, Accounting For The Fashion Industry

Fashion or clothing is one of the oldest industries known to humankind. Since the dawn of civilisation, we’ve needed clothes to protect us from the elements. As the centuries have gone by it’s evolved into what we now call fashion. 

 

Fast Fashion

Today, depending on who you’re speaking to, it’s also referred to as ‘the rag trade’, ‘fast fashion’ or ‘haute couture’. Whatever you call it, one thing’s sure; it’s always been big business. Famous designers have gained an almost iconic status. Figures like Yves St Laurent,  Coco Chanel or Karl Lagerfeld are synonymous with high fashion. They created innovative clothing brands desired by people the world over.  

And it’s an industry that’s growing exponentially. Look at brands like Boohoo, ASOS or Pretty Little Thing and see the ever-increasing profits they’re posting.  Our tastes for contemporary fashion brands are accelerating year on year. Our desires are fuelled by online influencers and sophisticated targeted advertising.  

Who needs to go to a local shopping centre to get your togs anymore? In under an hour, you can order a brand new wardrobe online, and it’ll be on your doorstep in less than 48 hours. There’s no need to wait to become ‘on trend’!

, Accounting For The Fashion Industry

 

Growth Through Tech’

Obviously, the internet has supercharged the fashion industry and supporting e-commerce platforms like Shopify, Paypal, and Amazon have revolutionised the shopping experience. Today, fashion is as much about technology as it is about apparel. 

And while fashion is definitely where the money is, if you’re in the business, you’ll know to need to manage your resources very carefully.

 

Control Is Paramount

Fast fashion needs to maintain strict control over cash and stock, as well as having the right goods to sell when demand is high. Fashion companies need to understand a rapidly changing market, especially to avoid overstocking. These firms will typically have long supply chains, including overseas suppliers and partnerships with businesses like couriers and information technology platforms. 

In reality, it’s complicated, and control is paramount.

 

Experience Is Everything

The good news is that the Enso team have considerable experience in the financial needs of the fashion industry. We’re proud to have supported Little Black Dress, an up-and-coming Manchester fashion brand in getting full control of their business finances and essential management information. Naturally, we used Xero as part of that project. 

They can now concentrate on selling their garments safe in the knowledge they have the financial and management controls in place to understand where the opportunities are and how to fully capitalise on them. 

As interesting is my recent business trip to China, where I supported a key player in the international fashion supply chain. In my time there, I got superb insight into how things operate while helping the company with their financial management and performance. 

What I also learned is that fashion is a fast-moving and exciting industry, and I now have invaluable first-hand experience in how best to support these unique businesses. 

You could say Enso is the height of fashion in this remarkable industry. 

If you’d like to discuss setting up Xero and essential financial management for your fashion business call me today on 07792686479 or email me at adam@meetenso.co.uk and let’s talk about how your company can always be at the cutting edge of your industry.

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