Accounting for Managers | Sources of Finance | Assignment
Added on 2019-11-19
14 Pages2970 Words145 Views
Running Head: Accounting for managersAccounting for managers
Accounting for managers 1ContentsDescription of the business..............................................................................................................2Size of the business......................................................................................................................2Industry of the business...............................................................................................................2Selection of form of business..........................................................................................................3Sources of finance............................................................................................................................4Projected income statement and balance sheet................................................................................5Role of accounting...........................................................................................................................7Accounting process of cafe..........................................................................................................8Financial accounting in café........................................................................................................9Managerial accounting in café...................................................................................................10Financial statement analysis beneficial for managers...................................................................10Distribution of profit or retention of profit....................................................................................11References......................................................................................................................................12
Accounting for managers 2Description of the business The new business that has been formed is a café. The main product of café is Coffee. The name of the café is Coffee Break Café. This business is operated by the single owner who works for the self-profit. This type of business association is known with the name of the sole proprietorship. It is a different element for the book keeping reason. An independent company begins as a sole proprietor. In this sort of business, the proprietor itself needs to hold up under the duties regarding everyday operations. The coffee café comes under the retail outlets. Size of the business Coffee Break Café comes under the small size of the business. The size of the business is identified with the capital invested by the owner. So the amount invested by the owner in this business is $1,000, 000.00. The number of employees employed in the business can also help in determining the size of the business. Talking about the café, the employed employees are less as compared to the big business. Industry of the business Business related to the coffee café comes under the food and beverage industry. This is a very vast industry that consists of many products. Food and beverage is a noteworthy industry area forthe Australian economy, as far as the two its money related commitment and work. Nourishment and refreshment handling are Australia's biggest assembling industry. The industry is uniquely driven by requesting buyers looking for assorted variety, quality, and esteem. The ethnic and social assorted variety of Australia has reflected in the nourishment extend accessible (Martinez, 2013).
Accounting for managers 3Selection of form of businessWhile starting any business owner select the form of business. The form of business includes sole proprietorship, partnership, a limited liability company or a corporation. The selection of a form of business over here is a sole proprietorship (Singh, Chaudhary, and Arora, 2014). A sole proprietorship is the most inexpensive structure of the business. This form of business can come into the existence with less tax and legal formalities.This is one of the businesses which are going to control and manage by the one person. Hence, the owner will get the freedom to run the business according to their wish (Baik, Lee, and Lee, 2015).The profit of a business is going to be kept by the single owner. There will be no distribution of the profit. The decisions in the business can be taken without any influence of the third party. There will be privacy in the business. Winding up of the business can easily take place if the owner wants. After winding up thebusiness the owner of the company can keep the entire amount with them (Gitman, Juchau, and Flanagan, 2015). It will be easy to change the legal structure of the business, in case of any circumstances. The above given are some of the advantages to the business that maintains a sole proprietorship as a legal form of business. This is the reason behind the selection of the sole proprietorship as a legal form of business.
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