SMEs outsource accounting: Running a small or medium-sized enterprise (SME) in the UAE is rewarding—but also complex. Between VAT compliance, new corporate tax obligations, free zone requirements, and audit expectations, many business owners find that finance takes up more time than strategy. That is why more SMEs now outsource accounting to approved firms and registered tax agents.
At SGA World Auditing Accounting L.L.C – S.P.C, we see outsourcing not just as cost reduction but as a way for SMEs to gain access to professional-grade accounting, tax, and audit expertise without hiring a full in-house team.
You may have read that “37% of SMEs outsource accounting.”
Here’s the truth:
- That figure comes from a global survey that combined accounting and IT outsourcing.
- More recent studies show that around 20% of small businesses using Accounting outsourcing services specifically.
- In the UAE, no official percentage is published.
What we do know is this: the UAE’s finance & accounting outsourcing (FAO) market was worth USD 663.6 million in 2024 and is projected to grow to nearly USD 918.6 million by 2030.1According to a report by Grand View Research, the UAE finance and accounting (business process) outsourcing market was valued at USD 663.6 million in 2024 and is projected to reach USD 918.6 million by 2030 This shows a clear trend—outsourcing is accelerating in the Emirates.
Why UAE SMEs outsource accounting?
- VAT compliance – The UAE introduced VAT at 5% in 2018. Filing returns and reconciling accounts correctly requires specialist knowledge.
- Corporate tax – From June 2023, UAE companies are subject to 9% corporate tax. Free zones face additional “qualifying income” tests.
- Cost control – Hiring a full-time accountant in Dubai can cost AED 9,000–12,000 per month (salary, visa, benefits). Outsourcing can deliver the same expertise at AED 1,000–5,000 per month, depending on volume and scope.
- Scalability – SMEs can expand without worrying about payroll, training, or turnover of in-house finance staff.
- Expert access – From audit readiness to transfer pricing, outsourcing gives SMEs access to specialists they wouldn’t otherwise hire.
What services are included in outsourced accounting?
When SMEs outsource accounting in the UAE, the service typically includes:
- Bookkeeping and reconciliations
- VAT registration, return filing, refund claims
- Corporate tax registration, calculations, and returns
- Payroll processing and WPS compliance
- Management reports (P&L, cash flow, budgets)
- Year-end audit support and IFRS compliance
- Free zone compliance (qualifying income, ESR, UBO filing)
At SGA World, we provide all of the above with the added assurance of being an Approved Auditor in the Dubai, UAE and a Registered Tax Agent with the Federal Tax Authority (FTA).
When should SMEs outsource?
- ou should consider outsourcing when:
- Your turnover is above the VAT threshold.
- Corporate tax now applies to your business.
- Month-end reports are delayed or inaccurate.
- You are expanding into free zones or multiple branches.
- You cannot justify the cost of a full-time accountant.
- Your last audit identified compliance gaps.
Costs: in-house vs outsourced
In-house accounting team: AED 9,000–12,000/month per accountant (including overheads).
Outsourced package: AED 1,500–5,000/month depending on complexity.
How to choose the right provider in the UAE?
When selecting a partner, SMEs should ensure the firm is:
- Approved by the Ministry of Economy as an audit firm.
- Registered as a Tax Agent with the FTA.
- Experienced with VAT, corporate tax, and free zone rules.
- Transparent in fees and scope.
- Equipped with strong data security and service-level agreements (SLAs).
At SGA World, our Abu Dhabi and Dubai-based team meets all these requirements, supporting SMEs across the UAE in accounting, audit, VAT, and corporate tax.
Implementation roadmap
A typical outsourcing journey with us looks like this:
- First 30 days: Onboarding, chart of accounts setup, backlog clean-up.
- Day 31–60: Automated workflows, reconciliations, timely month-end reports.
- Day 61–90: Audit readiness, management dashboards, extended advisory.
FAQs on SMEs outsourcing accounting in the UAE
Q1: Is outsourcing accounting common for SMEs in the UAE?
Yes—while exact statistics are not published, the UAE outsourcing market is expanding steadily due to VAT, corporate tax, and free zone compliance.
Q2: What is the cost for SMEs?
Most SMEs in the UAE spend between AED 1,000 and AED 5,000 per month on outsourced accounting, compared with AED 9,000+ for in-house staff.
Q3: Will outsourcing cover VAT and corporate tax?
Yes—outsourced packages usually include VAT filing, corporate tax registration, and return preparation.
Q4: Is it secure to outsource accounting?
With an approved and licensed firm, yes. Always confirm that your provider uses proper data security, NDAs, and FTA-registered tax agents.
Q5: Can outsourcing replace my auditor?
No—outsourcing ensures your records are clean and compliant. Audits are a separate statutory requirement, but outsourcing makes the audit process smoother.
For UAE SMEs, outsourcing accounting is more than cost savings—it is a compliance strategy. With VAT and corporate tax firmly in place, outsourcing helps businesses stay safe, efficient, and scalable.
At SGA World Auditing Accounting L.L.C – S.P.C, we combine audit expertise, tax agent status, and outsourced accounting solutions to support SMEs across Dubai, Abu Dhabi, and beyond.
📍 Address: Khalidiya Towers, Al Bateen – W10, Abu Dhabi
📞 Phone: 02 675 6726
💬 WhatsApp: +971 50 627 3556
🌐 Website: sgaworld.ae
