Last editedMar 20232 min read
Owning and operating a retail store is serious business, and to have the best chance of success, it’s important to organize and manage your finances effectively. This makes your choice of retail accounting software crucial. From tracking inventory to producing basic financial reports like balance sheets and profit and loss accounts, small business accounting and bookkeeping plays a vital role in the ability of retailers to keep the cash ticking over. But how do you decide what accounting software for retail business is the right fit for you? Kick off your search with our guide to accounting software for retail companies.
What is retail accounting software?
Retail accounting software is a type of software that’s designed specifically for retailers and retail businesses to manage their accounting processes and financial transactions. Because it’s tailored to the needs of retail businesses, accounting software for retail companies provides all the features you need to manage inventory, sales, expenses, and so on. Examples of the range of features you may find in retail accounting software include:
Point-of-sale (POS) integration for simple payment processing
Accounts payable and receivable
Purchase order management
The benefits of using accounting software for retail are numerous, including increased productivity, improved customer service, more accurate financial records, better cash flow management, enhanced reporting, and streamlined financial management. Overall, it’s a must-have for any business in the retail space.
Best accounting software for retail business
Lots of different software developers offer retail accounting software, so it’s not always clear which package is the best fit for your business. Here’s our guide to three of the best accounting software for retail business options on the market today:
Offering inventory management, invoice tracking, bank reconciliation, expense management, payroll management (with Gusto), over 700 third-party integration options, and much, much more, Xero is an ideal retail accounting software option. It offers all the features you need to handle day-to-day retail tasks, while the quick-glance dashboard makes Xero a good choice for both brick-and-mortar stores and online ecommerce retail businesses. Plans start from $13/month.
A well-known name among retail accounting software providers, QuickBooks is a fantastic choice for retailers looking for a one-stop platform they can use to manage their finances. You can take advantage of payroll, advanced accounting, and invoicing services, and more. However, while QuickBooks does offer inventory tracking, it’s important to note that this feature is only available on the higher tier price plans. Plans start from $30/month.
Another great accounting software for retail option is FreshBooks, which provides bookkeeping software that’s customized for the needs of retail businesses. It offers a range of features, including reporting, time/expense tracking, invoice creation, and secure online payments. Offering inventory management from the lowest price tier and integrations with a wide range of partners, FreshBooks is a cost-effective option for retailers of all sizes. Plans start at $17/month.
How can GoCardless support accounting software for retail companies?
After you’ve selected a retail accounting software package for your company, it may be a good idea to think about optimizing the payments process. GoCardless provides integrations with a wide range of partners, including Xero. Using GoCardless, you can automatically collect payments for invoices, making it ideal for recurring payments, such as payment-by-installment options like buy now, pay later (BNPL) or ACH debit. Offering a great payer experience to your retail customers can be the difference between winning a loyal customer and losing them to a more streamlined competitor, which is why it’s seriously important to think about the payments process, regardless of which retail accounting software you’re using.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.