inventory is referred to as stock. Opening stock / opening inventory refers to the number of unsold goods at the beginning of the period, whereas closing stock / closing inventory refers to the amount of unsold inventory at the end of the period.

Stock Turnover

Internal audit identifies areas for process improvement, cost reduction, and operational efficiency. By analyzing business processes and controls, internal auditors provide valuable recommendations to enhance productivity, streamline operations, and optimize resource allocation.

Benefits of Inventory Verification

Assurances to Principals

Periodically checking your inventory is a great way to make sure everything is accounted for and where it should be. This process helps to identify any discrepancies between what’s physically on hand and what’s recorded in the accounting system.

Efficient Inventory Control

An accurate account of inventory is crucial for any business. Our system ensures that your working capital requirements and cash flows are well planned, minimizing the chances of ‘surprises’ down the road

Protect Your Investment

It’s important to have a system in place that safeguards your inventory. Physical verification helps reduce the chances of lost or stolen goods and keeps your assets secure.

frequently asked questions

What is inventory verification?

Inventory verification is the process of ensuring that an organization's inventory accurately reflects the actual physical stock. This involves auditing an organization's existing records and comparing them to the physical stock in order to identify any discrepancies or inaccuracies.

How often should I conduct an inventory verification?

It depends on various factors, such as the size of your organization, how many different types of products are being stocked, and how often new items arrive or leave your warehouse. Generally speaking; however, most organizations will perform an annual physical count as well as periodic spot checks throughout the year. Conducting regular stock takes helps maintain accurate records and prevents errors from accumulating over time due to incorrect data entry or erroneous assumptions about stock levels.

What processes should I consider for effective inventory management?

Effective inventory management requires careful planning, monitoring, and control over all aspects of your supply chain, from sourcing materials through production to delivery and customer service.

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Dedicated to delivering reliable and consistent services, we aim to build long-term relationships with our clients based on trust, integrity, and mutual respect.

Business Support

services

Business Support

Bank Account Opening Assistance

ADEPTS offers assistance in opening a bank account quickly and conveniently.

Inventory verification

Inventory Verification significantly reduces the company's inventory loss

Feasibility Studies

Stay one step ahead with our FTA-approved tax agency services with a team of tax experts

Property Valuation

Get an accurate estimate of your property with our highly qualified chartered.

Financial Reporting

Preparation of Financial Statements as per International Financial Reporting Standards

Financial reporting is vital for any business to understand its financial health and make informed decisions. Our financial reporting services offer comprehensive, accurate, and timely reports to help you gain a clear picture of your financial position.

Financial reporting is an integral part of a company’s operations, allowing it to assess its financial health accurately. Unfortunately, many companies rely on in-house accounting and bookkeeping staff to create these reports, even if they lack the right qualifications and knowledge. This can lead to financial statements that are inaccurate or difficult to understand, creating serious issues for the company. To ensure accurate financial records and statements, companies need to invest in qualified professionals with the appropriate experience and understanding of financial reporting.

What is Financial Reporting Service?

Financial reporting is the process of tracking and recording financial transactions taking place within a business. This includes income, expenses, sales, production costs, liabilities and more. It involves the preparation of detailed and accurate financial statements, reports and records that provide information about a business’s financial position, results of operations, and cash flows. These documents are used to evaluate a company’s performance over past and current periods. This method provides investors, creditors, suppliers, government agencies and clients with an in-depth overview of the company’s financial status. Furthermore, these documents also provide useful insights into how different decisions may affect the business’s future prospects.

Why do you Need a Financial Reporting Service?

Financial reporting is designed to convey the financial performance and position of a business accurately and objectively. Financial reporting serves to inform investors, creditors, suppliers, government agencies and customers about the company’s financial results. Financial accounting and financial reporting details can be summarized on financial statements that cover assets, liabilities, incomes, equity and expenses as well as other monetary transactions.

Financial reporting provides a way for owners to gain insight into their organization’s finances by examining critical numbers pertaining to investment decisions, liabilities, and assets. With the use of these statements and reports, businesses can effectively make informed decisions to ensure future success and growth. Moreover, the UAE Commercial Companies Law No 2 of 2015 came into effect on 1 July 2015. It required companies to adhere to international financial reporting standards and practices when compiling their financial reports.

Benefits of Financial Reporting

Bookkeepers are essential for the organization and maintenance of financial records and information of companies by performing daily accounting activities such as ledger entries, payroll processing, processing payments and receipts, costing, budgeting, monthly financial reporting etc.

Benefits of Accounting and Bookkeeping

Financial reporting provides business owners with a comprehensive overview of their financial performance, allowing them to make informed decisions.
It provides insights into important financial information such as profits and losses, total assets, liabilities, equity, and more. This helps owners identify areas where they can make improvements or need to take action.
Financial reporting also makes it easier for businesses to set benchmarks and goals in order to measure their progress toward achieving them

It allows business owners to compare their performance with other businesses in the market and track changes over time, giving them an edge over competitors.
Financial reporting can be used as a tool for developing strategies and setting budgets, to track and control cash flows of the company as it provides accurate data that shows the cost of operations, investments, and other activities that affect cash flow.
Furthermore, it improves transparency within an organization by supplying clear visibility into its finances which can help reduce discrepancies and frauds by detecting any suspicious transactions or misappropriation of funds.
Lastly, financial reporting aids in meeting regulatory requirements by providing detailed reports on financial activities so as to comply with government regulations such as tax filing laws and disclosure rules.

Process of Preparing Financial Reports

The primary objective of financial reporting services is to provide an accurate picture of a company’s financial performance and position.

We assist businesses in completing their processes through the following steps:

Double Entry process review
Trial balance review
Ledger entry recording and adjustments, if required
Financial statements preparation and analysis

At ADEPTS, we evaluate a company’s profit and loss to determine its cash flows for the financial year. This enables management to comprehend the organization’s standards and to plan for future investments. Financial reports are based on the accrual method of accounting, and they adhere to IFRS accounting rules.

frequently asked questions

What is included in financial reporting?

Financial reporting includes information such as income statement, balance sheet, and cash flow statement that provide an overview of a company's overall financial health. It also includes other documents such as notes to the financial statements, management's reports.

Who is responsible for financial reporting?

The management of a company is typically responsible for the accuracy and integrity of its financial reports. It is advisable to consult with an external accounting firm to ensure that all relevant information has been included in the report and that it meets all applicable regulations and standards.

Why is financial reporting important?

Financial reporting is an essential part of a company's operations as it provides stakeholders with an insight into the company's performance and position. It helps investors, creditors, regulators, and other stakeholders to make informed decisions about their involvement with the company.

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Dedicated to delivering reliable and consistent services, we aim to build long-term relationships with our clients based on trust, integrity, and mutual respect.

Accounting & Bookkeeping Services in UAE

Maintain Accurate Financial Records and Up-to-date Books of accounts

Maintain Accurate Financial Records and Up-to-date Books of accounts!
Companies in the UAE must maintain their books of accounts and financial statements for at least 5 years, as prescribed by the UAE Commercial Company Law 2015 and VAT law of UAE. Additionally, various free zones in the country require companies to have their accounts audited by approved and listed audit firms in UAE, with global standards such as IFRS adding complexity to financial reporting. As a result, keeping up-to-date records is essential for businesses operating in the region to remain competitive and compliant with regulations.

What is Financial Accounting

Financial accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. The primary purpose of financial accounting is to provide information to external stakeholders, such as investors, creditors, and regulatory agencies, about the financial performance and position of a company.

Financial statements, such as the balance sheet, income statement, and cash flow statement, are the main output of financial accounting. The balance sheet provides information about a company’s assets, liabilities, and equity at a specific point in time. The income statement provides information about a company’s revenue, expenses, and net income over a specific period. The cash flow statement provides information about a company’s inflows and outflows of cash over a specific period.

Financial accounting follows a set of rules and standards, such as Generally Accepted Accounting Principles (GAAP) in the United States and International Financial Reporting Standards (IFRS) globally, to ensure consistency and comparability of financial information. Financial accounting is performed by trained professionals, such as accountants, and is subject to independent auditing to ensure the accuracy and reliability of financial information.

Financial accounting is an important tool for making informed business decisions, evaluating performance and progress, and communicating with stakeholders. It provides essential information for decision-makers, such as investors, creditors, and managers, to assess the financial health and potential of a company.

What is Bookkeeping

Bookkeeping is the process of recording financial transactions in a systematic and organized manner. It involves the recording of financial transactions such as sales, purchases, payments, and receipts in a company’s financial records. The goal of bookkeeping is to maintain accurate and up-to-date records of a company’s financial transactions. This information is used to prepare financial statements, such as the balance sheet and income statement, which provide a snapshot of a company’s financial position and performance. Bookkeeping is an important function for any business as it provides a clear and accurate record of financial transactions. This information is used by managers to make informed decisions, by regulators to ensure compliance with tax laws and regulations, and by lenders and investors to assess the financial health of the company. Bookkeeping also helps in identifying trends and patterns in a company’s financial performance and helps in budgeting and forecasting future financial needs.

Why Accounting and Bookkeeping is important for business

Facilitates informed decision-making

Accurate and up-to-date financial information is essential for making informed business decisions. This information can be used by managers to identify trends and patterns in a company’s financial performance and make decisions that support the long-term success of the business.

Compliance with laws and regulations

Accurate bookkeeping and accounting records are essential for compliance with tax laws and regulations. Keeping accurate financial records helps to ensure that a company meets its tax obligations and avoids costly fines and penalties.

Assessing financial health

Financial information is used by lenders and investors to assess the financial health of a company. This information is used to determine the creditworthiness of the company and to make investment decisions.

Budgeting and forecasting

Accurate financial information is essential for effective budgeting and forecasting. Financial information provides a clear picture of a company’s financial position, which is essential for creating a budget and forecasting future financial needs.

Improved cash flow management

Facilitates effective business planning

Accurate financial information provides a clear picture of a company’s financial position and performance, which is essential for effective business planning. This information is used to identify strengths and weaknesses and to set goals and strategies for the future.

The Process Flow of Our Accounting & Bookkeeping Services

Recording transaction

The first step in the accounting and bookkeeping process is to record financial transactions as they occur. This involves creating a record of each transaction in the company’s books.

Classifying transactions:

The next step is to classify transactions into appropriate categories, such as revenue, expenses, assets, liabilities, and equity. This helps to organize financial information for analysis and reporting.

Posting to the general ledger

The recorded transactions are then posted to the general ledger, which is the central repository for all financial information.

Preparing trial balance

he next step is to prepare a trial balance, which is a list of all accounts and their balances, to ensure that the total of all debits equals the total of all credits.

Adjusting entries

The trial balance is then used to identify and make adjusting entries, which are transactions that are recorded at the end of an accounting period to update the financial statements.

Preparing financial statements

The final step is to prepare financial statements, such as the balance sheet, income statement, and cash flow statement, which provide a snapshot of the company’s financial performance and position.

Closing the books

At the end of each accounting period, the books are closed to prepare for the next period. This involves transferring the balances of certain accounts, such as revenue and expense accounts, to the equity section of the balance sheet.

This process flow is repeated regularly, usually on a monthly or quarterly basis, to ensure that the company’s financial records are up-to-date and accurate.

frequently asked questions

What is the difference between accounting and bookkeeping?

Accounting is the process of interpreting, classifying, and summarizing financial information for decision-making, while bookkeeping is the process of recording financial transactions in a systematic and organised manner.

What is the purpose of accounting and bookkeeping?

The purpose of accounting and bookkeeping is to provide accurate and up-to-date financial information that can be used to make informed business decisions, comply with tax laws and regulations, assess the financial health of the company, manage cash flow, and facilitate effective business planning.

Who performs accounting and bookkeeping functions?

Accounting and bookkeeping functions can be performed by trained professionals, such as certified public accountants (CPAs), bookkeepers, and accounting software.

How often are accounting and bookkeeping records updated?

Accounting and bookkeeping records should be updated regularly, usually on a monthly or quarterly basis, to ensure that the company's financial information is accurate and up to date.

What are the benefits of outsourcing accounting and bookkeeping functions?

Outsourcing accounting and bookkeeping functions can save time, reduce costs, and improve the accuracy and reliability of financial information. It can also allow business owners to focus on their core competencies and leave the financial management to experts.

What are the common mistakes in accounting and bookkeeping?

Common mistakes in accounting and bookkeeping include errors in recording transactions, incorrect classification of transactions, incorrect posting to the general ledger, and failure to reconcile accounts.

What are the best practices for accounting and bookkeeping?

Best practices for accounting and bookkeeping include regular updates of financial information, thorough review of financial records, segregation of duties, and periodic internal and external audits.

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Dedicated to delivering reliable and consistent services, we aim to build long-term relationships with our clients based on trust, integrity, and mutual respect.

Expertise and experience

Adepts Chartered Accountants is a team of experienced and knowledgeable professionals who have extensive experience in providing accounting and bookkeeping services. They have the necessary skills, training, and knowledge to ensure accurate and efficient financial management.

Customized solutions

Adepts Chartered Accountants understands that each business has unique accounting and bookkeeping needs. They work closely with clients to tailor their services to meet the specific requirements of each business.

Time Saving

By outsourcing accounting and bookkeeping functions to Adepts Chartered Accountants, business owners can save time and focus on their core competencies. This allows them to devote more time and energy to other critical areas of their business.

Cost Effective

Adepts Chartered Accountants provides cost-effective accounting and bookkeeping services that help businesses reduce their overall financial management costs.

Improved Accuracy

Adepts Chartered Accountants utilizes advanced technology and software to ensure accurate and up-to-date financial information. Their processes and procedures are designed to minimize errors and ensure that financial information is reliable.

Compliance with Regulations

Adepts Chartered Accountants stay up-to-date with the latest accounting and bookkeeping regulations to ensure that clients comply with all relevant laws and regulations. This helps to minimize the risk of legal penalties and reputational damage.

Peace of mind

By outsourcing accounting and bookkeeping functions to Adepts Chartered Accountants, business owners can have peace of mind knowing that their financial information is in safe hands. They can trust that their financial records are being handled professionally and efficiently.

Flexibility

Adepts Chartered Accountants provide flexible accounting and bookkeeping services that can be customized to meet the changing needs of clients. They are responsive to client needs and can adapt quickly to changing circumstances.

Accounting and Financial Reporting

services

Accounting and Financial Reporting

The implementation of newly published accounting standards involves adopting and applying new requirements

Accounting & Bookkeeping

Maintain Accurate Financial Records and Up-to-date Books of accounts!

Management Reporting

At Adepts Chartered Accountants, we offer a comprehensive suite of Management Reporting Services designed to provide your business with valuable insights.

Implementation of new accounting standards

Accounting standards are often developed by regulatory bodies to ensure financial reporting is consistent, transparent, and accurate. Therefore, businesses are required to adopt these standards to comply with regulations and maintain their legal and financial standing.

CFO Services

A CFO is a critical position in any organization, responsible for overseeing the financial operations of a company

IFRS Training

International Financial Reporting Standards (IFRS) are increasingly being adopted around the globe for financial reporting.

Financial Reporting

Preparation of Financial Statements as per International Financial Reporting Standards

Fixed Asset Management Services

Fixed Asset Management involves the strategy and processes for managing a company’s physical and intangible assets. The key components include asset acquisition, recording, depreciation, maintenance, and disposal.

Finance Function Set-Up and Process Effectiveness

Understand and Manage your Company's Financial Resources

Audit Readiness

Audit readiness refers to being fully prepared for an audit. It involves maintaining accurate financial records, preparing necessary documentation, and training staff for the audit process. It helps streamline the auditing process, preempt potential issues, and enhance the organization’s credibility.

ERP Implementation

With the rapid pace of technological advances, businesses must adapt and incorporate efficient systems to streamline operations and improve decision-making. This is where an Enterprise Resource Planning (ERP) system comes into play. At Adepts Chartered Accountants, we offer top-tier ERP implementation services to businesses in the UAE, empowering them with streamlined processes and improved productivity.

Funding a Business

Unlock your full potential with Adepts: the integrated team of specialists that guides you through the process of optimizing your capital structure for success!

To set yourself up for success, it is critical to consider your capital financing objectives and explore the various debt, mezzanine, and equity funding options from both private and public investors. Doing this will ensure sustainable growth.

How does it work?

Our debt and equity capital markets advisory practice has a wealth of knowledge and expertise to provide comprehensive, unbiased advice aligned with your strategic objectives. Our team is dedicated to providing hands-on support throughout the capital-raising journey, from initial evaluation and strategy development to successful deal closure. We strive to ensure clear and consistent communications for strengthening stakeholder faith in the transaction.

Financing Strategy

Assessing available options to maximize shareholder and stakeholder value while providing financial flexibility

Preparing a detailed evaluation of potential sources of finance, such as debt, equity, and hybrid instruments

Developing an investment structure that meets the company’s goals and objectives in terms of both short-term and long-term capital needs

Options Identification and Evaluation

Analyzing various financing scenarios to identify the most suitable option for the company’s current business situation

Evaluating factors such as taxation, risk management, liquidity requirements, planned capital expenditures, projected cash flows and operational needs to determine the optimal financing solution

Calculating the cost of capital for each financing source to ensure affordability in line with the company’s budget constraints

Deal Execution

Negotiating favorable terms with lenders or equity investors on behalf of the company

Facilitating due diligence processes by providing comprehensive information about creditworthiness and other relevant data required by potential financiers

Structuring transactions to optimize tax efficiency while minimizing financing costs

Ensuring compliance with all applicable regulations and laws related to corporate finance.

Closing

Establishing effective communication channels between all stakeholders involved in the transaction process

Coordinating closing procedures such as signing documents or collecting payments from lenders or investors

Maintaining accurate records of all financial transactions associated with the deal

Monitoring progress against timelines and milestones set out in the agreement.

Ongoing Management and Stakeholder Communication

Implementing regular reporting mechanisms to keep stakeholders informed of major developments regarding their investments or loans

Maintaining relationships with existing lenders/investors through frequent communication on key performance indicators (KPIs)

Proactively engaging new investors/lenders if required in order to raise additional funds during times of growth or distress

Facilitating negotiations between shareholders, creditors, board members, management teams, legal advisors etc. when conflicts arise.

frequently asked questions

What is capital structuring?

Capital structuring is a financial strategy that involves the appropriate balance of debt and equity financing to optimize long-term value creation. The aim of capital structuring is to maximize shareholder and stakeholder value, while also optimizing the risk/return profile of the company. It involves careful consideration of the sources of finance available, such as debt, equity, leasing, and other forms of financing.

What is capital financing?

Capital financing is the process of raising funds in order to acquire assets or expand operations. Funds can come from both private and public sources such as banks, venture capitalists, and other investors. Capital financing enables companies to pursue growth opportunities without having to use their own capital reserves.

What are the benefits of capital structuring?

Capital structuring can bring several benefits for companies and their shareholders. By strategically achieving an optimal balance between debt and equity financing, companies can reduce the cost of capital, increase their return on investment (ROI), and create more flexibility in their operations. Additionally, it can help improve investor sentiment by ensuring that there is a strong alignment between corporate strategy and financial performance. Reducing overall costs associated with borrowing funds or raising capital, can also free up resources for more profitable investments.

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Dedicated to delivering reliable and consistent services, we aim to build long-term relationships with our clients based on trust, integrity, and mutual respect.

Deal Advisory

services

Deal Advisory

It involves analyzing various factors such as the financial performance, assets, liabilities, market conditions, and growth potential of the business to arrive at an estimated value.

Buying a Business

Buying a business in the United Arab Emirates (UAE) can be a lucrative and rewarding investment opportunity.

Restructuring A Business

Let our specialists help you prioritize issues and focus on the right path for fixing operational or financial issues.

Mergers and Acquisitions

Get your business ready for sale with Adepts Chartered Accountants!

Financial due Diligence

Get your business ready for sale with Adepts Chartered Accountants!

Selling a Business

Get your business ready for sale with Adepts Chartered Accountants!

Funding a Business

Buying a business in the United Arab Emirates (UAE) can be a lucrative and rewarding investment opportunity.

Business Valuation

It involves analyzing various factors such as the financial performance, assets, liabilities, market conditions, and growth potential of the business to arrive at an estimated value.

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Transfer Pricing in UAE

What is Transfer Pricing?

What is the Arm's Length Price?

Transfer Pricing Documentation

Why Transfer Pricing?

Documentation Model Under OECD Guidelines

Local File

TP Methods under OECD guidelines

Advisory

Documentation and Reporting

frequently asked questions

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Corporate Tax

Corporate Tax

Transfer Pricing in UAE

Corporate Tax Advisory

Feasibility Studies Services

What is a Feasibility Study?

Why are Financial Feasibility Studies Necessary?

Important Elements of a Feasibility Study

Market Analysis

Financial Study

Technical Aspect

Schedule

Do feasibility studies add value to your business?

Benefits of hiring experts for feasibility study services in the UAE

How do our feasibility studies service works?

What are the benefits of our feasibility study approach?

frequently asked questions

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Inventory Verification Service in UAE

What is Stock Taking or Inventory Verification?

Goals of Inventory Verification

Purpose of Conducting Inventory Verification

Types of Inventories

Benefits of Inventory Verification

Assurances to Principals

Efficient Inventory Control

Protect Your Investment

frequently asked questions

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Business Support

Business Support

Bank Account Opening Assistance

Inventory verification

Feasibility Studies

Property Valuation

Financial Reporting

What is Financial Reporting Service?

Why do you Need a Financial Reporting Service?

Benefits of Financial Reporting

Process of Preparing Financial Reports

frequently asked questions

Why Choose ADEPTS

Expertise and Experience

Tailored Solutions

Time and Cost Efficiency

Accuracy and Compliance

Dependable Service

Accounting & Bookkeeping Services in UAE

What is Financial Accounting

What is Bookkeeping

Why Accounting and Bookkeeping is important for business

The Process Flow of Our Accounting & Bookkeeping Services