What are point-of-sale systems?
Point-of-sale systems (POS) are great tools in recording your retail transactions quickly. At the point of sale, the POS calculates the total amount due and generates the receipt for the customer. Basically, it handles the bulk of the daily operations of the store. At the end of the day, reports can be generated to see how much sales was made and how much inventory was moved.
Problems faced by stores
Each day, retail stores need to move quickly to make as much sales as possible, and the point-of-sale systems help a great deal in this area.
But making a profit does not end there.
An accounting of all transactions during the day should also be accounted for. Was there emergency buying done? How much did it cost? How was it paid for? Were there other expenses incurred during the day?
Stores also need to be able to account for the other aspects of the retail business such as stock replenishment, keeping the store in good shape, paying the necessary utility bills on time, making sure the air-conditioning is being maintained well among other things.
If these things are happening on a daily basis, then how are they recorded? How are the accounting records submitted to the management?
In most retail stores, the store personnel has to do end of day accounting activities by generating a Z-reading report from the point-of-sale systems. This is for the sales record and the inventory movement for the day.
Receipts from purchases and other expenses needs to be collated and recorded on a ledger. This means the cashier or the manager needs to do this after closing, spending more time in the store.
In some cases, this is done a few hours before closing where transactions are thin. For the management, this means having to look at 2 to 3 different reports regularly or have someone consolidate this to get the stores’ performance via an income statement or what some would call a Profit and Loss (P&L) Statement.
How Oojeema solved it
JP & M Food Ent. Co. LTD., who manages and operates a Chicken Bacolod franchise, worked with Oojeema to come up with a different approach in using Oojeema as their online accounting software.
The goal is to be able to generate the needed reports without adding to the work already being done by the store’s personnel.
Setup Oojeema to match Chicken Bacolod’s Point-of-Sales system so store personnel won’t have a hard time adjusting to a new system.
Next is using the generated end of day reports as an entry in Oojeema. This means the summary of transactions from the Point-of-Sales is recorded in Oojeema as one invoice entry.
For inventory items that was purchased, the transaction is recorded in the Purchase module, while expenses that are billed to Chicken Bacolod such as kitchen supplies, utility bills and rental billings are recorded in the Billings Module.
As soon as these transactions are verified, the necessary payment transactions are done to properly record the payment of the accounts receivables and payables. Once the above process is complete, all the management and tax reports are ready for viewing. This includes the income statement report, sales and purchase reports, item tracking report, BIR reports and more.
In some cases, JP & M Food Ent. Co. LTD. may have not reduced the work being done by the store personnel, but what used to take weeks in producing management and tax reports, Oojeema has enabled Chicken Bacolod to see those reports immediately.
Oojeema is Philippines’ FIRST online accounting software designed to simplify your accounting processes.