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Having customers who are interested in your products and who continue to make purchases is one of the most rewarding parts of running your own store. Yet, behind every transaction comes the painstaking process of retail store accounting.
Retail store accounting software can provide reliability for business owners who prefer to handle expense tracking, cash flow management, and financial reporting manually. These tools provide an up-to-date and clear idea of their financial health while reducing the effort, time, and risk of errors involved.
Retail businesses face unique challenges, such as the need for inventory tracking, tax compliance, and multi-location accounting. The right accounting software can make all the difference.
We’ll show you why this kind of software matters, key features to look for, how to find the right fit, and a few platforms to help you get started.
What Is Retail Store Accounting Software & Why Does It Matter?
While countless generic accounting software solutions exist, retail store accounting software is built specifically for retail businesses. Although you’ll still find typical accounting features and tools, they’ll also feature components like sales reconciliation, POS system integration, profit margin analysis, and multi-location support.
This type of software focuses heavily on real-time financial tracking and automation, as retail businesses are no strangers to fluctuating inventory, complicated tax requirements, and large volumes of transactions. Cloud-based solutions are also widespread, improving your compliance, efficiency, and accuracy through synchronization and real-time access.
7 Key Features to Look for in Retail Store Accounting Software
If you haven’t adopted digital accounting software yet, even basic online bookkeeping will be an upgrade. For those who want a more comprehensive solution, however, be sure to look for these must-have features in your retail-specific accounting software.
1. Real-Time Revenue & Expense Tracking
When expenses and revenue are recorded as they occur, monitoring daily sales and tracking costs is made easy. With up-to-date data and records, business owners can make decisions on the go and spot issues before they become bigger problems. Real-time profit and loss (P&L) insights, in particular, provide the visibility needed to identify profitable areas and those that are underperforming.
2. Multi-Location & Franchise Management
If you already have multiple locations or plan to expand in the future, there’s no more valuable feature than centralized financial reporting. Instead of dealing with multiple data silos, you can store all your financial data in one place. Multi-store accounting tools like this one prevent the chaos of juggling separate financial systems for each location. They allow you to receive instant inventory updates, track sales, and monitor expenses for peak organization.
3. Integration with POS & Inventory Management Systems
Without integration with your POS and inventory management systems, how will you keep track of everything all at once? When your accounting software is synced with your sales and even payroll data, you can pull insights from these systems for a complete and accurate view of your financial records. Automated syncing of that data will improve this accuracy tenfold.
4. Tax Compliance & Automated Reporting
Tax calculations should be as hassle-free as possible. Your retail accounting software should be able to streamline this tedious process by automatically helping you stay compliant. Automated reporting and compliance should apply rates based on location and generate accurate reports whenever you need them.
If you operate in multiple states or online, look for platforms that handle multi-state filing and multi-location taxes. Otherwise, you’ll be stuck with the task of manual calculations.
5. Budgeting, Forecasting & Financial Planning
Beyond the here and now, it’s also important to look ahead. Retailers should look for accounting software that boasts financial forecasting, ideally using AI. AI can quickly analyze your store data over time and predict seasonal fluctuations to avoid stockouts or overstocking. Having that level of insight into sales patterns is incredibly valuable, as you can improve profitability year-round, even when sales aren’t booming.
6. Accounts Payable & Receivable Automation
While we used to have to manage paper invoices and receipts, automation means we can stay on top of all our bills and avoid missing out on revenue. With better financial planning, retailers can prevent revenue leakage and always have enough liquidity to cover operational costs.
7. Mobile Access & Cloud-Based Accounting
No matter where you are, your accounting software should let you access your data on the go and through multiple devices. Retailers often hop from place to place, but this shouldn’t mean neglecting your financial health. When you can manage your finances anywhere, you can adopt a more hands-on approach and track always-changing metrics. Cloud-based solutions will keep your information backed up and display it in real time, so you never miss a beat.
3 Best Retail Store Accounting Software Platforms to Consider
Want to get to know a few top retail accounting software platforms that can revamp your financial practices? We’ve broken down three of our favorites in the table below.
|
Platform |
Features |
Pricing Per Month |
Integrations |
User Experience |
|
Lightspeed |
|
Basic ($109), Core ($179), and Plus ($339) plans, with discounts on annual plans. Costs increase with more locations and more registers. |
Integrates with a long list of retail applications for accounting, analytics, invoicing, and more. |
Specialized solution for retail management with many components, such as point-of-sale and accounting features. |
|
Sage Intacct |
Customizable dashboard
|
Not publicly available |
Over 350 software integrations, including inventory management, payroll, e-commerce, point of sale, and tax management |
Robust features and tools make it suitable for mid-sized to larger retail businesses. May take some time to get familiar with. |
|
QuickBooks |
|
Simple Start ($35), Essentials ($65), and Plus ($99) plans |
A variety of integrations for customer management, payroll, income management, invoicing, tax preparation, inventory management, and more |
Beginner-friendly option with intuitive tools and features. |
How to Choose the Right Accounting Software for Your Retail Store
As you can see from the table, not all accounting software will be suitable for your business or specific needs. Here’s how to make a decision.
Identify Your Business’s Accounting Needs
Go over the structure of your business. How big is it? How many locations do you have? Do you have diverse revenue streams (in-store and online)? The larger and more complex, the more advanced your accounting software should be. If you’re a smaller business, you’ll still want to consider software scalability to accommodate a changing business model as you grow.
Compare Pricing & Subscription Models
All software has different pricing models. Does the software require a one-time fee upfront, or is it a subscription-based platform with monthly or annual payments? You’ll want to receive a good ROI for what you’re paying for. A recurring subscription might come with better support and flexibility, while a one-time fee may already give you instant access to what you need now and in the future.
Evaluate Software Integrations & Scalability
The better the software, the more compatible it is with the integrations you need, whether for payroll, POS, or tax compliance. Data should flow smoothly between these platforms to avoid manual entry or inconsistencies. In turn, the software should be able to scale as you grow, handling more transactions and providing more detailed reporting.
Prioritize User Experience & Customer Support
None of these qualities matter if the people using the software don’t know how to use it effectively. Even if you have the most powerful retail accounting software on the market, it's useless without the know-how. Your software should be relatively intuitive and easy to use, with strong customer support in case of emergencies or when things go wrong. For more complex platforms, be sure to pinpoint any training resources, troubleshooting help, and onboarding assistance provided.
Frequently Asked Questions About Retail store accounting software
With so many moving parts, there’s a lot to think about when running a retail store. If accounting is one of your main pain points, you might find these answers to some common questions about retail accounting software useful.
What is the best accounting software for a retail store?
Retail-specific accounting software with ample integrations, inventory management, and other tools like multi-location reporting and sales tracking will be incredibly useful for a retail store. Beyond its features, the software you choose should be user-friendly and easy to integrate with your existing tools.
Is QuickBooks good for retail?
Yes. QuickBooks has specific retail accounting software that helps you stay on top of every aspect of your business, including inventory, sales, and expenses. It also integrates with point-of-sale systems, which allow you to sync transactions across all touchpoints.
What is the easiest accounting software to use for a small business?
QuickBooks, Xero, and Wave, are often seen as a few of the easiest accounting software to use. They boast must-have features, user-friendly interfaces, and beginner-friendly design.
Can I do bookkeeping without QuickBooks?
You can do bookkeeping without QuickBooks and opt for other accounting software alternatives that better suit your business. If your accounting needs are minimal and uncomplicated, the old-school method with spreadsheets and manual tracking could work in the meantime. or opt for the old-school method with spreadsheets and manual tracking.
Can you use Excel for bookkeeping?
Excel can be used for bookkeeping but is more suitable for smaller businesses with simple financial requirements. However, Excel doesn’t have the integration, features, and automation that can save you time and effort.
Installing Accounting Software in Your Business
The right retail accounting software should cater to your business’s needs and be able to integrate with other platforms, but it should also be easy to implement. A platform with a smooth setup and clear guidance will help you and your team get up and running quickly. Just be sure to do your due diligence and pick software that will serve you now and in the future.
If you’re looking for complementary solutions to boost your retail operations, such as online ordering and loyalty payments, consider booking a demo with Paytronix.
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