Accounting for Business Decisions: Holmes Institute Assignment

This report, prepared for a finance assignment, delves into the core concepts of accounting and its practical application in business decision-making. It explores various business structures like sole proprietorships, partnerships, and corporations, analyzing their advantages and disadvantages. The report examines the critical role of accounting in managing business finances, including cost analysis, financial statement preparation, and the importance of financial planning. It also discusses the skills needed for effective accounting, such as technical proficiency and the ability to interpret financial data. The report emphasizes the significance of understanding accounting principles for making informed business choices and achieving financial success. The report also describes the process of raising finance, and the need for accounting skills for managing the business.

Accounting for business decisions
Name of the student
Name of the university
Student ID

Introduction
Overview of accounting
Importance of accounting into business

Forms of organization that Rob can adopt for the business.
As per the case Sole proprietorship business options available to the Rob to start the
business.

Forms of Business
• Sole proprietorship
• Partnership
• Corporation
• Limited Liability Company

Advantages
• Sole proprietorship business- Monetary surplus subject to only owner.
• Partnership Business- Each of the partners is being proportionate to the total
profits of the business.
• Corporation business- Tax advantage.
• Limited liability Company- limited liability and debts to the owners of the
company.

Disadvantages
• Sole proprietorship business- fully liable for any types of debts of the business
entity.
• Partnership Business- partners are 100 per cent liable to bear the obligations.
• Corporation business- operations of corporations are very costly.
• Limited liability Company- Agreements must be complex.

Primary cost
Primary expenses Rob will incur are as follows:
• Review the business plan to determine the business expenses
• Estimate the startup costs
• Determine the running costs.

Raising finance
How did he raise the required finance?
Security he needs to provide.

Accounting Information
• Facts
• Forecast financial estimates
• Budget Expenses
• Profitability check

Accounting skills/knowledge
Finally Rob needs some accounting skills to manage his business that are as
follows:
• Technical accounting skills
• Attention to detailing
• Evaluation of financial information

Conclusion
So the study depicts us, to start a business is not a easy thing or not just think and
start. It needs to evaluate and examine all the parameter. A business person needs to
understand the accounting process and its implication into the business. Which form
of business needs to build up that is also important. It will be based on the resource
available.

Thank You…