One of the most competitive and rapidly evolving industries, the retail industry now sees the emergence of new trends every year.
Technology has dramatically transformed how businesses operate their stores and how consumers shop. Customers now demand an instant resolution from retailers when they have problems shopping online, or they will go to the next one.
On the other hand, retailers have fundamentally altered their strategy, moving from just supplying products to making all decisions based on the wants and demands of customers.
In today’s time, retailers need to think of different strategies for online shopping and in-store shopping.
So, how can they focus in this changing environment with tedious bookkeeping work which requires daily recording and the knowledge of the latest accounting standards and rules?
Even though it is a belief that bookkeeping must be done inside the business. More than 1/3 of small businesses and retail businesses are outsourcing their bookkeeping activities because they are not confident enough to do the bookkeeping work by themselves or rather they don’t have sufficient time to do all this work.
Also, does an in-house staff have enough experience to cope with increasing accounting tasks?
Overall, 62% of all small and retail businesses think that they overpay their taxes. Due to this fact, you might be thinking about how to outsource retail bookkeeping services and which company can do the same job more qualitatively and cost-effectively.
Also, outsourcing such services should not have any adverse effects on your business, employees, or customers.
Why should a retail store outsource bookkeeping work?
Whether it comes to dealing with managing taxation or lowering costs, outsourcing to a professional bookkeeper service provider will obviously give you a lot of reasons to switch to them.
Let’s see what those seven reasons are that can attract you to opt for an outsourced bookkeeping firm.
Outsourcing bookkeeping services for retail stores will help you to get access to professional and qualified bookkeepers who will directly deal with your financial recording and can also assist you with the best way to deal with your cash flows on a daily basis.
They are also updated with the latest financial rules and regulations which you might not be aware of.
Let's say, there are 50 people working on the same task then there will definitely be accuracy and expertise in that task. That’s how an outsourced bookkeeping service provider can help you to stay competitive.
Having reliable and updated financial data is important for you as a retail store owner because you are dealing with heavy cash inflows and cash outflows.
You need a proper and timely update on your cash management activities so that you can pay your suppliers on time.
That’s why opting for outsourced bookkeeping services for retail stores is the best and most reliable option.
An important business quote says that "time is money," and this is especially true for a retailer.
Bookkeeping can be a tedious and time-consuming task that requires a lot of knowledge and focus.
When you outsource your bookkeeping to a professional, it can save you a lot of time and you can focus on the more strategic part of the business rather than the administrative work.
Every businessman wants to lower the operating costs to improve cash flow and overall profitability.
Deloitte’s Global Survey in 2021 revealed that 88% of the surveyed companies said cost reduction is their main outsourcing objective.
Why outsourcing bookkeeping for retail lies in this fact only because by outsourcing your bookkeeping you can save on hiring an in-house bookkeeper, which costs you around $35,000 to $55,000 per year.
But with outsourcing, you can easily reduce your overall operating costs by 40% to 60% and can also customize them on the basis of your requirements.
7 Reasons to Outsource Bookkeeping for Your Retail Business
As the owner of a retail store, you must be busy with hundreds of activities and dealing with your clients from morning to night until you close your store.
You want to have time to talk with prospective suppliers or distributors or you want to have time with yourself and your family. So, how much time is actually left for your bookkeeping activities?
You can have peace of mind knowing that all of your books of accounts are in order and your financial data is up to date if you choose to outsource retail bookkeeping services. It also relieves your stress during tax season, as everything is properly organized by a third party.
Cloudwards survey in 2022 revealed that the total value of cloud computing and the cloud platform market will amount to $832.1 billion by 2025.
That’s where you will be focusing on the need to use automated and updated technologies to help save your data on the cloud. But managing an in-house technology team can be difficult and costly.
Outsourcing bookkeeping services for the retail store will help you to stay updated with technology to prevent any internal fraud and also saves your data on the cloud which you can access 24*7.
You sometimes need the help of professionals, such as CAs, CFOs, or CPAs to answer your queries on tax, cash management, or financial analysis.
This will clearly be provided by your outsourced bookkeeper because they have the staff to handle all your queries and also provide the virtual assistance of CFOs and other professionals.
Things to look for before outsourcing bookkeeping
Once you have the answer on why to outsource bookkeeping for retail stores, the next step should be to choose an outsourcing company that will be a great fit to match your needs and requirements.
Do you need bookkeeping services to prepare end-of-month financial reports, balance sheets, payroll services, bank reconciliations, report to tax authorities, or take care of your account payables and receivables?
Whatever it would be, you need to be clear on what you can handle yourself or what your in-house staff can handle and what you want an outsourced firm to do for you.
2. Competitive costing
Every outsourcing bookkeeping company has its payment schemes based on customization, they can charge you by the hour, month, or say a yearly plan. Therefore, you can choose from the different payment terms that will suit your needs and budget.
3. Flexible agreement and customization
An outsourcing bookkeeping service provider should demonstrate flexibility in their agreements and give you the option to customize your chosen plan based on your needs.
Makes sure that the company you want to outsource your bookkeeping work to has a team of experienced and professional bookkeepers, CFOs, CPAs, and so on.
They should be available to talk and they should have the latest knowledge of accounting rules.
You can always ask for some recommendations from their existing clients, check their testimonials, and look at their reputation in the market, financial stability, and accuracy in their work.
A Forbes article in 2022Â revealed that 82% of companies faced cyberattacks in 2022.
Data security plays an important part when outsourcing accounting services online because you will be sharing not only your cash flow details but also your confidential data in the very first step. in this case, a bookkeeping agency should ensure data security in online bookkeeping services.
A highly respected firm will always have privacy agreements and ensure that each transaction is secure. You can also check their certifications in data security.
How can IBN Tech be the best partner to outsource retail bookkeeping services?
IBN Tech provides comprehensively modified administrations, particularly for the retail sector, as well as a variety of services such as finance and accounting outsourcing, accounts receivable and payable process outsourcing, cloud IT services, bookkeeping, and payroll processing.
We have a comprehensive retail functionality framework that includes procedure-to-pay (P2P), order-to-cash (O2C), record-to-report (R2R), and industry-specific solutions.
Our offerings in outsourcing bookkeeping services for retail stores:
1. Automation in the Retail Business
We provide automated systems that will bring clarity to operations and provide you with the latest updates on your cash flows and financial management needs.
2. Visibility
In the retail sector, you will have systematized operations that will increase the cost and we will provide clear capital management to help you achieve your future goals.
3. Time Efficiency
We provide an outsourced bookkeeping solution with software expertise, so you can focus on your core competencies rather than on back office operations.
4. Cost Efficiency
We also have a system to consider balance and customer engagement through back office operations, so you need not worry about losing an essential customer.
Bookkeeping services for your retail business in multiple locations with just one click.
5. Multi-location
We can track, monitor, and maintain the financial records of multi-location units with a sustainable outsourcing operation if you have a diverse retail business in different locations.
6. E-Commerce Module
As retailing is about selling products online today, we can also customize on that basis and make your services and products available to your customers with a single click.
Conclusion
As you can see, there are numerous reasons or benefits to outsourcing your retail business's bookkeeping.
By hiring the services of IBN Tech outsourcing bookkeeping services for retail stores, you can easily focus on your core business activities and grow your retail store with the best strategies.
