Running a retail business is a juggling act—inventory, sales, staff, suppliers, customers… and of course, bookkeeping. Whether you’re running a boutique store, an online shop, or a little bit of both, staying on top of your numbers is essential for making smart decisions and staying profitable.
Here are some bookkeeping tips tailored to retail businesses to help you stay organised and stress-free come BAS and EOFY time.
1. Use Software That Integrates with Your POS
Modern bookkeeping starts with choosing the right tools. If you’re using a point-of-sale (POS) system (like Square, Shopify, or Vend), choose accounting software that integrates seamlessly. This means sales, payments, and inventory updates will automatically sync—reducing manual work and errors.
Look for software like Xero, QuickBooks Online, or MYOB that offers integrations with your POS system.
2. Track Inventory Properly
Inventory can be one of the trickiest parts of retail bookkeeping. Make sure you:
- Use software that tracks inventory in real-time
- Do regular stocktakes to match what’s recorded vs what’s actually on hand
- Record shrinkage (losses due to theft, damage, or errors)
Accurate inventory = accurate cost of goods sold (COGS), which is essential for understanding your margins.
3. Separate Personal and Business Expenses
It’s tempting to buy a few things for yourself while you’re out doing a stock run. But mixing personal and business expenses can mess up your records and make tax time a nightmare. Use a separate bank account and business card for everything related to your business.
4. Stay on Top of Cash Flow
Retail often has peaks and troughs (hello, Christmas rush and January quiet time). Knowing where your money is going helps you plan for slower months and big stock orders.
- Reconcile your bank transactions weekly
- Keep an eye on your cash flow report
- Don’t ignore those little expenses—they add up!
5. Don’t Leave It All Until BAS Time
Doing six months of bookkeeping in one sitting? Ouch. Avoid the panic and set aside regular time each week to stay on top of things. Or consider outsourcing to a bookkeeper (especially one who understands retail!).
Retail is Unique – Your Bookkeeping Should Be Too
Retail businesses have different needs to service-based businesses. Things like inventory, laybys, gift cards, and EFTPOS fees need to be recorded properly. If you’re unsure how to handle any of it, don’t be afraid to ask for help!
Need a hand with your retail bookkeeping? I offer support, courses, and affordable guidance to help small business owners stay in control of their finances—without the overwhelm. Let’s make bookkeeping feel a little less “blah” and a lot more doable.
