Best Retail Accounting Software

What Is Retail Accounting Software?

Retail accounting software is designed to support retailers in handling their retail business by providing several corresponding tools. Since these systems offer many services in one place and simplify the operation of a store, accounting software for retailers may benefit shop owners.

You can use a retail accounting software program to perform daily tasks like checking out clients, handling and purchasing inventory, and keeping track of finances quickly. For example, a retail accounting software program might include inventory management, POS (Point of Sale), CRM, etc.

Benefits Of Retail Accounting Software For Retail Businesses

A retail business owner must manage inventory, sales tax, payroll, and POS. You must know how to merchandise goods, advertise and promote, manage stocks, provide customer service, analyze the market, and so on. You can get the most out of your retail store accounting software if you implement it frequently in your daily business activities. Here are some possible advantages:

1. Increases Efficiency

   Consumer data can be gathered and stored using retail accounting software, which you can use for advertisements, offers, and many other purposes. Moreover, retail accounting software organizes, streamlines, and optimizes everyday business operations, reducing the need to repeat manual processes.

2. Enhances Inventory Management

   Retail accounting software allows retailers to keep a record of current inventory & define additional lists they need to function smoothly. This will enable them to place the correct purchase orders and eliminate surpluses.

3. Automates Reporting

   Almost all accounting programs include standard reports and the capability to build custom ones if needed. This enables buyers to make critical decisions rapidly without spending time manually gathering information.

4. Handles Promotion

   A retail management software system enables companies to schedule promotions, forecast, and analyze the results. This allows them to give discounts and incentives to their customers while monitoring their effects on brand productivity.

Who Can Buy Retail Accounting Software?

There are three major classifications of buyers that most businesses generally fall into, so you'll want to focus on programs that cater to your category:

1. Small Buyers

   This is typically the case for retailers with fewer than five locations, but if they run a few large stores, they may fall into one of the other two categories. These small buyers typically need an affordable accounting solution that integrates with their point-of-sale system. They usually have specific accounting needs.

2. Enterprise Integrated Suite Buyers

   In contrast to the best-of-breed buyer, these buyers prefer a system with fully integrated point-of-sale, inventory control, and accounting functions in one place.

   Further, you may use modules for storage management, inventory planning, or multi-channel administration. Since accounting functionality does not vary much from system to system, many purchasing decisions will be driven by POS and inventory control needs

3. Enterprise Best-Of-Breed Buyers

   In addition to having substantial investments in inventory control and point-of-sale systems, these larger retailers are looking for standalone accounting programs rather than replacing their existing systems.

   Integration, flexibility, and scalability are usually requirements for these buyers, who typically have many smaller stores or more than five locations.

Key Features Of Retail Accounting Software

Most retail accounting software platforms offer a wide range of valuable features, but what should you look for in accounting software for a retail business? The following are some convenient features you should consider:

1. Inventory Management

   The best accounting software that can track inventory will allow you to increase profitability and reduce overhead expenses by seamlessly managing inventory and costs across companies and channels

2. Multi-Channel Selling

   There should be immediate updates to the online retail accounting software about the items available through each distribution channel. This is particularly true when the technology can hold inventory on new orders immediately, as you won't risk selling the same commodity to more than one person or running out of inventory simultaneously.

3. Receipt/ Barcode Scanning

   You can scan and catalog any receipt as income or expense. Also, with barcode scanning, inventory management systems can print barcodes to keep their products conveniently identified and discoverable. This enables an inventory management system to track the position of objects.

4. Time-Tracking

   Tracking your employees' hours can help you calculate their wages, which helps if you have several employees.

5. Project Profitability Tracking

   Analyzing product profits can help you know if a project should be cut loose, so you can use this tool to determine if it's a good idea to continue.

6. Multi-Currency Payments

   It may be optional for some, but receiving payments in multiple currencies is highly critical if you serve globally.

7. Point-of-Sale (POS)

   The right Point-of-Sale (POS) software can assist your customers with a seamless buying process and provide your sales associates with the necessary information to engage them.

8. Supply Chain Management (SCM)

   Retail store accounting software should provide features like order management, fulfillment, warehouse management, returns, and other built-in functions for managing supply chains.

Tips For Using Retail Accounting Software

You will get the most out of your online retail accounting software if you regularly use it. Here are a few beneficial suggestions to assist you in maximizing your retail business accounting software:

1. Record Every Transaction

   Register every deal, investment, employee payment, and tax bill to make a clear picture of your industry.

2. Reconcile & Verify

   You must check your trades regularly (at least twice a week).

3. Gather Vital Tax Info

   Ensure that your payroll and tax information is securely stored, and check local laws to ensure you must maintain it for tax and payroll purposes.

4. Maintain a Properly Defined Ledger

   Get help setting up ledgers in your accounting software for the shop - an accountant can assist you here.

5. Update Ledgers

   You will want to avoid falling behind if the business is brisk, so move your sales and purchase receipts into your ledger daily or at least 3/4 times a week.

6. Weekly/Monthly Checks

   Have your financial consultant or accountant review your ledger at least once/twice a week to avoid discrepancies and detect cash flow shortages as soon as they arise.

7. Regular Reporting

   Make the most of your retail business accounting software’s powerful features. The best accounting software for retail businesses can construct valuable statements to assist you in gaining better knowledge of your company and its implementation.

8. Document Everything

   Invoices, receipts, and payment notifications for Inventory or payroll should all be kept in order.

9. Separate Your Personal From Business

   Preserve distinct bank accounts for individual and company finances. Also, set up separate funds for payments and incoming earnings. It may appear like additional work, but it can support you in catching disparities earlier.

10. File Tax Returns Regularly

    It will help if you stay up-to-date on all the government deadlines, including tax returns, employee returns, and all other required reporting. You can visit the government's website for a list of critical dates.

11. Keep an Eye On The Cash Flow

    Make sure you keep a close eye on your cash flow regularly. Share this information with someone you trust, such as your accountant, so you don't get caught off guard by a cash crisis.

How To Select The Right Retail Accounting Software?

Today's accounting software is not just for accounting; it's also connected to other apps, giving you access to hundreds of tools that help you run your retail business. Here are some things to remember when selecting accounting software for retail business:

1. Does it function on the cloud?

   You will be able to access your accounts from anywhere at any time. You will reduce support costs, back up your account automatically, and connect it to other apps easily.

2. Is it intended for retail?

   Research the online platforms and characteristics carefully to decide whether the retail accounting system works.

3. How extensible & scalable is it?

   Extensible means adding new elements to the accounting software for the shop by buying renewed add-on enterprise apps as your firm expands. Scalable means it can grow as your organization does, allowing you to add new users whenever required.

4. Is it capable of recording transactions & managing payroll?

   Many accounting software handles transactions. However, payroll may require an upgrade. Make sure you check before buying.

5. Does it track inventory?

   Some do, and others don't. But it can be effortlessly attached to third-party apps that can. Do your investigation before putting your money in, as this is valuable for retailers.

   If you ever intend to use retail accounting software, ensure all your essential information is safely archived. It includes sales records, loan statements, bank information, and tax records. You'll require it for your tax returns and in the circumstance of an audit.

5 Best Retail Accounting Software

ERP software providers offer a complete package of retail accounting software. ERP solutions contain a robust accounting and financial management module with all different enterprise and practical tools to address inventory, product planning, trade, etc.

Here are 5 of the best accounting apps for retail to help you get started:

1. QuickBooks Online

QuickBooks Online is one of the most widely used for retail business accounting. With QuickBooks Online, you can track revenue, develop invoices, handle bills, and track inventory. Online accounting software for retail shops allows you to oversee your inventory and sales from one location.

Features

• Online Banking
• Accounting Reports
• Cash Flow Management
• Time Tracking
• Accounting Reports

Pros

• It is effortless to send invoices
• QuickBooks online is relatively easy to use and user-friendly
• Easy to use reports for taxes at the end of the year
• It ensures transparency by enabling accountants and auditors to access the data at any time

Cons

• QuickBooks Online needs to be faster to resolve tech issues
• Customer service needs improvement
• While the premise of bookkeeping cleanup is excellent, the implementation could be better

Pricing

• Self-Employed - $15 per month
• Simple Start - $25 per month
• Plus - $75 per month

2. Sage 50Cloud

Among the best accounting software for small businesses is Sage 50cloud. This software is made for small business owners, including most retail companies. It incorporates core accounting features & tools for automating accounting processes, managing inventory, time and expense tracking, budgeting, invoicing, and billing. You can add office and communication tools, payroll systems, and credit card processing to your platform.

Features

• Cash flow and invoicing
• Payments & Banking
• Advanced inventory management
• Job costing
• Sage Security Shield

Pros

• Effortless and straightforward to use
• Easy invoice entry & reporting
• Sage 50 delivers exceptional month-end reporting
• Easy payroll system

Cons

• Remote access can occasionally fall over
• The help desk has exceptionally long wait times
• The application is sometimes slow to load

Pricing

• Sage 50 Pro Accounting - $299 per year
• Sage 50 Premium Accounting - $449 per year
• Sage 50 Quantum Accounting 3 User - $1,499 per year

3. Lightspeed Accounting

Lightspeed accounting is among the leading retail accounting software options for your retail business. Among the tools offered by the solution are inventory management, retail store management, time and expense tracking, payment processing, purchase order management, customer profiles, integration of accounting software, and integration of point-of-sale devices like barcode scanners and receipt printers.

Features

• Inventory management
• Customer relationship management
• Employee management
• Payment processing
• Payroll integrations

Pros

• It's easy to keep track of the inventory & editing
• 24/7 maintenance and support
• The system links objects, deals, customers, and sales teams seamlessly
• POS is easy to use and learn, customizable, and cost-effective

Cons

• It can only handle a few orders at a time
• A few bugs are there, and it crashes often
• The interface needs improvement

Pricing

• Starts from $60 per month billed monthly

4. Wave

Wave is the best free accounting software for small retail businesses. Besides supporting double-entry bookkeeping, it offers unlimited access to records and financial reports that are always available, along with unlimited invoicing and expense management.

Invoice, receipt scanning, payment processing, and payroll apps are integrated into Wave Accounting solution, which is integrated with Shoeboxed expense tracking software.

Features

• Customizable invoices
• Invoice Scheduling
• Recurring billing
• Finance management
• Online client portal for invoices

Pros

• Invoices with automated reminders
• Simple categorized transaction records
• Wave is effortless to use and comprehend
• Reporting features are excellent

Cons

• Customer service needs improvement
• Wave will revise/revoke payment services without forewarning
• Reconciliation could be better

Pricing

• It is free to use.

5. NetSuite ERP

Whatever your business size or industry, NetSuite ERP is one of the best accounting software for small retail businesses that provide a fully integrated, highly scalable solution. In addition to combining financial management operations with business intelligence, this software also helps companies make informed decisions based on data.

With NetSuite ERP, you can automate several accounting tasks, including financials, inventory tracking, orders, revenue, Inventory, billing, and sales tax. It also includes a retail management component that enables you to transform your business into a seamless omnichannel commerce platform.

Features

• Automate financial processes
• Gain Inventory Visibility
• Supply Chain Optimization
• Flawless Order Management
• Global Business Management

Pros

• NetSuite is great at tracking financials and budgeting
• Customizable reports & forms
• It can manage numerous business units & support multi-currencies
• NetSuite has highly knowledgeable customer support

Cons

• Managing numerous profiles for end users can be challenging
• Some reporting components take time to navigate
• Implementation is complex for users, and there is no free trial

Pricing

• Custom pricing

Market Trends Related To Retail Accounting Software

Retail accounting software is affected by several software trends. Here are a few of the primary trends:

1. Software As A Service (SaaS)

   It is usual for accounting programs to migrate to SaaS. We usually encourage customers to view this model open-mindedly since SaaS accounting systems can ease IT burdens and reduce upfront costs.

2. ERP Vendors As Retail Vendors

   For decades, software corporations like Microsoft have supplied accounting programs or ERP solutions. Users would have to use a separate operating system for every accounting package.

   Over the years, these providers have developed extensive capabilities so that people in the retail business can use them for accounting, inventory control, warehouse management, and point of sale

Conclusion

It is essential to choose retail accounting software capable of handling and meeting the unique needs of your business. In addition to accounting, tracking payments, and developing financial statements, it must control inventory, expenses, investment orders, traders, consumers, multi-channel deals, and global operations.