Running a retail business is challenging; there are a lot of plates to spin. A systematic retail accounting process to manage inventory, financial statements, payroll, and tax payments can really make life easier for owners and operators.
Small retail businesses have unique hurdles in today’s world; competition from superstores and online shopping has forced traditional brick-and-mortar retailers to modify their strategies. Rather than being reactive to these changes, successful retail business owners stay profitable and proactive using the help of accounting professionals.
Monthly Accounting for Retail Businesses
Monthly accounting reports allow retailers the ability to stay agile in an ever-changing business environment. Plus, up-to-date financial reporting is the best way to identify profit growth and potential.
Successful retailers focus on growing the bottom line by leveraging accounting best practices and continuous process improvements.
One of the most time-consuming tasks in operating a retail store is managing your inventory. Unless you have a very narrow product mix, you’ll spend a significant amount of time tracking your stock. Although it requires work and discipline to maintain, a strong inventory system will make it easier for you to focus on your customers while growing your business.
Advantages of a Good Retail Inventory System
1. Customer Service
Having a handle on your inventory can help you avoid running out of important stock, such as hot sellers. Keep shoppers happy by having their favorites readily available. Otherwise, you may lose them to online sales or big box stores.
2. Product Tracking
Part of tracking stock involves identifying and classifying hot versus slow sellers. Once you’ve properly tracked items based on sales and profitability, you can weed out the low sellers with sales or markdowns.
3. Theft Control
Without an inventory system in place, it’s nearly impossible to know if you’re being taken advantage of by customers, or worse, your employees. Don’t wait until it’s too late. Stay on top of your inventory to control theft.
4. Financial Management
An solid inventory system tied to accurate monthly financial statements provides you with the knowledge to make informed business decisions moving forward. Staying on top of your stock is a proactive measure to increase profitability.
Wondering how to get started implementing an inventory system? Contact our team to get the conversation started.