Inventory management · United Arab Emirates
Stock that reconciles to the ledger
A stock system is only worth having if its closing value agrees with your balance sheet. We implement the system, fix the costing, run the counts, and make the two numbers meet.
- System selection and implementation
- One costing method, applied consistently — most errors start here
- Physical counts, with the variance investigated rather than posted
- Reorder levels and shrinkage control
- Full integration with your general ledger
Speak to a specialist
Free 30-minute consultation. Written proposal within one business day.
The problem
Wrong stock value, wrong profit, wrong tax
Inventory sits at the centre of three numbers that matter. It is an asset on the balance sheet, it drives cost of sales in the profit and loss, and through cost of sales it drives taxable income. A stock figure that is out by 15% — entirely normal in businesses that count once a year and estimate in between — produces a gross margin that is fiction and a corporate tax computation built on it.
The usual causes are unglamorous. No consistent costing method, so landed cost is sometimes included and sometimes not. Goods received but never entered. Damaged and obsolete stock still carried at full value. Multiple locations with no transfer discipline. Each is fixable, and none gets fixed by buying better software alone.
Why it matters for tax: closing stock feeds cost of sales, and cost of sales feeds taxable income. An inventory figure you cannot substantiate is an inventory figure you cannot defend in a corporate tax review.
Scope
What is included
System & setup
- Requirements review and system selection
- Item master, categories and unit-of-measure structure
- Costing method set — FIFO or weighted average — and applied consistently
- Landed cost treatment for imports, duty and freight
- Multi-location and warehouse transfer configuration
Control & reporting
- Physical stock count procedures and supervision
- Variance investigation and adjustment approval
- Reorder levels, minimum stock and slow-moving reports
- Obsolescence and shrinkage provisioning
- Stock ledger reconciled to the general ledger monthly
How it works
Four steps
Baseline count
A full physical count establishes what is actually there, against what the system says.
Costing corrected
Method chosen, landed costs applied, historical valuation restated where needed.
System configured
Item master rebuilt, locations set, reorder levels and approvals in place.
Ongoing reconciliation
Stock ledger agreed to the general ledger every month, with variances explained.
Pricing
What it costs
Published, fixed, and quoted in writing before we start. All fees exclude 5% UAE VAT.
| Service | Basis | Fee |
|---|---|---|
| Inventory system setup & training | Project | from AED 3,500 |
| Stock count supervision | Per count | On request |
| Costing review & restatement | Project | from AED 4,000 |
| Ongoing costing & stock control, in Accelerate package | Monthly | AED 3,000/month |
Questions
Inventory Management — frequently asked
Which inventory system should I use?
Zoho Inventory and QuickBooks handle straightforward trading and retail. Tally remains strong for high-volume distribution. Odoo suits businesses that need manufacturing or assembly alongside stock. SAP Business One and Dynamics come in where multi-entity or production costing is involved. Volume, number of SKUs and whether you manufacture are the deciding factors.
Do you physically count the stock?
We design the count procedure, supervise it, and investigate the variances. Physically handling and counting items is normally done by your own warehouse team under our observation — that is how auditors expect it to be evidenced.
FIFO or weighted average?
Weighted average is simpler to maintain and suits businesses buying the same items repeatedly at varying prices. FIFO gives a closing stock value closer to current cost and is preferred where items are identifiable or perishable. IFRS permits both; what it does not permit is switching between them to suit the result.
How does inventory affect my corporate tax?
Directly. Closing stock reduces cost of sales, which increases taxable profit. An overstated stock figure inflates your tax bill; an understated one creates an exposure if the FTA reviews it. Either way, the figure must be supportable by a count and a consistent costing basis.
Can inventory integrate with my accounts?
It should, and in most modern platforms it does natively. Where a separate warehouse system is in use we build the reconciliation and post the monthly movement into the ledger. What we do not accept is a stock system whose closing value nobody ever agrees to the balance sheet.
Will you train our warehouse staff?
Yes. Goods receipt, transfer and issue discipline is where most stock accuracy is won or lost, and the people doing it are rarely the people who bought the software. Training is delivered on your own system with written procedures.
Next step
Thirty minutes, no obligation
Tell us where you are. We will tell you what is required, what it costs, and whether anything is already overdue — before you have paid us anything.
Prefer to see numbers first? Take the 3-minute assessment — package, indicative fee and your own filing deadlines, no contact details required.
Request a call back
A senior advisor, not a call centre.