Industry · Retail & consumer goods

Accounting and audit for retail and distribution in Tunisia

Distribution networks, fast-moving consumer goods, organised retail and e-commerce: a low-unit-margin, high-volume sector where control of inventory, shrinkage and working capital makes the difference.

Reference valuation: 6× EBITDA (indicative median).

The sector's accounting and financial issues

Inventory, shrinkage and provisions

Inventory is the retailer's central asset. Its physical count, its valuation, the treatment of known and unknown shrinkage, and impairment provisions based on turnover and expiry dates make up most of the sector's accounting risk.

Working capital requirement

Supplier terms, inventory turnover, collections: the retail operating cycle creates cash tensions that only a precise measurement of working capital can anticipate. It is also a major driver of valuation in a disposal.

Transaction volume and automation

The very large number of transactions requires automated controls and a rigorous reconciliation between point-of-sale systems, sales management and the accounts. Electronic invoicing reinforces this integration requirement.

How we work in this sector

Statutory and contractual audit

Our audits in the sector cover inventory observation, counting and shrinkage procedures, the correct cut-off of purchases and sales, the review of commercial cooperation agreements and the reconciliation between point-of-sale systems and the accounts.

Accounting and outsourcing

High-volume bookkeeping, multi-site payroll, tax filings, e-invoicing compliance, management reporting by store or by product family.

Transaction advisory

Valuation, acquisition due diligence with a detailed analysis of normative working capital, support for external growth and disposal transactions. Indicative median EV/EBITDA multiple for the sector: around 6 times.

Points of attention

  • Reliability of inventory and treatment of shrinkage
  • Impairment provisions based on turnover and expiry dates
  • Cut-off of purchases and sales
  • Accounting for commercial cooperation agreements
  • Normative working capital in a disposal

Related resources

Other industries

Private equity · Manufacturing · Energy & resources · Technology & media · Public sector & NGOs