Bookkeeping refers to the process of recording a business’ daily financial transactions, allowing a business owner to keep precise track of their expenses and income and thus create accurate financial statements and analysis of crucial financial metrics.
Some retail business owners may perform their own bookkeeping in order to save money, but this can take up a lot of time, and it is often better to use professional bookkeeping for retail business services to track expenses, inventory, payables, receivables, and sales.
Inventory
Bookkeeping for retail business services will put in place systems to track inventory data, including the cost and quantity of all items coming in and out of the store each day. These systems can make regular changes to account for goods that are damaged, spoiled, or stolen in order to ensure the inventory remains accurate with the goods actually on hand in the store.
Income
Bookkeeping for retail business services keeps track of all the income that is received and regularly compares store records to bank accounts to ensure any discrepancies are quickly identified. Sales revenue is the biggest income driver for any store, but other sources of income may be open, such as extended warranty sales, consignment commissions, or after-sale service fees.
Expenses
Expenses need to be tracked the same as income, with records likewise compared against bank accounts. Recurring expenses should be automated when possible, such as lease and rent payments, and all variable expenses recorded, such as taxes, cost of goods, labor expenses etc.
