Bank Reconciliation · United Arab EmiratesIf the bank and the books disagree, every VAT return and tax figure built on them is in doubt.
We reconcile your UAE bank, card and payment gateway accounts to your books monthly or as a catch-up, including foreign currency accounts and marketplace payouts.
Accounting
At a glance
- Authorities
- Federal Tax Authority (FTA)
- Forms & references
- VAT 201Corporate Tax return
- Cadence
- Monthly, or before each VAT period closes
- Accounts
- AED and foreign currency bank accounts, cards and gateways
- Output
- Reconciliation report with unmatched items listed
- Catch-up
- Past months or years rebuilt from statements
Overview
What it is, and why it matters.
A bank reconciliation proves that every transaction in the bank is in the books and every payment in the books actually happened. It is the check your auditor and the FTA rely on first.
UAE businesses often hold accounts in AED and US dollars, sometimes in euros or sterling too, across more than one bank, plus gateway and marketplace balances that settle net of fees and refunds. Each needs matching, and foreign currency balances need revaluing at the period end.
Reconciling before each VAT return catches missing invoices and duplicated expenses while they are easy to fix. A reconciled year end is what the financial statements and the Corporate Tax return depend on.
UAE banks also review account activity against your licence and expected turnover. Reconciled records make it much easier to answer the questions they ask.
Who needs it
Who typically needs it.
- 01
E-commerce businesses using gateways
Sellers taking card and buy-now-pay-later payments through gateways such as Stripe, Network International, Telr or Tabby, whose payouts arrive net.
- 02
Companies with several banks or currencies
Businesses with AED and US dollar accounts, sometimes at two or three UAE banks, plus corporate cards.
- 03
Businesses before their first Corporate Tax return
Companies whose books were kept loosely for VAT and now need a reconciled year end.
- 04
Free zone companies preparing for audit
Companies whose auditor expects bank reconciliations for every account at the year end.
When you need it
The moments that usually trigger it.
- Your bank balance and your accounting software don’t agree.
- A VAT return is due and you’re not sure every sale is recorded.
- Your auditor has asked for bank reconciliations for the year.
- Gateway or marketplace payouts arrive net of fees and refunds, and nobody splits them.
- You’ve moved banks or opened a foreign currency account.
- Your bank has asked about transactions on your account.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Matching statements or bank feeds from UAE banks, such as Emirates NBD, ADCB, FAB, Mashreq or Wio, to the ledger line by line.
- 02
Splitting gateway and marketplace settlements into gross sales, fees, refunds and chargebacks.
- 03
Reconciling US dollar and other foreign currency accounts and recording exchange differences.
- 04
Reconciling corporate cards and petty cash.
- 05
Identifying missing invoices, duplicated entries and unexplained transfers, and listing them for you.
- 06
Separating owner and related-party movements for the Corporate Tax records.
- 07
Catch-up reconciliations for past months or years.
- 08
Year-end reconciliations and bank balance schedules for your auditor.
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationCollect statements
We gather statements or feeds for every bank, card, gateway and marketplace account, and confirm opening balances.
Match
Each transaction is matched to an invoice, bill or journal. Gateway payouts are broken down into their parts.
Investigate
Unmatched items are researched, and anything we can’t resolve goes to you in one list with our suggested treatment.
Adjust and report
Corrections are posted and you receive a reconciliation report for each account, tied to the balance sheet.
Keep it current
We repeat the process monthly or before each VAT return, so the year end holds no surprises.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Statements
- Bank statements (PDF or CSV) for every account, in every currency
- Corporate card statements
- Petty cash records, if any
Gateways and marketplaces
- Settlement and payout reports
- Fee, refund and chargeback reports
Books
- Access to your accounting software
- Opening balances from your last reconciled period or accounts
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Recording gateway payouts as sales
Posting the net payout as revenue understates sales, hides fees and refunds, and puts the wrong figure on the VAT return.
- Mistake 02
Ignoring exchange differences
US dollar balances translated at the wrong rate leave small differences that grow every month and confuse the audit.
- Mistake 03
Reconciling only at year end
Twelve months of unmatched items take far longer to resolve, and errors in VAT returns already filed then need correcting.
- Mistake 04
Leaving transfers unexplained
Money moving between owners, sister companies and the business must be identified. Unexplained, it raises questions from banks, auditors and the FTA.
Worth knowing
The limits, stated upfront.
We reconcile to the statements you or your bank provide, and can’t verify transactions the bank hasn’t reported.
Access to your bank accounts stays with you. We work from read-only feeds or statements and never make payments.
Disputes with banks, gateways or marketplaces are between you and the provider, although we give you the figures.
A reconciliation is not an audit and is not designed to detect fraud.
Questions
Bank Reconciliation: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionHow often should I reconcile?
Monthly for most businesses, and at least before each VAT return. Busy e-commerce businesses sometimes reconcile gateways weekly.
Can you reconcile foreign currency accounts?
Yes. We reconcile each account in its own currency and record exchange differences in AED, using consistent rates.
Can you connect to my UAE bank?
Some UAE banks offer feeds into cloud accounting software, directly or through a third party. Where they don’t, we work from downloaded statements.
How do you handle payment gateways and marketplaces?
We use their settlement reports to split each payout into gross sales, fees, refunds and chargebacks, so revenue and VAT are recorded at the right amounts.
Can you catch up a year or more?
Yes. We work through the statements month by month, fix what we can and list the rest. It is often the first step before a late VAT return or Corporate Tax return.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about bank Reconciliation.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com
