How to keep records of goods in a small store?

Selling without accounting is like going all-in: you don't know at what point you might be left with nothing. Because if you don't count your money, you don't have any.

Accounting software systems, unlike notebook accounting or Excel spreadsheets, not only simplify the life of owners, giving them a clear picture of how much money is on their accounts, but also help them plan purchases more accurately and increase business profitability. 

Some entrepreneurs believe that if they have a small store, they can do without manual accounting. In this article, we will provide strong evidence to prove otherwise: retail chains and stores of all sizes and formats need accounting. 

Why does accounting simplify the life of a small store?

Receiving goods manually in a small store can take from several days to a week. The seller often has to check each item on their own, verify the quantity, look for errors, and it's not always easy to find them.

And this is the right decision, because with software accounting, everything falls into place and becomes systematic.

What processes can be automated in a clothing store? 

The Torgsoft accounting program is multifunctional: it can keep track of goods at points and in the warehouse, record movements, sales, returns, keep track of expenses and profits; generate sales receipts, invoices, cash register reports, issue invoices, and more. 

How is the accounting in a clothing store carried out using the Torgsoft software?

1. Procurement accounting

The process of posting goods to the warehouse is simplified and accelerated thanks to automated accounting. All you need to do is enter information about the goods for sale into the accounting program. Also, upon arrival, the terms of delivery, purchase data, suppliers, purchase date, quantity, and cost are recorded.

The program generates barcodes to identify each item. Ready-made price tags with barcodes can be printed on a label printer.

Another option for receiving goods is to upload invoices from the supplier in Excel format to the accounting program.

At this stage, it is worth taking care of the basic trading equipment that will help facilitate the process of goods arrival and reduce manual work. We are talking about a barcode scanner and a label printer. 

In particular, with the help of a scanner, the seller quickly finds the goods in the accounting system, which is a necessary step when posting, selling, or returning goods. 

2. Create a product catalog

In the accounting program, you can store data about the products sold in the store: name, barcode, article, price, size chart, material, country of origin, color, seasonality of the product, quantity in stock, and other important characteristics. The program also allows you to create relevant product descriptions and categories for easy search in the program and on Google.

3. Sales accounting

During the sale in the accounting program, the goods are automatically written off from the warehouse, and the purchase amount is registered at the cash desk and, if the software ECR function is available, the fact of sale is transferred to the tax office for reporting. 

During the sale, the program records all information about the product: name, date, number of units sold, price, discount amount, as well as customer data (for example, whether a discount card was used during the sale).

The program also provides many functions for financial accounting and control: 

✓ creating invoices and issuing expense invoices, 

✓ import payments from bank statements, 

✓ accounting in several currencies, 

✓ accepting payments for goods in cash, non-cash and mixed methods.

4. Inventory and revaluation

The program allows you to periodically check the quantity of goods in the warehouse to identify discrepancies between the actual and the accounting quantity. The recalculation is carried out by scanning the barcodes of goods, which eliminates mechanical errors during manual counting. 

As a result of the audit, the goods can either be revalued or written off. In this case, the inventory process often reveals shortages of goods or funds, which may indicate dishonesty of sellers and may prevent such cases in the future. 

5. Reports and analysis

Generating a variety of trade reports: goods turnover, cash reports for different periods, total income and expenses, as well as analysis of financial and marketing indicators will help you better plan purchases and manage inventory. 

For example, the program can analyze sales for each product group, current balances, a specific size range, collections, manufacturers, or clothing suppliers. 

In particular, analysis of reports on expenses related to the organization of work and process optimization (remuneration of employees, rent, utilities).

6. Compliance with the law

Even if you run a small clothing store, this will not help you avoid liability to the tax authorities. For sole proprietors of groups 2 and 3 who do not accept income from individuals to their current accounts, according to the current legislation, it is necessary to install cash registers (payment transaction registers).

This will keep you out of trouble with the tax authorities and help you establish stable sales processes in the legal field. 

In general, keeping records of goods in a small store requires systematic, attentive, and special tools that contribute to order and successful business management.