End-of-Year Checklist for UAE Companies: 15 Items Before You Close
Operations10 min read·Published 26 March 2026
Why a Year-End Checklist Matters
The end of your financial year is the most critical period for your company's finances. It is when you close the books, prepare financial statements, assess your tax position, and plan for the year ahead. Missing items at year-end creates problems that compound: incorrect opening balances for the new year, inaccurate tax filings, audit findings, and lost visibility into your actual financial position.
This checklist covers the 15 essential items every UAE company should complete before closing the year. If you are using Maya Finance, many of these are handled automatically — but it is still worth reviewing each one.
1-5: Reconcile and Review
1. Reconcile All Bank Accounts
Every bank account — AED, USD, any currency — must be reconciled to the statement. The closing balance in your books must match the bank statement exactly. No exceptions, no "close enough." This is the foundation for everything else.2. Review Outstanding Invoices (Receivables)
Go through every unpaid invoice. Is it still collectible? Has the customer gone silent? Invoices outstanding for more than 90 days should be reviewed for potential bad debt write-off. Update your aging report.3. Review Outstanding Bills (Payables)
Make sure every supplier bill is recorded. Check for invoices that arrived in January but relate to December services — these need to be accrued in the closing year. Verify the accounts payable aging is accurate.4. Write Off Bad Debts
If you have determined that certain receivables are uncollectible, write them off. The journal entry: Debit Bad Debt Expense, Credit Accounts Receivable. For VAT purposes, bad debt relief may allow you to recover the output VAT you previously paid on these invoices.5. Verify the Asset Register
Review your fixed asset register. Are all assets still in use? Have any been disposed of or fully depreciated? Ensure depreciation has been calculated correctly for the full year. This is critical for your corporate tax return.6-10: Compliance Checks
6. Check Gratuity Accruals
Review the end-of-service gratuity provision for every employee. Has basic salary changed during the year? Has anyone completed a new year of service? The December provision balance should reflect the total gratuity liability as of December 31.7. Prepare Final Quarter VAT
If your VAT period ends with your financial year, prepare the Q4 VAT return. Ensure all December transactions are recorded and categorized. The VAT return for Q4 is due by January 28 — less than a month after year-end.8. Review Your Corporate Tax Position
Calculate your estimated taxable income for the year. If you are a QFZP, verify that you are within the de minimis threshold. If you expect to owe tax, start planning for the payment (due within 9 months).9. Confirm QFZP Status (If Applicable)
Review all five QFZP conditions: substance, qualifying income, de minimis, audited financials, no election out. Document your compliance with each condition. If you have breached any condition, assess the impact on your corporate tax position immediately.10. Verify WPS Compliance
Confirm that all 12 months of salary payments were processed through WPS. Check that the SIF files match the actual amounts paid. Resolve any discrepancies before year-end to avoid MOHRE issues.11-15: Prepare and Plan
11. Update Employee Records
Confirm that all employee information is current: contract details, salary records, visa status, bank account numbers. This is the time to catch and correct any discrepancies.12. Prepare Financial Statements
Prepare your year-end financial statements: balance sheet, profit and loss statement, and statement of cash flows. These do not need to be audited yet, but having draft financial statements makes the audit process much faster.13. Schedule the Audit (If Required)
If your company requires an audit (QFZP, free zone requirement, or above the revenue threshold), make sure your auditor is engaged and has a timeline. Provide them with access to your books, supporting documents, and bank statements. Early engagement means a faster, cheaper audit.14. Renew Your Trade License
Check your license renewal date. Many free zones have their renewal in Q1. Budget for the renewal cost, decide on the prepaid vs direct expense treatment, and ensure any bundled costs (visa, lease) are accounted for separately.15. Set Financial Goals for Next Year
Based on your year-end review, set targets for the coming year: revenue growth, expense control, cash reserves, tax optimization. Use your bookkeeping data as the foundation — the numbers tell you where the opportunities and risks are.Timing: When to Start
Do not wait until December 31 to start this checklist. Ideally:
- November: Start items 1-5 (reconciliation and review). Many of these can be done on a rolling basis
- Early December: Items 6-10 (compliance checks). These require current-year data that is mostly available by now
- Late December / Early January: Items 11-15 (preparation and planning). These depend on the year being complete
Companies that close their books within 2 weeks of year-end spend less time on compliance, pay lower audit fees, and have better visibility into their financial position. Companies that take 3-4 months to close spend more and know less.
How Maya Finance Helps
Maya Finance supports the year-end close process across most of these items:
- Bank reconciliation is continuous with automated bank feeds
- Receivables and payables aging reports are always current
- Depreciation is calculated and posted automatically throughout the year
- Gratuity accruals are calculated monthly in the payroll module
- VAT returns are pre-filled with year-to-date data
- QFZP tracking shows your de minimis ratio in real time
- Financial statements — trial balance, P&L, and balance sheet are generated from your current data
The goal: when year-end arrives, your books are already substantially closed. The checklist becomes a verification exercise, not a catch-up scramble.