Understanding the optimum level of working capital is a key part of running a retail business. Often large amounts of capital is tied up in stock which is essential to trade. Too much stock will cause problems with cash flow, whereas too little stock can mean missing vital sales. Losing a sale today, could mean losing a customer to the competition.
Retail outlets often sell a variety of different products. It is key to monitor profitability per stock item to ensure losses are not disguised. This principle is common sense, however often clients benefit from our advice when setting up their systems. There are a variety of products available in today’s technology driven world to assist the business owner.
The use of technology is important for any retail outlet. Utilising available technology is a good way of keeping track of stock levels. This is vital in today’s world when a business has a second shop window on the internet. Stock control is crucial.
With the development of technology, many small businesses have the opportunity to become global. When a business makes sales in both Europe and beyond, thought must be given to Vat. Should the business be registered for VAT in member states of the EU in addition to the UK? What rate of VAT should be charged?
Accurate record keeping is vital to any retail outlet. Disappointed customers because of failed orders is extremely detrimental to the reputation of the outlet. We can help you get your record keeping systems in order and ensure they stay that way.
Making sure your management accounts and forecasts are also accurate is vital as they act as an "early warning system" by highlighting future cash flow shortages. Confidence that you can meet your cash needs is reassuring for any business owner.
It's not uncommon to fear HMRC, especially in relation to VAT. Directors and owners can have peace of mind knowing that their business has undergone a full health check for VAT. Not only that, understanding future tax liabilities such as PAYE, corporation tax, and personal tax means you can plan ahead with confidence. Thorough financial prepared means gives you the space to breathe easy and focus on other business operations.