Consultancies, law firms, marketing agencies and other professional services firms bill through a mix of retainers, hourly fees and fixed-price projects, often with work performed well before — or well after — the associated invoice is raised. Getting revenue recognition and VAT timing right in this environment requires understanding your specific billing model, not applying a one-size-fits-all approach built for product-based businesses.
Common Challenges We Solve
VAT & Tax Considerations for Professional Services
Our Services for Professional Services
Who We Work With
Management and strategy consultancies, marketing and creative agencies, law firms, engineering consultancies, and other professional services businesses across the UAE.
Getting Started
Tell us how you typically bill clients — retainer, hourly, fixed-price, or a mix — and we will build a revenue tracking and VAT process around your actual model.
Partner and Profit-Share Accounting
Get Expert Help for Your Business
Talk to an FTA-approved tax consultant today. Free consultation, no obligation — we’ll tell you exactly what your business needs.
Multi-Currency Client Billing
Firms billing international clients in foreign currencies need consistent handling of exchange rate movements between invoicing and collection. We apply a clear approach to this across your client base, regardless of which currencies you bill in.
Subcontractor and Associate Consultant Payments
Consultancies and agencies frequently engage subcontractors or associate consultants on a project basis, which needs correct classification and VAT treatment distinct from employee payroll. We help ensure these arrangements are structured and accounted for correctly.
Client Trust Accounts and Client Money Handling
International Client Contracts and Withholding Tax
Professional services firms billing clients in jurisdictions with withholding tax requirements need to track any tax withheld at source and reconcile it against their own UAE tax position. We help firms understand and account for this correctly where it applies.
Utilisation Rate and Billable Hours Tracking
Time-based professional services firms benefit from tracking utilisation rate — the proportion of available staff time actually billed to clients — as a core performance metric alongside standard financial reporting. We can build this tracking into your regular management reporting where useful.
Proposal and Business Development Cost Tracking
Firms investing time in proposals and pitches for prospective clients benefit from tracking this cost separately from billable client work, giving a clearer view of true business development investment relative to revenue won. We can help build this visibility where useful to your firm.
We also help firms calculate a realistic win-rate-adjusted cost of new business, useful when setting pricing or evaluating which types of opportunities are worth pursuing.
Frequently Asked Questions
VAT is generally due at the earlier of invoice issuance or payment, so we track your billing schedule carefully to ensure VAT is applied at the correct point for each milestone.
Yes — we maintain visibility into unbilled time and project work so your management accounts reflect a true picture of the business, not just what’s been invoiced.
Yes — we manage retainer billing and revenue recognition consistently even where clients are on different renewal cycles.
Yes — our CFO / Financial Advisory service is well suited to professional services firms outgrowing founder-managed finances.
Yes — including client trust account considerations and matter-based billing common to legal practices.