An independent retail store's books depend on three things: point-of-sale data, inventory and sales tax. Get those right and the profit and loss tells the truth about margins. Get them wrong and the store can look profitable while the stockroom and bank tell a different story.

Daily sales reconciliation

Each day's POS summary includes gross sales, discounts, returns, sales tax, gift card activity and tenders such as cards and cash. We record it and match card batches and cash deposits to the bank, flagging cash shortages and missing batches.

Inventory and cost of goods sold

Retailers that buy and sell merchandise generally account for inventory, as the IRS explains in Publication 334. We record purchases, freight and vendor credits to inventory and adjust cost of goods sold to counts or your POS inventory valuation, so gross margin reflects what was actually sold.

Sales tax

Tax collected is money held for the state. We post it to a liability, reconcile it to POS reports and keep records organized for whoever files your returns. See your state's agency on our locations page.

Seasonal buying

Many stores buy holiday or seasonal stock months ahead. A cash forecast that includes purchase orders shows how much cash the buying season needs.

What our retail support covers

  • Daily POS, card and cash reconciliation
  • Inventory, cost of goods sold and shrink reporting
  • Sales tax liability records
  • Monthly statements with gross margin by category

See our bookkeeping services or our ecommerce page if you also sell online.

Key terms

Terms that come up often in retail stores bookkeeping:

  • Debits and Credits: Debits and credits are the two sides of every bookkeeping entry; each account type increases on one side and decreases on the other.
  • Cost of Goods Sold: Cost of goods sold is the direct cost of the products a business sold during a period.