Most Important Element Of A Business: Retail Audit

For the correct management of the activities of a trading enterprise, it is necessary to have complete, accurate, objective, timely and sufficiently detailed economic information. This is achieved by maintaining business records.

Depending on the nature of the data, methods of obtaining them and methods of grouping, economic accounting is divided into three types: operational, statistical and accounting.

Operational accounting is organized at the places of business transactions (branch, warehouse). Relevant information can be received directly during a business transaction, either by phone or orally, on the display without documentary registration.

The data obtained is used for day-to-day management and management of the enterprise’s activities (execution of contracts, acceptance and shipment of goods, sale).

For statistical accounting, information about the structure of fixed assets, income and number of employees and other information is used for the purpose of analysis and forecasting. Statistics uses a selective method of observation and registration, uses the results of operational and accounting.

The business activities of a trading enterprise are based on the processes of purchasing, storing and selling goods.

Therefore, the main goals of accounting in trade are: control over the safety of goods, timely submission to the management of the enterprise of information on turnover and gross income, on the state of inventories and the efficiency of their use, to do this, we suggest you to consult retail audit companies in India.

To achieve these goals, a whole range of accounting tasks is being solved:

  • Checking the correctness of the documentary registration of commodity transactions, their timely and correct reflection in the accounting;
  • Control over stocks, identification of slow-moving, stale and poor quality goods;
  • Control over financial indicators (the amount of profit, sources of funds and the procedure for spending them, working capital, capital investments, deductions from profits, etc.), over the correctness of settlements with suppliers and buyers, for the timely receipt of payments to the budget, for the correct use bank loans;
  • Accounting for the expenditure of the wage fund, identifying the relationship between the growth of labor efficiency and average wages;
  • Identifying an opportunity to reduce distribution costs and increase the profitability of production (distribution costs are covered by trade margins included in the price of goods, but profit is also generated due to the margin; therefore, the lower the level of distribution costs, the greater part of the trade margin goes to the formation of profit) ;
  • Control over the presence and movement of material assets and cash. For correct and timely accounting, clear delineations of the material responsibility of officials for the values ‚Äč‚Äčentrusted to them must be established.

It is also necessary to carry out inventories and retail audits with the help of retail audit companies in Delhi.

The tasks facing accounting in a commercial enterprise can only be fulfilled if it is properly organized. Deficiencies in the organization of accounting cause a lag in accounting, delay in reporting and other information.

Deficiencies ofretail audits by Retail audit companies leads to confusion, the creation of conditions for theft of material assets and other abuses, an increase in the cost of maintaining accounting personnel.

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