Recording Business: Steps for Starting a New Business as Decorator, Decision Makers in Accounting, and Predicating Profitability

This report provides information on the steps for starting a new business as a decorator, who the decision makers are in accounting, and how to predict profitability. It includes journal entries, general ledger, trial balance, income statement, and trend line method. The report emphasizes the importance of recording business transactions for sound decision making. Subject: Business, Course Code: N/A, Course Name: N/A, College/University: N/A

RECORDING BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PART A.......................................................................................................................................1
1) Providing steps for starting a new business as Decorator.......................................................1
2) Identifying who are the decision makers referred to in the pro definition..............................2
PART B.......................................................................................................................................4
1) Journal entries for the transactions of September 2021 are below..........................................4
2) Journal entries for the transactions of August 2021 in the books of ABC enterprises are as
follows:........................................................................................................................................5
a) Ledgers of Maurice & brothers...............................................................................................5
PART C.......................................................................................................................................8
a) Income Statement for B Moore for the year ending 30th September 2021..............................8
b) Predicating B More's profitability for the year 2022...............................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Recording business transaction is concerned with a particular procedure in which all the
conducting practices are taken into consideration so that sound decision can be made. In the
present working environment there is requirement to make sound decision in turn higher
profitability & sustainability can be derived. The current report is based on providing the basic
knowledge regarding operating, functioning & managing so that appropriate level of profitability
to sustain in sector can be derived. Recent study will give emphasis on having information
regarding the steps for starting a new business as decorator. It will concentrate on identifying
who are decision maker of using information provided by accounting. This will include journal
entries, general ledger and trial balance. This will concentrate on formulating income statement
and predicting profit or loss for the upcoming year.
MAIN BODY
PART A
1) Providing steps for starting a new business as Decorator
There are several factors which are required to be assessed by individual in order to have
successful operating of business. Each industry has different kinds of processing which are
needed to be taken into consideration so that higher stability & profitability can be derived. To
meet the objectives of successfully operating in industry business is need to emphasize on
getting competitive advantages through avoiding irrelevant aspects. In the event industry there h
is need to focus on the following steps for operating business (How to start a business: a 9-step
guide, 2020)
The one of the significant factors which are required to be followed for starting the
business as decorator is research that chosen option is legal or not. It is as well concerned with
having new business name so that different entity can be maintained. It can help in gaining
appropriate level of ability to maintain proper functioning so that recording, analyzing,
controlling financial transaction can become easily.
In addition to this, choosing legal structure in which the decorator has decided as
operating as sole proprietor. It aids in getting information regarding rules, regulation, law, etc. so
that having appropriate ability to implement the strategies & approaches for accomplishing roles
& responsibilities (Neeraj and et.al., 201). This is largely helpful in getting competitive
environment which can lead specified firm to be meet requirements business.
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Making business plan for strategic goals, sources of finance, conducting for market
research, potential obstacles, formulation of budget, etc in turn having proper evaluation. This
can be helpful in having proper level of business plan so that carrying forward operational
activities can become possible.
Structuring funding & finance can be wrathful in checking several options available for
getting funds in turn better security of funds can be derived. There are several types of options
available that can contribute in achieving ability to fulfill the requirement of all objectives in
turn having competitive edge can become possible.
For starting business as decorator as conducting advertising strategy which can be highly
effective and efficient in meeting overall objectives can become possible. Advertising a new
business becomes important as awareness regarding the types of services that can be offered by
David Green. It will help in gaining higher number of customers by overcoming competition
prevailing due to competitors. He can create website, establishing network of industry, email,
etc.
Buying business insurance so that protecting overall activities can become possible. It is
helpful in declining possibilities of inclining irrelevant expenditure, declining chances of arising
risk, m damage, accidents, legal fees, etc.
Registering with HMRC and submitting annual self-assessment tax return for working
out regarding the particular management of legal liability (Cai, 2021). It can contribute in
overcoming prevailing irrelevant possibilities of arising legal complications.
Creating system for recording business transaction is another step. In addition to this,
having appropriate level of information for making sound decision in turn achieving higher level
of stability can become possible.
The last step is to maintain business with support guides through having proper guidance
regarding turnover calculating turnover, self-assessment, etc. these are the steps which are
required to be taken into practice for starting business a decorator.
2) Identifying who are the decision makers referred to in the pro definition
ASDA is one of the successful company operating in UK which is listed on London
Stock Exchange. In order to operate successfully in the prevailing business environment there is
requirement to pay attention on having relevant level of recording, analyzing a summarizing
transaction so that proper information for making decision. There are some accounting
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specialists who use the information provided by accounting process (Beyers and Arras, 2021). It
involves analyst, financial managers, accountant, general assistance, etc. they use information to
have relevant amount of ability to make sound decision.
It involves both internal & external stakeholders who highly take accounting information
for making relevant, reliable, efficient, timeliness decision. The internal stakeholders involve
staff, management, etc. who are basically responsible for managing the practices of n business.
There are highly responsible for managing overall functioning on which developments of
company is dependent.
There are external types of stakeholders such as investors, investors, competitors,
financial institutions, lenders, suppliers, etc. there are several types of activities which are
required to be accomplished by users in order to higher capabilities to make strategic decision
investors, financial institutions, banks, creditors, etc. focus on having appropriate level of
insights regarding return on capital, optimum utilization of resources, etc. lenders focus on
having significant level of information regarding both short & long term obligation in turn
information regarding efficiency of paying debt can be identified (Olarewaju and Msomi, 2021).
Suppliers focus on assessing the accounting information provided by company to evaluate that
companion will become able to overcome the prevailing payment in effective manner. From the
evaluation of the provided information regarding accounting it can be specified that it becomes
crucial for the firm to give emphasis on providing relevant, reliable and ethical insight. On the
basis of provided information it can be specified that these are the stakeholders of the specified
firm who uses this information for making decision.
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PART B
1) Journal entries for the transactions of September 2021 are below
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2) Journal entries for the transactions of August 2021 in the books of ABC enterprises are as
follows:
a) Ledgers of Maurice & brothers
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6

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b) Trial balance of ABC Enterprise as at 31 August 2021
PART C
a) Income Statement for B Moore for the year ending 30th September 2021
b) Predicating B More's profitability for the year 2022
The presented table is presenting information regarding the profit and loss for more than
five-year. By analyzing the given insights regarding the profit or loss for the respective years
from the 2013 to 2020 it can be articulated that there is no stable trend is prevailing. In order to
become successful it is highly essential to pay attention on having relevant insights regarding
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upcoming performance in turn measures to improve performance can become possible (Brin and
Nehme, 2021).
On the basis of provided information it can be specified that in the initial year the firm is
facing inclining trend from the year 2013 to 2016. In addition to this, it can be specified that
company is require focusing on having proper level of evaluation of prevailing performance in
turn accurate & relevant action to improve performance. In addition to this, after 2016 to 2020
which is indicating that performance of the enterprise is fluctuating. It is required to be improved
in order to have successful process. For forecasting profitability of the upcoming year trend line
method can be used to get the outcome.
Y (2022)= 1326x+121793
= 1326(9)+12793
= 11934 +12793
= 24727
from the provided information regarding equation it can be specified that company will get
£24727 profitability. The specified organization has made effort to improve its overall
performance.
CONCLUSION
From the given information above it can be summarized that recording business
transaction is crucial for the firm to get sufficient information in making proper decision. The
current report has comprised 9 steps for starting business as decorator. It has involved journal,
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ledger and trial balance. Income statement has been prepared which has given net loss of 49480.
In addition to this, present report has involved predication of performance of B More via
utilizing trend line. It has allowed to get the equation which is helpful in ascertaining
profitability for the year 2022. On the basis of this it can be identified that having effective
recording of business transaction can help in having sound decision making for accomplishing
objectives.
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REFERENCES
Books and Journals
Beyers, J. and Arras, S., 2021. Stakeholder consultations and the legitimacy of regulatory
decision‐making: A survey experiment in Belgium. Regulation & Governance. 15(3).
pp.877-893.
Brin, P. and Nehme, M., 2021. Sustainable Development in Emerging Economy: Using the
Analytical Hierarchy Process for Corporate Social Responsibility Decision
Making. Journal of Information Technology Management. pp.159-174.
Cai, C.W., 2021. Triple‐entry accounting with blockchain: How far have we come?. Accounting
& Finance. 61(1). pp.71-93.
Neeraj, K.R. and et.al., 2017, August. A domain specific language for business transaction
processing. In 2017 IEEE International Conference on Signal Processing, Informatics,
Communication and Energy Systems (SPICES) (pp. 1-7). IEEE.
Olarewaju, O. and Msomi, T., 2021. Accounting skills and the sustainability of Small and
Medium Enterprises in South Africa. The Journal of Accounting and Management,
11(1).
Online
How to start a business: a 9-step guide. 2020. [Online]. Available through:
<https://www.simplybusiness.co.uk/knowledge/articles/2021/03/how-to-start-a-
business/>
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