Using accounting software in UAE is common practice among businesses in the country. The market size for cloud accounting software is expected to cross $65 billion in 2030 in the UAE. There are many types of software, catered to different types of businesses. Instead of managing it yourself, you can hire accounting services in UAE to take care of it for you.
How to Use Online Accounting Software
Accounting software has multiple benefits:
- Report generation: You can use accounting software to generate reports summarizing your financial transactions for any period of time. These reports are useful for making decisions about the future of your business and getting insights into performance.
- Streamlines data entry: When you start recording all your transactions on an online accounting software, you can categorize and label your transactions, making it easier for you to find certain entries or create custom lists.
- Automation: Automating routine and recurring tasks can help you save time and reduce errors.
- Assess cash flow: Having all your transactions in one place is an easy way to help you assess your cash flow and identify areas for improvement in your strategy.
- Conduct audits: Certain accounting softwares have an audit feature that allows you to review your financials and make sure you are compliant with the regulations. You can also hire A&A Associate to provide audit services in Dubai.
Step-by-Step Guide to Set Up Accounting Software in UAE
Here is a step by step guide on how to set up accounting software in UAE:
1. Choose a Software
There are many types of accounting software to choose from. Make sure to choose a software that aligns with your business needs. Popular options include:
Zoho Books
Zoho Books is a common business accounting software that has plans suiting all business sizes. The free plan, which is ideal for growing businesses offers features like:
- Basic report generation
- Aiding in VAT compliance
- Importing bank statements
- Managing clients and supplier details
Standard pricing starts at AED 60/month, going up to AED 660/month for Ultimate users, allowing up to 15 users per account.
Xero
Xero is also an accounting software in Dubai ideal for SMEs and startups. There is no free plan, but users can get access to a 30-day free trial before committing to a software plan. Features include:
- UAE VAT compliance
- Recurring payment reminders
- Basic inventory tracking
- Budgeting and forecasting tools
Xero doesn’t offer specific pricing plans for the UAE, so the prices are subject to conversion rates. Generally, the basic plan starts around AED 55.
QuickBooks
QuickBooks as an online accounting software is an ideal option for businesses looking for strong automation features and collaborating with your accountant. Apart from automation, features include:
- Export reports for manual filing on the FTA portal
- Real-time profit & loss, balance sheet, and cash flow
- Customizable invoice templates
- Automatic categorization and reconciliation
Prices start at AED 70/month, going up to AED 279/month. Every plan allows you to add your accountant to your plan.
Oracle
Oracle’s NetSuite Accounting Software is best suited for medium to large businesses.Some of its features include:
- TRN tracking for customers and vendors
- Multi-currency and multi-subsidiary management
- Vendor and supplier management
- Real-time business performance dashboards
- Localizations available for UAE and other GCC countries
In terms of pricing, Oracle generally offers customized pricing plans to its customers. This makes it an expensive accounting software option for startups or SMEs.
Feature | Zoho Books | Xero | QuickBooks | Oracle | Wave |
VAT support | ✓ | ✓ | ✓ | ✓ | x |
Arabic interface | ✓ | x | x | ✓ (available as custom feature) | x |
Starting price | Free (for < AED 187,500 revenue) Paid: from AED 69/month | From AED 55–60/month | From AED 55–60/month | From AED 900–1,200/month | Free plan, Pro plan starts at AED 58-60/month |
Target audience | Freelancers, startups, and SMEs | Small to mid-sized businesses | Startups, SMEs | Medium to large enterprises | Freelancers, solopreneurs, micro-businesses |
Wave
Wave is a free accounting software, making it ideal for small businesses and freelancers. While it doesn’t have VAT compliance features or any Arabic language options, it does offer:
- Track accounts receivable and payable
- Create and send customized invoices
- Expense entry and categorization (manual)
- Basic financial report generation
- iOS and Android apps for invoicing and expense tracking
The free plan is available to all businesses, while the Pro plan starts at $16/month (approx. AED 58).
2. Create a Business Account
The next step is to create an account. You can do it yourself or have an accounting expert help you. You’ll need to enter details of your business and your financial year. Entering all of the information correctly, including the business structure is essential to help the software tailor the experience to suit your business.
3. Format Chart of Accounts
After setting up an account, you have to check your chart of accounts. Most software will already have one in place, so all you will need to do is edit it as per your business’ accounts. A chart of accounts is an overview of your financial health, and contains assets, liabilities, expenses, revenue, and equity.
4. Reconcile Accounts
If you link your bank account to the accounting software you’re using, you can streamline your reconciliation and quickly spot and correct errors.
A&A Associate Provides Expert Accounting Services in UAE
A&A Associate houses expert accountants who can help you choose and set up accounting software for your business. Additionally, they can handle the entire accounting and bookkeeping process, making sure that your company stays compliant and financially sound. Get in touch today!
