How Does Outsourced Bookkeeping Work for Retail?

January 3, 2023 Uncategorized

How does outsourced bookkeeping work for retail businesses? That all depends on how you outsource it!

How Does Outsourced Bookkeeping Work for Retail
How Does Outsourced Bookkeeping Work for Retail

Bookkeeping is an important part of any business. But it can be especially difficult for retail businesses due to the sheer volume of transactions they may encounter.

However, equally important to remember is that outsourced bookkeeping services can make it easier for retailers to manage their finances by providing accurate and up-to-date financial records. This type of service provides an experienced bookkeeper who can help track, organize, and interpret financial data for retail companies.

Keep reading for additional information about outsourced bookkeeping for retail. And if you need assistance, feel free to reach out to the Northstar team at any time.

Discussing the Current System

The first step in the process of using an outsourced bookkeeper is to discuss the current bookkeeping system. This will involve talking about what systems are currently in place and what changes need to be made.

Your bookkeeper will then assess the situation, make recommendations regarding any updates or changes that should be made, and provide advice. They should also make recommendations for any additional tools that may be needed to improve the system.

Creating Organization

Having a clear and organized financial system is key for any retail business. However, this is especially important for businesses operating in the cannabis space.

As your outsourced bookkeeper, we can create a system that will help keep track of all transactions, bills, and invoices. This system will provide an overview of the financial activity of the business and help create a more organized financial system.

Principal Accounting Activities

Your bookkeeper will also perform principal accounting activities such as accounts receivable and payable, invoice processing, inventory tracking, payroll, budgeting, and financial reporting. This allows the retailer to monitor their finances accurately and make educated decisions based on the financial information.

Tax Preparation

Another important service that a bookkeeper can provide is tax preparation. They will review the business’s finances and ensure that all taxes are filed accurately and on time. This can save retailers time and money by making sure that all of their taxes are taken care of properly.

Maintaining Books

It’s equally important to remember that a bookkeeper can help maintain the books by providing regular updates and reviews. This includes reconciling bank statements, updating ledgers, and ensuring that all transactions are properly recorded.

By having professional help with your books, you’ll ensure that all financial information is accurate and up-to-date while providing an overview of your business’s financial health.

Establishing the Communication Plan

Once you hire a bookkeeper, a communication plan must be established. This will involve defining how often they will communicate with the retailer and setting clear expectations for the services that will be provided. With this in mind, you’re ensuring that both you and the bookkeeper are on the same page, allowing for a smooth working relationship.

Moreover, the bookkeeper should be made aware of any changes in the business that could affect their services. This encourages them to update their system and maintain accurate financial records.

Love this post? Check out our other article about cannabis bookkeeping systems before you leave!

Setting Access to The Systems

To ensure accuracy and security, the retailer should provide access to their financial systems. This can be done through secure online portals or other methods that the bookkeeper will be familiar with.

By setting access to your systems, your bookkeeper can securely access the business’s financial data and provide accurate financial information. This streamlines the process and facilitates the service.

Outsourced Bookkeeping FAQ

What do outsourced bookkeepers do?

Outsourced bookkeepers provide financial services such as accounts receivable and payable, payroll, budgeting, and financial reporting. They also assist with tax preparation and help maintain the books by providing regular updates and reviews.

How does outsourced accounting work?

Outsourced accounting typically begins with discussing the current system in place, assessing any changes that need to be made, and providing recommendations. The bookkeeper will then create a system to keep track of all transactions, bills, and invoices. They will also perform principal accounting activities and help with tax preparation. Then, they continue to maintain the books by providing regular updates and reviews.

How do I do the bookkeeping for a small company?

Small companies should consider hiring an outsourced bookkeeper to help with their financials. This is a better option than attempting to do the bookkeeping yourself, as it ensures accuracy and allows you to focus on other aspects of the business.