The United Arab Emirates (UAE) Government has taken a progressive step in its commitment to comply with international good governance standards by ratifying Resolution No.31 of 2019, concerning Economic Substance Regulations in the UAE, “the Regulations” on April 30, 2019. The UAE Economic Substance (ES) rules have been designed to follow the guidance issued by the European Union (EU) and Organisation for Economic Co-operation and Development (OECD).

A salon owner operated several branches across the UAE providing ladies cosmetic and beauty services.

For a local restaurant business owner, controlling their operations remotely had always proved to be a challenge. They had employed a manager to run
daily operations, but accurate and timely reporting was a challenge with the owner receiving excel
reports for limited information.

For some companies, outsourcing their accounting and VAT has proved to be a good decision to manage their financial management & compliance obligations at a lower total cost of ownership than inhouse recruitment.
For others it has proved to be a bad experience that leads to frustrations resulting in poor financial reporting, compliance risks and time wasted.

The Executive Regulations entail greater discipline to record your sales and purchases accurately to file accurate returns and support the provision of financial statements if requested by the Federal Tax Authority. These legal obligations may be at the forefront of your decision to adopt a platform, in this paper we discuss the key tips to help you implement a successful approach.

For any business, good financial management is the foundation to reaching profitability. But as a start-up or small business, your first thought inevitably goes towards growing the top line and this emphasis can lead to major issues later if you under invest in your financial management framework.