6 Pieces to Effective Retail Accounting
One of the most important pieces to add to your retail management solution is integrated accounting. How will you take all of the moving financial parts of your operation and make them profitable? How do you get eyes on revenues, profits, and expenses? Here are six things your integrated accounting solution should do for your retail operations:
- Lease management – If you have only one store location, lease management might be a cinch. But what if you have multiple locations? You need a way to manage each lease agreement across your chain because it’s likely that each agreement has different terms, and you need a way to keep it all straight.
- Cash audit – Manage your finances down to the granular level where you can keep eyes on each individual invoice.
- Invoice matching – Speaking of invoices, you need an efficient way to match each invoice to every purchase order. Your retail management solution should make this seamless.
- Commissions engine – If your sales people earn commissions and bonuses, then you need to keep track of their earnings. Your point-of-sale system should be able to track and monitor the performance of each sales person on your retail team, and figure their commissions and bonuses.
- Bank reconciliation – Reconciling your bank accounts can be a chore. If your retail management solution doesn’t help you with this, you’ve got the wrong solution. No matter how many bank accounts you have, you should be able to automatically reconcile each one.
- Expense allocation – When you move inventory around from store to store, it can be a nightmare to account for each store’s expenses, but your retail management solution can do it for you. You should be able to allocate expenses and re-allocate them based on a number of parameters.
Make sure you have the right retail management solution, one that integrates the best accounting practices of the retail profession.