Bookkeeping is no longer optional housekeeping — in the UAE it is a legal obligation. Since the introduction of VAT in 2018 and Corporate Tax in 2023, every business is expected to maintain proper, contemporaneous accounting records and to be able to produce them on request.
Under Federal Decree-Law No. 32 of 2021 on Commercial Companies, companies must keep accounting records that show their transactions and accurately reflect their financial position, and retain them for at least five years from the end of the financial year (Article 26).
Under Federal Decree-Law No. 47 of 2022 on Corporate Tax, taxable persons must prepare financial statements and maintain records and documents supporting them — generally for seven years after the relevant tax period — so the Federal Tax Authority (FTA) can verify taxable income.
Under Federal Decree-Law No. 8 of 2017 on VAT (and its Executive Regulations), registered businesses must keep full books of account, tax invoices and related records to support every VAT return they file.
Beyond compliance, accurate books are simply how you run the company well: you see real margins, manage cash, satisfy banks and investors, and walk into an audit or an FTA review with nothing to fear. Poor records, by contrast, expose you to administrative penalties, rejected input VAT, and disputes you can't defend.