For many small-business retailers, the holiday season can be make-or-break. Coupled with the termination of QuickBooks Point of Sale support in early October, many store owners are pivoting to new resources to ensure they are set up for success with the volume of shopping set to take place — and for their businesses moving forward.
As technology adoption rapidly advances, and with the time and planning it takes to implement new technologies into businesses, a specialized approach is the key to staying ahead — and accountants need to advise clients to use technology that makes tax season preparation seamless.
The vertical POS advantage
The relationship between accountants and small-business owners is extremely important — one that hinges on helping the business demonstrate that it’s kept track of sales and is adequately prepared to file taxes. But, for most small businesses, an accountant isn’t part of day-to-day operations, which means there must be a system in place for store owners to keep a record of their earnings.
Using a vertical-specific point-of-sale platform gives shop owners a tailor-made solution for operating within a particular industry, providing a level of customization and functionality that generic solutions lack. Companies like Markt POS for SMB grocers, Jewel360 for jewelry stores or Toast for restaurants, are able to record sales data in ways that are specific to each of their businesses.
Around the holidays, this becomes vital with the increase in sales for many retailers. For example, jewelry stores will traditionally see sales spikes as consumers buy gifts for loved ones. In the store, a specialized POS platform would offer these retailers the ability to keep track of inventory, provide precise pricing of gems based on carat weight, and keep records of deposits and payments made on larger purchases, all in one platform. The platform might also support add-ons like insurance packages.
With the rise of ecommerce, specialized POS systems allow for synergies between physical stores and their online footprints. According to Adobe Analytics, online sales during the holiday season are expected to rise 4.8% from last year, which means small-business retailers must have a strong e-commerce presence in order to keep up with the competition. The jewelry store, for example, may have inventory specifically sold online because its sales history indicates that many of the buyers have previously purchased through their website, leaving room in the store to carry different items. Still, the sales are accounted for in the same interface as the jewelry that the store sells in-person.
This detailed categorization, both in-store and online, then helps business owners and accountants identify spending patterns, enabling visibility into inventory and forging better supplier relationships. Additionally, specificity in categorization allows accountants to differentiate between services (e.g., repairs, cleaning, etc.) and product revenue, providing insights for strategic recommendations and cost-effectiveness assessments.
The POS-accounting system relationship
The synergy between POS and accounting systems is not just a convenience; it’s a strategic imperative. Accurate and real-time data synchronization enables accountants to help businesses make informed decisions about their operations, understand inventory, take advantage of customer insights for better loyalty, and maintain financial records with precision.
During high-volume periods, such as the holidays, store owners don’t have the bandwidth to sit in the back office staring down Excel sheets while also engaging with customers from nine to five. When it comes time to collect the year’s worth of financial statements, there’s no longer a need to provide a mix of paper and online records to prepare tax documents — accountants have an accurate, full picture of the financial state of the business in a single platform. The ability for technology to take over this role is paramount to business success and should be seen as the backbone of financial management, allowing businesses to stay agile in dynamic markets.
As accountants guide businesses through this transition, it’s crucial to advocate for solutions that not only replace but also elevate overall operational efficiency. Specialized POS platforms are not just a replacement; they are an upgrade that aligns with the needs and nuances of each industry, ensuring a more robust and tailored solution that puts businesses in a symbiotic relationship between strategic accounting and cutting-edge technology.
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