UAE Business Expansion: How to Build a 90-Day Financial Forecast Before Hiring or Opening a Branch
03/11/2026
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For many UAE online sellers, the amount deposited into the business bank account is different from the value of customer orders.
This is common when selling through marketplaces such as Amazon or Noon or using payment gateways to collect customer payments.
Marketplaces and payment service providers may deduct commissions, delivery charges, transaction fees, refunds and other adjustments before transferring funds.
A business that records only the amount received in its bank account may therefore report incorrect revenue and expenses.
Understanding marketplace settlement accounting is essential for accurate bookkeeping and financial reporting.
An e-commerce transaction can involve several separate accounting events:
A customer places an order.
The product is delivered or the service is completed.
The marketplace processes the payment.
Fees, commissions and adjustments are calculated.
The remaining amount is transferred to the seller's bank account.
These events do not always happen on the same day.
As a result, bank deposits alone do not provide a complete picture of business revenue.
Consider an illustrative UAE online retailer with the following monthly marketplace activity.
| Transaction | Amount |
|---|---|
| Gross customer sales | AED 100,000 |
| Customer refunds | (AED 5,000) |
| Marketplace commissions | (AED 10,000) |
| Fulfilment and service fees | (AED 4,000) |
| Net settlement received | AED 81,000 |
The example assumes these amounts have been presented consistently and excludes additional tax adjustments.
The AED 81,000 bank receipt is not necessarily the correct sales revenue figure.
Depending on the business arrangement and applicable accounting principles, sales revenue, returns and marketplace costs may need to be recognised separately.
Accounting treatment can also depend on whether the seller acts as principal or agent in a transaction.
If a business records net marketplace settlements as sales without analysing the underlying transactions, it may understate revenue or omit selling expenses.
This affects management reporting and potentially the financial information used for tax calculations.
Marketplace commissions and service charges are genuine business costs when properly incurred.
They should be recorded according to their nature and supported by settlement documents or supplier invoices.
Otherwise, profit calculations may become unreliable.
VAT treatment requires particular care.
The accounting revenue figure and the amount reported for VAT purposes may differ because of timing, tax treatment, agency arrangements or other adjustments.
Businesses must also evaluate the VAT treatment of marketplace fees separately.
A settlement report does not automatically establish input VAT recovery eligibility.
Payment gateways often settle transactions in batches.
One bank deposit may represent dozens or hundreds of customer payments.
A proper reconciliation should connect:
Customer orders and invoices
Successful payments
Refunds and chargebacks
Gateway processing fees
Marketplace commissions
Settlement batches
Bank deposits
This helps businesses identify missing payments, duplicated transactions and unexplained deductions.
E-commerce businesses also need reliable inventory records.
A sale changes both revenue and inventory balances, while the cost of goods sold affects gross profit.
Businesses should track product purchases, returned goods, damaged stock, inventory adjustments and closing inventory.
For sellers offering multiple product categories, SKU-level reporting can reveal which products generate the strongest margins.
A product with high sales volume may still be unprofitable after marketplace commissions, shipping costs and advertising expenses.
A structured monthly closing process should include:
Reconcile customer orders against marketplace sales reports.
Match settlements to business bank deposits.
Record commissions, refunds and payment gateway charges.
Review inventory and cost of goods sold.
Reconcile VAT accounts and supporting tax documents.
Prepare a profit and loss statement showing actual product profitability.
The frequency of reconciliation should reflect transaction volumes. High-volume sellers may need daily or weekly checks.
Young & Right Accounting & Tax Consultancy provides accounting, bookkeeping and VAT services for UAE businesses.
Our team can help online sellers maintain structured transaction records, reconcile payment gateways, prepare financial statements and review tax reporting requirements.
Accurate e-commerce accounting gives business owners more than compliance support. It also helps them understand where revenue is earned, where margins are lost and which products deserve further investment.
Marketplace sales figures and bank deposits answer two different financial questions.
Sales reports show commercial activity, while settlement reports explain how payments reach the business.
To understand actual profitability, UAE online sellers need both.
Are marketplace fees, refunds and settlements making your bookkeeping difficult?
Contact Young & Right for professional e-commerce accounting and VAT support in the UAE.
From marketplace sales reconciliation to VAT filing, Young & Right helps UAE online businesses maintain accurate financial records and stay compliant.
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