Using your POS for year-end reporting and tax accounting
December 30th 2009 17:34
The end of one year and the beginning of a new year implies different things for businesses and business owners. It is the time where you will evaluate the performance of your business, compare it against your previous results, set up your goals for the new year, and collect the financial data needed for your tax return. This could be a painful process if you are not equipped with the right tools. In the case of businesses using cash registers, this is a nightmare given the amount of time, energy and effort they need to put in order:
-To collect all the necessary data from their everyday reports.
-To make all the calculations and categorize their sales and expenses based on a weekly and monthly basis for evaluation and sales comparison purposes, and on a yearly basis for financial reporting and tax accounting purposes.
-To review the collected data analytically in order to measure growth in sales, growth in productivity, growth in expenditure, etc…
-To generate written and visual reports stating the preceding results.
-To hand over the necessary data for your tax accounting and guarantee you are not overpaying the IRS.
Matter fact, there are way too many more drawbacks to using a cash register, to understand them better check out the following article” Using a cash register vs. a Pos system”.
On another hand, owners of businesses using POS systems will have a much easier time for that the POS system, as one of its benefits, collects all the concerned data around the clock all year long and allows you to look at it from different perspectives at any point of time and for any time frame you precise with the touch of one finger. The following will explain briefly how the POS will help you with your managerial accounting (internal accounting where data is collected and analyzed to measure growth, and productivity) and your financial accounting (external accounting where data is collected and analyzed to report financial results, determine profits, and find out dollar amount of taxes to be paid).
First, for internal auditing purposes, POS will allow you to generate a daily, weekly, monthly, and yearly sales tender report. In other words, a tender report will break down your received payments into cash payments, and individual credit card payments; accordingly, you will be able to double check your bank deposits notably credit card deposits.
If you own a business, you definitely have had some issues with credit card companies and if you did not have such a tool you would have wished you did because you could swear they were supposed to deposit more money than what you had received.
Second, overseeing your operations and your sales is very crucial to the success of your business. Businesses always compare their sales against the previous 2 years in order to have an understanding of their growth. There are few different ways to do this: weekly sales comparison, monthly sales comparison, quarterly sales comparison, and/or yearly sales comparison. If you use a cash register:
-You probably paid somebody to do this for you, which could be a breach of your privacy.
-You did this yourself and wounded up spending days collecting and analyzing that data.
-Or, which is the worst case scenario, had forgone doing this and lost the opportunity to evaluate your business and therefore lacked the right information to make sound decisions that can improve and prosper your business.
Equipped with a POS system, this process is as easy and simple as 1,2,3. All you have to do is to select a sales comparison report, choose a time frame for comparison (week, month, quarter, and/or year), and click on get report. It is extremely easy, isn’t it?
To make it better, you also have the luxury to graph your report with one click.
Third, getting your sales is also one click away; just choose a date range, click get report, and you are done.
Fourth, sitting there with a calculator adding the sales taxes for each day for a whole year, or inputting the values in an excel spreadsheet for it to make the calculation for you is just a waste of time and effort; your time is too valuable to be wasting on that but if you don’t have the right tool you will have to do it because you are required by law to disclose that information and you can get audited for it anytime during the 7 years following the occurrence of these taxes.
Fifth, some POS systems give you the ability to export all that data with one click into a spreadsheet which is compatible with accounting software such as QuickBooks if you do your own accounting.
So is it time for you to switch from your outdated cash register to one of the modern computerized POS Solutions? Click here to get a quote today.
If you own a restaurant, click here to look at restaurant packages specifically tailored for your business.
If you own a coffee shop, click here to look at coffee shop packages specifically tailored for your business.
If you own a hookah bar, click here to look at hookah bar packages specifically tailored for your business.
If you own a bar or a lounge, click here to look at bar packages specifically tailored for your business.
If you own a frozen yogurt shop, click here to look at frozen yogurt packages specifically tailored for your business.
If you own a liquor store, click here to look at liquor packages specifically tailored for your business.
If you own a retail store, click here to look at retail packages specifically tailored for your business.
-To collect all the necessary data from their everyday reports.
-To make all the calculations and categorize their sales and expenses based on a weekly and monthly basis for evaluation and sales comparison purposes, and on a yearly basis for financial reporting and tax accounting purposes.
-To review the collected data analytically in order to measure growth in sales, growth in productivity, growth in expenditure, etc…
-To generate written and visual reports stating the preceding results.
-To hand over the necessary data for your tax accounting and guarantee you are not overpaying the IRS.
Matter fact, there are way too many more drawbacks to using a cash register, to understand them better check out the following article” Using a cash register vs. a Pos system”.
On another hand, owners of businesses using POS systems will have a much easier time for that the POS system, as one of its benefits, collects all the concerned data around the clock all year long and allows you to look at it from different perspectives at any point of time and for any time frame you precise with the touch of one finger. The following will explain briefly how the POS will help you with your managerial accounting (internal accounting where data is collected and analyzed to measure growth, and productivity) and your financial accounting (external accounting where data is collected and analyzed to report financial results, determine profits, and find out dollar amount of taxes to be paid).
First, for internal auditing purposes, POS will allow you to generate a daily, weekly, monthly, and yearly sales tender report. In other words, a tender report will break down your received payments into cash payments, and individual credit card payments; accordingly, you will be able to double check your bank deposits notably credit card deposits.
If you own a business, you definitely have had some issues with credit card companies and if you did not have such a tool you would have wished you did because you could swear they were supposed to deposit more money than what you had received.
Second, overseeing your operations and your sales is very crucial to the success of your business. Businesses always compare their sales against the previous 2 years in order to have an understanding of their growth. There are few different ways to do this: weekly sales comparison, monthly sales comparison, quarterly sales comparison, and/or yearly sales comparison. If you use a cash register:
-You probably paid somebody to do this for you, which could be a breach of your privacy.
-You did this yourself and wounded up spending days collecting and analyzing that data.
-Or, which is the worst case scenario, had forgone doing this and lost the opportunity to evaluate your business and therefore lacked the right information to make sound decisions that can improve and prosper your business.
Equipped with a POS system, this process is as easy and simple as 1,2,3. All you have to do is to select a sales comparison report, choose a time frame for comparison (week, month, quarter, and/or year), and click on get report. It is extremely easy, isn’t it?
To make it better, you also have the luxury to graph your report with one click.
Third, getting your sales is also one click away; just choose a date range, click get report, and you are done.
Fourth, sitting there with a calculator adding the sales taxes for each day for a whole year, or inputting the values in an excel spreadsheet for it to make the calculation for you is just a waste of time and effort; your time is too valuable to be wasting on that but if you don’t have the right tool you will have to do it because you are required by law to disclose that information and you can get audited for it anytime during the 7 years following the occurrence of these taxes.
Fifth, some POS systems give you the ability to export all that data with one click into a spreadsheet which is compatible with accounting software such as QuickBooks if you do your own accounting.
So is it time for you to switch from your outdated cash register to one of the modern computerized POS Solutions? Click here to get a quote today.
If you own a restaurant, click here to look at restaurant packages specifically tailored for your business.
If you own a coffee shop, click here to look at coffee shop packages specifically tailored for your business.
If you own a hookah bar, click here to look at hookah bar packages specifically tailored for your business.
If you own a bar or a lounge, click here to look at bar packages specifically tailored for your business.
If you own a frozen yogurt shop, click here to look at frozen yogurt packages specifically tailored for your business.
If you own a liquor store, click here to look at liquor packages specifically tailored for your business.
If you own a retail store, click here to look at retail packages specifically tailored for your business.
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