Retail

How We Help Retail Businesses

Our accounting and advisory services include:

• Financial statements and income tax returns
• Bookkeeping and account reconciliations
• POS and accounting system reconciliations
• GST and BAS preparation
• Payroll, superannuation and payroll tax compliance
• Inventory and cost-of-sales reviews
• Gross profit and margin reporting
• Cash flow budgeting and forecasting
• Management reporting and KPI tracking
• Equipment and fit-out expenditure reviews
• Business structuring and tax planning
• Finance and loan documentation

Sales and POS Reconciliations

Retail businesses may receive payments through cash, EFTPOS, online stores, delivery platforms, gift cards and other payment providers.

We assist with reconciling sales records, POS systems, payment settlements and bank deposits. Regular reconciliations can identify missing transactions, timing differences, processing fees and recording errors.

Inventory and Cost of Sales

Inventory is often one of the largest assets and expenses within a retail business. Inaccurate stock records can affect reported profit, purchasing decisions and cash flow.

We assist with reviewing inventory records, stock adjustments and cost-of-sales calculations. Reliable stock information can help business owners identify slow-moving products, damaged stock and unexpected differences between recorded and actual inventory.

Physical stock counts and supporting records should be maintained as part of the year-end reporting process.

Gross Profit and Margin Reporting

Strong sales do not always produce strong profits. Supplier price increases, freight, discounts, wastage and product mix can reduce the margin earned on each sale.

We prepare management reports that help business owners understand:

• Sales revenue
• Cost of sales
• Gross profit
• Gross profit margin
• Wage costs
• Occupancy costs
• Operating expenses
• Net profit
• Performance against budget

Where suitable records are available, reporting may also be prepared by store, product category, sales channel or other relevant business area.

Cash Flow Budgeting and Forecasting

Retail businesses often purchase stock and pay rent, wages and suppliers before receiving the full benefit of those costs through sales.

We prepare cash flow budgets and forecasts to help owners plan stock purchases, seasonal trading periods, tax payments, equipment purchases and other financial commitments.

Forecasting may also assist when opening a new location, expanding online sales or applying for business finance.

Payroll and Staffing Costs

Employee costs can represent a significant portion of retail operating expenses, particularly where weekend, public holiday and overtime rates apply.

We assist with payroll processing, Single Touch Payroll reporting, superannuation reconciliations and payroll tax compliance. Employment conditions and award interpretation should be reviewed with an appropriately qualified employment adviser where required.

GST and Tax Compliance

Retail businesses may handle a high volume of transactions across different sales channels. Accurate records are necessary for GST and income tax reporting.

Our tax and compliance services may include:

• Income tax returns
• Business Activity Statements
• GST reporting
• Payroll tax
• Superannuation
• Fringe Benefits Tax
• Year-end tax reconciliations
• ATO correspondence

We can also review the accounting and tax treatment of discounts, refunds, gift cards, merchant fees and other retail transactions.

Equipment, Fit-Outs and Depreciation

Retail businesses may incur significant expenditure on shop fit-outs, shelving, refrigeration, POS equipment, furniture and signage.

We review these purchases to determine the appropriate accounting and tax treatment. Depending on the type of expenditure, it may be immediately deductible, depreciated over time or treated under the capital works provisions.

We can also assist with recording finance arrangements and reconciling loan balances.

Multiple Locations and Sales Channels

Businesses operating multiple stores or selling both in-store and online may need more detailed reporting.

We can prepare reports by location or sales channel to help owners compare sales, margins, staffing and operating expenses. This can identify which parts of the business are performing well and which require attention.

Business Structuring and Tax Planning

The appropriate structure for a retail business may depend on ownership, locations, staffing, finance arrangements and future plans.

We provide accounting and tax advice for businesses opening a new store, purchasing an existing operation, introducing additional owners or preparing for expansion. We also conduct tax planning reviews before the end of the financial year.

Legal advice should also be obtained when changing ownership or business structures.

Who We Work With

We support a range of retail businesses, including:

• Food and specialty retailers
• Clothing and lifestyle stores
• Health and beauty retailers
• Convenience stores
• Homeware and furniture businesses
• Franchise operators
• Online and e-commerce retailers
• Multi-location retail businesses
• Other consumer-facing businesses

Talk to Our Retail Accounting Team

Whether you need assistance with tax compliance, bookkeeping, payroll, inventory reporting, cash flow forecasting or business planning, our team can provide support relevant to your retail business.

Contact J&N Accountants to discuss your accounting needs and the financial priorities of your operation.