tailieunhanh - Lecture Retailing in the 21st Century - Chapter 10: Money matters

This chapter presents the following content: Determining what to pay yourself, and employees; choosing a payroll service; accepting different types of payment; fighting credit card fraud; finding a computer system; | Ch. 10: Money Matters Determining what to pay yourself, and employees Choosing a payroll service Accepting different types of payment Fighting credit card fraud Finding a computer system Working with an accountant Establishing routines to supply data for financial reports Using the financial reports to help you understand your business This is the overview of topics at the beginning of Chapter 10. Ask Credit Card Processors What is your base rate? (A percentage) Is there a monthly charge or “statement fee?” How much are the transaction fees? Are there additional charges for: debit card transactions? corporate card transactions? foreign cards? Hiring a credit card processing company is a must for today’s busy retailer—but there are extra (and sometimes hidden) fees that you should find out about before selecting a processor. Fighting Credit Card Fraud Shred all receipts and invoices before discarding. Use an Address Verification System (AVS) or call banks to verify (at least some) . | Ch. 10: Money Matters Determining what to pay yourself, and employees Choosing a payroll service Accepting different types of payment Fighting credit card fraud Finding a computer system Working with an accountant Establishing routines to supply data for financial reports Using the financial reports to help you understand your business This is the overview of topics at the beginning of Chapter 10. Ask Credit Card Processors What is your base rate? (A percentage) Is there a monthly charge or “statement fee?” How much are the transaction fees? Are there additional charges for: debit card transactions? corporate card transactions? foreign cards? Hiring a credit card processing company is a must for today’s busy retailer—but there are extra (and sometimes hidden) fees that you should find out about before selecting a processor. Fighting Credit Card Fraud Shred all receipts and invoices before discarding. Use an Address Verification System (AVS) or call banks to verify (at least some) addresses, phone numbers. On phone orders, ask for security code numbers printed directly on cards; or ask for a fax of both sides of the card. Verify every order with different bill-to and ship-to addresses. Keep files of unusual or fraudulent activity, in your store or in your area. These are only a few of the steps merchants can take to combat credit card fraud and minimize chargebacks to their business. Determining the Value of a Computer System Will I do more business because of it? Will I save money because of it? How long will it take to justify the cost? Will reports, invoices be more accurate? Will it enable better service for my customers? Will I save time because of it? Do I want to track merchandise, money or both? Several vendors and systems should be examined before purchasing a computer system. Here’s what to ask yourself when you get the bids. The Profit and Loss Statement Net sales: How much money is coming in? Cost of goods sold: What the merchandise you’re selling actually cost you to obtain.** Gross profit: 1) minus 2) Total operating expenses: How much is it costing to run the business? Net income (or loss): 3) minus 4) = Did you make (or lose) money during this period? ** A simple formula for calculating cost of goods sold is on page 243 of the book. Understanding how to read a P&L statement is simple as long as you understand the five components that go into it.