Recording Business Transaction: Steps, Accounting, and Analysis

RECORDING BUSINESS TRANSACTION
ASSESSMENT 1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1...................................................................................................................................................1
2...................................................................................................................................................2
PART B............................................................................................................................................2
1...................................................................................................................................................2
2...................................................................................................................................................3
PART C............................................................................................................................................6
a)..................................................................................................................................................6
b).................................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Recording business transaction is associated with process of multi-step which aids in
examining affected accounts so that proper formulation of decision on the basis of obtained
information can become possible. In the current era, the complexity of transaction has increased
in which requires firm to record this in order to gain sufficient information for making accurate
& reliable report. The current report will include steps for starting business as decorator and
identification of decision makers for listed company on London stock exchange. It will include
calculation of journal entries, ledger trail balance and income statement. This will emphasize on
predicting profit or loss of upcoming year so that evaluation of company's performance can be
done.
PART 1
1.
There are few critical actions which are required to be taken into consideration while
operating a new business. To become successful and having ability to eliminate legal course of
action in turn better processing can be achieved (Tiwari and Khan, 2020).
The initial step that is required to be included in order to start business is checking the
legal requirements so that appropriate knowledge can be obtained. The other step is considered
with paying attention on having business plan so that significant structure can be derived to
continue in effective manner (Schumann2019). Opening bank account so that appropriate
practice such as financial, accounting and legal obligations can be conducted appropriately.
Creating brand awareness through developing brand strategy so that essential business sorting
setting up internet, etc. can become possible (Bebbington, Russell and Thomson, 2017)
. The particular step can be done by deciding the name with maintaining branding so registering
with HR revenue & customer related laws in turn higher effectiveness to accomplish the goals
can become possible. It can allow creating system that business can keep records in turn gaining
sustainability & profitability. (Nowotny, 2018.) From the evaluation it can be specified that
these are crucial steps that can be taken into consideration for having ability to start business as
decorator.
David Green as being part of decorating industry require to follow the mentioned steps
so that irrelevant legal obligation arising while dealing with customers can be provided. These
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steps can provide assistance in having ability to spread awareness regarding brand in turn higher
profitability can be obtained (Rosenthal, 2018). On the basis of this, it can be said that these are
crucial steps which are required to be taken into consideration for having proper stability in
specific industry.
Pestle analysis
Political factors
 Being a business entity as a decorator
firm needs to comply with all the tax
and other laws & legislation associated
with it.
Economic factors
 Currently, due to COVID-19 economic
condition is affected to a great extent.
Meanwhile, purchasing power is
affected significantly which in turn has
direct impact on business operations.
Social factors
 Trends and customer’s preferences are
changing quickly with regards to
interior designing. Hence, sole trader
needs to keep in mind customer’s
choices while offering designing
services.
Technological factors
 With the rise in technological
advancements now customers do more
research about designs before placing
any order. Further, online website need
to be developed for attracting more
customers.
Legal factors
 There are several laws with which firm
needs to comply with for ensuring
smooth functioning such as Customer
protection, Intellectual property,
Equality Act etc.
Environmental factors
 As per the standards, for enhancing
brand image and attract customers’
firm needs to perform activities in an
eco-friendly manner.
SWOT analysis
Strengths
 Innovative offerings
Weaknesses
 Lack of research and development
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