Retail is one of the most competitive sectors in Australia, even more so with online shopping, so how much time do you invest in your accounts and business strategy?

Most retail business owners, whether they sell luxury fashion garments or garden tools, are faced with the pressure of serving customers while juggling other responsibilities like staff rosters and stock inventories.

Customers are increasingly shopping online too, meaning business owners have to understand e-commerce and keep an eye on the latest trends to stay ahead.

To say retailers are time-poor is an understatement. So if you are a retailer, where is accounting, compliance and business development on your priority list?

For many, crunching the numbers and analysing the health of your business may seem too complex or time consuming, but the benefits are significant.

Think about tax

For retailers, the most obvious tax to consider is the Goods and Services Tax (GST), however there are other tax and compliance requirements to think about such as import duties.

Be mindful to get your tax and compliance right the first time, otherwise you could face expensive repercussions later on.

That said, there are tax concessions that benefit smaller retailers as well, including instant asset write-offs or small business income tax offsets.

Busy retailers can take advantage of these tax concessions and avoid costly mistakes by getting an expert to handle their tax and accounting obligations properly.

Grow your business

The retail industry is changing rapidly, and business owners will need to evolve with emerging shopping trends and as customer expectations flourish.

If you’re just starting out, then you need to write a business plan and think about how to structure your company.

Keep in mind things like insurance for your business and the equipment in your shop, as well as financing when it comes time to accelerate your growth.

Once your store is up and running, you will want to manage that growth to make sure you are still providing the best customer service and creating a positive workplace culture.

Eventually, you may want to exit your business to reap the benefits of your hard work, so succession planning is necessary for a smooth transition.

Business advisers can help retailers navigate the different stages of their business growth through a range of services including management accounting, reporting and analysis.

For instance, at LDB, we assist many of our clients by providing them with the option to receive board packs. We also have recurring meetings to discuss the year-to-date (YTD) financials, track business growth, report on actual figures to the budget, and to share updates on cash flow.

We find this most beneficial to our clients as it makes all business owners stop, reflect, be accountable and aware of how their business is tracking.

Ask the experts

If you need help with your accounts or are looking to grow your business but want someone with retail experience, then LDB can help.

Having worked with clients in the retail sector, our team of trusted professionals can provide premium tax, accounting and business advisory services to meet your needs.

To find out how we can help your retail business, give us a call on (03) 9875 2900 or fill in the form below.