ERP Blog | Usages of ERP Implementations, Benefits and Types
The COVID-19 crisis has left the global economy in shambles, and India has fared no better. With almost 3 months of a nationwide lockdown, business have been closed for a long time. The lockdown rules have recently been relaxed, and businesses are beginning to start operations gradually.
As businesses and the Indian economy reopens, all companies must take a strong and detailed look at their finances and prepare for the unprecedented and unpredicted times ahead. Here are a few things every CFO needs to consider to ensure that his company has a plan to survive the recession -
The first step is obvious - conduct a detailed and accurate study and account for your company's current financial status. This includes, but is not limited to -
Take a good account of inbound and outbound cash flows to evaluate your company's overall liquid capital. Knowing how much cash you have to use, how much cash is coming in, and how much cash is going out is essential to plan for the future.
Take stock of your existing inventory in detail. Make sure every item is accounted for, quality-checked, and ready for use as required once your business reopens. Inaccurate inventory data can cause major problems in your production if demand suddenly increases in the coming times. Efficient Inventory Management becomes very critical at this point.
Make sure you have an up-to-date idea of all of your assets including whether it is ready to use, possible maintenance or repair requirements, warranty status, current relevance and insurance status. Effective Asset Management including warranty management and insurance management becomes very critical at this point. Ensure the assets are properly insured and extended warranty is taken if required.
As a CFO, one of your main roles is forecasting – difficult in normal times – it’s even tougher to forecast what the post COVID-19 landscape will look like. Therefore, it is prudent to consider all the conditions around us now, and forecast a wide range of possibilities. That way, whatever the outcome of the pandemic, your company will have plans in place to survive it.
As your business reopens, make sure your sourcing is taken care of. Existing vendors may face problems with supply, making it necessary for your company to ensure that alternative sources are identified, evaluated and categorized for immediate reference in case you need their services. Good vendor management will be key in maintaining company production.
With the Government planning to release large amounts of liquidity into the markets, CFOs must ensure that their company’s cash and liquidity is up to the mark, and bolstered by the government’s plans. Financing should be re-visited; debt and credit should be scrutinized afresh. Receivables especially need to be managed urgently as customers will tend to delay payments to meet their own challenges. Tax planning in Covid situation is also critical, and conserving cash in short-term periods must be ensured. With the GOI announcing extension Of TDS returns due dates, GST returns and various other compliances, many opportunities have arisen to make such savings. For MSMEs, government has delayed the GST payment and is also evaluating the GST payment only upon collection form Customers. You must consider all possible opportunities of boosting company’s liquidity.
Optimizing your company’s assets is just as essential. Making sure that every single asset is relevant to your recovery must take precedence over other tasks. Evaluate your current assets to identify which of them will be relevant.
As the offices reopens and MHA announcing the unlock guidelines on almost every day basis, it is critical for companies to follow such guidelines. Maintaining Social distancing while having meeting and calling employee to work from office is critical to avoid any mishaps in the company.
CFOs must prepare for the possibility of many critical employees (including themselves) falling ill and getting taken out of commission by COVID-19. This means that they need to plan accordingly, and make sure that a framework is in place to ensure through which all financial processes can function with remote supervisory inputs from top management. Cloud ERPs can be very handy in these situations.
Amidst the uncertain economic landscape, CFOs must ensure clear and constant communication with key stakeholders. Communication should be automated, and there should be a smooth flow between stakeholders, banks, investors and employees when communicating with each other.
Investor communication is going to be of utmost importance to avoid uncertainty on their part. Investors will want to be updated with your company’s activities to handle the crisis, and stay ensured that their investments are secure.
It is never too early to plan for the recovery of the economy, even though we can’t say how soon that will take place. CFOs must consider all the different methods in which the market can return, despite social distancing and COVID-19 regulations. Once the market returns, there will be heavy competition amongst companies to recover their losses, and only those with plans already in place will come out in the lead.
Covid has proven that Cloud ERPs are the future. Many companies who didn’t implemented cloud ERP or e-procurement software has suffered more than companies which had these in some form or other. Demand for Cloud software has surged during the lockdown. CFOs must evaluate their existing business process and look out for affordable cloud ERP to digitize their business process.
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Many Companies across the globe has done mass lay-offs, put the employee on mandatory unpaid leaves and have reduced the salaries of remaining employees.
Governments are coming up with Covid revival package for MSEs and industries.
For businesses around the world, the first and foremost form of possible relief has come from the use of technology, especially digital technology, to adapt to these changes. From online payment services, digital communication platforms to virtual business processing, management and Cloud ERP Software, digital technology, the internet and telecommunications have been able to prevent a complete worldwide shutdown of all businesses.
To survive this pandemic and consequent economic downturn, businesses around the world, especially small businesses and startups, need to implement certain changes in their operations. For the Indian economy, the MSME sector will largely lead and decide the recovery from the possible upcoming recessions, and hence they must -
New strategies and processes need to be formulated and implemented immediately to facilitate a work-from-home setup. Companies worldwide have already begun to face the need to adapt to maintaining an almost entirely remote workforce, and this will continue well into the future. To gain the edge over competition, a proactive stance must be assumed by founders, CEOs and top management towards work-from-home including the deployment of company-wide awareness and training in efficiency and productivity protocols. Ensuring productivity while work from home is important to companies as well as employees.
To facilitate a rapid shift to remote working models, companies must ensure –
Companies who aren’t used to handling a big IT load need not hire new IT staff and procure infrastructure just to shift their operations to digital, they can leave that to dedicated cloud service providers. Cloud ERPs for example, will become a necessity in coming times. Cloud ERP can allow your business processes to transform to a digital platform, without any effort on your part. Simple subscriptions to customized plans allow you to integrate the ERP into your system.
Though there is no amount of preparation that can guarantee a business’s success in the trying times to come, it is quite safe to assume that only those companies that adapt with the times and make the best use of technology will have any hope for growth and survival. As the COVID-19 curve is flattened, technologically equipped companies will be able to get back into business without any extra hassle.
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The COVID-19 pandemic has spread in an unprecedented way across the entire planet, and it is showing no significant signs of slowing down or getting contained. The global economy has suffered greatly due to the lockdowns and disruptions in the supply chain, but it is slowly beginning to recover. As businesses reopen, and the world begins to regain functionality, social distancing rules are a must for everyone to ensure that the pandemic stays under control.
Social distancing rules ensure that the COVID-19 virus does not get a chance to spread from potential carriers to healthy people. Most businesses require daily contact between employees, vendors, customers and other stakeholders. Ignoring social distancing can mean a complete breakdown of the recovery process, and an increase in the outbreak of COVID-19. With the blanket ban on any such contact, businesses must function through digital means of communication, collaboration and management.
Enforcing social distancing guidelines in a business has several consequences, as the limited space and resources of a business cannot deal with the requirements to function normally. Simply speaking – no business can afford to go on normally with all employees maintaining a 6-ft gap at all times!
This means that certain consequences will be felt, such as –
Businesses have found a common solution to deal with social distancing requirements and quarantine conditions – cloud ERP software. By automating their business processes and eliminating unnecessary human dependence, cloud ERP software is helping businesses stay alive without the need for regular human-to-human contact.
Cloud ERP Software will be the ultimate solution to help businesses facilitate social distancing, and help them through lockdown or quarantine conditions. Since social distancing is going to become a long-term requirement (even after the lockdown is lifted), businesses must search for cloud ERP software that can provide matching long-term solutions.
Cloud ERP Software can help a business in various ways when it comes to social distancing and fighting the spread of the COVID-19 pandemic –
Physical contact must be avoided at all cost, and this includes more than just the obvious human-to-human contact by touch or proximity. The COVID-19 virus is extremely contagious, and can spread through indirect contact via surfaces, paper, cloth, tools, etc. With cloud ERP software, you can avoid all paperwork and physical contact by digitizing your data and transferring everything to a cloud storage facility.
By implementing cloud ERP software, business processes can be automated and streamlined, eliminating the need for unnecessary, tedious and repetitive manual labour. Automating fixed everyday tasks and processes can also provide the additional benefit of eliminating human-error, something that is commonly seen when menial tasks are concerned. With modules such as procurement to pay, inventory management and compliance management, a lot of such menial everyday tasks become the ERP software’s headache instead of your employees’.
With cloud ERP modules such as project management, finance and accounting, sales and CRM, a large part of any company’s workforce can function remotely. Such ERP software will allow the employees to function efficiently and stay productive despite work-from-home situations, since all the data is integrated in one platform, and there is seamless communication and collaboration.
Choosing to implement cloud ERP software is not always simple, especially for SMBs and Start-ups. There are many factors to consider, and making the wrong choice can leave you with an ERP that is ill-suited to your business, not worth the investment and a waste of your precious time and money.
This is why TYASuite Cloud ERP Solutions provides you with the best possible choice. Specially designed to fit the needs of any business, irrespective of size and nature, the TYASuite Cloud ERP is –
With customized pricing plans and a pay-as-you-grow approach, you decide how much you want to spend, and how much you want in return. The TYASuite Cloud ERP software is customizable to your specific needs to ensure maximum ROI and minimum implementation costs.
Regardless of your business size, the TYASuite Cloud ERP software is a one-size-fits-all solution. With customized plans for different scales of business, you can start wherever you like, and scale up or down based on your evaluation of the software’s performance and efficacy with regard to your business processes and specific requirements.
Unlike traditional or big-brand ERPs that have on-premise software, the TYASuite Cloud ERP is flexible to adapt and suit your business’ existing processes and functions. With integrated modules for each functionality, you choose what you need, and fit the pieces accordingly.
TYASuite Cloud ERP is the world’s 1st Plug and Play ERP Solutions. It has 2000+ pre-customized features which can be modified to suit your requirement in the click of a button. Join the plug-and-play ERP movement and enjoy the benefit of going live within 7 days with your own process. Never compromise with your requirements.
With our full deck of ERP tools, get access to Procurement to Pay, Project Management, Inventory Management, Asset Management, Vendor Management, Finance and Cloud Accounting modules to make sure you stay on top of the coming economic revolution. Never miss out on important news, manage your business seamlessly and enhance your profitability by going digital with TYASuite.
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Is your company considering the implementation of an Enterprise Resource Planning (ERP) software to help you go digital and automate your business processes. You might be facing some common problems of ERP implementation -
ERPs can be very complicated systems, fraught with technical difficulties, implementation errors and on-going bugs and maintenance issues.
The most important question that bothers companies is – which ERP shall they choose? There are big names in the ERP market, and some of the biggest are SAP, Microsoft Dynamics 365 and Oracle EVS / Netsuite. With a long history of existence in ERP Market and numerous clients, they certainly seem like good options at first, but are you sure they’ll be the right choice for you? If you are large enterprise and very profitable company, then yes, these Industry stalwarts can be a suitable choice for you.
However, if you are a Small or Medium enterprise, or a start-up who need to scale and bring profitability in your business, you will need to look for alternatives to SAP/Oracle/Netsuite etc.
1. Cost
There are 4 types of costs involved in any ERP :
You must evaluate the overall ERP cost for at least next 5 year and then compare available options in the market. Many ERP companies run special ERP offers for MSMEs and Startup’s to ensure that they can afford the ERP.
2. Process Adoptability
3. ERP Modules
4. Inflexibility
If one follows the above steps, they will be able to streamlines process in their company much faster and at affordable cost.
The TYASuite Cloud ERP Solution is a fully-stacked software suite with integrated modules to automate, streamline and digitalize all of your business processing. Eliminate all the hassle, error and loss incurred due to tedious manual processing of repetitive menial tasks and transform your business and go digital with our cloud-based plug-and-play ERP solution. The TYASuite cloud ERP contains separate modules for Procurement to Pay Software, Project Management Software, Compliance Management Software, Vendor Management Software, Inventory Management Software and a host of other back-office business processes – all integrated into one simple, plug and play ERP.
Affordable
If you’re on a limited budget, TYASuite Cloud ERP Solution is the most obvious choice! It provides the most affordable option while ensuring that no compromises are made with quality, functionality and scope of the product. If you can’t afford to spend thousands of dollars on big-brand ERPs, or simply don’t believe that it’s not worth it, you may be right. Try the TYASuite Cloud ERP Solution for FREE with our limited-time offer for a 90 day FREE TRIAL.
Scalable as you grow
Unlike big brands like SAP, Oracle Netsuite or Microsoft Dynamics 365 which are designed for large-scale companies with immense operation volume only, the TYASuite Cloud ERP solution is scalable to your business size. If you are a small or medium business, our product will be a perfect fit to help you automate your business within its own scale and scope. If you are a large business, our product will scale itself to match your operations just as easily. If your business is planning to undergo rapid expansion, our product will scale with you as your business grows, and you won’t need any change of ERP for your future.
Flexible
If you’re not sure whether you need all the features of a full stacked ERP suite, no problem! TYASuite Cloud ERP Solution is flexible and can adapt to your specific needs. With an SaaS model, you can subscribe to our products for as long as you need them, and for whichever modules you want to. Our product has complete integration through all modules, and can take care of all your ERP needs through a single, easy-to-use plug-and-play platform, with no need for costly hardware or consultants. Simply sign up for our services and go live within 7 days get constant support, due maintenance and regular updates at no extra cost.
Plug and Play ERP
TYASuite Cloud ERP is World 1st Plug and Play ERP Solutions. It has 2000+ pre-customized features which can be modified to suit your requirement in click of a button. Join Plug and Play ERP movement and enjoy the benefit of going live within 7 days with your own process. Never compromise in your requirements.
Prime Minister Sri Narendra Modi emphasized the importance of a ‘Self Reliant India’ in fighting the COVID-19 crisis during his speech on May 12th, 2020.
The Core focus of his speech was “Go Local”, “Be Vocal” and “Make it Global”. He announced a recovery package of Rs. 20 lakh core which approximates 10% of India’s GDP. The package is targeted to cater to various sections including cottage industry, MSMEs, laborers, farmers & middle class.
His vision for a Self-Reliant India will stand on the following five pillars:
Let’s look at how you can benefit from the Rs. 20 lakh Crore package:
The MSME Sector has been selected to receive the lion’s share of help, and rightly so as they need it the most, and we need them the most. Separate classifications for manufacturing and service sector are to be removed, and composite criteria for their definitions were identified as follows –
With these new definitions for MSMEs, there will hopefully be more registrations and a reduced fear among businesses to not qualify within the criteria. MSMEs are going to be the direct benefactors of financing and liquidity provisions, offered in the form of –
Subordinate Debt for Stressed MSMEs – Rs. 20,000 Crores
Stressed MSMEs in need of equity support will receive a net amount of Rs. 20,000 cr as subordinate debt from the Govt. Any functioning MSMEs that are NPA or are stressed will be eligible, and an estimated 2 lakh businesses are expected to benefit. The Govt. will also release a support of Rs. 4000 Cr to CGTMSE, to be provided to banks as partial Credit Guarantee support. The banks will give debts to promoters of MSME, to infuse as equity in the units.
Collateral-Free Automatic Loans for Businesses including MSMEs – Rs. 3,00,000 Crores
There has been a massive shutdown of MSMEs and businesses unable to meet their operational liabilities or raw material costs. Banks and NBFCs are to now provide an Emergency Credit Line to Businesses/MSMEs of up to 20% of the entire outstanding credit as on 29.02.2020. This scheme is to remain available till 31.10.2020, and carry no guarantee fee or fresh collateral. The Government hopes that this scheme will allow approximately 45 lakh units to resume business activity and safeguard jobs. The details of the loan terms are -
Equity Infusion for MSMEs through Fund of Funds – Rs. 50,000 Crores
To address the severe shortage of equity faced by MSMEs, a Fund of Funds with a Corpus of Rs. 10,000 Cr will be set up. The FOF will be operated through a Mother Fund and a few daughter funds, helping to leverage Rs. 50,000 Cr at the daughter fund level. This funding will be for MSMEs with growth potential and viability, and hopes to expand MSME size as well as capacity, encouraging MSMEs to get listed on the main board of Stock Exchanges.
Along with the financial support offered by the scheme to MSMEs, there are a few provisions designed to benefit their chances of recovery and survival by boosting the market demand and delivery capability of the MSMEs –
Based on above, it seems that MSMEs, who have never availed any loan so far which not be able to get the support under this scheme. The purpose of this scheme may get lost. Government must clarify on this point. Further, the point of contention of funds of fund will always be valuations. Government must come up with the guidelines for the valuations in such cases. The only way for MSMEs at large seems to be through promotor route where promotor will take personal loan and put into MSME as equity.
The Employees’ Provident Fund Organization (EPFO) has announced that the government will support employees and businesses with a combined amount of Rs. 2500 crore and Rs. 6750 crore Liquidity Support. Extending earlier support, and making new provisions for benefits to be applicable to about 6.5 lakh establishments covered under EPFO and about 4.3 crore such employees, the scheme stated –
This can be some relief the MSMEs where 24% cost can be saved on their payroll cost for employees whose salaries are less than Rs. 15,000. Larger MSMEs can save upto 4% of salary cost from this provision. However, most of the companies work on CTC model and this may not directly benefit to the company unless the companies announces a salary cut.
In order to provide more funds at the disposal of the taxpayers, and release Liquidity of Rs. 50,000 crores, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates through the entire FY 2020-21 i.e. till 31st March 2021. This reduced rate will be applicable to payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. Refer our blog on Revised TDS rates for New TDS rates.
Additionally, several due-dates have been revised, such as –
Immediate Tax refunds to MSMEs is definitely a great relief. Many MSMEs has already received this refund. Extending the due date is not a relief as such because the Indian business are very much used to due date extensions in the past and this doesn’t have any financial relief. Government must differentiate between the financials relief and procedural relief under Covid.
Amidst the difficulties faced by NBFCs/HFCs/MFIs in raising money in debt markets, the Govt. will launch a Rs. 30,000 crore Special Liquidity Scheme, to make investments in both primary and secondary market transactions in investment grade debt paper of NBFCs/HFCs/MFIs. The securities will be fully guaranteed by the Govt. and RBI/Govt. measures will be supplemented to augment the liquidity.
Furthermore, those NBFCs/HFCs/MFIs whose credit rating is too low, will be given liquidity to do fresh lending to MSMEs and individuals via the extension of the PCGS to PCGS 2.0 whichwill also cover borrowings such as primary issuance of Bonds/CPs of such entities. The Govt. will bear the first 20% of the losses. This is estimated to release liquidity of up to Rs. 45000 Crore.
This measure is expected to have some impact on MSMEs getting funds form NBFCs/HFCs and MFIs.
Power Distribution Companies (DISCOMs) are also at a very low point due to plummeting revenues and unprecedented cash flow problems. Currently, the DISCOM payables to Power Generation and Transmission Companies (Gencos) are ~ Rs 94,000 crore. The Govt. will inject liquidity of Rs.90,000 crore to DISCOMs against receivables through loans given against State guarantees for the exclusive purpose of discharging liabilities of Discoms to Gencos.
The DISCOMs will be required to perform specific activities/ reforms in linkage to these loans, such as –
Central Public Sector Gencos will give a rebate to Discoms, which shall be passed on to the final consumers (industries).
Government should have looked into giving some direct relief to MSMEs in terms of waiving fix load charges for next 6 months. That could have benefited the MSMEs directly in lowering their outflow.
Various other measures to help support the industry, especially MSMEs and small businessmen, are being arranged for, including –
Statutory regulations and compliance requirements are getting temporarily relaxed to encourage economic recovery –
No financial relief. These are just procedural relief and not going to have any implications on MSME survival.
The Reserve Bank of India has been requested by the Govt. of India to provide relied for the economy, and has raised the Ways and Means advanced limits of States by 60% and enhanced the Overdraft duration limits. Additionally, the following measures were also taken –
These measures are expected to solve liquidity issues in the market, which is essential in the current scenario. However, there is no direct benefits to MSMEs in the country.
Certain relief measures are being put into place for contractors to ensure that construction stays alive and begins recovering example
These measures are expected to help a lot of MSMEs who had given bank guarantees on government projects. Bank guarantee also cost money to MSMEs and this will help them to reduce their cost.
The adverse effects of the COVID-19 lockdown and quarantines put projects in risk of defaulting on RERA timelines, and timelines need to be extended. These measures taken by the Ministry of Housing and Urban Affairs will de-stress real estate developers and ensure completion of projects so that home buyers are able to get delivery of their booked houses with new timelines, by advising States/UTs to –
Since its enactment, RERA has given hard times to Builders. This interim relief will help real estate segments some breather in not falling into trap of RERA. However, real estate expected much significant government support to boost the demand. Considering the existing level of real estate inventory in the country, if immediate steps are not taken by government to boost real estate demand, it will be a challenging situation for this sector.
Make sure that you receive all the benefits you are due from this new relief scheme by the Govt. of India by signing up with TYASuite Software Solutions. With our plug-and-play cloud ERP software, get integrated access to all modules of business processing in one single platform, and have complete access over remote cloud-based applications.
With our Procurement to Pay, Project Management, Compliance Management, Vendor Management, Inventory Management, Asset Management and full deck of ERP tools, make sure you stay on top of the coming economic revolution. Never miss out important news, manage your business seamlessly and enhance your profitability by going digital with TYASuite.
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For the benefit of our readers, we have summarized complete revised TDS Rates applicable for FY 2020-21 (AY 2021-22) effective May 14th, 2020. (COVID TDS Rates).
New TDS Rates For Assessment year 2021-22:
In case you wish to automate your TDS compliances, you can subscribe to automated E-Procurement Software. As a support to MSMEs in this difficult time, TYASuite is offering 6 months free subscription to their E-Procurement Software. Avail the Free Subscription today.
Among the adverse effects of the COVID-19 pandemic on the global economy, one of the worst-hit components has been the supply chain. The worldwide cessation of transport and logistics facilities has left the supply chain destroyed, and procurement processes have been consequently affected by it as well. For the economy to recover, and businesses to resume their production, procurement must first be re-instated with haste.
Due to the worldwide transportation, logistics and human-to-human contact limitations, the supply chain has suffered multiple blows, and the major impacts have been -
Overcrowding in warehouses
With a lack of road, sea and air transport, warehouses have been overcrowded, and massive losses have been suffered due to the expiration and damage of goods that have been in storage for too long.
Projected costs of transportation are rising
The projected costs of transportation post the lockdown are rising as the lockdowns are extended, with transport and logistics companies looking to recover the losses suffered during the lockdowns. With rising transportation costs, the overall procurement cost will also have to rise for vendors to balance their sheets.
Vendor interests are waning
Due to the severe disruptions in the supply chain, many smaller vendors are looking for different modes of income, and the overall interest in the role of being a vendor is waning. Many vendors have had to resort to finding other modes of income simply to maintain their livelihoods, and the prospect of the future difficulties in vendor activity is discouraging potential vendors from joining the trade.
Identify potential risks in Inventory Management
Companies, especially in the manufacturing sector, will need to urgently identify which of their inventory items and raw material requirements are at the greatest risk of unavailability. High-risk items such as hardware, electronics, construction materials, chemical ingredients, etc. will have to be sourced with great care. With digital Procurement to Pay software and automated Inventory Management Software, they will be able to access unified data structures that provide analysis tools and reports that will help them identify the risks.
Gain real-time awareness of the entire procurement cycle
Businesses that have a multifaceted procurement process, dealing with multiple vendors and inventory, will need to make sure that they are always aware of each moving part. Only such constant awareness will help them ensure that their inventory is always sufficiently stocked, and sudden or unexpected shortages or missing components don’t halt their manufacturing or service processes. With cloud-based digital Procurement to Pay Software, Vendor Management Software and Inventory Management Software, they can gain this awareness through mobile surveillance of inventory, vendor activity and real-time notification/alert systems.
Fill in the gaps made by the lockdown
With an e-procurement solution, companies can ensure that the lockdown-related social distancing and quarantine rules don’t interrupt their procurement cycle. With the ability to raise PRs and POs, facilitate multi-level approvals, track the GRN and IRN flows and finalize payment procedures all from one cloud-based platform, managers will be able to ensure productivity from their laptops or smartphones during the lockdown or quarantine conditions.
With an affordable, scalable and flexible suite of ERP software, the TYASuite ERP solution can help these small businesses transform their procurement to suit the post COVID-19 requirements. The TYASuite P2P module can help automate, streamline and digitalize the procurement to pay process, boosting productivity, efficiency and profitability within weeks of implementation.
Due to the COVID-19 economic fallout, TYASuite is now offering a 180-day FREE TRIAL, whereby companies can sign up and access the full range of services included in the TYASuite Cloud ERP software, completely free of charge for 6 months!
The COVID-19 outbreak incident surfaced in Dec 2019 and the condition has continued to evolve throughout after April 30th, 2020. The lockdown has eased in certain parts of the country based on the zone ratings. However, the overall risk remains high.
· Identifying alternate source/suppliers with lead time for supplies.
· Arrange for requisite Govt./local admin permissions for supplies/resources.
· Revisit working capital requirements considering revised cash flow projections and new set of assumptions.
· Constant co-ordination will be required with all departments to identify priority and non-priority payments.
· Identifying, assessing and acting on the Govt. stimulus/credit support and its long term implications.
TYASuite is giving various performance improvement and remote management software for FREE. You can avail any of the software and improve efficiency and manage risks while fighting the COVID-19. Procurement to Pay Software, Compliance Management Software and Project Management Software has been in high demand since Covid-19 outbreak. What best is that you can go live in 7 days with our Plug and Pay ERP.
6. EPF Contribution by Government on behalf of Companies - The labour ministry notified the special scheme wherein the government will contribute 24% of the employee and employer provident fund share per month for three months to PF accounts of employees earning less than Rs 15,000 to tide over the impact of Covid-19 on small establishments. Refer to detailed guidelines at https://www.epfindia.gov.in/site_en/covid19.php.
11. Launch of SAFE, SAFE- Plus and SMILE Schemes by SIDBI - The special scheme will help MSEs to acquire equipment, plant and machinery and other assets including raw materials required for production or delivery of services. It will also help meet additional emergencies to ramp-up supplies of these essential products. It will be a digital interface and MSEs can apply for the loan through: https://onlineloanappl.sidbi.in/OnlineApplication/login.action
· Invest India Business Immunity Platform (BIP) portal at https://www.investindia.gov.in/bip?utm_source=popup
· List of Various existing MSME Schemes can be obtained at https://my.msme.gov.in/MyMsme/Scheme.aspx
This is the beginning of the digital age for small businesses, and new-age affordable cloud ERP solutions are being designed to help them transition to the digital formats. At TYASuite Software Solutions, we have designed a plug-and-play ERP software that is affordable, flexible and scalable to fit the needs of small businesses, startups and MSMEs. Visit our website for more details, and sign up for a Covid Special 6-month FREE TRIAL designed specially to help you survive the COVID-19 pandemic.
India had initially declared a nationwide 21-day lockdown to counter the spread of the CoVid-19 pandemic. To curtail it further, India brought Lockdown 2.0! Many people around the world are commending this as a great step against the spread of the virus. While this may be true, it is also true that the implementation of the lockdown has left much to be wanted, and one of the biggest victims has been the Indian economy. All businesses, from MSMEs to industry giants, are now at a loss as to how to survive the business downturn. Business owners must now take drastic steps, or they simply will not make it through this.
Many analysts are convinced that the overall global losses are in danger of surpassing the combined losses during WWI and WWII! The National Statistical Office (NSO) calculated that the current job-market was at its worst, and unemployment had peaked to the max in 45 years.Barclays has theorized that the lockdown could bring the country’s growth down to 2.5% from the earlier estimate of 4.5%.
Here’s a more detailed look at the situation, sector-wise, of India’s industrial health –
1. Manufacturing Sector – Most of India’s major manufacturing companies have entirely shut down their operations or significantly reduced them – including Tata Motors, Aditya Birla Group, Larsen and Toubro, UltraTech Cement, Thermax, Grasim Industries and Bharat Forge.
Manufacturers such as Dabur India, ITC and Hindustan Unilever have also closed all factories not directly related to essential products.
2. Essential Goods and Services – The essential service industry, including food, healthcare, power and communications, though least affected, have also recorded all-time lows due to the massive disruption in the supply chain.
3. Services Industry – The services industry is also among the worst victims of the lockdown, with the logistics sector taking the brunt. Even the e-commerce sector, expected to be the least affected, has been brought down to its knees by the lack of logistics and transport facilities. E-commerce giants like Amazon and Flipkart have all closed their operations barring only essential consumables. Industries like Travel and tourism, Hospitality and Restaurant etc are the worst hit and may take years to bounce back.
There is a global reaction of maintaining normalcy, as much as is possible, through the implementation of work-from-home options, automation and cloud -based technology to deal with the situation.
To figure out how to survive the corona aftermath, the most easily estimated steps that the Indian industries will probably follow once the lockdown has ended are –
1. Generalized Cost-reduction – most sectors of industry have already begun to experience the general tendency of cost-reduction during the lockdown. Global downsizing will increase and motivate Indian business-owners to lay off all employees that aren’t critically essential to the survival of their businesses.
2. Increases in automation – while dealing with a reduced staff, most companies are going try increasing the amount of automation in their business processes. All functions that can possibly be automated without high investment will be done so with great haste. Cloud ERP and other Cloud business Software like E-Procurement software (cloud procurement to pay software), Project Management Software, Inventory Management Software, cloud Compliance Management Software etc. will be in great demand. It will become essential for survival. Till the time there is a cure for Covid-19, business will never want to take risks again and will plan to move for cloud platforms.
3. Prioritize their products and clients – companies are going to have to focus on their strengths, and may remove products from the market, prioritizing their most demanded and profitable products and clientele with only the more revenue creating ones kept in the books. It is very critical to monitor your projects, clients and products profitability and remove non-profitable products/clients and projects at the earliest. Project Management software can help you seamlessly track the profitability of your customers and projects.
4. Reform business strategy – According to a recent set of recommendations by KPMG[1], companies will have to assess their short term liquidity to meet operational payments, make necessary adjustments to their capital structures, defer non-essential capex and explore potential disposal of non-core assets to make balance sheets lean.
This is when the industry must find the key solutions towards their survival post the lockdown. Since downsizing will mostly become the easiest way to cut back on company expenditure, affordable automation of business processes must be ensured. Fortunately, the modern market is full of opportunities for small businesses to automate their process.
We at TYASuite have a product range that has been automating business process and helping companies reduce their costs while increasing their profitability for many years now, and we believe that we can be a big part of the solution that MSMEs will need to survive the post-lockdown crisis.With the TYASuite Plug and Play Business Software product, you can:
1. Streamline and automate your procurement function: Our Procurement to Pay Software is designed to automate your procurement process seamlessly. With guaranteed reduction in operation time and cost of your procurement function and accounting function by more than 80%. TYASuite E-Procurement software can be your savior in this difficult time.
2. Optimize your Finance function – Make your finance function efficient with our Plug and play finance automation tools, such as Automated Accounting Software, Automated FAR Software (Fixed Assets Register) , Expense and Time management software, and reporting tools. Once you automate your finance function, you can rest easy and let the software do the work while you supervise and analyze the data we provide. Our automated TDS and GST tools are the best in the industry to ensure that your managers can spend more time on non-routine analysis work.
3. GST Related Compliances - With our Multi-location-GST function, your finance team can automate all GST related filings with a click. If you are a multi-location company and still using traditional accounting software with single GST location, it is high time for you switch to our Multi-location GST Software and reduce your team hours significantly. With our Multi-location GST Software, your team can seamlessly raise multi-location Sales Invoices and file multi-state GST returns with a click, and enjoy many more time saving functionalities.
4. Customer and Project Profitability - Our Project Management Software will make it easy for you to manage your projects digitally, and help your employees fulfill their functions remotely. Set tasks, manage priorities, track project progress, meet deadlines and collaborate with the entire workforce in real-time from the comfort of your computer or smartphones. Further, the Project Management software will help you to monitor client profitability and project profitability with a click helping you to take timely decisions and plug your cash burn.
5. Inventory Management - Our Inventory management software will ensure streamlined inventory holding costs, helping you identify your slow-moving inventory and re-use or liquidate the slow-moving items quickly. Further, with real time inventory and sales report at your fingertips, you can reduce your overall inventory cost and improve your profitability.
6. Compliance Management - When the world is looking for cost savings and survival, it would be dangerous to lose money due to non-compliances. As a CFO or founder, our Compliance Management Software will make it easy for you to make sure that your company does not violate any of the applicable regulations and you can monitor and manage all compliances with a single click. It is a must have tool for working in a multi-location environment.
In the times to come, it is imperative to ensure that the MSMEs of India stay afloat, as they are the ones at the greatest risk of insolvency and imminent bankruptcy. While the government is making many promises to help them in as many ways as they can, the onus is on the companies themselves to adapt and transform in the required ways to handle the onslaught of post CoVid problems they have never prepared for. The only way to have a fighting chance is to turn to digital technology, and make sure that the companies, and the people who are in it, stay safe, healthy and protected.
To help MSMEs, TYASuite is helping companies to adopt these must have technologies for MSMEs at an affordable price. Avail a Special extended No-obligation Free Trial for all of our product ranges during this global economic crisis.
As an Indian Company, TYASuite is committed to help Indian MSMEs in surviving the CoVid Epidemic and consequent financial crisis.
The whole world is coming out with their advisories for dealing with the implications of the Covid-19 Fallout. The sole accounting body in India has not left its footprint for the same.
Although SEBI has given more time to file earnings reports, corporates are still trying to meet their internal deadline amidst this fight against the Coronavirus. This puts a very high pressure on CFOs and Auditors to close the numbers and sign off while working from home.
The ICAI has released its guidelines for CFOs and Auditors on how to handle certain specific accounting issues due to Covid-19.
We have summarized possible accounting implications under Ind AS reporting related to Covid -19.
Reconsider Inventory Valuations to the “Net Realizable Value” considering the following:
In determining the Fair value measurement or disclosure requirements, adequate management consideration and professional judgment is required in determining whether the quoted prices are based on transactions in an orderly market. The following factors should be considered:
Critical factors to be considered for Hedge accounting:
In support of MSMEs in this difficult time, TYASuite is offering 6 months free subscription to their E-Procurement Software.
The Finance Act 2020 has introduced below new TDS sections/key amendments in TDS Sections which the business enterprise must be aware of:
TDS Rate For Assessment year 2020-21 and Assessment year 2021-22:
Author can be reached at vm@tya.co.in if you have any specific queries on this topic.
Be it an e-commerce industry or the health sector; The cloud computing innovation is providing better ways to deliver better services to the customers, The cutting-edge technology and advanced solutions in the public cloud market is rapidly growing and shifting the way of quicker interconnect and low-cost software.
We have also written a blog on Procurement to Pay Software for Today's Business Leaders, which you will find it useful.
Free Work From Home Software: An Initiative to give back to Society
Coronavirus Epidemic: The Current Situation
Novel Coronavirus or COVID-19 outbreak is a human catastrophe and has continued to disrupt financial markets and global supply chains, the overall impact on global businesses and economic growth. Its blowout has left many businesses around the world with counting costs.
Looking at the trends in many countries over the last 2 months, India is on the verge of touching Stage 3 of this Epidemic. In this time of urgency, it is the joint responsibility of all 130 Crore plus citizens of India to fight this together and come out of it as a winner. This Epidemic is at such scale that individually, we cannot do any justice in this fight but if we are together, we can fight this easily.
As requested by Honorable Prime Minister of India, Shri Narendra D Modi Ji on March 19, 2020, in an address to the Nation, we all need to give few weeks of our time to fight this Coronavirus situation.
Few suggestions on how we can jointly fight against this Coronavirus Epidemic:
1) Choose to Stay Home and Work From Home for the next few weeks
2) If you are a business owner, please allow your team to work from home
3) If you are a manager, please talk to your leaders and enforce work from home
4) Talk to at least 10 or more people every day and motivate them to Work From Home
5) Ensure your family members including kids and elderly Stay at Home
6) Maintain social distancing at least 1 meter (3 feet) between yourself and anyone in case you have to step out for urgencies
If we all jointly take a Pledge to “Work from Home”, we can break the chain of Coronavirus Epidemic.
You can get real-time updates on Corona Situation in India by clicking https://www.mohfw.gov.in/
Free Tools available for Work from Home
To ensure the business can run with minimal disruption and Maximize Your Productivity and Your team’s Productivity you can use some of the free tools and software available in the market.
Below is the list of free tools available which can help work from home:
1) Zoom Meetings: Provide unlimited free one to one video calls and team collaboration. Also, provide 40 minutes team collaboration for up to 100 team members for free. You can disconnect after 40 minutes and connect again to take the continued benefit
2) TYASuite is offering its Project Management Tool (PMT) to all Indian Companies Free of cost for the next 3 months. This offer can be extended further is required. The free tool will include all Enterprise version features including but not limited to below features.
The access is extended for Unlimited Projects, Unlimited Tasks, Unlimited employees - All free of cost. This also includes not only the software cost but also up to 10 Hours of Set-up and training assistance to ensure you can get the maximum benefit out of it.
3) TYASuite is offering its Invoice Approval platform to all Indian Companies Free of cost for the next 3 months. This offer can be extended further is required. The free tool will include all Enterprise version features including but not limited to below features.
The free offer is extended for Unlimited Invoices, Unlimited employees- All free of cost
4) TYASuite is offering its E-Procurement Platform to all Indian Companies Free of cost for the next 3 months. This offer can be extended further is required. The free tool will include all Enterprise version features including but not limited to below features.
TYASuite Platform can support the business to easily manage employees “Work from Home”.
The free offer is extended for Unlimited Users- All free of cost
5) Google Hangouts: Google has announced the free version of the Enterprise version of their tool
6) Cisco is offering the free version of its WebEx service with no time restrictions.
There are much more software which can be used Free of Cost to enable “Work from Home”
Join the “Work From Home Movement” and Share with your colleagues and friends and ask them to join the movement and break the Corona Epidemic Chain. Save Yourself, Save the Country, Save the world.
Understanding the term “Procurement to Pay Process”
Procurement to Pay (P2P) also called “Procure to Pay process” is a term used to define a business process and not a software or a technology in itself. P2P summarizes various steps involved in the Procurement process of any business.
Steps included in Procurement to Pay Process across industry
1. Requirement Generation
2. Requirement consolidation
3. Vendor Evaluation
4. Purchase Order Generation
5. Receiving Goods or services
6. Recording of Invoicing
7. Payment
The above steps can be executed manually or through a well-designed software. The use of software in the procurement process started as early as in the 1990s. Over the last 30 years, technology has traveled from being a luxury to a necessity and from becoming unaffordable to affordable.
However, today also business owners are not comfortable with implementing ERP software due to their implementation complexity. If one has to compare the adaptability of software, plug and play software will always give very high-level comfort as compared to complex software’s which takes months to implement and go live. The push back on ERP implementation comes primarily due to 4 factors:
About TYASuite Procurement to Pay Software
TYASuite Procurement to Pay software that will fit all businesses and Fully customized cloud ERP designed with a customer-centric approach, easy to manage with Play and play features.
TYASuite is a robust ERP platform that automates the Procurement to Pay Process very effectively and offers reports and insights to gain more control, visibility on account payment.
TYASuite Procurement to Pay (P2P) is a next-generation cloud-based suite that manages all when it comes to your procurement process, from p
