2017-03-29 00:00:00BookkeepingEnglishKeep your eye on little losses, such as petty theft or a missed tax break, to improve your retail business' bottom line with almost no fuss.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/food-truck-completes-small-retail-sale.jpghttps://quickbooks.intuit.com/ca/resources/bookkeeping/penny-wise-retail-why-you-should-sweat-small-stuff/Penny-Wise Retail: Why You Should Sweat the Small Stuff

Penny-Wise Retail: Why You Should Sweat the Small Stuff

1 min read

If you’re a small product seller, you’re probably focusing all your attention on big issues like wholesale prices and the high cost of insurance. While those are important, it’s occasionally worth taking the time to think about all the little issues that dog you, but which you never seem to have the time to address. Shrinkage, for example, is one of those silent expenses that sees you paying for merchandise that somehow gets lost between the warehouse and the cash register. Paperwork errors, accidents, and petty theft can nibble away at your inventory until you’re paying what amounts to a surtax on everything you sell. It’s easy to ignore shrinkage when it’s a small problem, but letting the issue fester for months on end keeps your business less profitable than it could be. Unclaimed tax deductions may also be costing you money. Canada keeps myriad tax laws on the books that allow deductions and credits for everything from interest paid on real property to petty cash expenditures. As with shrinkage, this may seem like a small enough issue to put off while you focus your efforts on more pressing matters, but unclaimed tax deduction can cause as much loss as a single large expense. The sooner you can fix these loose ends, the earlier you can see a higher monthly bottom line. Because these are minor problems on their own, the best approach to solving them has to be cheaper and less bothersome than just continuing to turn a blind eye. Deal with your shrinkage issues with a simple inventory tracking system, even one that charges a small amount each month. Using a spreadsheet to track minor expenses can add up to significant extra savings at tax time, resulting in an all-over healthier retail business.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Entrepreneur Extraordinaire: Dr. Sean Wise Helps Expand Startup Communities

One of the leading figures for entrepreneurs and owners of startup small…

Read more

Keep Inventory Management Straightforward with the Retail Calculation Method

Keeping a close watch on your inventory ensures you always know the…

Read more

Small Business Ideas: How to Make Money in Retail

Many fortunes have been made in retail. But many more retail shops…

Read more