5 Reasons Why Your Retail Business Needs an Accounting Software

Oct 17, 2018
Nandinee Biswas
accounting software for retail business accounting software for retail business

Primary revenue source of any retail business revolves around supplying products to customers, meeting their rising demands. Retail establishments that are still stuck with traditional bookkeeping practices often struggle to keep up with the high volume accounting and finance records. It is quite a daunting task for them to manually tally every monetary transaction at the end of each month from the financial data stored across multiple accounting systems. Moreover, inaccurate accounting data can also stir a rippling effect in all stages of the business operation, right from inventory to sales. This brings ERP system into the picture, which has become a staple solution for a good number of companies worldwide today.

Here are the 5 reasons why your retail business needs an ERP accounting software:

Information accuracy

Retail organizations, large or small, must keep records of their fund movement, inventory, and so on. These pieces of information play a crucial role in business operations. Also, retailers need accurate and real-time financial data to make strategic growth decisions.

It is immensely challenging for retailers to manually execute transaction matching, workflow tasks, and reconciliations of spreadsheets. The fastest way an accounting and finance teams can deal with the data and offer broader value to a business is through automating these processes. Though, it is quite impossible to totally remove human intervention, yet an apt bookkeeping software can disentangle the record keeping loop that might some way or other inclined to botching.

This would also lead the accounting team to start focusing on executing critical tasks instead of spending countless hours on reviewing and reconciling ledgers manually.

Accounting and finance ledgers of a retail company are expected to have accurate transaction reconciliation records. Traditional account reconciliation processes involve manually processing high volumes of complex transactions and therefore are prone to human errors.

An accounting software automates and standardizes the reconciliation process. It enables automatic data imports from different systems across dispersed locations to ensure that reconciliation is done without the risk of entry errors or redundancy. Also, the automated workflow helps compare general ledger to investigate discrepancies and take the required action, while removing the tedious task of manually comparing multiple books to accomplish the solution.

Saves time

Retail organizations require to keep up-to-date records of sales, inventory, and specify the price of each product. Manually capturing and maintaining these vast amounts of details with spreadsheets is time-consuming. An accounting software can help remove this major hurdle. The application automates the process of bookkeeping, simultaneously controlling frontend and backend financial operations and saves a lot of time over manual processing methods.

Automate invoice generation

Generating invoice is a crucial retail operation. Manually entering and generating invoices for thousands of transactions taking place every day is near to impossible. However, this task can be effortlessly accomplished with the help of a proficient accounting software. The computerized system has capabilities to run reports to detect which buyers have paid and can generate invoices for their transaction automatically, in just a few clicks.

Also, retail businesses can count on well-equipped bookkeeping solutions for prompt and reliable information which can put controls to their finances.

accounting software and retail business

Hybrid solution

ERP accounting software centralizes the intercompany processes to manage and control all the complexity inherent to bookkeeping including multi-currency exchanges, monetary transaction, journal creation, tax implications, account reconciliation, invoice generation, cash flow, and more from a single platform. Such systems enable businesses to supervise the activities of multiple retail outlets and help to keep product pricing uniform across them.

Automating accounting system helps retail businesses effortlessly manage their financial records including payments, generate invoices, pricing, etc., while reducing time and money spent on these administrative tasks. The computerized system also offers valuable insight into the business that can support in making more informed decisions, thus improving productivity and revenue growth.

Focus Softnet builds powerful ERP accounting solution that can modernize the financial management system of your organization. We aim to help you automate accounting to reduce human errors and enhance business productivity. To know more about the software, just fill in the form here and get a free demo or consultation.

Compliance and audit readiness

New-age accounting software prepares businesses to meet regulatory standards and seamlessly undergo financial audits. Utilizing it ensures accurate and well-maintained financial records, facilitating compliance with tax regulations and industry standards. These systems enable businesses to generate comprehensive reports and documentation, ensuring transparency and accuracy during audits. By consistently maintaining up-to-date financial data and adhering to compliance requirements, companies can minimize audit risks, demonstrate accountability, and swiftly address discrepancies, bolstering trust among stakeholders and regulatory bodies.

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