Bookkeeping in retail

Operation in a retail store is being carried out at an extremely heightened pace, maintaining accurate bookkeeping records of the business transactions taking place there becomes almost impossible to manage
finance

When you start a retail business there are many things to consider: What kind of point-of-sale system do you want? What are your stock management needs? Do you need to network shops; How will you manage your books, analyse your profitability and grow your business; and How will you deal with technical issues and stay up-to-date with changes in the retail industry. “Proper book keeping at the start of retail operations is as critical as finding the right location, right people, right rental and right stock mix” says Anoop Campbell, Chief Financial Officer, Guardian Lifecare Pvt. Ltd.

A store is a place that usually buzzes with various kinds of activities every passing day or hour. Therefore it has become essential for the retail shop owners to opt for quality bookkeeping services that help in reducing the probability of errors in their bookkeeping records. During these times, it becomes all the more necessary to have some bookkeeping personnel who can keep accurate track of all the financial transactions that are conducted. Bookkeepers look into the financial entries made in the book of accounts and are capable of analyzing the data from almost every conceivable view point. “Efficient bookkeeping is imperative, if you want your business to be successful in the long term. A detailed MIS helps to keep internal checks on the organization’s profitability as well as its inherent vulnerability. It is essential to analyze the books of accounts in order to assess to company’s health and prospects” says Asheeta Chhabra, Business Development Head, Chhabra 555.

Logistics Required

Retail software range; Record sales transactions, maintain stock records, manage information about your customers, suppliers and staff, and record your financial information, including GST information. Produce reports on any aspect of your retail business, Business management software range; manage all aspects of your bookkeeping and accounting needs, including: reporting; bank reconciliations; paying staff, suppliers and superannuation contributions; and prepare your Business Activity Statements, Consultancy; provide on-site assistance with installation, setup, networking and maintenance of your retail software and hardware. Also provide onsite training and assistance with business needs analysis and link it with your business management software. Some large multinationals implemented an RIFD based system in order to track the products and counter shrinkage. However, most retail organizations do not need to institutionalize something so elaborate. A basic Tally software or a standard SAP system is usually enough to keep the accounts straight.

Bookkeeping Benefits

In sales; entering sales quickly, entering lay-bys and gift vouchers, registering customer bar code labels, tracking serial numbers for warranty purposes.

In stocks; creating stock records, managing suppliers and ordering stock, Stocktaking, Making price adjustments

Forethought

Make sure to:  Never forget to track reimbursable expenses, not properly classifying employees, not properly classifying employees, not deducting sales tax, petty cash nonchalance, miscategorization or overcategorization. For a bookkeeper, it’s about keeping track of income and expenses, processing invoices, settling the bank statements and payroll administration. Error free recording of transactions in retail accounting is vital for the success of the business.

Bookkeeping experiences teach a person how to handle complicated situations properly. If not complied with, it can prove to be fatal for the organization, in the form of heavy penalties and lengthy lawsuits.

 

 

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