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How Retail Accounting Services Ensure the Success of Your Business?

Last updated: 28 Sep, 2023 By | 6 Minutes Read

Retail Accounting

The retail sector is perhaps the most visible industry to the common man in the street. Be it convenience stores, gas stations, or multi-storied shopping centers, they are everywhere. General retail stores have one thing in common. they sell large number of products daily. However, keeping track of inventories is truly a herculean task. Retail Accounting is a cost-effective way to manage your accounting.

Apart from this, retail and convenience stores are subject to seasonal rise and fall, driving challenges.

What do you do when you need more help to man the counters? Recruit?

And what do you do in the lean season? Retrench?

No, it is not so. A plan has to be worked out that will enable you to focus on your core activity of selling only. You have to plan your levels of inventories accordingly and you have to plan out your manpower requirements to take into account all seasonal fluctuations. You have to ensure that all variables that do not directly affect your main business are left to professionals who can handle them well at affordable rates.

Segregating main retail section and back office work will definitely result in the success of your business. And the best way to do so is to outsource retail accounting to experts with long years of experience in this field.

What then do the retail accounting services have to offer-

Bank and Credit Card Reconciliation

Reconciling of bank and credit card transactions for the retail sector where hundreds of credit card payments are made every day and checks are drawn towards payments is not easy. Moreover, you too will be making payments to your vendors through card and checks every month. If balancing is not done every month, you’ll not know the true position of your payables and receivables and the true state of finances.

Outsourced agencies will balance these heads every month meticulously, thereby giving you the real picture of cash flow and working capital position. Based on this, you can take business decisions for growth and development.

Inventory Management –

This is crucial for the retail sector as high levels of inventories can adversely impact profitability. Outsourced agencies carry out year on year analysis of your sales both in the lean and busy seasons and will give you a report on the levels of inventory that will maximize profits.

This process is especially useful for retail stores but not so crucial for gas stations or liquor stores where the range of products is rather limited.

Accounts Payable 

Processing the huge number of invoices payable by any retail store owner can be a daunting task. When you outsource this activity to retail accounting services, every invoice will be accounted for by them in their systems including due dates, even ensuring that every invoice is authenticated by authorized people in your business.

Through periodical reports on accounts payable, you can estimate the cash flow and working capital requirements of your business.

Payroll Processing 

This is a complex activity for the retail sector. You’ll have permanent employees and temporary hands that are generally recruited during busy and festive seasons. Salaries payable will therefore not be standardized and changes will be inherent every month. Added to it is the complicated tax computing task every year where your business and individual tax has to be calculated and returns filed.

The total process will be comprehensively taken care of by the outsourced agency. All that you have to do is upload all relevant particulars to them every month.

IRS and Sales Tax Audit 

This is another of your complicated tasks taken care of when you decide to outsource retail accounting work. Sales tax audit ensures that the tax rates and amounts submitted are in accordance with statutory regulations.

It is therefore seen that by taking major, tedious and time-consuming tasks off your shoulders you are left with time for overseeing the business growth and ensuring the success of your venture.

One of the top companies offering retail accounting services is Cogneesol. Our team of professionally qualified and experienced accountants will surely contribute to the success of your business. For details, visit www.cogneesol.com.

Also Read – Major Advantages of Outsourcing Retail Accounting Services