Retail shop accounting done by a retailer individually is a complex and time-consuming process. It increases the chances of data inaccuracy too. This presentation describes the challenges retailers face while performing accounting of retail business and solution to the problems.
3. CATEGORIZATION OF
RETAIL BUSINESSES
It is estimated that there are around 4.2
million establishments of retail business
in the USA such as: books, restaurants,
beauty products, etc.
Hardline – Cars showrooms, furniture,
appliances etc.
Soft Goods – Shoes, clothing
Food – Bakery, Restaurant, etc.
Art – Books and musical instruments
4 Major Categories :
4. HOW ACCOUNTING WORKS IN
RETAIL BUSINESS? W E
Finance and accounting is an
important part of retail business.
Retail shop accounting includes
keeping a track of inventory
control, sales and purchase and a
lot more.
6. Classification of Books
of Accounts
Budgeting Inventory
Costs
Point of sale system
Outsource services to
experts
Manage your balance
sheet
Utilizing latest
software
Costing Methods
SOLUTIONS TO MANAGE THE RETAIL
BUSINESS EFFECTIVELY
7. BUDGETING INVENTORY
COSTS
Evaluation of how much you
are spending on your
inventory is essential. So you
need to find out the quantity
available in your warehouse,
in order to meet the customer
demand and plan a budget
accordingly.
8. COSTING METHODS
Relatively, there are three
costing methods to monitor
the cost of goods: FIFO,
LIFO and Weighted costs.
These methods work for
years for multiple inventory
channels.
9. CLASSIFICATION OF BOOKS
OF ACCOUNTS
It is a primary step to streamline
the accounting process. The retail
business comprises different tasks
such as sales, purchase, inventory
stock, etc., so it is necessary to
make different ledgers as it
becomes easy for you to prepare
your financial statements.
10. POINT OF SALE SYSTEM
Many retail businesses use a
manual process to record the sales.
But with a point-of-sale system, you
can enable customers to easily pay
you the amount for the goods they
bought, either by using credit or
debit card or by cash.
11. MANAGE YOUR BALANCE
SHEET
It is an important task to keep an
eye on assets and liabilities. It is
crucial to know about investment
and expenses to take an informed
business decision.
13. OUTSOURCE RETAIL STORE
ACCOUNTING TO EXPERTS
Outsourcing retail store accounting
helps you make better decisions
regarding your business. Their
professional virtual accountants help
in handling the cash flow
statements, balance sheets and
income statements which are very
important for the growth of any
business.
14. HOW OUTSOURCING CAN ENHANCE THE RETAIL BUSINESS
EFFICIENCY?
• Inventory tracking solutions for specific requirements.
• Updated sales channels with the detailed information.
• Strengthens the invoice process system.
• Classifying the different sales and purchase systematically.
• Builds structure of management and improves business management.
