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Hospitality & Retail · Brisbane

Accountants for Retail Shops

Stock is your biggest asset and your biggest risk. Retail accounting is inventory accounting with a shopfront attached.

CPA-qualifiedRegistered Tax & BAS AgentsFixed monthly fees

How does inventory affect a retailer's tax?

Directly. Taxable income is calculated using opening stock, purchases and closing stock — so a stocktake at 30 June changes your tax bill. Stock can generally be valued at cost, market selling value or replacement value, and genuinely obsolete stock can be written off before year end for a deduction. Meanwhile gross margin by category and shrinkage are what tell you whether the business is working, and both require the POS and accounting file to agree.

  • Specialist support for retail businesses
  • Fixed monthly packages from $220
  • BAS, payroll and year-end handled together
  • Benchmarked against ATO industry figures

What we watch

What matters most for retail businesses.

Stocktake discipline

A real count at year end, with an obsolescence review before 30 June — one of the few remaining legitimate levers in June.

Margin by category

Blended margin hides the categories that are losing money while the good ones subsidise them.

Shrinkage tracked

Theft, damage and error quantified rather than absorbed. You can't manage a number you never see.

Lease and fitout

Incentives, rent-free periods, make-good provisions and fitout depreciation, each with its own treatment.

Deductions

Retail Shops — what you can claim.

A working checklist we go through with every client in this sector. Substantiation requirements differ by item — we'll tell you which need records and which don't.

  • Cost of goods sold with stock adjustments
  • Rent, outgoings and utilities
  • Wages, super and penalty rates
  • Fitout, shelving and POS equipment depreciation
  • Merchant fees, payment terminal and BNPL costs
  • Marketing, signage and promotions
  • Insurance, security and alarm monitoring
  • Freight, packaging and delivery
  • Obsolete or damaged stock written off

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FAQ

Retail Shops — questions we're asked most.

Do I have to do a stocktake at 30 June?

You need a reasonable basis for closing stock, and for most retailers that means a count. Simplified rules can allow an estimate where the change in stock value is small, but if stock is material, count it — the number flows straight into taxable income, and estimates are the usual cause of a surprise bill.

Can I write off unsold stock?

Yes, where it's genuinely obsolete or unsaleable, valued down accordingly before year end and documented — what it was, why, and how it was disposed of or discounted. Writing off after 30 June moves the deduction into the following year.

How do I reconcile my POS to my accounting file?

Daily takings summaries from the POS matched to bank deposits and merchant settlements, with fees recorded separately rather than netted. Getting this right also fixes your GST position: many retailers understate both sales and expenses by recording only net settlements.

What margin should a retail shop make?

It varies enormously — 30% gross in grocery, 50%+ in apparel and giftware. The useful test isn't the industry average but your own trend by category and whether gross profit covers occupancy, wages and a return to you. We benchmark against ATO small business figures for your industry code, which is also what the ATO compares you against.

Written & reviewed by

Tax Accountant Brisbane Team

CPA-qualified accountants & registered tax agents

Our Brisbane team has prepared thousands of individual, small-business and SMSF returns since 2015. Every guide on this site is written, fact-checked and updated against current ATO rulings and legislation.

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Accountants for retail shops — let's talk.

Free 15-minute consultation, fixed monthly fee, and an accountant who already knows your sector.

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