Streamlining Contract Management in the UAE for SMEs: The Power of Automation

What is Contract Management – Introduction

In the dynamic landscape of modern business, Small and Medium Enterprises (SMEs) play a pivotal role, often navigating tight budgets and resource limitations. Among the challenges these enterprises face, contract management is a critical process that requires meticulous attention.

With the advent of technology, automation has emerged as a transformative solution, offering SMEs the means to efficiently manage their contracts without needing costly contract lifecycle management software.

This blog explores the profound benefits of automating contract lifecycle management for SMEs, shedding light on how automation can revolutionise their operations and foster growth.

Key Benefits of Automating Contract Management:

  1. Efficiency and Time Savings

    • Automation eliminates manual data entry and repetitive tasks.
    • Contracts are processed faster, leading to improved operational efficiency.
  2. Error & Risk Mitigation

    • Automated workflows reduce the risk of human errors in data entry and calculations.
    • Contracts are accurately managed, minimising potential legal or financial issues.
  3. Centralised Repository

    • Contracts are stored in a centralised digital repository, easily accessible to authorised personnel.
    • No more hunting for physical documents or searching through scattered files.
  4. Customisable Workflows

    • Create tailored workflows that align with SMEs’ specific contract management processes.
    • Workflow automation ensures consistent adherence to company policies.
  5. Automated Reminders and Alerts

    • Set up automated reminders for contract renewal dates, ensuring timely action.
    • Instant alerts notify stakeholders of any contract changes or updates.
  6. Enhanced Visibility

    • Automated tracking provides real-time visibility into the status of contracts.
    • Monitoring contract lifecycles becomes more manageable, enabling proactive decision-making.
  7. Cost Savings

    • By avoiding costly manual errors and delays, SMEs can save on potential legal disputes or missed opportunities.
    • Automation reduces the need for extensive manual labour, reducing operational costs.
  8. Data-Driven Insights

    • Automation generates data that can be extracted into Excel files for analysis.
    • Insights into contract trends and performance can inform strategic decisions.
  9. Scalability

    • As SMEs grow, automated contract management scales easily to accommodate increased contract volumes.
  10. Compliance and Security

    • Automation ensures compliance with regulatory requirements throughout the contract lifecycle.
    • Digital security measures protect sensitive contract information.


In the realm of SMEs, efficiency and effective resource utilisation are paramount. The benefits of automating contract management can significantly contribute to these goals, empowering SMEs to navigate the complexities of contract lifecycles with confidence. As we’ve explored, the advantages span from minimising errors and costs to optimising workflows and bolstering security. By embracing automation, SMEs can enhance their contract management processes and position themselves for sustained growth in a competitive business landscape. Through automation, SMEs can unlock a new era of streamlined, effective, and forward-looking contract management.

If you are looking for a solution to your contract management, please get in touch with Mr Nihar Kothari, Co-founder and Partner at Affiniax, at

Automate Your Payment Reminders and Improve Your Cash Flow

Automated Payment Collection Reminders

Why Automated Payment Reminders?

As a small business owner in the UAE, you know that collecting payments from clients on time is essential for your cash flow. It is also an important part of accounting and bookkeeping services of a company. But it can be time-consuming and frustrating to track down late-paying customers. That’s where automated payment reminders come in.

Automated payment collection reminders are a simple and effective way to improve your cash flow and customer relations. By automating your payment reminders, you can free up your time to focus on other aspects of your business, while ensuring that your customers are always aware of their accounts payable status.

Benefits of Automating Payment Reminders

There are many benefits to automating your payment reminders, including:

  • Increased efficiency: Automating payment reminders frees up your time so you can focus on other aspects of your business.
  • Improved cash flow: By collecting payments on time, you can improve your cash flow and avoid levying late fees.
  • Better customer relations: Automated payment reminders can help you maintain good customer relations by keeping customers informed about their account status.
  • Improved customer service: Automated payment reminders can help you improve your customer service by providing a consistent and efficient way to communicate with customers about their account status.
  • Increased sales: By collecting payments on time, you can free up cash to invest in your business, which can lead to increased sales.

How to get started?

There are a number of ways to automate your payment collection reminders. At Affiniax Partners, we provide effective solutions to automate your collections and sending periodic reminders to your customers. This starts with a consultation to assess your current systems and processes.

To learn more about how to automate the payment reminders please contact Mr. Nihar Kothari, Partner at

Automation of Payment Process

Payment process is a critical part of any business, but it can also be a time-consuming and error prone. By automating the payment process, businesses can save time and money, improve accuracy, and reduce fraud.

There are a few key steps involved in automating the payment processing process:

1. Choose a payment processing solution. There are many different payment processing solutions available, so it’s important to choose one that meets your specific needs. Some factors to consider include the types of payments you want to accept, the fees charged by the solution, and the level of security it offers. Alternatively, the entity can continue to have their banking channel as main mode of payments.

2. Integrate your payment processing solution with your accounting system. Once you’ve chosen a payment processing solution, you need to integrate it with your accounting system. This will allow you to track payments and reconcile your accounts. A solution can be created to reconcile your banking transactions too.

3. Create a workflow for payment processing. Once your payment processing solution and accounting system are integrated, you need to create a workflow for payment processing.

This workflow should include the following steps:

  • Invoices are created and sent to customers.
  • Customers pay invoices through the payment processing solution.
  • Payments are automatically reconciled with the accounting system.
  • Vendors are notified of payments.

4. Automate the payment approval process. If you need to get approval for payments before they’re sent, you can automate the approval process. This can be done by integrating your payment processing solution with your approval system.

By automating the process of payment processing, you can save time and money, improve accuracy, and reduce fraud. Here are some of the benefits of automating payment processing:

  • Save time and money. Automate to save time and money on manual tasks.
  • Improve accuracy. Automate to reduce errors and increase accuracy.
  • Reduce fraud. Automate to make it harder for fraudsters to steal money.
  • Improve customer satisfaction. Automate to make it easier for customers to pay.
  • Increase compliance. Automate to help you stay in compliance with regulations.
  • Gain insights. Automate to track payments and identify trends.

Overall, automating payment processing can offer several benefits for businesses.

For more information, please feel free to contact Nihar Kothari, Partner at Affiniax at

Expense reimbursement process and automation

We understand that managing employee expenses can be a tedious and error-prone process. That’s why we are excited to introduce our expense management solution, which can help streamline this process for you. Our solution automates the process of approving and reimbursing employee expenses by:

  • Creating a workflow that captures and validates expenses
  • Routing expenses to the appropriate approver
  • Automatically updating the accounting system

Our expense management solution is:

  1. Easy to use and fully customizable to fit the unique needs of your organization
  2. Configurable to automatically validate expenses based on predefined rules, such as expense type, amount, and date
  3. Provides visibility into your organization’s expenses, providing insights into spending patterns and areas where cost-saving measures can be implemented.
  4. By implementing our expense management solution, your organization can expect:
  5. Improved productivity and efficiency
  6. Reduced errors
  7. Better control over expenses

How can Affiniax Partners help?

We have a team of finance and technical experts who can understand your requirements in detail and recommend a workflow which will help in achieving the desired customised results. For more information, please get in touch with Mr. Nihar Kothari, Partner at

Invoice Automation and Data Extraction

Invoicing is an integral part of every business, and it involves the process of creating, sending, and receiving payment for goods or services. However, manual invoicing can be a tedious and error-prone process that takes up a lot of time and effort. Automation of invoices can make this process much more efficient and streamlined. In this blog, we will explore the benefits of automating the process of processing invoices.

1. Saves Time: Automating the invoicing process can save a considerable amount of time that would otherwise be spent on manual data entry, data validation, and invoice creation. Automation can be done by extracting data from excel sheets, invoicing platforms, or emails, and automatically creating or updating the corresponding records in your accounting system.

2. Reduces Errors: Manual invoicing can be prone to errors, such as incorrect data entry, misplaced documents, or delayed payments. Automating the process reduces the chances of errors and provides a more accurate and efficient system. This also helps to avoid the need for manual correction, which can be time-consuming.

3. Improves Cash Flow: Automated invoicing can improve cash flow by reducing the time taken to send invoices and receive payments. By automating the process of invoicing, you can send invoices quickly, and your customers can make payments easily and promptly. This ensures that your business always has a steady flow of cash.

4. Increases Productivity: Automating the invoicing process can free up time for your employees, allowing them to focus on other critical tasks. This can increase productivity and allow your business to operate more efficiently.

5. Enhances Customer Experience: Automated invoicing can also improve the customer experience. By sending invoices promptly, you can ensure that your customers have enough time to make their payments, reducing the chances of late payments or missed deadlines. This creates a positive impression of your business and can lead to increased customer satisfaction. In conclusion, automation of invoices can bring many benefits to businesses, such as increased efficiency, reduced errors, improved cash flow, increased productivity, and enhanced customer experience. By automating the invoicing process, businesses can save time and money, increase accuracy, and improve customer relationships. With the right tools and software, businesses can streamline their invoicing process and enjoy the benefits of automation.

How can Affiniax Partners help?
We have a team of finance and technical experts who can understand your requirements in detail and recommend a workflow which will help in achieving the desired customized results. For more information, please get in touch with Mr. Nihar Kothari, Partner at

Awarded as best CA & auditors at the IRECMS Dubai awards 2022

It is a great pleasure for us to announce that we have been awarded again as the best CA & Auditors at the IRECMS Dubai Awards 2022.

Obtaining this recognition two years in a row shows us that we are continuing on the right path, and encourages us to continue improving and growing to offer our clients the best possible service.

Thank you all so much for this opportunity and for the fantastic experience!

EmaraTax – Important Alert for all Tax Payers (from FTA – Federal Tax Authority, UAE)


Effective 5 December 2022, FTA online e-services portal shifted to EmaraTax.

It is important for all Tax Payers to access the online FTA account through the new online e-services portal now “EmaraTax”.

To access the online FTA e-services account (for all Tax Payer services e.g., Submitting VAT returns etc.) all Tax Payers must reset the password by following the instructions provided on the FTA’s website.

It is advised that all Tax Payers holding valid accounts with FTA must reset their password by following the instructions providing on the e-services portal of FTA

Once the password reset request is generated, Tax Payer shall receive an email from official FTA emailer with <Temporary Password>, once that <Temporary Password> is entered on the new online e-services portal (EmaraTax) of FTA, Tax Payers will be eligible to set a new password to the online FTA e-services portal (EmaraTax) and fulfill their Tax Obligations.

Since this is a major transition, it is advised that all Tax Payers have the procedures followed as described by the FTA.

It is important to understand that the new system offer only “4 Attempts” (with incorrect/invalid/old password) to access the online FTA account. Should you require any assistance in updating the password to access the new online FTA’s e-services portal “EmaraTax”, reach us at and we will assist you through this transition smoothly.

#EmaraTax #FTA

New Criteria for Tax Residency Certificate (TRC) In the UAE

New Criteria for Tax Residency Certificate (TRC) In the UAE


The government of UAE, through its Cabinet Decision No. 85 of 2022 for the determination of tax residency, issued a guideline on 2nd September 2022 to determine the tax residency for a natural and legal person.

The new rules broaden the criteria of UAE tax residency as this embarks another step taken by UAE in strengthening its position in global tax compliance and provides much-needed clarity with regard to the statutory definition of UAE tax residency.


Prior to the issuance of this decision, the UAE did not have a statutory definition for ‘tax residency.’ Previously, the Federal Tax Authority (FTA) determined the tax residency for natural persons primarily based on the number of days spent in UAE (at least 180 days in a relevant year) supported with certain documentary requirements, and for legal persons, it must have been established for a period of at least one year supported with certain documentary requirements.

Significant changes pursuant to the issuance of the decision for the determination of new tax residency:

For Legal Persons:

As per Article 3 of the Cabinet Resolution, a legal person (i.e., the company or entity) shall be considered a tax resident of UAE in either of the following cases:

  • If it was incorporated, formed, or recognized in accordance with the legislation in force in the State, and that does not include the branch that is registered by a foreign juridical person in the State; or
  • It is considered a Tax Resident in accordance with the Tax Law in force in the State.

For Natural Persons:

As per Article 4 of the Cabinet Resolution, a natural person (i.e., an individual) shall be considered a tax resident of UAE, whereby any of the following conditions are satisfied:

  • If his usual or primary place of residence and the center of his financial and personal interests are in the State, or he meets the conditions and criteria determined by a decision from the Minister; or
  • If he has been physically present in the State for a period of 183 days or more, within the relevant (12) twelve consecutive months; or
  • If he has been physically present in the State for a period of 90 days or more, within the relevant (12) twelve consecutive months, and he is a UAE national, holds a valid Residence Permit in the State, or holds the nationality of any member state of the Gulf Cooperation Council, and meets any of the following:
  • He has a Permanent Place of Residence in the State; or
  • He carries on employment or Business in the State.

However, as per Article 6 of the Cabinet Resolutions, if any International Agreement sets out certain conditions for determining tax residency, the provisions of that International Agreement on determining the tax residency shall apply for the purposes of this International Agreement.

The Minister shall issue a decision specifying the form and manner of issuing certificates for determining the tax residency for the purposes of the International Agreement.

Effective Date of this Decision

This decision shall be effective from 1st March 2023.

Application for Tax Residency Certificate (TRC)

The legal or natural persons who satisfy the aforementioned conditions shall submit a request to apply for a TRC, which shall be approved as per the requirements of the FTA. The FTA may further ask for more relevant documents to satisfy itself to issue TRC as and when required.

Role of “Affiniax Partners” in TRC Application?

The “Affiniax Partners,” with its team of experts, shall guide you (all natural and legal persons) in determining eligibility and application for TRC.

Please feel free to get in touch with our team of experts.

Written by Ms. Neha Upadhyay.

Landmark VAT legislation update since 2018; amendments effective 1 January 2023

While UAE VAT legislation is about complete its 5th year since its implementation back in 2018, the Ministry of Finance introduced a major revision to the original VAT legislation (by issuance of Federal Decree-Law No. 18 of 2022). The proposed changes are effective 1 January 2023. The revised legislation have minor amends to various articles among further additions of articles. Some of the major updates in the legislation are as under:

  1. 100% Exporters (eligible to avail VAT registration exceptions)

The current provisions of the VAT legislation did allow an exception from VAT registration and compliance where the supplies are only subject to the zero-rated. Under the new amendment the same benefit has been extended to the business e who registered previously for VAT and were unaware of such benefit. Effective from 1 January 2023 the registered business will also be eligible to apply for the exception and avail of this benefit.

  1. Statute of Limitation

Generally, the FTA can conduct a Tax Audit or issue a Tax Assessment within 5 years timeframe from the end of the relevant Tax Period (monthly/quarterly)., Under the amended  legislation the condition of 5 years  have been overruled and the FTA can conduct a tax audit or issue a Tax Assessment even after 5 years from the end of the relevant tax period subject to the taxpayer has been notified before the expiration of the 5-year period and the such audit shall be concluded within 4 years from the date of the notification.

  1. Limitation to filing Voluntary Disclosure

The legislation now restricts a Taxable Person to file for Voluntary Disclosure after the lapse of 5 years from the end of the relevant Tax Period.

  1. Extension to Statue of Limitation attached to Voluntary Disclosure

Upon the submission of Voluntary Disclosure by Taxable Person in the 5th year (from the end of the relevant Tax Period) the timeframe to conduct a tax audit will be extended to an additional 1 year.

  1. Tax Evasion / non-registration

The authority may conduct Tax Audit and/or issue Tax assessments within 15 years from the end of the Tax Period in which the tax evasion occurred or if the person failed to complete VAT registration (as required in the legislation).

  1. Tax Invoice and Tax Credit Note Issuance timeline

The legislation now mandates that the Registrant must issue a Tax invoice (continues or non-continuous supplies) and Tax Credit Note within 14 days from the date of supply or required.

Previously the 14 days rule was appliable only for non-continuous supplies (Article 25 of the Decree-Law)

  1. Additional compliance for input credit on import of service

Many businesses pay for services to overseas service providers on the basis of agreements without requiring the service providers to issue an invoice. As per the recent changes in the VAT laws, for import of services, input credit could only be recovered if the taxpayer receives and retains invoices in accordance with the VAT laws.

Further to learn how the amendment in legislation affects your VAT compliance reach us as:

Written by Jilal Ahmed

Soft Close Audit

Soft Close Audit

Preparation and finalization of management accounts for getting ready and reconciling the supporting schedules, while the audit is being conducted, may result in delays in meeting the deadline to deliver the audited financial statements promptly, and further distract and pile up the day-to-day operational tasks of the company’s management.

Having a comprehensive audit strategy and adopting best practices by the companies throughout the year can help everyone relax when the audit team arrives.

One of the practices is to plan and conduct a soft close audit, to review, verify and confirm the books of accounts, supporting schedules and related information are up-to-date, further, these will be ready and available to consolidate the subsequent period transactions (until the FY end) at the time of the year-end audit.

The soft close audit is the practice wherein the external auditors majorly focus on verifying historical transactions up to the cut-off date e.g. 10-month soft close audit (Oct 31). The auditors generally perform the test of the internal controls along with supporting samples, performing or/and planning a detailed walkthrough on the material and complex transactions during the soft-close to facilitate his year-end audit work.

This helps him to identify material discrepancies in the books of accounts, if any, beforehand to discuss with the management and ensure a timely conclusion of the audit post-year-end.

Soft Close Audit provides an opportunity for the management to plan and prepare the following points:

  • Closing Checklist: Will be performed to ensure that all month-end processes are completed, and all journal entries are posted. If there is no checklist to follow, quarterly and annual entries may be overlooked.
  • Document Verification: Management should not be scrambling at the hard close audit stage to find documentation for the auditors, e.g. if the Verification of documents and related agreements are required, like debt agreements, leasing arrangements, and contracts with major customers and vendors could be identified at the soft close audit stage to arrange them at time of the year- end audit.
  • Internal Controls: Soft close audit provides enough time to plan and conduct a test of controls to the external auditors to verify, whether these controls are effective, efficient, and up to the standards.
  • New Accounting Standards: Helps external auditors and management to reconcile the applicable interpretation (if any) of the newly introduced standards, changes, or amendments before closing and reporting the books of accounts for internal review purposes.
    To give awareness of new accounting pronouncements and modifications to existing pronouncements continually being introduced. It’s important to pay attention to the effective dates, and you should start on them earlier than you expect since they usually require more work.
  • Non-Recurring Transactions: If there are non-recurring transactions like the sale of property, acquisition, significant leases, a new incentive plan for management, a new line of business with a unique revenue stream, a change in debt, etc. Reach out early to soft close the audit, as it will take time for discussion and reach out to a consensus.
  • Balance Sheet Reconciliations: Balance sheet reconciliation at the soft close is audited to find any discrepancies, and fix processes throughout the year. For example, old outstanding checks on the bank reconciliation can be a sign of lost or duplicate checks.
  • Revenue Testing: To ensure accurate recording of revenue, having a process to verify that all shipments or services are billed promptly.
  • Expense Testing: A review of repair and maintenance can give an indication of impairment and identify the items that should have been capitalized as fixed assets.

Written by Raheel Tamimi, Mian Muhammad Azeem and Mufaddal Shabbir

+971 58 542 3160