What we mean by real accounting
Real accounting is double-entry, IFRS-compliant, with daily transactions reconciled to source documents (bank statements, supplier invoices, customer remittances) and a defensible audit trail from journal back to source. It is NOT spreadsheet-based "books" reconstructed at year-end from bank statements — that approach saves money in month one and costs it back tenfold at year-end audit, Corporate Tax filing, and any subsequent FTA review.
The Consorata standard is twelve clean monthly closes per year, with the year-end audit (where required) running on a general ledger that already ties out. The CFO of an inbound group should be able to ask any transaction-level question in a board meeting and we should be able to answer it from the system, not from a spreadsheet.
IFRS vs IFRS for SMEs
Default reporting is under IFRS as issued by the IASB. Smaller entities may elect IFRS for SMEs — for Corporate Tax purposes, Ministerial Decision No. 114 of 2023 permits this where revenue does not exceed AED 50 million in the relevant tax period. Some Free Zones (notably DIFC and ADGM) require full IFRS regardless of size for entities under their financial-services regulators. The choice affects financial-instrument accounting, lease treatment, intangibles, and the level of disclosure expected at audit.
Switching frameworks across periods is permitted but requires comparative restatement and a rationale documented in the policy note. We confirm the framework on engagement and re-test annually as the entity grows.
Multi-currency under IAS 21
Multi-currency entities — almost any UAE-based group serving cross-border customers — apply IAS 21 The Effects of Changes in Foreign Exchange Rates. The functional currency is the currency of the primary economic environment in which the entity operates; the reporting currency is the currency in which the financial statements are presented. They are NOT necessarily the same.
We document the functional-currency analysis on engagement, then book in functional currency with daily revaluation of monetary assets and liabilities denominated in other currencies. Realised and unrealised FX differences go to P&L by default; hedge accounting is available when properly documented and tested. Misapplied IAS 21 is the most common error we find when taking over books from prior bookkeepers.
The monthly close
The cycle is fixed:
- Day 5 — bank reconciliation across all accounts
- Day 10 — supplier and customer reconciliations
- Day 15 — payroll posted (see Payroll service)
- Day 20 — fixed-asset register, depreciation, intangibles
- Day 25 — full management reporting pack delivered
Variances over 10% from the prior month are flagged in the management commentary. Recurring journals (depreciation, accruals, prepayments) run automatically; one-off items are documented. Year-end builds on twelve clean monthly closes — not a December scramble.
Management reporting cadence
The standard monthly pack: P&L for the month, year-to-date and prior-year comparatives, balance sheet, cash-flow statement (direct method), revenue-by-segment analysis, AR and AP ageing, top-five customer / top- five supplier exposure, KPI dashboard customised per business model. Delivered as PDF for the board pack and as a live dashboard for management. Quarterly forecast updates roll forward; annual budget and planning cycle integrates with the same general ledger.
Software stack
We work in Xero (default for new SME engagements), Zoho Books (often inherited at engagement start), QuickBooks Online (US-parented groups), and SAP / Microsoft Dynamics for larger groups. We do not require clients to migrate; we work with the system the engagement arrives on. Where we can choose, Xero wins on FTA-aware add- ons, audit trail discipline, and multi-currency handling — but the software is a vehicle, not the work.
When to engage Consorata
Engage at the start of a financial year for a clean transition; mid-year transitions are routine but typically include a clean-up phase to bring prior-period entries up to standard. We do not take engagements where the client requires us to sign off on prior-period work we did not do — we review, restate where needed, and proceed from a defensible baseline.
Common questions
IFRS or IFRS for SMEs — which applies to my UAE business?
For Corporate Tax purposes, Ministerial Decision No. 114 of 2023 permits IFRS for SMEs where revenue does not exceed AED 50 million in the relevant tax period. Otherwise, full IFRS applies. Some Free Zones (notably DIFC and ADGM) require full IFRS regardless of size for entities under their financial-services regulators. Switching frameworks across periods is permitted but requires comparative restatement.
How do you handle multi-currency bookkeeping?
Functional currency is determined under IAS 21 — the currency of the primary economic environment in which the entity operates, not the reporting currency. We document the functional-currency analysis on engagement, then book in functional currency with revaluation of monetary assets and liabilities denominated in other currencies. FX gains and losses go to P&L by default; hedge accounting is available when properly documented and tested.
Which accounting software do you work with?
We work in Zoho Books (usually the most affordable option), Xero, QuickBooks Online (US-parented groups), and SAP / Microsoft Dynamics for larger groups. Our preference is Xero for engagements where we can choose — its FTA-aware add-ons and audit trail map cleanly to UAE compliance. We do not require clients to migrate; we work with the system the engagement arrives on.
What does your monthly close look like?
Bank reconciliation, supplier and customer reconciliations, payroll posted by the 5th, fixed asset register and depreciation by the 7th, full management reporting pack delivered by the 10th. We are flexible to change the arrangement in accrodance with clients' requirements. Year-end builds on twelve clean monthly closes — no end-of-year scramble.
Last reviewed: April 2026
This page is reviewed every 6 months for accuracy.