From 1st June 2023, a new 9% corporate tax rate will be implemented in the UAE, which was announced by the government on January 31, 2022. In the past, only a few industries, such as resource extraction and foreign banks, were subject to corporate tax, but now many more companies operating in the region will be required to pay the tax from the start of the 2023 financial year.

The UAE’s 2023 corporate tax – what is it?

The UAE will implement a 9% corporate tax in 2023 on the profits of all businesses generating more than 375,000 AED (approximately USD $100,000). However, small businesses and start-ups will not be required to pay any corporate tax on profits below the AED 375,000 threshold. All categories of profits and net income, prepared in accordance with internationally accepted accounting standards, will be subject to the tax rate. Some expenses may be deductible before calculating the payable tax, reducing the financial burden on taxpayers.

According to the Federal Tax Authority, large multinational companies that meet specific criteria, set with reference to “Pillar Two” of the OECD Base Erosion and Profit Shifting project, will be subject to a different tax rate.

Starting from June 1st, 2023, the new UAE corporate tax will be implemented, and most companies will need to prepare to pay taxes from that date. However, businesses whose tax year begins in January will not be required to pay tax on revenue earned before January 1st, 2024.

Now lets see how an ERP software takes a role in corporate tax 2023

FactsERP is an ERP software that can offer several benefits to companies during the upcoming corporate tax. Here are some ways in which a company can benefit by using FactsERP:

Streamlined tax management: FactsERP can help companies streamline their tax management processes, such as tax calculation, tax reporting, and tax filing. This can help save time, reduce errors, and ensure compliance with tax regulations.

Accurate financial reporting: FactsERP can generate real-time financial reports, which can provide insights into a company’s financial performance, helping them make informed business decisions and ensuring accurate tax reporting.

Enhanced data security: FactsERP can help ensure that financial data is secure, which is essential when dealing with sensitive tax records.

Inventory management: FactsERP can help companies better manage their inventory levels, minimizing errors and optimizing inventory levels, leading to cost savings and tax benefits.

Efficient process management: FactsERP can help companies streamline their business processes, improve communication, and manage departments and teams, leading to cost savings and tax compliance.

In conclusion, by using FactsERP, companies can streamline their financial and tax management processes, improve their financial reporting accuracy, enhance data security, manage inventory levels, and improve their overall efficiency. These benefits can lead to cost savings, tax benefits, and compliance with the upcoming corporate tax regulations.

Our client is a reputed spare parts trader based in Sharjah and Dubai. The company specializes in selling Auto Spare parts and accessories. The company started an ecommerce channel to sell the products throughout UAE during the covid times. 

However, the company was facing challenges managing the inventory, tracking eCommerce orders and updating the quantities manually in their previous accounting system. The company was facing a delay in order fulfillment due to the non-availability of stock. 

FactsERP was implemented to streamline their complete operations across accounting, inventories, sales and purchase. Also, their website which is run on Shopify platform was integrated into FactsERP. This enables them to track the orders they receive on their website from ERP and fulfill the order. Also, the inventory in both ERP and website is updated in real time. Post implementation of FactsERP the company has complete control over the inventory, website orders, payments, sales and track the customer retention which increased exponentially.

Our client is into trading and distribution business with a high volume of transactions and invoices. They supply stock to retailers and the transactions are frequent. The salespeople are responsible for collecting payments for the invoices issued to retailers. However the payment is done by retailers partly during the salespeople visits. 

The challenge faced by the company and salespeople is to allocate the payments received against the invoices issued to retailers. 

FactsERP was implemented and provided a mobile app extension for sales people. Using this app, the salespeople can record the payments received and select the list of open invoices against which the payment is to be allocated. This process helped in tracking the outstanding invoices which are partly paid and close the invoices fully paid. Also, salesmen can do the ageing analysis of receivables and prioritize the collections.

The most important asset for companies now is the data. With a business system like FactsERP, the data can be captured at multiple levels. Data is only useful if it can be analyzed and better informed decisions can be taken using the analysis. Hence, FactsERP comes with an advanced inbuilt Business Intelligence tool in its ERP software. 

The advanced business intelligence and reporting tools in FactsERP helps management to make better decisions using the data available in the system. With features like advanced data visualization, filtering and customization; it becomes easier to analyze data. The reporting can be generated both at operation and strategic levels making it easy for informed tactical and strategic decisions. 

Features and Benefits of Facts ERP Business Intelligence:

Drag and Drop: The reports in FactsERP can be generated with simple drag and drop functionality and advanced filtering options. 

Visualization: The information can be visualized and presented in simple tabular format or advanced graphical formats. 

KPIs: Set and track multiple KPIs in real time for various functions and activities.  

Customizable: All the reporting and dashboards are highly customizable in FactsERP. Also, the KPIs and BI tool can be customized based on the user role or access level. 

Pivottable: If you are comfortable using Pivottable, then all the reports come with the feature of pivot table for your further analysis of data. 

Ratio Analysis: Use advanced and inbuilt ratio analysis in FactsERP, track multiple ratios in real time. 

Trend Analysis: Analyze trends of various activities like sales and purchases for better decision making. 

Integration: The integration with third party software or ecommerce platforms can be done seamlessly with FactsERP. 

Easy Export: All reports can be easily exported to multiple file formats including excel, pdf and word. 

Track the best: Easily track the best selling product or best sales person. 

Consolidated Reporting: Track the reporting for standalone companies and also consolidated reporting if you are managing multiple companies. 

For a free demo of Facts ERP and Business Intelligence tools, please get in touch on 052 630 3949. 

By integrating the weighing scale into FactsERP, we enabled accurate tracking of quantity and costing of ingredients.

What is Fixed Asset Management and Why is it Important? 

A company generally owns many assets like equipment, machinery, and vehicles etc,. The assets which are used for over 1 year period are usually classified as Fixed Assets. When the assets are in use, the value of assets goes down due to the wear and tear, which is called depreciation. By using the Fixed Asset Management module from FactsERP, you can record the quantity, usability, allocation of assets and post depreciation periodically. 

It is vital for companies and management to keep a record of all the fixed assets and maintain them. As the fixed assets are the core assets of a company, FactsERP helps in easy management of fixed assets. When the assets are of high value or require continuous maintenance, a complete management solution is required. FactsERP comes with a Fixed Asset management module that helps in managing the complete life cycle of an asset. 

Features and Benefits of Fixed Asset Management in Facts ERP: 

Asset Purchase and Disposal: Simplify the asset purchase process while tracking the association quotation and Purchase orders. Also the accounting entry postings for purchase or disposal can be automated leading to reduced manual errors. 

Asset Issue Tracking: Track the assets issued to employees or projects or other divisions. This will also help in tracking the fixed asset cost allocation and management.

Alerts & Notifications: Get automated alerts and notifications for various processes like periodic machinery maintenance or vehicle maintenance. Alerts can be set for various parameters, such as the kilometers driven for a vehicle or duration of usage of machinery. 

Barcodes/ QR Codes: Print barcodes or QR codes for easy tracking of asset locations and movement of assets. 

Maintenery Maintenance: Schedule periodic maintenance of machines while tracking the usage of machines based on the jobs or batches. 

Depreciation: Schedule for automatic calculation and posting of periodic depreciation. 

Period Asset Reconciliation: FactsERP enables the period reconciliation of assets in the system with the actual count of physical assets. 

Impairment of Assets: Simplifies the process of fixed asset impairments. 

WIP Process: Easy process of creating WIP, booking of expenses and transfer of WIP to fixed assets. 

Attachments: Every fixed asset transaction comes with an inbuilt feature of attachments to attach any supporting document for future reference. 

For a free demo of Facts ERP with Fixed Asset Management, please get in touch on 052 630 3949.

Why is Job Costing Important? 

If you are engaged in the business of construction/contracting or project management, then tracking the costing at job or project level is crucial. The management would be interested in knowing the profitability of projects, reducing costs at project level, allocation of budget and variance report generation. 

Using Facts ERP with job costing, you can easily capture all the details at the project level. As the job costing is an internal process, it comes with greater flexibility in calculation and allocation of costs. If you are a contracting company, then job costing is a must have tool to track the profitability of jobs/projects. 

Features and Benefits of Job Costing in Facts ERP: 

Budgeting: You can set budgets at each activity level for the job or project. With easy import facility from Excel, all the activities can be imported for a particular project. All the costs and revenue can be allocated for each transaction which is linked to a particular activity. 

Periodic variance analysis can be done by comparing the budgeted and actual figures. This will help in better tracking and control of costs. 

Reduce duplication of work: All the costs you enter are allocated to jobs while doing the transactions. This will help in avoiding manual cost allocation and thus reducing the duplication of work. 

Store management: Usually the materials are stored in the warehouse or sometime at the job site before utilizing them for the job. The store management enables easy transfer of material from store to job site and vice versa.

TimeSheet Management: With the easy import facility of time sheets, both the attendance and cost can be tracked and allocated to respective jobs/projects. 

Subcontracting: All costs, purchase orders, payments and invoices related to subcontractors can be easily tracked and allocated to jobs/projects. Also, the budgeting can be done based on the initial quotations received from subcontractors which helps in better control of costs. 

Project Status updates: Regular notification and updates can be set regarding the status of the projects. These notifications will be received by the responsible engineer or project managers on their Dashboard or by email. 

WIP: Booking of revenue as per the progressive invoicing can be done using the WIP method in Facts ERP job costing module. Deducting of advance payment and reduction of retentions payment etc., can be automated without any manual calculation. 

Overhead Allocation: Although it is easy to allocate the costs of material or labor for a particular job or project. It is quite challenging to allocate the overhead costs as these are not directly related to any particular job. 

However, using a pre-defined basis of allocation, the overheads can be easily allocated to jobs. There are majorly three types of basis of overhead allocation for contracting companies as follows:

1. Number of labour hours allocated
2. Material Consumption
3. Value of project
4. Predefined percentages

Profitability analysis: All the revenue and costs are allocated to jobs at each transaction level. Also with the complete allocation of overheads, the actual profitability for each profit can be tracked easily. 

Performance Tracking: You can track the performance of manpower easily with job costing. This can be done by comparing the actual cost versus the budgeted cost of manpower. This can be used as a metric for evaluating the performance of respective project managers. 

For a free demo of Facts ERP with Job Costing, please get in touch on 052 640 3949.

Are your Sales Staff Mobile Ready? 

If your sales staff are on the field to book customer orders, then having a mobile ready ERP solution will be very advantageous. Especially, if you are a trading company, your sales staff should have the real time information about the availability of products handy. 

This is where the Facts BUD-e helps companies who are looking for a mobile solution to accept customer orders at their location, van sales and to track the staff activity on field. Our solution comes with all the options required for field sales and the application is highly customizable as per the requirement. 

Benefits of Enterprise Mobility Solution

I have listed below the benefits and features of our Facts BUD-e solution. 

• Track Real-Time Stock Data: When a customer places an order, your staff can check the availability of stock in real-time along with the location of stock. If the item is not in stock, the staff can check when the stock can be expected and accordingly can commit to the customer. 

• Track staff activity: The field activity of sales staff can be easily tracked with check in/out option along with the live location. The staff can check in using the mobile application when they visit a customer location and check out while leaving from there. 
• Van Sales- Enabled: If you have van sales staff, then they can use our application to instantly book orders, print invoices and deliver stock. The day to day sales activity and performance of van sales staff can be easily tracked. 
• Tasks & Follow ups: You can assign tasks to your sales staff regarding any collection or orders. Also, the sales staff will get notifications on app and also email with regards to any particular tasks. 
• Workflow approvals: Multi level approvals can be set for transactions or staff requests. If your staff want to give any discount, change credit limit or want to place any leave or document requests can be done right from the mobile application. 
• Instants Quotations: If you are a service company then your staff can generate instant quotes based on the predefined calculations or custom quotes. These quotes can be sent to your customers instantly for approvals leading to increased sales conversions.
• Analytics & Reports: Management can also use the BUD-e application to check various reports and analytics on various KPIs right from their mobile phone. 

Managing a Stock Enquiry

If you are in trading business then your staff should always have real-time information about the stock. Especially the person responsible for facing the customer should be aware of the product availability, pricing and location etc,. This becomes more challenging when there are multiple counters or sales people handling the stock enquiries. A Stock Enquiry Management feature in ERP is the right solution to overcome this challenge.

FactsERP comes with an easy to use and flexible solution for real-time stock enquiry management. Whether your staff are facing the customer in store or at customer’s location to book orders, our solution comes with real-time information to increase the sales conversion. The following are the benefits & features of Stock Enquiry Management in FactsERP. 

Benefits of FactsERP Stock Enquiry Management

• Product Quantity Status: You can track the quantities currently available in stock, quantities expected to arrive from PO, and quantities which are booked by customers. Based on this information, you can commit to customers on the expected date of availability. As a result, customers will be satisfied, leading to an increase in sales. 

• Product Locations: If you are storing your products in multiple locations, then easily track the availability of a product across the locations. If a customer wants to pick up the product from a particular location, you can quickly check if the item is available in that location. 

• Substitute Items: In certain categories of products, there are substitutes or alternatives or compatible products. In case a product requested by a customer is not available, your sales staff should be able to recommend the alternative products. This information can be quickly accessed with the substitute feature in FactsERP. This helps in cross improved selling and upselling of products. 

• Loss of Sale: Management should be aware and evaluate the sales they are losing due to non availability of products or high pricing. You can track the log to check the status of each enquiry, how much sale is lost and the reason for the loss of sale. This helps in taking corrective actions to avoid the possible loss in future. 

For a quick demo of FactsERP, call now on 052 640 3949.

Managing a Warehouse

Managing a warehouse is challenging especially if your company deals in multiple product lines or large inventory. If you are a trading company dealing with different products and inventory then it’s challenging to manage a warehouse. As a warehouse manager you are required to track the correct location of items, stock quantities and dispatch items on time. With the use of a warehouse management solution, it becomes easy to overcome the challenges mentioned above. 

When the stock arrives at the warehouse, it has to be placed in the right locations. It should be easier to find the bin or track locations while dispatching the stock. Moreover, the actual stock and the stock in the system should always match and be trackable in real-time. Without a proper warehouse management system, it’s quite difficult to manage inventory effectively. 

Warehouse Management Solution(WMS)

FactsWMS solution helps in effective management of complete warehouse. I have listed below the key benefits and advantages of FactsWMS.

Batch-wise Inventory Control: If you are dealing with products which are perishable and having expiry dates then batch-wise inventory is the perfect solution. Also, if you want to maintain your inventory with various other attributes such as pricing, then the inventory can be managed in batches. 

This helps in easy tracking of items relating to a particular batch. Also, when there is a return of goods then it’s easy to track with the batch number. FactsWMS comes with an industry standard process for easy management of batch-wise inventory.  

Serial Number Control (with Barcodes): A barcode based inventory system increase the efficiency of stock management. With enhanced functionality, all the items arriving at the warehouse can be scanned and placed at the respective locations. While dispatching the stock also, the items will be scanned which helps in easily tracking of the location of item at the time of dispatch. 

Increased Operational Efficiency: Having the FactsWMS will increase the efficiency of complete warehouse management. 

Improved Customer Service: When you receive an order from a customer, you can easily track how much stock is available and how much more to be purchased. Based on this information, you can commit with the customer on the delivery date. This helps in improved customer service leading to more sales. 

Real-Time Inventory Updates: As and when the stock arrives or dispatches from the warehouse, the quantities are updated in real-time. This helps in having accurate information of the stock availability.

To book a quick demo of FactsWMS get in touch with us or call on 052 640 3948.