Why use accounting software in your retail business

Retail is about record keeping

There are many different types of retail operations, from eCommerce and mail order to direct retail, pop-up shops, catalogues and more.  As a business owner in the retail industry you need to know how to handle your specific accounting needs, and that starts with recognising the main difference: Retail accounting comes with the added challenge of keeping track of your inventory and knowing exactly how many goods you’re buying or selling and how much is left over.

But as any retailer knows, success involves more than just exchanging goods for money. You need to understand product merchandising, advertising and marketing, stock control, customer service, market research, supplier negotiation and more.

Retail can be seasonal too, with peaks in the run-up to Christmas and the back-to-school periods. The best retailers think carefully about how – and when – their products fit into consumers’ lifestyles. They use that knowledge to market their products.

And then there’s the accounts. Cash flow, payroll, taxes, ledgers and so on, all have to be tracked carefully. With money coming in and going out all the time, you won’t want to let anything slip through the cracks.

All of this means that you can’t run a successful retail business without keeping detailed records. And that’s where good quality accounting support and software can help.

How retail accounting software can help

Accounting software isn’t just for accounts. Today’s accounting software can be connected to lots of other apps. That gives you potentially hundreds of joined-up tools to help you manage your retail business.

When deciding which accounting software to buy, here are a few points to consider:

• Was it designed with retail in mind?
  Does the software work well for retailers? Read the online forums and specifications carefully.
• Does it have multiple access levels?
  It’s best to have different levels of permissions for owners, managers and others with special authorisation. You won’t want everyone on the shop floor having full access to your accounts.
• Can it record transactions and manage payroll?
  Nearly all accounting software handles transactions, but payroll might only be available as an upgrade. Check before you buy.
• Can it track inventory?
  Some do, others don’t but can be seamlessly linked to add-on apps that can. Do your research, as this is a useful feature for retailers.
• Is it cloud-based?
  If so, it’ll give you access to your accounts from anywhere at any time, lower support costs, automatic backup and easy connection to other apps.
• Is it scalable and extensible?
  Scalable means it will grow as your company does, letting you add new users when you need to. Extensible means you can add new features to the software just buy purchasing new add-on business apps.

Business owners in the retail industry need to know how to handle their specific accounting needs, and that starts with recognizing the main difference: Retail accounting comes with the added challenge of keeping track of your inventory and knowing exactly how many goods you’re buying or selling and how much is left over.

With Xero’s easy-to-use retail accounting software you can see up-to-date cashflow from anywhere, save hours on admin and connect with your POS, inventory and ecommerce apps.

Specialist accountants to the retail industry and Xero champions, ESP Business Solutions provide a ‘full bag’ of cost-effective accountancy services. We work with some of the UK’s most rapidly growing retailers, small independent boutiques, e-retailers and e-commerce.

We understand that the ever-changing world of retail is one of the most competitive sectors, we can help you integrate your sales channels with your accounting software simplifying your business, to provide you with an easy to use, seamless process, giving you instant access to accurate & up to date data. Giving you timely information to drive real insight into your business  – helping you to understand today, forecast tomorrow, and action a better future for you and your business.