Question 1

Why are my books not matching my bank balance?

Accepted Answer

This usually happens when transactions are missing, duplicated, or recorded in the wrong periods. It also occurs when POS deposits, cash handling, or supplier payments haven't been reconciled correctly. We perform a full reconciliation so every bank entry matches accurately with your books.

Question 2

What should I do if my books are messy?

Accepted Answer

Stop filing VAT or preparing any returns until your books are corrected because errors increase penalty risks. Messy books lead to wrong financial decisions and inconsistent reporting. We clean, rebuild, and reconcile everything so your data becomes accurate and audit-ready.

Question 3

How do I know if my current bookkeeper is doing a bad job?

Accepted Answer

If reports are delayed, balances keep changing, or VAT feels uncertain, these are early warning signs. Missing documentation, unstable numbers, and frequent adjustments also signal poor-quality bookkeeping. We review your books and show you exactly where the problems are.

Question 4

Why do my POS sales not match my accounting system?

Accepted Answer

This happens when discounts, commissions, cash differences, or delivery settlements are posted incorrectly. If POS isn't configured properly, VAT mapping and category splits also create mismatches. We align POS, bank deposits, and accounting entries to remove variances.

Question 5

How do I fix months of inaccurate bookkeeping?

Accepted Answer

We review each month, reconstruct missing entries, reconcile POS and bank, and correct VAT coding. The process is detailed but ensures your records become reliable again. By the end, your books reflect your true financial position.

Question 6

Can Ratio clean up years of accounting backlog?

Accepted Answer

Yes, we handle multi-year cleanups for businesses with missing or inconsistent records. Backlogs require structured reconciliation to rebuild accurate histories. We restore your accounts so they are ready for VAT, CT, audit, or investor review.

Question 7

Why do my profits look higher than my cash flow?

Accepted Answer

This means expenses, loan payments, or supplier dues aren't fully recorded even though sales are. Cash flow reflects reality, while profit reflects accounting entries. We reconcile both so you can see the true financial picture.

Question 8

What documents do I need to fix messy books?

Accepted Answer

Bank statements, POS reports, invoices, supplier statements, contracts, payroll data, and loan schedules are essential. The more complete your documentation, the faster the cleanup. We organize everything and rebuild your books from the ground up.

Question 9

How long does it take to clean messy books?

Accepted Answer

It depends on transaction volume, document availability, and how inconsistent the books are. Most SMEs take between a few weeks to a few months. We give you a realistic timeline after reviewing your current state.

Question 10

What happens if I don't clean my books before VAT filing?

Accepted Answer

You risk filing incorrect returns, triggering penalties, and attracting FTA review. Messy books also create long-term issues for audits, banks, and investors. Clean books help you remain compliant and confident in your numbers.

Question 11

What are the penalties for VAT mistakes in UAE?

Accepted Answer

FTA penalties apply for incorrect VAT calculations, missing documentation, or wrong codes used in returns. These fines can include fixed penalties plus percentage-based amounts on unpaid or underpaid VAT. Clean books and correct VAT mapping prevent unnecessary risks.

Question 12

How do I avoid FTA penalties?

Accepted Answer

Maintain accurate, reconciled books and review VAT coding frequently. Filing on time with proper documentation reduces audit likelihood. We ensure your VAT position is correct every month so penalties don't accumulate.

Question 13

Why did FTA flag my business for review?

Accepted Answer

Your returns may show unusual trends such as sudden drops, high refunds, or inconsistent reporting. FTA also checks mismatches between customs data, POS and VAT filings. We identify the triggers and correct the issues before they escalate.

Question 14

What triggers an FTA audit?

Accepted Answer

Frequent amendments, negative adjustments, inconsistent VAT codes or incomplete documentation are common triggers. High-volume cash businesses also attract more attention if records aren't clear. Proper accounting and documentation reduce audit risk significantly.

Question 15

What happens if I file VAT late?

Accepted Answer

FTA applies financial penalties for late filing and late payment. Interest may also accumulate on unpaid amounts. We handle your VAT timeline so filings are always submitted before deadlines.

Question 16

How do I correct a wrong VAT return?

Accepted Answer

Depending on the error size, you must use voluntary disclosure or adjust it in the next filing period. Both require proper schedules and evidence to avoid penalties. We prepare and submit the correction professionally so your compliance stays intact.

Question 17

How can I reduce audit risk?

Accepted Answer

Ensure invoices are correct, VAT is coded properly, and all documentation is stored systematically. Consistent reconciliation prevents variances that attract attention. Our compliance reviews help you stay audit-ready all year.

Question 18

What if I overclaimed input VAT?

Accepted Answer

Overclaimed VAT must be corrected immediately through proper adjustments or disclosure. If left unresolved, it creates penalties and delays refunds. We assess the mistake and guide you to correct it safely.

Question 19

What if I missed output VAT on sales?

Accepted Answer

You must correct the return, pay the missing VAT, and update your invoicing or POS setup. Missing output VAT is viewed seriously by FTA and repeated issues increase audit frequency. We help ensure this doesn't recur.

Question 20

Can Ratio represent me during an FTA audit?

Accepted Answer

Yes. We prepare reconciliations, documentation and responses for FTA officers. Our team supports you throughout the process so the audit is completed smoothly.

Question 21

What are common VAT mistakes UAE businesses make?

Accepted Answer

Most mistakes come from using wrong VAT codes, missing tax invoices, and failing to reconcile sales, purchases, and customs data. Many businesses also misapply zero-rated rules without proper evidence. We audit your VAT setup to ensure every entry follows FTA requirements.

Question 22

How often should I review VAT codes?

Accepted Answer

High-volume businesses like F&B should review VAT codes monthly because menu changes and POS updates cause errors. Other SMEs should review quarterly to maintain accuracy. We set a recurring review cycle so VAT coding never falls behind.

Question 23

Why is my VAT payable unusually high?

Accepted Answer

It usually means input VAT is missing, expenses were not recorded, or some sales were taxed at the wrong rate. Sometimes POS systems overstate taxable sales if discounts are misconfigured. Our VAT review identifies the exact cause and corrects it.

Question 24

Why is my VAT refund delayed?

Accepted Answer

FTA delays refunds when documentation is incomplete or when reported figures look inconsistent. They may also request clarifications on zero-rated or export supplies. We prepare clean reconciliations so your refund moves faster.

Question 25

How do I fix VAT coding errors in my POS?

Accepted Answer

We review your full item list and map each product, modifier, and combo to the correct VAT rule. After updating your POS, we test sample orders to confirm correct invoice output. This prevents mismatches between POS and VAT returns.

Question 26

How should I handle VAT on delivery platforms?

Accepted Answer

Delivery platforms add commissions, discounts, refunds and VAT elements that must be captured correctly. You must record gross sales, platform fees, VAT amounts, and net settlements accurately. We reconcile your Talabat/Zomato/Uber data with your accounting system.

Question 27

How should I treat zero-rated items?

Accepted Answer

Zero rating requires strict documentation like export evidence or specific service criteria. Applying zero percent incorrectly creates penalties or refund delays. We ensure every zero-rated entry meets FTA rules with complete support.

Question 28

How do I handle import VAT?

Accepted Answer

You must match customs (Import Declarations) with your accounting system and declare import VAT using the correct box in returns. Incorrect matching is a major audit trigger. We reconcile customs data to ensure accuracy.

Question 29

Should I charge VAT on free items?

Accepted Answer

Sometimes yes, depending on whether the free item qualifies as a deemed supply. Businesses often get penalized for ignoring this rule. We review your promotional strategy to determine the correct VAT treatment.

Question 30

Does my business need VAT registration?

Accepted Answer

If your taxable supplies exceed the mandatory threshold, you must register. Even businesses below the threshold often register voluntarily to claim input VAT. We calculate your eligibility using real monthly data.

Question 31

What is UAE Corporate Tax?

Accepted Answer

Corporate Tax is a federal tax on the profits of UAE businesses based on internationally aligned principles. It applies on net income after adjustments and excludes certain categories like qualifying free-zone income. We ensure your books and filings meet all CT standards.

Question 32

Who must pay corporate tax?

Accepted Answer

Most mainland and free-zone companies must pay corporate tax unless they qualify for exemptions. Even small businesses must assess their eligibility carefully. We help you determine your tax position based on your revenue and structure.

Question 33

How do I calculate taxable income?

Accepted Answer

Start with your accounting profit, then adjust for non-deductible expenses, exemptions, incentives and CT rules. Certain provisions and personal expenses cannot be deducted. We align your books to produce an accurate taxable income computation.

Question 34

What is Small Business Relief?

Accepted Answer

This relief allows eligible businesses to be treated as having zero taxable income if revenue stays within limits. It reduces compliance burden but has strict rules and conditions. We verify eligibility and ensure you do not trigger disqualification penalties.

Question 35

Am I eligible for Small Business Relief?

Accepted Answer

Eligibility depends on your revenue threshold, business activity, and group structure. A mistake in classification can lead to penalties during audits. We evaluate your financials to confirm if SBR applies safely.

Question 36

What documents do I need for Corporate Tax filing?

Accepted Answer

You need financial statements, ledgers, trial balance, contracts, schedules and documentation for adjustments. Missing documents weaken your tax position. We organize and prepare everything in a structured CT file.

Question 37

What are common Corporate Tax mistakes?

Accepted Answer

Incorrect revenue calculation, wrong adjustments, and failure to identify non-deductible expenses are common errors. Many SMEs file without proper documentation, increasing audit exposure. We review your CT work to ensure accuracy and compliance.

Question 38

When is my CT return due?

Accepted Answer

CT returns must be filed within a specific period after the end of the financial year. Late filings attract penalties and interest. We manage your deadlines so you never miss a submission.

Question 39

How do I file a CT return?

Accepted Answer

Returns are filed through the FTA portal using prepared computations and disclosures. Accuracy is critical because CT filings are audit-prone. We complete your return end-to-end with proper review.

Question 40

How does Ratio help with Corporate Tax compliance?

Accepted Answer

We calculate taxable income, prepare schedules, identify adjustments and file your CT return. Our team ensures consistency between bookkeeping, VAT and CT. This creates a fully compliant tax position.

Question 41

What is WPS and why is it mandatory?

Accepted Answer

WPS is the Wage Protection System that ensures salaries are paid through approved banks and exchange houses. It protects employees' rights and helps authorities monitor payroll compliance. Every UAE business with employees must process salaries through WPS to avoid fines and license restrictions.

Question 42

How do I prepare a proper payroll file?

Accepted Answer

You need accurate attendance, correct salary structures and updated employee details that match MOHRE and immigration records. Any mismatch leads to WPS rejection or delays. We prepare your monthly payroll with clean data, correct formats and error-free files.

Question 43

How is EOSB calculated?

Accepted Answer

EOSB is based on basic salary and years of service following UAE Labour Law slabs. Errors usually happen when allowances are mixed into basic or when service periods are calculated incorrectly. We calculate EOSB precisely and maintain updated employee records for clean exits.

Question 44

How do I fix payroll inconsistencies?

Accepted Answer

Payroll inconsistencies happen when attendance isn't recorded properly or salary structures aren't aligned with contracts. This leads to disputes, WPS errors and compliance risk. We reconcile your payroll history and rebuild a clean, compliant payroll cycle.

Question 45

What is the correct basic salary ratio?

Accepted Answer

UAE Labour Law doesn't mandate a fixed basic-to-allowance ratio, but basic salary directly affects EOSB. Most companies keep basic between 40% to 60% for stability and transparency. We set up a proper structure that avoids employee disputes and legal issues.

Question 46

What are Emiratisation requirements?

Accepted Answer

Mainland companies with 50 or more employees must hire UAE nationals based on annual targets set by MOHRE. Non-compliance leads to penalties, restrictions and fines. We help track your Emiratisation position and maintain HR data for audits.

Question 47

What are common payroll mistakes businesses make?

Accepted Answer

Late payments, incorrect EOSB, miscalculated leave salaries and improper deductions are common issues. Many businesses also forget to update WPS files when employees change roles or salaries. We maintain clean records and automate checks to avoid mistakes.

Question 48

How do I maintain proper leave records?

Accepted Answer

Use a structured leave-tracking system with approvals and balance monitoring. Incomplete leave data causes payroll disputes and inaccurate EOSB. We set up digital leave logs and ensure they align with payroll.

Question 49

How do I ensure payroll compliance every month?

Accepted Answer

Process payroll on fixed timelines, maintain clean attendance, perform WPS checks and update staff records monthly. Consistency avoids both employee complaints and MOHRE issues. We take over your payroll cycle end-to-end to ensure compliance.

Question 50

How can Ratio manage my payroll end-to-end?

Accepted Answer

We prepare payroll, process WPS, track leave, update EOSB and maintain clean employee files. Our team ensures full compliance with MOHRE and labour law every month. You get reliable, accurate payroll without last-minute issues.

Question 51

Why is my cash flow tight even when sales are high?

Accepted Answer

High revenue doesn't guarantee healthy cash flow because timing of collections, supplier payments and loan deductions affect real cash position. Many businesses record sales but don't track when money actually arrives. We build a cash flow structure that shows where cash is going and how to fix the gaps.

Question 52

How do I forecast cash flow properly?

Accepted Answer

Cash flow forecasting requires projecting expected sales, expenses, tax payments and supplier dues over the coming months. Most businesses skip this and face unexpected shortages. We design a simple, practical cash flow model based on your business pattern.

Question 53

How do cafés and cafeterias track daily cash flow?

Accepted Answer

Daily tracking requires POS vs cash reconciliation, deposit logs and monitoring of delivery settlements. F&B businesses lose money when these aren't matched daily. We build a routine that keeps your cash flow updated without extra burden on operations.

Question 54

How do I detect staff misuse in cash handling?

Accepted Answer

Regular reconciliation, variance reports and surprise checks help identify inconsistencies. Small daily variances often grow into major losses if ignored. We set up controls that immediately highlight irregularities.

Question 55

Why is my business always short on cash at month-end?

Accepted Answer

This happens when expenses are irregular, supplier terms are unmanaged or collections are delayed. Many businesses rely on gut feel instead of structured tracking. We analyse your cash cycle and correct the timing mismatches.

Question 56

How do I reduce unnecessary expenses?

Accepted Answer

Reviewing spend category-wise, challenging recurring costs and eliminating wasteful operational habits reduces expenses significantly. Many SMEs overspend on items they don't review monthly. We conduct expense audits to identify where savings can be made.

Question 57

Why do suppliers keep showing incorrect balances?

Accepted Answer

Because invoices aren't recorded properly or statements aren't reconciled regularly. Supplier mismatches cause disputes and duplicate payments. We reconcile supplier ledgers monthly and fix longstanding differences.

Question 58

How do I prevent duplicate payments?

Accepted Answer

Use proper approval flows, tagging of invoices and statement reconciliation before making payments. Duplicate payments happen when systems or teams work without coordination. Our payment control system prevents errors before they occur.

Question 59

How do I manage credit customers properly?

Accepted Answer

Credit requires fixed limits, clear terms and ageing follow-up. Without control, credit turns into bad debt. We set up an ageing dashboard so you always know who owes you and for how long.

Question 60

How does Ratio improve my cash flow visibility?

Accepted Answer

We clean your books, reconcile bank and cash, track payables and receivables and deliver clear cash flow reports. You see real numbers instead of assumptions. This gives you control over spending and planning.

Question 61

Why do cafeterias lose money despite high sales?

Accepted Answer

Many cafeterias generate strong daily sales but lose money because food cost, wastage and delivery commissions aren't monitored. Cash variances and supplier overcharging further reduce margins without owners noticing. We track these metrics so your sales convert into real profit.

Question 62

How do I calculate food cost properly?

Accepted Answer

Food cost requires calculating recipe-level cost using accurate purchase prices, portions and wastage. Many F&B owners underestimate ingredient usage or ignore hidden costs like oil, packaging and modifiers. We build correct costing so you understand your true margins.

Question 63

How do I track wastage daily?

Accepted Answer

Use a shift-level wastage log for items thrown, spoiled or over-prepared. Wastage directly impacts profit, especially in high-volume cafés and cafeterias. We create an easy process your staff can follow so wastage becomes visible and controllable.

Question 64

What's the ideal food cost percentage for UAE cafés?

Accepted Answer

Most successful cafés operate between 28% and 34% food cost depending on concept and pricing. Anything beyond this range usually indicates overpouring, supplier issues or incorrect menu pricing. We analyse your food cost monthly and help you maintain profitability.

Frequently Asked Questions