Retail businesses have been through the insanity in the last 12 months due to the significant impact of the COVID19 pandemic. At the end of the year, it is time to sit down and evaluate how well your business has performed through the crisis. However, it is not a simple task to gauge a business’s health accurately that consists of many processes and aspects. With that in mind, today’s article will provide you with various business reports to precisely assess your retail operations.
Overview
Types of reports to measure business performance
By analyzing data and trends in the following reports, you can figure out what is and isn’t working and what adjustments should be made in your business operation.
Sales reports
A sales and revenue report is the most powerful indicator of how your business thrives or breaks down. It will list out your sales figures in a given time period such as on a daily, monthly, or quarterly basis. Depending on your need, sales reports show a wide array of statistics like net sales (equals gross sales minus returns, allowances, and discounts), the number of goods sold, profits, sales growth, etc.
By comparing these numbers to those of other time periods, you can have a snapshot view of whether your business goes up or down. It is likely to determine non-essential expenses to reduce based on all the cost metrics. If you want to enhance sales team’s performance, let’s glimpse into average conversion rate. It shows how much time the first customer touchpoint will turn into a lead and closed deal. When you need to pinpoint the exact period of high demand to conduct a marketing campaign and stock up, sales graph will come in handy.
Inventory report
Inventory report will let you know how many products you have on hand, which SKUs are selling fast and which items are out of stock. If you want to dig into holding costs, it is essential to add the inventory carrying cost in the report. It will assist you to make the call on which SKU should be updated or deleted.
Marketing report
This business report is born on purpose to evaluate the return on investment for advertising spend. It presents a set of data on the performance of a specific marketing campaign or effort. For instance, your business aims to increase market share by 10% in the first quarter of the year. By consuming $2000 dollars on Google Adwords and FacebookAds, you would expect a growth in sales by 20%. At the end of the period, the report will display how well you are promoting on SERPs (search engine results pages) and social media along with whether you have reached the goal.
Website traffic report and social media report
It is paramount to omnichannel business to know if online shoppers prefer your site. This business report will present with you all the basic metrics regarding web traffic, the number of follows, reach, growth, post-performance, etc. You can tailor the report specific to your needs from demographics to the level of customer engagement.
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It is advised that hiring a third-party to make the report will result in more objectivity and accuracy.
Payroll report
It is born to aid shop owners to track payroll expenses and keep a close eye on employee’s presence.
In common practices, timesheets is used to monitor staff while labor cost helps you to break down your payroll cost into salaries, wages, benefits, taxes and insurance.
Payroll can reflect your business’s financial stability as well. Let’s check whether there are unpaid wages on your report to adjust total spendings.
Reporting system of POS helps to get insight into business performance
You might have heard about the POS system which is an out-of-box technological solution for retail businesses. In fact, POS gives the best support for store owners to produce comprehensive sales reports. That’s because POS collects all data relating to products, price, customers, employee working shifts, etc.
On the other hand, if you are a manager of multiple stores that have many sales associates, it is essential to keep a close eye on cash adjustments. With POS, you can effortlessly monitor all the cash register transactions and staff changes on a daily basis.
On the other hand, each business pays attention to different performance indicators, POS assists owners to customize the dashboard and show selected metrics. If you are an omnichannel retailer, it is highly recommended to integrate POS into your commerce. That’s because POS allows you to view reports of both online and brick-and-mortar stores from one place. It is time-saving and efficient that you can keep a close eye on your shops at any time and place, such as you’re off for holidays or on a business trip.
On the whole,
Business reports are crucial to guide decision-making and help senior managers to correctly estimate operations throughout a period of time. It also gives a clear insight into both current problems and new opportunities that retail owners should identify. A POS system is technologically advanced and feature-rich that speeds up the process of making reports and analyzing information.
ConnectPOS is the first-rate POS software with the aim to support worldwide retailers. We offer a 14-day free trial and excellent customer service globally for all retail businesses. Let’s give POS a trial and give us a call now!