Stockpile Audit
Comprehensive assessment of excise tax stockpile records
In the world of accounting, two important financial reports keep your business financially healthy: the Trial Balance and the Profit and Loss Statement (P&L). If you are a business owner in the UAE, knowing how to prepare and interpret these reports is essential for corporate tax compliance, accurate reporting, and strategic decision-making.
A trial balance is a summary of all general ledger accounts in your business. It lists the debits and credits for each account to ensure that your books are balanced.
Trial balance meaning: It is used to detect errors in bookkeeping and confirm that total debits equal total credits before preparing final accounts.
Record all business transactions in the general ledger.
Post the ledger balances into the trial balance sheet.
Ensure total debits = total credits.
Correct any errors found.
Importance of trial balance: It helps identify discrepancies early and ensures the financial statements are accurate.
0% corporate tax applies on eligible income for QFZPs.
Any non-qualifying income, or income generated through a mainland or foreign permanent establishment, is taxed at 9%
A P&L statement—also known as the income statement—shows your company’s revenue, expenses, and net profit or loss over a specific period.
Profit and loss statement meaning: It measures business performance and profitability.
Trial Balance: A summary check of all accounts to ensure accuracy before preparing final statements.
P&L Statement: A detailed report showing how much money the business made or lost in a given period.
Key link: You prepare the P&L using data from the trial balance.
In the UAE, accurate trial balance and P&L statements are crucial for:
Corporate tax calculation under the UAE Corporate Tax Law
VAT compliance and reporting to the Federal Tax Authority (FTA)
Gaining investor confidence and securing business loans
Monitoring profitability and making informed decisions
At AM Audit, we specialize in preparing trial balances and profit & loss statements in compliance with IFRS standards and UAE regulations. Our experts ensure accuracy, detect errors, and provide insights to boost your business performance.
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A trial balance is a summary of all ledger accounts showing debit and credit balances. It is used to check the accuracy of bookkeeping before preparing financial statements like the profit and loss account and balance sheet.
A trial balance ensures that all transactions are accurately recorded, which is critical for preparing corporate tax returns in the UAE. It helps verify income, expenses, and allowable deductions in compliance with UAE Corporate Tax Law.
A P&L statement, or income statement, shows your company’s revenues, expenses, and net profit or loss for a specific period. It is essential for assessing taxable income under UAE corporate tax regulations.
To prepare a P&L from a trial balance:
Transfer revenue accounts to the income section.
Transfer expense accounts to the expense section.
Subtract total expenses from total income to get net profit or loss.
This net profit figure is used for corporate tax assessment in the UAE.
No. A trial balance checks the mathematical accuracy of accounts, while a profit and loss account reports business performance. The trial balance is a step before preparing the P&L.
They provide accurate figures for taxable income, help claim allowable deductions, and ensure businesses meet FTA corporate tax filing requirements on time.
As of June 2023, the standard UAE corporate tax rate is 9% on taxable income above AED 375,000. Qualifying Free Zone Persons may be eligible for a 0% tax rate on qualifying income.
Yes. We offer complete accounting and auditing services, including trial balance preparation, P&L statement creation, and corporate tax compliance with UAE laws.
Comprehensive assessment of excise tax stockpile records
Streamlining the de-registration process
Accurate and timely excise return filing
Expert preparation of excise tax declarations
Get FTA excise tax approval fast and hassle-free.
FTA product registration made simple.
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