Objectives :

• Understand the specific accounting practices for bookstores.
• Learn how to manage finances and budgets tailored to the industry.
• Master financial reporting and analysis techniques.

Target audience :

• Booksellers and bookstore managers
• Accountants and financial managers in the book sector.
• Students in management, finance, and accounting

Training Outline:

Day 1: Understanding and Reading Financial Statements for Booksellers and Publishers

Module 1: Introduction to Accounting
- The role of accounting in a business
- Basic terminology (assets, liabilities, income, expenses, etc.)
- The accounting cycle

Module 2: Key Financial Statements
- Balance Sheet: definition, structure, and how to read it (Current vs. non-current assets, liabilities, and equity)
- Income Statement (or Profit & Loss Statement): reading and analysis (Revenue, operating expenses, net profit)
- Cash Flow Statement (simplified presentation) Importance of cash flow management

Module 3: Industry-Specific Features
- The economic cycle of a book (purchase, production, distribution)
- Specific revenues and costs (consignment sales, returns, royalties)
- Accounting for inventory and unsold stock

Module 4: Using Financial Data for Decision-Making
- Profitability calculations: gross margin, break-even point
- Performance analysis (basic ratios: margin rate, inventory turnover, etc.)
- Cash flow analysis (working capital needs)

Case study: analyzing a real or fictional financial statement from a publisher or bookstore. Exercises to identify key elements Spotting strengths and warning signs.

Day 2: Key Concepts of Inventory Management

Module 1 – Introduction to Inventory Management
- Definitions: What is inventory?
- Different types of inventory (safety stock, dead stock, etc.)
- Why inventory management matters for booksellers and publishers ( Balancing availability and cost and Impact on cash flow and sales)
Practical exercise: Identify different types of inventory in a bookstore or publishing house

Module 2 – Inventory Management Methods
- Tracking methods: FIFO, LIFO, Weighted Average Cost
- Physical inventory vs. digital inventory
- Management tools (stock cards, software, spreadsheets)
- Key metrics: turnover rate, stock coverage, out-of-stock rate
Case study: Calculate stock turnover using sample data

Module 3 – Specifics of Book Inventory Management
- Unique challenges: fast obsolescence, returns to publisher, seasonality
- Reordering and restocking strategies
- Working with distributors and suppliers
- Collaborative workshop: Create a stock management strategy for a small bookstore

Module 4 – Optimization and Best Practices
- Reducing unsold books and returns
- Using sales data to improve ordering
- Examples of best practices in the book industry
- Introduction to digital decision-making tools

Training dates : 28-29 june 2025

Number of participants : 15 participants