One big mistake accounting software consultant makes when setting up a system for bakery businesses is to classify them as just a retail business; hence, leaving a whole room for production and accurate inventory management.
This is what I mean; When you buy raw materials like Flour in bags (measured in Kgs), you need to track this item from scratch, including all the materials consumed during productions and resources left for further production. Also, the actual production quantity should be accounted for in the stock report.
In this guide, I will be introducing you to QuickBooks Premier and Enterprise Solutions; the best software and management system for a wholesale or retail bakery business.
While the latter is recommended for bakery businesses with multiple stores or locations, the former is suitable for outfits with single location
Purchases & Costing; In QuickBooks, you can add all the raw materials used for baking pieces of bread, cakes, and other snacks. This can be entered in Kg, bags or whatever unit you’ve been used so that you can easily track the quantity left after production processes.
Productions Setup; There is a room for you to enter a unit of material (and cost per unit) required to produce certain products; by that, you connect all the production of a final product to the raw materials so that as the unit produce increases, raw materials in store decrease proportionately.
Stock Recording: There are inventory reports and valuation analysis showing all the raw materials available in store, quantity available for sale and expected sales price for a specified period.
Bakery Sales & Expenses; For every sale made, QuickBooks has a receipt and invoice window designed to track all the daily, weekly, monthly or periodic sales of cakes, bread, and other snacks. All the cost of goods produced and sold is also monitored against the income earned; this will help you view your profit or loss position real time.
VAT on Sales: By law, every business is mandated to charge a sales tax on every product sold which vary from country to country. As at when this post was published, the tax rate in Nigeria was 5%, though, it’s still at that same rate but rumors reaching us reveals that the government may likely review VAT rate.QuickBooks has a VAT/Sales Tax feature that tracks all charges on sales and generates a payable reporting showing the balance remittable to tax authority.
QuickBooks has a VAT/Sales Tax feature that tracks all charges on sales and generates a payable reporting showing the balance remittable to tax authority.
Customers & Suppliers Summary: You can also record all your customers and suppliers transaction; products bought and sold, cash received from a customer, cash paid to suppliers with outstanding balance receivable or payable respectively. On a real time, you have glance your customers and receivable report or suppliers nd receivable to see who owes and who you owe.
Store: If you run in multiple locations, QuickBooks Enterprise via Advanced Stock Feature, tracks all inventory transfers from one sales store to another with quantity available at the respective stores.
Reporting: You can view and customize over 20 financial reports for your bakery business in QuickBooks including, profit or loss, statement of financial position (balance sheet), cash flow, sales summary (daily, weekly, monthly, annual or by quarters), expense report, bank registers, stock report, company snapshot, budget vs actual, etc
For more inquiries on how QuuckBooks can be customized further to work for a bakery business, connect with us on info@accountingsoftware.com.ng