Why choose a retail-specific accounting software?
The retail industry is vast, ranging from restaurants to grocery stores, book stores to shopping centres, drug stores to hotels, and much more. The way these businesses operate is widely distinct from one another. They also have varying sales trends, profit margins, inventory requirements, and the likes. Because of these factors, managing accounts for these businesses with the help of a standardized accounting solution would serve no good to the business owners. On the contrary, it could end up being more expensive and requiring more human effort for the retailers.
This is the major reason why retail business owners need to implement retail-specific accounting software. In this article, we would elaborate on features that make a retail-specific accounting solution unique from the other solutions available in the marketplace.
1. Inventory management
In the retail business, adequate inventory management and control is extremely crucial. Retail stores must not run out of stock of items. On the flip side, over-stocking inventory could mean that the company's resources are stuck until the entire stock is sold out, eventually resulting in a capital crunch. For these reasons, accounting software that manages the inventory efficiently.
An ideal accounting software would automatically update stock numbers as soon as a purchase order is received and when a barcode is identified at the point-of-sale. The accounting solution should also be able to accommodate seasonal fluctuations in the store's sales. Additionally, accountants should be able to track inventory value on a certain cut-off date.
2. Tax calculation and reporting
Taxes are levied are goods and services based on various government regulations. These may vary in terms of the item in question, the state or region of the store, and the likes. Tracking this information and accurately calculating and charging or paying taxes can only be managed in retail-specific accounting software. Ginesys' account management solution is GST-compliant and is regularly updated based on changes in the government's regulations. Retailers can charge or pay taxes precisely for every sale or purchase respectively.
3. Payroll processing
Processing salaries for employees in the retail sector is a complicated task. Retailers hire some permanent employees and some temporary ones, especially during high footfall seasons. Additionally, employees in different departments could be offered varying pays. Therefore, it is not possible to have a standardized payroll for the organization. A retail-specific account management software allows business owners to manage their payroll based on these factors and process salaries for their employees accordingly.
In the retail sector, numerous metrics need to be recorded and reported to track business performance. Retailers should be able to view reports on overall expenses, amounts payable and receivable, cost of goods sold, inventory value, sales volumes, and much more. These reports need to be highly accurate as there are various business management decisions made based on these metrics. An accounting software specific to the retail industry is built specially to generate error-free reports after compiling a wide range of data from various sectors of the business.
Thus, retail business owners must invest in a retail-specific account management solution. Ginesys offers one such accounting solution that is specially designed to cater to retail businesses.