Six record groups to prepare each month
Agree the relevant groups for the business and include every account or channel used for company transactions. A statement shows money movement; the supporting record helps explain its purpose. Mark a group “no activity” only after checking it, so silence is not mistaken for completeness.
| Record group | Prepare | Useful completeness check |
|---|---|---|
| 1. Sales and customer balances | Invoices, credit notes, sales reports and customer receipts. | Explain cancelled invoices, refunds and unpaid balances. |
| 2. Purchases and expenses | Supplier invoices, receipts, credit notes and expense claims. | Connect payments to their business purpose and approval. |
| 3. Bank, cash and processors | Complete statements, card activity, cash records and settlement reports. | Include all accounts, currencies, fees and period-end balances. |
| 4. People-related costs | Agreed payroll inputs, reimbursements and relevant changes. | Identify who approves the inputs and what changed. |
| 5. Assets, loans and owner movements | Purchase or disposal evidence, finance schedules and funding records. | Distinguish borrowing, owner funding and business trading. |
| 6. Contracts and period changes | New or amended commitments, deposits, prepayments and known missing records. | Flag timing questions and changes affecting the period. |
A four-stage handover from records to reporting
Use the same sequence each period so the team knows what is ready for review and what remains unresolved. A file can be received without being complete; a completed draft can still need an owner’s explanation or approval.
Collect and identify
Organise records by period and company, include the relevant account statements, and name the person supplying the file.
Match and reconcile
Connect supporting records with money movements. Investigate differences instead of forcing a match.
Resolve and review
Use one query log for missing evidence and explanations. Review proposed corrections with the responsible person.
Deliver and retain
Provide the agreed reports, outstanding-item log and handover notes. Preserve the underlying records and final version.
Agree the calendar and responsibilities in advance
The calendar below is a planning template, not a statutory deadline or a promised turnaround. Choose dates that fit the transaction volume, statement availability and reporting needs. Record what happens if information arrives after the agreed cut-off.
| Milestone | Responsible role | Agree before the month closes |
|---|---|---|
| Records ready | Business record owner | Collection date, reporting period and secure handover method. |
| Questions issued | Bookkeeping preparer | Review window and the format of the missing-item log. |
| Responses approved | Business decision-maker | Response date and the person authorised to resolve explanations. |
| Reporting pack delivered | Preparer and reviewer | Delivery date, report scope and treatment of open items. |
Keep missing records visible until they are resolved
Use one shared query log with a reference, amount if known, account or counterparty, missing evidence, owner and next action. Add status and resolution date. Avoid closing a query solely because somebody says “done”; record what evidence or explanation resolved it.
When evidence is unavailable, identify the gap and ask the preparer how it affects the records and reporting. Do not create a replacement invoice for somebody else or quietly label an unexplained payment as a business expense. Keep the final treatment and its basis with the reporting file.
| Reference | Open question | Next action |
|---|---|---|
| PAY-014 | Bank payment has no supporting purchase record. | Record owner obtains the supplier document and confirms purpose. |
| SET-003 | Processor deposit is lower than the invoice collection. | Preparer requests the settlement report and fee breakdown. |
| OWN-002 | Transfer from an owner has no explanation. | Authorised owner confirms its purpose and supplies supporting evidence. |
Worked example: invoice, processor fee and bank deposit
This fictional arithmetic example demonstrates why three records can be needed to explain one receipt. It is not a client result, a VAT calculation or a recommendation for any particular journal entry. Assume one invoice is fully collected through a payment processor, with no refund or other deduction.
The invoice is AED 1,200. The processor report shows a fee of AED 30 and a net settlement of AED 1,170. The bank statement shows the AED 1,170 receipt. The reconciliation is AED 1,200 − AED 30 = AED 1,170; treating the bank deposit alone as the invoice amount would hide the fee.
| Evidence | Illustrative amount | What it helps explain |
|---|---|---|
| Customer invoice | AED 1,200 | The billed amount and customer reference. |
| Processor settlement report | AED 30 deduction | Why the amount paid into the bank differs. |
| Bank statement | AED 1,170 receipt | The actual money received and settlement date. |
Define the reporting pack and what it does not include
Agree the deliverables in the engagement. Depending on the scope, these may include reconciled balances, a trial balance, profit-and-loss and balance-sheet reports, receivable or payable schedules, and unresolved-item notes. Specify the reporting basis and review responsibilities rather than assuming every report is included.
Keep bookkeeping, wider accounting work and corporate tax preparation distinguishable. Useful monthly records support later work, but their preparation does not itself mean a tax return has been filed, an audit completed or every tax treatment reviewed.
Retain the evidence and improve next month’s handover
For corporate tax, the FTA states that Taxable Persons and Exempt Persons must keep relevant records for at least seven years following the end of the related Tax Period. Confirm the retention requirements that apply to each record set; other obligations or circumstances can require different treatment.
Keep the source records, reconciliations, query resolutions and final reporting pack in an organised archive with appropriate access and backups. Agree who maintains it and how the business can retrieve its records if the service provider changes. At the next handover, check recurring gaps and improve the collection process rather than reopening the same question each month.
Monthly bookkeeping handover questions
Are bank statements enough for monthly bookkeeping?
Statements show money movements but may not explain the underlying sale, cost, refund or funding. Include the relevant invoices, receipts and other supporting records, together with explanations for differences and missing items.
What should I do when a receipt or invoice is missing?
Put the item in the query log, assign a person to obtain evidence and keep the gap visible. Agree the treatment with the preparer based on the actual circumstances rather than inventing a document or silently classifying the payment.
Does a monthly bookkeeping report include my tax return?
Only if the engagement expressly includes the relevant tax work and filing. Define reporting outputs separately from tax preparation, submission and any audit or professional review.
What date should we use for the monthly handover?
Agree it around statement availability, transaction volume and reporting needs. Set dates for records, questions, responses and delivery, with a process for late items. Those working dates do not replace statutory filing deadlines.