Accounting for
Industries in Dubai

Because a manufacturer converts raw materials into finished goods, and the accounting must track that conversion. Cost of goods sold requires allocating direct materials, direct labour, and manufacturing overhead to each product or batch. Work-in-progress must be valued at every period end. Inventory sits on the balance sheet and affects both gross margin and corporate tax. A service company has none of these. Using the same chart of accounts for both produces financial statements that are technically complete but operationally useless.

Under IFRS 15, revenue on long-term construction contracts is recognised over time when the customer controls the asset as it is built. We measure progress using the cost-to-cost method -- costs incurred to date divided by total estimated costs. This calculation runs monthly. We reconcile recognised revenue against progress billings and flag any overbilling or underbilling position. Variation orders and claims are assessed as variable consideration and included only when it is highly probable the amount will not reverse.

Landed cost is the total cost of getting a product from the supplier's warehouse to yours. It includes purchase price, international freight, marine insurance, customs duty, port handling, and clearing agent fees. If you book inventory at purchase price only, your cost of goods sold is understated, your gross margin is overstated, and your corporate tax return starts from the wrong number. We calculate landed cost per shipment and allocate it across the items in that shipment based on weight, volume, or value.

Manufacturing -- steel, food production, packaging, plastics. Construction -- main contractors and subcontractors across residential, commercial, and infrastructure. Trading -- commodities, general trading, electronics distribution. Hospitality -- restaurant groups, hotels, catering operations. Logistics -- freight forwarding, warehousing, fleet operators. Pharma distribution. Each sector has a different chart of accounts, different cost structures, and different reporting needs.

Excise tax applies to tobacco products, energy drinks, and electronic smoking devices at 100% of retail price. Sweetened beverages follow a tiered volumetric model -- exempt below 5g sugar per 100ml, AED 0.79 per litre at 5g to under 8g, and AED 1.09 per litre at 8g and above. Registration is mandatory with no turnover threshold. Monthly returns are filed through EmaraTax by the 15th of the following month. Records must be kept for five years. We classify the products, calculate the liability, and file the return.

Yes. For construction companies, we set up project codes that capture every cost -- materials, labour, subcontractors, equipment hire, site overheads -- against the contract value and recognised revenue. For hospitality groups, we create profit centres per outlet so revenue, food cost, labour, and rent are reported at the location level. Monthly reports show which project or outlet is contributing margin and which one is not.

FIFO works well for perishable goods and industries where older stock must move first -- food production, pharmaceuticals, and chemicals. Weighted average suits commodity traders and manufacturers where individual batch identification is impractical. The method must be applied consistently and disclosed in your financial statements. Changing methods mid-year requires IFRS-compliant disclosure and may affect your corporate tax computation. We recommend based on your product type and operational flow.

Unvalued WIP understates assets on the balance sheet and overstates cost of goods sold on the income statement. For manufacturers, WIP includes raw materials issued to production, direct labour applied, and overhead absorbed. For contractors, WIP represents costs incurred on contracts where revenue has been partially recognised. If WIP is not captured at period end, your gross margin is wrong, your tax computation starts from the wrong profit, and your auditor will raise it.

Monthly accounting for a single-entity manufacturer or contractor with moderate transaction volume runs AED 4,000 to AED 10,000 per month depending on the number of product lines, projects, or locations requiring separate tracking. Commodity traders with high-volume multi-currency transactions sit at the higher end. Hospitality groups with multiple outlets are priced per location. We scope after reviewing your operations and current chart of accounts.

Yes. We need your trial balance, bank statements, inventory records, and software access. If your chart of accounts does not support cost accounting or project tracking, we restructure it during the transition. For construction companies, we also need the contract register with budget, billing, and cost-to-date for each active project. Transition typically takes two to four weeks.

Yes. Manufacturing involves both standard-rated domestic sales and potentially zero-rated exports. Construction has reverse charge scenarios on certain supplies. Trading companies deal with import VAT, re-export documentation, and designated zone rules. We classify every transaction at entry so the quarterly VAT return is accurate without month-end reclassification. Filing is a separate engagement that most industrial clients bundle with their accounting.

Cost of goods sold, inventory valuation, and WIP directly determine gross profit -- the starting point for your taxable income computation. If your inventory method is inconsistent or your overhead allocation is undocumented, the FTA can adjust your deduction during a review. For construction companies, the timing of revenue recognition under IFRS 15 determines which financial year the income falls into. We maintain the records so every cost deduction and revenue timing position is defensible.