Retail is the business that directly deals with the ultimate customer. These retail accounts for nearly $4.53 trillion in sales in 2017. The retail business includes some of the biggest names in the world like Wal Mart, Amazon and Costco wholesale, etc.
Retail might be big business, but small and medium-sized businesses have a huge impact on this sector. Small and medium-sized businesses have a greater stake in the marketplace now than at any other point in history, especially with the continuing growth of e-commerce.
Accounting for Retails business
Accounting for Retail business can be very vast and need core accounting to maintain it properly. Like account, Wal Mart can be very complex which maintains each and every item's stock and its pricing. A small retail business requires maintaining the following record which is an inclusive list.
- Cash on Hand accounts
- Purchase Accounts
- Sales Accounts
- Payroll Records
- Inventory
01 Cash on hand Accounts
Cash on hand accounts tracks the liquidity of the business. It includes hard cash on hand and Balance with Bank. Every business runs with Cash, if the business does not maintain the cash inflow and cash outflow properly it has its future in dark.
02 Purchase Accounts
It includes various purchases made from vendors like stock, materials, office suppliers, service taken, etc. It creates cost for business which should be maintained at the lowest possible.
03 Sales Accounts
It provides a figure for money made from the business. It is the reason which the enterprise is in existence.
04 Payroll Records
Payroll records keep records for payment made to employees. It is a legal obligation as well to keep records for payroll. It is a sensitive matter, and proper control has to be there.
05 Inventory
Inventory is the material purchase from Vendors. Inventory includes item wise maintenance of records for material which gives you the actual cost for product. Cost product does not only includes the cost purchase of material but also includes the variable overhead incurred to bring it and maintain it like transportation cost, storage cost, etc.
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