The retail landscape has seen a drastic evolution over the past few decades.
From self-checkout systems and RFID technology to advanced eCommerce CRMs and predictive inventory management, retailers now have more control over their operations and insight into their store’s performance than ever before.
A major focus of much of the recent innovation surrounds automation. New software and AI technology help business owners succeed more efficiently. And retail accounting software is no exception. It’s never been easier to manage your business’s finances and taxes through various types of automated accounting software.
But what is accounting automation in retail, and how do you find the best solution for your store? Check out this blog to learn more.
What Is Accounting Automation in Retail?
Simply put, accounting automation conducts some of the manual day-to-day processes that an accountant might do and completes them automatically. Instead of creating complicated data sets and writing unique formulas, retail accounting software allows users to generate financial reports in minutes.
Accounting software has been around for some time, for both individuals and businesses, but it wasn’t until recently that automation was developed. This saves retailers time and money and allows accountants to focus their time on larger analyses and strategies.
For a more in-depth look, check out this finance automation guide.
See also: Retail Store Accounting Methods 101
What Are the Benefits of Automated Accounting Software?
Some of the benefits of using fully automated accounting software might seem rather obvious (see the first item on our list!), but diving into its benefits helps illuminate a bit more about how it works. Plus, you’ll better understand whether or not this software is worth implementing at your retail business.
1. Retail accounting software saves you time…
Again, this benefit might be rather glaring, but it’s worth recognizing just how much time accounting automation can save you.
For instance, most accounting software enables retailers to generate complicated reports on various business expenses. If you log all expenses as you go, you can create a report of these in seconds without having to reconcile hundreds or thousands of transactions throughout the year. This goes for any employees that spend company dollars, too.
This is simply one example – it can pull various reports such as this for other aspects of your accounting and finance management.
2. …Which allows for more productivity…
Many small business owners complete their accounting processes themselves. Anecdotally, we all know how frustrating this has been for entrepreneurs. Navigating the ins and outs of understanding your business’s accounting and taxes is a daunting task. Doing so costs time, energy, money, and sanity.
If you do your accounting in-house, switching to an automated system will save you countless hours of painstaking work.
If you outsource your accounting to an external contractor or agency, adding automation to your financial operations will save you countless billable hours.
3. …And more money saved
Of course, time saved and productivity increased means that you can profit more. Businesses that move their accounting to an automated system don’t have to worry about time-consuming details that can cause stress, inaccuracies, and wasted hours of work.
4. Increase accuracy
Even the best accountants make mistakes. And even small mistakes can be surprisingly costly for business accountants – a misreported number off by a digit can lead to legal battles and possible fines.
Unlike human accountants, automated software doesn’t make such mistakes. Instead, it can process large amounts of data in seconds, giving your business in-depth, customizable reports.
5. Speedy reporting and metrics
Many of us are likely old enough to remember the days of massive storage rooms filled with file cabinets. To hunt down an old file was often an adventure and, at times, incredibly time-consuming.
With automated accounting software, the process is simple. Users can find files promptly with simple searches. Even within the documents themselves, it’s simple to find important details to get to the bottom of problems and bring quick resolution.
6. Improved security
As a business owner, you know how important keeping your financial information (especially any financial information of your customers) is. Consumer privacy breaches are a major legal hurdle and have lasting ramifications for businesses.
Accounting software keeps all financial information stored in protected digital silos instead of easily accessible hard copies. And since most states require that businesses keep several years of accounting records on file, keeping them in a physical form increases the risk of theft.
Instead, accounting software allows businesses to keep all records digitally, protected from thieves and easily accessible by you.
7. Cloud-accessibility
Speaking of accessibility, all modern financial and accounting software is accessible through the cloud. This means that retailers can retrieve all of their accounting and financial information through any internet-connected device.
Cloud accessibility brings many benefits to any business operation. It’s a simple and affordable solution but one that many retailers regularly ignore.
8. Modern integrations
For most businesses, your accounting is tied to so many other areas of operations. With modern software, you also get modern integrations. So many business operations are related. Getting the right software makes managing it all so much easier.
For instance, a retailer might want to integrate their accounting software with their time management software. Or they may want both to integrate into their retail POS system. Luckily, it’s more simple than it’s ever been.
Software for All Your Retail Operations
KORONA POS makes running your business easy. With an open API and vast pre-built software options, retailers get a truly custom solution. To learn more, schedule a product demo today. One of our product specialists will assess your business’s specific needs and put together a proposal of exactly what you need. Click below to learn more.
