When You Should NOT Hire an Accountant in UAE

Every business in the UAE generally thinks it is necessary to hire an accountant due to the ever growing regulatory requirements for corporate tax, anti-money laundering, value added tax, etc. But, there are countless scenarios where it is not cost-effective or necessary to hire an accountant. Whether you may be a Freelance, a startup, or even a small real estate company – understanding situations where an accountant may not be needed is crucial to reserve and allocate your resources more wisely.

1 – Your Finances Are Simplified

Many freelancers and self-employed individuals operate with simple UAE income models under freelance licenses or agencies. If:

  • No Value Added Tax registration requirement
  • Annual revenue is below the corporate tax threshold – AED 375,000
  • Only a couple of streams of income
  • No employees or office rental

…you don’t have to employ a full-time accountant. Cloud accounting softwares from QuickBooks to Xero can handle your invoicing, assist with expenses and even basic tax calculations. And that costs you way less than hiring a full-time accountant.

For Example: A freelance digital marketer with a Dubai Media City freelance permit could probably do his or her accounting without any issues on his own.

2 – You’re in the Pre-Revenue Phase

Startups tend to rush into hiring financial professionals before the business generates any revenue – which is the last thing anyone should do. If you are:

  • Currently finalising your business models
  • Managing early-phase expenses
  • Operating without a mandatory trade license

…you won’t need an accountant until later. At this stage, your need isn’t for accounting but for assessing whether you have a viable product and fit.

For Example: A founder with excellent financial resources internally does not need an accountant yet.

3 – You have In-House Financial Knowledge

You may not need to hire an accountant yourself—at least not in the early stages—but only if you or your co-founder is well-versed in finances and knows the taxes and administrative requirements for operating in the UAE. This is for small real estate brokering operations or startups in development.

For Example: A small broker that operates in the Dubai Strip who has a few real estate transactions, does not exceed the corporate tax threshold, and employs the RERA recommended transaction CRM and invoicing software can easily have his/her/their books prepared.

However, you will need an accountant when your dealings involve escrow, payments to developers, VAT filings, or bookkeeping for property management.

4 – You’re Below the VAT and Corporate Tax Thresholds

Not every business in the UAE is required to register for corporate tax and value added tax, here is why:

  • VAT only becomes mandatory when taxable supplies exceed AED 375,000 annually
  • Corporate tax is only applicable above AED 375,000 in profit for UAE entities

Therefore, your compliance requirements would be minimal. You might not even need an accounting team on a full-time basis; maybe just an end of the year audit.

For example: A landlord who owns one residential property and rents it out on a short-term basis is not required to register for VAT and corporate tax.

5 – You only Need Help with One Time Filings or Setup

When needs are short-lived, there’s no point in hiring a full-time professional, or even a monthly one. For instance, some firms in the UAE need an accountant for the following:

  • Corporate tax registration.
  • Annual AML filings
  • Company formation and creation of a chart of accounts

Once these singular or minimal actions take place, business owners can rely on online templates and software.

For Example: A Sharjah-based consultant with a sole establishment would need help with tax registration and an annual VAT reimbursement for the filing.

Final Thoughts

The accounting requirement in the UAE is changing. As corporate taxes emerge, AML compliance becomes demanding, and digital invoicing is becoming the norm; accounting requirements are on the rise. Yet not every company should hire an accountant immediately. If your business is relatively simple, your revenue is below average, and you’re comfortable handling registration online yourself, you can hold off on hiring an accountant.

However, suppose your business skyrockets and flourishes, especially in more regulated industries like real estate, financial services, or e-commerce, it will make sense and be required to hire a qualified accountant.