You need to maintain an organised accounting system to keep track of all your retail business transactions. This includes recording your expenses, sales, receivables, inventory, and payables. Doing this creates accurate financial reports and lets you assess your business performance. Having detailed and authentic records will come in handy if you're ever audited.
That said, the first step in bookkeeping is identifying the best system for your business. You need to decide whether to invest in in-house bookkeeping or outsource the services. Once you have decided on the system, you can begin tracking your income and expenses.
The Tasks of a Store Bookkeeper
A store bookkeeper is responsible for recording and maintaining a business's financial transactions. This includes sales revenue, expenses, invoices, payments, and purchases. A store bookkeeper must be good with numbers and have strong math skills. They also need to understand accounting principles.
Their other obligations include:
Adjusting entries
Calculating the total balance for the accounts
Identifying transactions
Looking for errors and adjusting worksheet
Posting to the general ledger
Recording transactions in a journal
Bookkeepers need to have excellent communication skills in order to be able to report finances accurately. They collect purchase and sales documents from colleagues and handle other tasks that require them to engage with other parties. This ensures that bookkeepers have all of the information they need to generate accurate reports.
It is important to have a good system of communication in order to keep track of all transactions and avoid any mistakes. A reliable system for distributing cash, reimbursing expenses, and submitting receipts can help improve the business overall.
Besides those, the bookkeeper is responsible for keeping track of the company's inventory and ordering more supplies when necessary. They liaise with the heads of departments to find out what is needed and ensure that the company has enough supplies.
Their other primary tasks also include:
Processing payroll
Performing banking activities
Reconciling reports
Producing monthly financial reports
Handling accounts receivable
Handling accounts payable
They may also be responsible for more advanced duties such as creating budgets, forecasts and training staff on the use of software solutions. At the end of the year, bookkeepers may also be responsible for filing taxes and preparing end-of-year reports, especially for small ventures.
The Basics of Bookkeeping for Retail Business Work
Retail bookkeeping is recording and organising a retail business's financial transactions. This usually includes keeping track of expenses, sales, inventory, receivables, and payables. Retail bookkeeping can be done using either the single-entry or double-entry accounting method.
Inventory Accounting
Bookkeepers use a system to track the inventory that goes in and out of a retail business on a daily basis. This system helps keep accurate records of the cost and quantity of supplies received as well as the selling price of each product sold. In addition, the bookkeeper regularly adjusts the records to account for any damaged, stolen, or spoiled goods. This ensures that the documents always show the accurate number of available inventory. Keeping accurate records of the inventory is important because it is the biggest asset of the business and usually the biggest investment.
Income
Bookkeepers play an important role in any business by keeping track of all money that comes in. This includes sales revenue, fees, and commissions. Doing this can help identify discrepancies between what was earned and what was actually deposited into the business account. Additionally, bookkeepers often audit point-of-sale records to make sure they are accurate. In short, bookkeepers keep records of all income and ensure that it is properly accounted for.
Conclusion
Overall, bookkeeping services can be a great help to your retail business. You can better manage your finances and make informed decisions about the venture by keeping track of your income and expenses. While bookkeeping services can be costly, they can save you time and money in the long run.
If you are looking for experienced eCommerce business advisors in Australia, look no further than our expertise here at The ECommerce Accountant. We are the absolute business advisors for online stores and influencers. Call us today and let us discuss all your financial retail options.
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