Starting a Business and Accounting Involvement in Decision-Making

Accounting

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Part-A ....................................................................................................................................3
Part – B...................................................................................................................................4
PART- C.................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business refers to an enterprise that have come into existence to sell goods and services
for the main purpose of profit earning. There are different types of business enterprises
(Humphries, Neilson and Ulyssea, 2020). These businesses are involved in transactions with
many internal and external factors of the business. These business transactions refers to the
dealings between two or more parties involving the exchange of goods and services. These are
recorded in the books of accounts for the purpose of profit calculations. This report highlights
how a business is started and how these books of accounts are maintained.
TASK
Part-A
What are the steps taken up by entrepreneurs to start a new venture of decorator.
David Green is a sole proprietor and wants to set up a new business of decorating.
Following are the steps that he needs to take up for opening the business:
 Formulate a model: The first step to start a business is to ascertain its model and what the
business will deal in. Here, the business will deal in decoration and decorating items.
 Building a strategy: In this step the main focus of the entrepreneur is to be clear of the
visions and missions of the business and how the business will have competitive
advantage in the market (Kepczynski, and et. al., 2018).
 Formulating a business portfolio: In this step the entrepreneur has to build up the
techniques, goals and initiatives that the business will take.
 Finding out equipment that will be needed in business operations.
 Settings of long-term objectives and determining hurdles that might come in its path.
 Engaging in activities related to welfare of the society and building a network with
suppliers and customers.
 The businesses now-a-days have to have their online presence to gain visibility in a
potential marketplace which would aid business in its settlement in the marketplace.
How accounting have an involvement in decision-making of a company.
Accounting helps many users of the accounting information in number of ways.
Accounting helps the users by providing them information about financial performance of the
business (Lessambo, 2018). The company taken up for this purpose is Tesco, which is registered