Most UAE SMEs close their books 2-3 weeks after month-end. There is no good reason for this. With a clear sequence and the right discipline, a 5-day close is achievable, sustainable, and revealing of operational issues.
What you'll learn
→ Day 1: cut-off and bank reconciliation → Day 2: revenue and receivables → Day 3: expenses, accruals and prepayments → Day 4: tax, payroll and finalisationDay 1: cut-off and bank reconciliation
On the last business day of the month, run a hard cut-off: invoices for work delivered must be issued by close of business; bills received but unpaid must be entered; any transactions started but not completed are flagged. Email finance and operations a 'cut-off achieved' confirmation.
Day 1 of close: reconcile every bank account. The previous month's reconciliation must be cleared before continuing. Identify and post any cleared bank fees, standing orders, or other unrecorded transactions.
Day 2: revenue and receivables
Reconcile billed revenue to deferred revenue (where applicable) and to your CRM or sales pipeline. Every confirmed delivery should have an invoice. Every invoice should have a contract or order. Investigate variances of more than 1%.
Run AR aging. Anything 60+ days overdue: assign for collection. Anything 90+ days: review for credit risk and consider provision for doubtful debts. Customer disputes need credit notes by month-end if material.
Day 3: expenses, accruals and prepayments
Process all bills received during the month. For known liabilities not yet billed (utilities, professional services), post accrual entries based on prior months or known rates. Reverse last month's accruals once the actual bills land.
Apportion prepayments: rent, insurance, subscriptions paid in advance get expensed monthly. Run depreciation: open the fixed asset register, post the month's depreciation by class. Reconcile credit cards used by employees, claim/reimburse and post.
Day 4: tax, payroll and finalisation
Reconcile output VAT to billed sales (5% of standard-rated). Reconcile input VAT to bills received with valid tax invoices. Check that the output and input VAT control accounts match. Calculate the period's CT provision (for monthly P&L view), usually a simple percentage of pre-tax profit.
Process payroll: payroll register from HR, post salary expense, gratuity provision, end-of-service movement. Reconcile WPS file to payroll. Day 5: produce P&L, balance sheet, cashflow, variance commentary, and circulate to management with a one-page summary.
This guide is general information, not professional advice. For situations that involve specific facts, talk to your accountant, or hire one of ours from the marketplace.