Retail managers are supposed to manage complex markets, supply chain management, and maximize profits. However, most executives are making decisions that involve such factors blindly. And what causes the issue? “The Visibility Problem.” It has been observed that when the front-end retail data is not integrated with back-office data, leaders cannot make decisions based on the latest data and therefore cannot lead the business accordingly. For retail organizations to achieve profitable growth, there is no alternative but to connect their Point-of-Sale system and accounting software. Here’s how integration of operational and financial data using the x2x RMH for QuickBooks Integration becomes a true gamechanger for retail leaders.
The Threat of Retail Data Silos
It has been noticed that most of the retail businesses have robust POS systems such as Retail Management Hero (RMH) for managing daily operations including sales, inventory, and order management.
The lack of integration between these two systems leads to inevitable data silos in retailing. Store managers know what is being sold in their store, while the CFO can see the financials of the transactions only after days or weeks. And this is how problems emerge:
Inventory Issues:
Operational systems display what needs to be in the store, yet financial reconciliation will reveal all cases of shrinkage, theft, and receiving mistakes only when it is already too late.
Margin Issues:
As soon as any discount or change in price is implemented via the point-of-sale system, finance team won’t discover it before the end of the month and cannot know anything about real-time profitability.
Manual Reconciliation:
Keying in all data about sales, credit cards, and taxes manually into QuickBooks wastes lots of time and leads to many mistakes.
The Need for an Integrated View for Retail Executives
Operational information informs about the activities taking place in the store, while financial information helps understand the impact on bottom line. For scaling successfully, retail executives require both views simultaneously.
An integrated view gives an opportunity to get answers to some strategic questions immediately. Are our new promotions really bringing us profit or are we selling our inventory below cost? Where are the operations expensive in proportion to sales for our stores? Is our cash flow sufficient to purchase next quarter’s inventory?
You will not be able to answer such questions without having your operational and financial data combined.
The Solution to the Problem of Visibility with x2x RMH for QuickBooks Integration
To get enterprise visibility, retailers need a flow of information. This is exactly what x2x RMH for QuickBooks Integration was designed for.
Here is how x2x streamlines retail operations:
Real-Time Tracking of Profitability:
With RMH, all sales, returns and discounts are automatically entered into QuickBooks, providing retailers with immediate visibility on a day-to-day basis about how much money is coming in and what their gross margins are.
Tracking of True COGS and Inventory Value:
x2x provides you with automatic tracking of the financial transactions associated with selling your inventory or changing its value, such as COGS and inventory. With x2x, executives can see the true value of their most important asset in real time.
Consolidation Across Multiple Stores:
If you operate several stores and want to expand further, x2x enables consolidation of all operational information from many RMH cash registers and stores into one single QuickBooks file, providing executives with an overview of their company.
Auditable Accuracy and Compliance:
Since there is no manual input involved, your books will be error-free, audit-ready and totally consistent with your day-to-day operations always.
Conclusion
For the retail industry, not being able to see something can be damaging to profits. It’s not just a matter of accounting; it’s a strategic hurdle that is holding businesses back.
With the introduction of the x2x RMH for QuickBooks Integration solution, retail executives have the chance to break down information silos, automate their back office, and have complete visibility into operations and finances. Don’t guess lead with complete clarity.
