Accounting for Business 2: Start-Up Options and Funding

Desklib provides solved assignments and past papers to help students succeed.

1
Accounting for Business

2
Table of Contents
Introduction...................................................................................................................... 3
Question 1........................................................................................................................4
Question 2........................................................................................................................4
Question 3........................................................................................................................4
Question 4........................................................................................................................4
Question 5........................................................................................................................4
Conclusion....................................................................................................................... 4
References.......................................................................................................................4

3
Introduction
The assessment discusses the scenario of Accounting for Business. The assessment
mainly revolves around the best business start-up options for the beginners. The
discussion is about the need and importance for accounting in a business. For this
assessment certain questions will be asked on the start-up options, fund raising
techniques and much more. Also, the assessment also focuses on the various
segments of Accounting. The segments are the preparation of accounting, cash flow
statements, budget planning and evaluation of the profit.

4
Question 1
For starting a business, there are various types of start-up options which Tim can use
for starting up his own business. Tim wants to buy delicatessen in Sydney. Because of
the failure of the project Tim doesn’t have money and savings for buying a delicatessen.
Therefore, for borrowing or generating money for the purchase, Tim has various other
options for the expansion of the business. Following are the start-up options for Tim:
1. Partnership- This is considered as the most specific and suitable option for the
company that wants to expand the business in the market.In this type of
business, two or more partners gather and decide to share the company’s profit
in accordance with the decided share. Partnership brings in various new
instruments and technologies which helps in smooth and enhanced working of
the organization (Profitbook, 2017).
For making the possible purchase, Tim can establish a partnership with some
companies in the market. The partnership will help him in improving the business
and Tim can also generate some amount of money for the purchase that wants
to make.
Advantages of Partnership are-
 The major advantage of partnership is thatpartnership is the easiest form for
beginners.
 If there are more partners, there will be more profits
 The partners from different companies develop new plans and strategies. This
promotes the exchange of ideas, resources and technologies(Profitbook, 2017).

5
 If the partners are creative, the business will be benefitted
 Also, the profits will be shared equally, if there is no ratio decided between the
companies(Profitbook, 2017).
Disadvantages of Partnership are-
 The profit sharing and even the partnership can end because of the demise of
one partner.
 The selfish move of the partners can end the partnership and company can bear
loss(Profitbook, 2017).

6
Question 2
There are many other options for the beginners to grow their business in the market.
Partnership is the easiest way to grow the business in the market. This is because;
partnership helps in the exchange of resources and ideas in the business. Also, the
share is either divided equally or according to decided share of the partners (Carbo‐
Valverde, et. al., 2016). Partnership will definitely help Tim in order to grow the business
because he will be able to experience new working scenario according to the exchange
in the ideas, resources and technologies. Partnership also helps in maintaining the
finances of the company. The company can also share money on the expenditures of
the business according to the decided share as well.
Question 3
For the expansion of the business, following are the ways, in which Tim can raise the
money:-
 Bootstrapping- Tim can use bootstrapping in order to generate funds for his
business. In bootstrapping, Tim will invest money for seeking attention of different
companies that are operating in the market. It is important for Tim to invest some
amount because no outsider will invest in your company until you do so. As it is
already mentioned that Tim is short of cash, therefore it is important for Tim to
plan a budget in order to invest the money and save the rest for the expansion as
well (Campbell, 2013).

7
 Crowdfunding-This fund-raising method is not very popular, but is still growing
and developing in the market. For beginners like Tim, this option is best
suited.Under this method, Tim can provide an overview of the business along with
the goals and objectives. Tim can also provide some of the volunteers to promote
the business in different companies as well. As the company is still growing,
various companies will invest their money in Tim’s business (Carbo‐Valverde, et.
al., 2016).
Question 4
Accounting information helps in managing the working of the business.For Tim,
accounting will play a crucial role in managing the working of the business.
Management Accounting will help in the management of the manufactured goods and
services in the company. The financial accounting will help in the management of the
finances of the organization. Tax Accounting will help in the management of the taxes
and other government related working. The accounting information will be reviewed by
the investors because the accounting information will tell about the financial stability of
the company (Edunote, 2019).
Question 5
Managing a business is an important task. Therefore following are the skills that are to
be followed by Tim:
- Proficiency in written and oral communication. Communication is very important
for managing the working of business.

8
- Time management skills will help in tracking the activities which are performed
there in the company (Edunote, 2019).
- Problem-solving skills will help in resolving the issues faced in the company
- Strong business acumen will help in the growth and expansion of the business
- Critical analysis skills
- Team working skills will helps in the smooth working of the business as a team
- Excellent presentation skills will helps in presenting the opinion and thoughts to
the companies in the market (Edunote, 2019).

9
Conclusion
The assessment discussed the scenario where Tim wanted to expand the business in
the market. The assessment discussed various business start-up options for Tim in
order to grow his business. Also, various fund raising techniques were also discussed.
The assessment also discussed the skills and qualifications in order to manage the
business. The need and importance of accounting information in the company is also
discussed in the assessment.

10
References
 Campbell, A. 2013. What is Bootstrapping? [online] Small Business Trends.
Available at: https://smallbiztrends.com/2013/11/what-is-bootstrapping.html [Accessed
11 Sep. 2019].
 Carbo‐Valverde, S., Rodriguez‐Fernandez, F. and Udell, G.F., 2016. Trade
credit, the financial crisis, and SME access to finance. Journal of Money, Credit and
Banking, 48(1), pp.113-143.
 Edunote, 2019. Importance of Accounting in Business Organization. [online]
EduNote. Available at: https://iedunote.com/accounting-management-decision-making
[Accessed 11 Sep. 2019].
 Profitbooks 2017. 10 Funding Options To Raise Startup Capital For Business.
[online] ProfitBooks. Available at: https://www.profitbooks.net/funding-options-to-raise-
startup-capital-for-your-business/ [Accessed 11 Sep. 2019].