Over time, there is a change in how we perform tasks. With the so-called modernization, every business process is going digital or automated. Especially in the UAE, the government aims for a paperless economy; therefore, businesses must ensure that they align with the changing environment. Regarding accounting, the older way was more manual and less reliant on technology. However, the modern times need modern solutions. In this blog, we enlighten top accounting trends UAE businesses must adhere to in 2025.
Top Accounting Trends for UAE Businesses in 2025
With the changing global commercial environment, only entities that adapt to the change survive and thrive. Let’s look at some of the top accounting trends for businesses operating in the UAE in 2025.
Digital Makeover: Cloud Computing, AI, and Blockchain
The first and foremost trend that entities must follow is a digital transformation in their overall accounting function. Less use of paper and more use of technology is what we should aim for. However, the makeover is not easy and should be doable in a step-by-step way. Firstly, entities must cuddle the use of accounting software; however, the use of cloud-based ones is ideal to use. Cloud-based software enhances the overall use of financial data; it gives real-time, on-the-go financial insights. However, firms may face higher costs of using it. A common such platform is QuickBooks. Furthermore, the rise of artificial intelligence (AI) gives opportunity to enterprises to automate business processes. This in turn will speed up the processes with no or little chance of errors.
The use of blockchain is currently in very embryonic stages; however, there is a massive scope and interest in its use. This technology will particularly bring drastic improvements in areas where there is a need for transparency, such as accounting functions. It will result in secure and temper-free transactions. Therefore, firms must look for and be proactive about technologies that are suitable, and secure, and result in overall improvement and automation of the accounting processes.
Socially Responsible Reporting
With global climate change and elevated levels of carbon emissions, there is now more adoption of environmental, social, and governance (ESG) reporting. Especially concepts like corporate social responsibility (CSR) will now have more importance in the eyes of investors, governments, and other stakeholders. The question here is that even if ESG reporting and adoption of CSR practices are not legally binding in certain jurisdictions, should the entities practice these? The answer is not simple; however, it depends on the industry, specific circumstances, and how external stakeholders of your business look into these. The ideal way is to implement systems that track performances in the field of ESG and CSR. Furthermore, they can align them with long-term sustainability objectives. The regulators, no doubt, are increasingly looking into factors that impact the environment.
Proactive Focus on Corporate Tax Compliance
The new regime in the UAE is now fully applicable; therefore, firms must ensure that they have systems in place. Corporate tax compliance not only depends on the year-end filing process, but it also depends on how accurate and timely relevant figures are computed and the corresponding documents are kept. Therefore, businesses must take action to keep the overall tax matters smooth and make arrangements for proper documentation. Furthermore, there is a need to remain up-to-date with the changing regulations. The use of technology in this regard will bring massive improvements in overall tax reporting. These can be in the form of automated tax calculation and smooth submission of tax returns, plus on-the-go tracking of tax updates.
Cybersecurity
As we see that there will be more dependence on technology and digital transactions in 2025, there is a need for security. From recording and saving to sharing of data, we need security in every aspect. Therefore, cybersecurity is of great importance in modern times. Firms operating in a digital environment must invest in modern and robust cybersecurity measures. Furthermore, the employees working on the key areas of data management should have access to proper training on best practices. Entities in the UAE must make arrangements to comply with the UAE data protection laws. Some related laws in this regard are:
- Federal Decree-Law No. 45 of 2021 Regarding the Protection of Personal Data
- Federal Law No. 15 of 2020 on Consumer Protection
- Data Protection Law, DIFC Law No 5 of 2020
- Federal Decree-Law No. 34 of 2021 on Combatting Rumours and Cybercrimes
Outsourcing
Many companies will focus on their core business activities and thus outsource their accounting function. This will bring higher efficiency as there will be access to a more talented workforce externally. Furthermore, there will be some other benefits. For instance, compared to the in-house team, there are chances that outsourcing will bring cost benefits. However, it depends on the specific circumstance, industry, and other factors. Furthermore, if there is a seasonality in accounting functions, such as audit periods, outsourcing provides more flexibility and efficiency. The in-house team may face idle time during non-seasons and thus result in higher costs. In the UAE, a trustworthy accounting firm is Creative Zone.
Conclusion
There are many areas where organizations must arrange for technological advancement, such as the accounting function. In our blog, we provided top accounting trends that businesses operating in the UAE must follow in 2025. This will help them to adapt and thrive with the global changing business environment. For instance, we stress the use of accounting software, a cloud-based one, to ensure proper recording and real-time insights for quick decision-making. Overall, businesses must transform their digital and technological outlook. Technologies such as artificial intelligence (AI) and blockchain can reap massive benefits for growing organizations. There are many other particulars where firms can focus on enhancing their overall accounting function. The goal of every business should be to focus on improvements that are ideal for its specific circumstance, industry, and other relevant matters.
Creative Zone Tax & Accounting (CZTA)
The best enterprise is the one that adapts to the changes of the external business world and internal factors. We, at CZTA, love to support businesses in achieving their goals, and therefore, we do the best we can do for our clients. Our accounting and tax team’s skills will let you achieve success and adapt in the best possible manner. Contact us today.
