Industry

Retail accounting starts at closing time

A shop makes many small sales through several payment channels. If the day's figures are not matched while people still remember them, small gaps become a year of guesswork.

Sources checked November 2026. Based on the official and published sources cited here. For your own case, Deepak Mittal reviews the position with you directly.

A ten-minute daily close

Do this at the same time every day. Use a sheet or your billing software's day-end report. The figures here are invented.

LineBilledActual
Cash₹12,000Counted: ₹11,900
UPI₹18,500App report: ₹18,500
Card₹6,000Machine batch: ₹6,000
Returns₹1,000Credit notes: ₹1,000
Difference₹100 short in cash. Note a reason, and who checked it

Why this matters later

Card and UPI money arrives net or later
Settlements may be less than sales because of charges and timing. Bank credits do not equal the day's sales.
Cash spent from the till disappears
If you pay a supplier or staff from the counter, record it, or the cash will never match.
Personal UPI confuses everything
Shop money received in a personal account is hard to separate. Use a business account where possible.
Items carry different GST rates
If you sell goods at different GST rates, set the correct rate for each item in your billing software, so that every bill records it at the point of sale.

What to hand over each month

Sales

POS or billing export, day-end reports, and credit notes for returns.

Money

Bank and payment-app statements, card settlements, and cash banked.

Purchases

Supplier bills, transport, and your payments to each supplier.

Stock

A count, even of main lines. Without one, profit is an estimate.

Expenses

Rent, staff, electricity and small cash spends, with vouchers.

Oddities

Damaged goods, gifts, owner's drawings, or stock taken for personal use.

Stock is your biggest unknown

For most shops, stock is where the money sits. You do not need to count everything each month. Count your top items, count everything at least at year end, and check for dead stock. Billing software only helps if purchases and sales are entered item by item.

Common problems

  • Selling without a bill. It understates sales and makes stock impossible to reconcile, and it can create tax exposure.
  • Customer credit in a notebook. Move "udhaar" into a proper list, so that it can be followed up and counted.
  • Refunds in cash, without a record. Tie each refund to a bill.
  • Treating all deposits as sales. Your own money put in, or a transfer between accounts, is not income.

Questions to ask Deepak Mittal before work starts

  • Will you reconcile my POS, UPI, card and bank figures, or only record bank entries?
  • How do you handle card machine and UPI gateway charges?
  • How should I count and value stock, and how often?
  • What GST scheme or rate treatment suits my shop? Am I eligible for any simpler scheme?
  • Does the presumptive income scheme under section 58 of the Income-tax Act, 2025 fit my turnover?

Shop or trader?

If most of your sales are on credit to other businesses, accounting for traders is closer to your needs. If you are starting from nothing, try the small business guide.

Want your shop's sales, stock and bank to agree?

Tell us what you sell, how you bill, and how customers usually pay.