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Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Oct 24, 2025
By law, all companies in the UAE need to keep accurate records of their finances. It's easier for large corporations that have their own accountants, but an entirely different situation for startups and small businesses, where the owner must do everything themselves. To make your accounting less of a headache, there are lots of software options that can help you keep track and automate your books.
In this article, we've rounded up 5 programs that are great for small businesses.
In this article, we've rounded up 5 programs that are great for small businesses.
- What does the term "small business" mean in the context of UAE law?
- How to choose the right accounting software for your business by steps
- Key features to look for in accounting software
- Tricks to the best match
- Top 5 best software programs for small business accounting in the UAE
- Top accounting software for small retail businesses
- Comparison table for best accounting software for small businesses in UAE
- Benefits of using accounting software for SMEs in the UAE
- FAQ
But first, what does the term "small business" mean in the context of UAE law?
The definition of a Small and Medium-Sized Enterprises (SMEs) varies by country and sector. In the UAE and other Gulf Cooperation Council countries, SMEs are usually businesses that have:
- Annual turnover is below a certain threshold: below AED 50 million for small businesses and below AED 250 million for medium-sized businesses.
- The number of employees is capped at 35 for small businesses and 75 for medium-sized businesses.
- The operations are not too complex. They may consist of a single or a few locations and limited partnerships.
Examples of SMEs in the UAE:
Boutique retail shop with 15 employees in Dubai
IT / digital marketing agency with 25 staff, servicing clients locally and regionally
Small restaurant chain (2–3 outlets)
For "mid-size," you might think of companies approaching the higher thresholds, such as multi-location retail firms, larger import/export firms, and firms that need advanced inventory and payroll systems and support for multiple currencies. Many programs are available for these companies to manage their own accounting. To figure out which one's right for you, you need to know what the main features are.
How to choose the right accounting software for your business by steps
Key features to look for in accounting software
When it comes to choosing accounting software for a small to medium-sized business in the UAE in 2025, there are a few key features and capabilities that you should look for:
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VAT / Tax Compliance & FTA-approval
The software must support UAE tax rules, including correct invoice formats, the ability to prepare VAT returns, support for the FTA’s Federal Audit File (FAF) when necessary, and e-invoicing and emaraTax. -
Multi-currency / Multi-entity
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Arabic & English interface and support
To serve local staff and any regulatory documents or Arabic invoices if needed. -
Cloud vs. on-premises/offline access
The more options for different ways to access the software, the better it is because it's more versatile and will probably suit your needs better. -
Inventory management and stock tracking
For SMEs in retail, trading, or manufacturing, the ability to track stock, warehouses, serial numbers, and batches is essential. -
Bank feeds, reconciliations, automated invoicing and reminders
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Permissions, user roles, and multi-user access
To ensure internal control and the separation of duties. -
Features for reporting, dashboards, and financial analysis
Profit and loss statements, balance sheets, cash flow forecasts, and the ability to drill down into data. -
Payroll and HR integration
If you pay local staff, you need to comply with UAE labor laws and end-of-year requirements. -
Security, backups, data localization
With the cloud, it's especially important to have strong security, reliable backup, and data stored in safe jurisdictions that comply with data protection regulations. -
Cost / scalability
Can you start small and scale up as your business grows? Are there any hidden fees, such as user add-ons or transaction limits?
Tricks to the best match
When you're picking the right software for your business, there's a trick that can save you a lot of time. Just ask these questions:
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Audit your needs
- How many users will need access?
- Do I need inventory and tracking, payroll, or multi-company?
- What kind of financial reporting do I need to do?
- Is there a requirement for Arabic invoices, e-invoicing / EmaraTax?
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Budgeting
- What's the monthly or yearly cost for a subscription or license?
- Make sure you include the cost of onboarding/migration, training, support, and any add-ons you think might be important.
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Compliance and legal requirements
- Does this software have FTA approval and can it generate the right VAT returns and audit files?
- Is it in line with the labor law and payroll regulations in the UAE when it comes to paying staff?
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Scalability
- Does this platform allow for growth? (more users, branches, modules).
- Avoid systems that lock you heavily or charge huge jump in cost when scaling.
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Local support and localization
- Are there local resellers, partners, or support in the UAE for faster issue resolution and training?
- Does it offer language support in Arabic and English, local banking integrations, and local regulatory updates?
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User Experience / Ease to use
- Is the interface clear? If so, it won't take you long to adapt to it.
- Does the platform have mobile access and automated tasks, such as bank feeds and recurring invoices?
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Integration and Add-ons
- Is it possible to integrate with my inventory, CRM, sales channels, e-commerce, and payment gateways?
- Does it support POS (point of sale) or delivery note templates if you need those?
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Trial or demo modes
- Is there a trial mode? Use the trial to test actual usage. Migrate sample data and see how suitable the reporting is.
With all these options and settings, things can get a bit confusing. But don't worry; it's not that big of a deal. In fact, we'll show you how to compare programs below. If you'd rather not do it yourself, we also offer outsourced accounting service for small businesses at reasonable price.
Top 5 best software programs for small business accounting in the UAE
Now, let's see how you can find what suits you best. Below is a list of five relevant programs for small businesses in the UAE.
Zoho Books
- Pros
- FTA-accredited; supports direct VAT filing.
- Strong cloud functionality, mobile app, bank feeds, invoice automation, multi-currency.
- Bilingual support, good local integration.
- Free-plan option for very small businesses.
- Cons
- Higher-tier plans may be required for more advanced features, such as complex inventory and advanced fixed asset management.
- Customizations such as delivery note templates and system workflows may be less flexible in lower tiers.
- There are additional costs for more users, scanned bills, autoscan, etc.
- Who it’s for
Startups and small SMEs who need VAT compliance, cloud access, want scalable features without huge upfront cost.
- Pricing (UAE) / notes
From Free (for solopreneurs and micro businesses) up to AED 159/month for higher plans.
QuickBooks Online
- Pros
- Very widely used globally; many accountants familiar with it.
- Good bank reconciliation, invoice and expense tracking.
- Relatively intuitive UI.
- Some local customization and VAT features.
- Strong ecosystem of third-party apps.
- Cons
- Costs can increase with the number of users and add-ons.
- Invoicing anв document structure customization might be limited in lower tiers.
- Who it’s for
Feelancers and SMEs who want a global brand and good third-party integration.
- Pricing (UAE) / notes
Basic plan around AED 70/month (AED 6.99 with a promotion), and up to AED 279/month for Advanced plan
Xero
- Pros
- Very modern UI and intuitive design.
- Third-party integrations, bank feeds, and strong reporting.
- Good for businesses operating internationally.
- Cloud-first and always up to date.
- Cons
- May be more expensive for feature-rich tiers.
- Some modules, such as payroll and inventory, may be available as add-ons or require external apps.
- Support costs and local support options may be slower than more localized alternatives.
- Arabic UI and Arabic invoice customization may be less than native UAE tools.
- Who it’s for
SMEs that are growing regionally or globally have more complex needs, such as multi-currency, inventory, and multiple users.
- Pricing (UAE) / notes
It typically costs between $29 and $69.
TallyPrime
- Pros
- Strong offline and on-premises options, as well as some online options. It is very robust for inventory, payroll, and reporting.
- Deeply trusted by accountants.
- Good for businesses with complex stock, multiple warehouses, or serial/batch tracking.
- Strong VAT readiness.
- Cons
- It is less "cloud-first" than some competitors and may require more manual updates.
- The user interface is more traditional, which creates a learning curve for newer users.
- It may be less flexible for remote access unless it is configured carefully.
- Some features may require more advanced hardware or setups.
- Who it’s for
Retailers, trading companies, import/export companies, manufacturing SMEs, and firms with complex inventory.
- Pricing (UAE) / notes
From AED 468 to AED 1,404 for existing customers and AED 2,340 — AED 7,020 for new customers
FirstBIT
- Pros
- Local UAE-based FTA-approved solution.
- Includes VAT auto-return generation, payroll, inventory management, and the ability to manage multiple warehouses and companies.
- Local businesses are supported by drill-down reporting and a local chart of accounts.
- Cons
- Maybe not as well known on the international stage; smaller ecosystem of add-ons and integrations compared to the big players.
- There might be steeper implementation/onboarding requirements for certain businesses.
- Depending on the scale, the costs of licensing and users may increase.
- Who it’s for
SMEs prefer local support and full compliance. They want an integrated solution for inventory and accounting without too many external dependencies.
- Pricing (UAE) / notes
Pricing may vary depending on the modules selected (entities, warehouses, users, etc.). A personal demo is offered.
Top accounting software for small retail businesses
Retail can be singled out here. It has specific needs to which software must adapt: POS integration, inventory tracking (often many SKUs, variations, batches), potentially multiple outlets / warehouses, promotions, supplier credit terms, etc. For these, some software stand out:
- TallyPrime — strong in inventory, offline/online sync, handling serial/batch, multi-warehouse.
- Zoho Books (some plans) — includes inventory modules, warehouse tracking, and custom item variants.
- FirstBIT — it includes multi-warehouse, inventory, and cost tracking.
- Xero — There are apps for POS and inventory add-ons (third-party integrations).
- QuickBooks — can handle basic retail stuff, especially at smaller stores. But if it's a big inventory or a promotion, you might need some extra help or external tools.
Comparison table for best accounting software for small businesses in UAE
If you are just starting your business in the UAE or you have a small company, Zoho Books is the best option for you. Its interface is very easy to learn, so you won't need to spend a lot of time understanding how it works. It is approved by the FTA and it offers free plans, which is great for maintaining accurate records.
Benefits of using accounting software for SMEs in the UAE
Now that you know what to choose, let's review the benefits of using professional accounting software for your business.
Do you know what would be even better for your business? Delegating your finances to professional accountants who know all the ins and outs of the UAE market and can help you avoid mistakes. For example, us. 😉 We provide all the necessary services for high-quality accounting.
- Improved compliance — properly structured VAT invoices and audit files reduce the risk of errors or penalties from the FTA.
- Time savings — automating repetitive tasks: invoicing, reconciliations, reminders.
- Better decision making — real-time dashboards, cash flow forecasts, insight into margins.
- Reduced manual errors and data duplication — fewer mistakes, better data integrity.
- Scalability — can support business growth (e.g., more outlets, staff, products) without requiring a complete rebuild from the beginning.
- Remote and mobile access
- Cost efficiency in long run — lower accounting / auditing costs, lower overhead of manual bookkeeping.
Do you know what would be even better for your business? Delegating your finances to professional accountants who know all the ins and outs of the UAE market and can help you avoid mistakes. For example, us. 😉 We provide all the necessary services for high-quality accounting.
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- Payroll processing
- Management of accounts payable and receivable
- Tax filing and compliance
- Audit preparation
Our rates are perfect for small businesses and freelancers. Just AED 400 per month, and you don't need to worry about finances and reports – we're taken care of. Why don't we talk about this in more detail?
FAQ
Yes, many platforms offer free or low-cost plans that are ideal for micro-businesses and solopreneurs.
Yes, if you choose reputable vendors
Zoho Books, FirstBIT
Costs vary depending on the features and number of users, as well as whether a cloud subscription or desktop license is used.
What to read next
We organise educational webinars for business owners and freelancers every week. Check out the webinars schedule to see what’s coming next.