Time-based billing, WIP & partner drawings
Accounting Services for Professional Services Firms in Dubai
Professional services accounting — for consultancies, law firms and agencies — hinges on accurate time-based billing, unbilled work-in-progress tracking, and correctly distinguishing partner drawings from salary.
What's different about professional services firms accounting
Most businesses in this sector rely on the same core services: bookkeeping, VAT return filing, the annual corporate tax return and the statutory audit.
Accounting services built for professional services firms
Accounting for consultancies and professional firms
Consultancies, agencies, engineering practices and other professional firms sell time and expertise. Their accounting challenges are unbilled work in progress, milestone and retainer billing, utilisation, and partner or shareholder drawings that blur with business expenses. Getting these right gives owners a clear view of which clients and engagements are profitable, and gives the tax return a defensible base.
| Revenue and WIP | Time-based, milestone and retainer revenue recognised under IFRS 15, with unbilled WIP tracked |
| Utilisation | Billable hours and project margins reported monthly |
| Expenses | Reimbursable client costs separated from overheads |
| Owner drawings | Shareholder accounts kept separate from business costs |
| Receivables | Collections and credit control on long payment cycles |
| Year-end | IFRS statements, corporate tax return and Small Business Relief assessment |
VAT and corporate tax for professional firms
Professional services supplied to UAE clients are standard-rated at 5%. Services supplied to clients outside the UAE can be zero-rated as exports, but only where the recipient is not in the UAE when the services are performed and the services are not connected to UAE assets — conditions that are often misapplied.
Many consultancies are small enough to use Small Business Relief while revenue stays within AED 3 million. Free zone consultancies serving mainland clients usually cannot rely on the 0% qualifying income rate.
Related services for professional firms
Related guides from our team
Practical explanations of the rules behind this service, written by our chartered accountants.
Questions from professional services firms owners
How is partner drawings treated differently from a salary?+
Drawings are typically an advance against profit share rather than a deductible salary expense — the distinction affects both the firm's tax position and each partner's personal filings.
Can you show us profitability by client, not just overall?+
Yes — with proper time tracking integrated into the bookkeeping, per-client and per-engagement profitability becomes visible rather than assumed.
Do retainer fees get recognised when received or when earned?+
Generally when earned, over the period the service is delivered — recognising the full retainer on receipt overstates revenue in the period it's billed.
Can consultancy services to overseas clients be zero-rated?+
Yes, if the client is outside the UAE when the service is performed and the service is not linked to UAE assets. Keep evidence.
Is a free zone or mainland licence better for a consultancy?+
It depends on where clients are. Mainland with Small Business Relief often suits firms serving UAE clients.
Do you set up time and billing systems?+
Yes, integrated with Xero, QuickBooks Online or Zoho Books.
Can you act as our outsourced finance function?+
Yes — bookkeeping, management reporting and part-time CFO support.
First review is free, within 24 hours.
Running a professional services firms business and tired of generic bookkeeping?
Tell us your current setup and where the reporting breaks down — we'll scope a fixed monthly fee built around how your business actually earns revenue.