Accounting for Business: Delicatessen Start-up Options
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Accounting for Business
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Table of Contents
Assessment Task.............................................................................................................4
Conclusion....................................................................................................................... 8
References.......................................................................................................................9
2
Assessment Task.............................................................................................................4
Conclusion....................................................................................................................... 8
References.......................................................................................................................9
2

Introduction
The assessment will deal with Accounting for Business.The discussion is upon a
scenario which will explain the best business start-up option for a beginner. The
assessment will also discuss the role and purpose of accounting. Also, the skills and
qualifications required for the business and accounting will also be mentioned in the
assessment. The assessment completely revolves around the overview of accounting,
structure and environment of the business, financial statement and financial position of
the business, budget making, profit analysis and much more. The assessment covers a
scenario of Tim who wants to open a delicatessen in Sydney. All the possible options
for starting a business along with fund raising and accounting will be discussed.
3
The assessment will deal with Accounting for Business.The discussion is upon a
scenario which will explain the best business start-up option for a beginner. The
assessment will also discuss the role and purpose of accounting. Also, the skills and
qualifications required for the business and accounting will also be mentioned in the
assessment. The assessment completely revolves around the overview of accounting,
structure and environment of the business, financial statement and financial position of
the business, budget making, profit analysis and much more. The assessment covers a
scenario of Tim who wants to open a delicatessen in Sydney. All the possible options
for starting a business along with fund raising and accounting will be discussed.
3
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Assessment Task
a. Tim wants to start a business of delicatessen in Sydney. Delicatessen is a shop which
sells cooked meat, cheese or unusual prepared food. For starting a business Tim does
not have sufficient amount of money. For this, Tim needs to search some business
option which can help in the establishment of the business. The business options are-
1. Partnership- Partnership is the business option where two or more partners of different
companies invest some amount of money for the establishment of the new
business.Thus, establishing a partnership helps in accessing the resources and
technologies which could improve the business (Kcsourcelink, 2019).
Advantage of partnership are-
- partnership is easy to establish
- More partners in the business will indirectly generate more funds
- More creative the partners are, more is the benefit to the business.
- The profits and losses are shared equally according to the ratio decided by the
company (Kcsourcelink, 2019).
Disadvantages of partnership are-
- Selfish motive of one partner can lead everyone to suffer for the same.
- Some employees benefits are deducted from business income on tax returns
- Partnership can end by the demise of one partner (Kcsourcelink, 2019).
2. Corporationis yet another example for the start-up. The corporation’s working does not
change if the ownership changes. Also, the advantages are-
- Corporation helps in raising more funds
- it may also deduct the cost of benefits provided to officers and employees
Disadvantages are-
- it provides more time and money than any other form of organization
- The paperwork is also time-consuming because it is reviewed by many people
b. For Tim’s business to grow in the market, partnership will definitely help in the business
to grow. Not only the resources and technologies will be shared but the profits and
4
a. Tim wants to start a business of delicatessen in Sydney. Delicatessen is a shop which
sells cooked meat, cheese or unusual prepared food. For starting a business Tim does
not have sufficient amount of money. For this, Tim needs to search some business
option which can help in the establishment of the business. The business options are-
1. Partnership- Partnership is the business option where two or more partners of different
companies invest some amount of money for the establishment of the new
business.Thus, establishing a partnership helps in accessing the resources and
technologies which could improve the business (Kcsourcelink, 2019).
Advantage of partnership are-
- partnership is easy to establish
- More partners in the business will indirectly generate more funds
- More creative the partners are, more is the benefit to the business.
- The profits and losses are shared equally according to the ratio decided by the
company (Kcsourcelink, 2019).
Disadvantages of partnership are-
- Selfish motive of one partner can lead everyone to suffer for the same.
- Some employees benefits are deducted from business income on tax returns
- Partnership can end by the demise of one partner (Kcsourcelink, 2019).
2. Corporationis yet another example for the start-up. The corporation’s working does not
change if the ownership changes. Also, the advantages are-
- Corporation helps in raising more funds
- it may also deduct the cost of benefits provided to officers and employees
Disadvantages are-
- it provides more time and money than any other form of organization
- The paperwork is also time-consuming because it is reviewed by many people
b. For Tim’s business to grow in the market, partnership will definitely help in the business
to grow. Not only the resources and technologies will be shared but the profits and
4
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losses will be shared as well.The finance of the company will also be benefitted. So,
whether they have contributed more or less, the profit will be distributed according to the
decided ratio between the partners. Also, the finance business partners are aware of
the working and operations of the business. The business partners will then plan the
budget according to the scenario of the business environment (Profitbooks, 2019). The
business can also help in the setting financial plans in order to achieve the goals and
objectives of the business. Finance business partners also review the pervious activities
in order to plan the budget for the smooth working of the business.
c. Tim can raise funds for the start-up of his business in the following ways:
- Bootstrapping-Bootstrapping is the way in which Tim will some amount of money for
the start-up in order to attract the other companies for investing in the business. An
outside company will never invest unless the owner himself put some amount in the
name of business (Profitbooks, 2019).
For implementing Bootstrapping it is important for Tim to plan and make a budget for
implementing the money in the business.As Tim has only limited amount of money, the
budget helps in differentiating the sections in which the money will be involved.
- Crowdfunding- Under this method, Tim can provide information about the business
and its goals and objectives. After that Tim can ask for some volunteers who would like
to contribute in the business for its establishment. This will be a kind of donation from
other company to Tim’s business (Profitbooks, 2019).
Crowdfunding seems an easy to way collect money, but actually it is not. Tim has to
present his company in such a way that other business are attracted and are interested
in investing in the company (Profitbooks, 2019).
d. The accounting information will help Tim in maintaining the financial information of his
business. Financial accounting will help in the management of all the financial
transactions of the business. Tim will record all the transactions that are credited and
debited in the business. Once the financial statements are prepared, Tim can judge
where the spent unnecessarily and where the money was effectively (Gadenne, 2016).
Also, the creditors will also access the creditworthiness, solvency and liquidity of the
business. The accounting information will also provide the investors a baseline and they
can also compare the financial health of the company with other companies in the
5
whether they have contributed more or less, the profit will be distributed according to the
decided ratio between the partners. Also, the finance business partners are aware of
the working and operations of the business. The business partners will then plan the
budget according to the scenario of the business environment (Profitbooks, 2019). The
business can also help in the setting financial plans in order to achieve the goals and
objectives of the business. Finance business partners also review the pervious activities
in order to plan the budget for the smooth working of the business.
c. Tim can raise funds for the start-up of his business in the following ways:
- Bootstrapping-Bootstrapping is the way in which Tim will some amount of money for
the start-up in order to attract the other companies for investing in the business. An
outside company will never invest unless the owner himself put some amount in the
name of business (Profitbooks, 2019).
For implementing Bootstrapping it is important for Tim to plan and make a budget for
implementing the money in the business.As Tim has only limited amount of money, the
budget helps in differentiating the sections in which the money will be involved.
- Crowdfunding- Under this method, Tim can provide information about the business
and its goals and objectives. After that Tim can ask for some volunteers who would like
to contribute in the business for its establishment. This will be a kind of donation from
other company to Tim’s business (Profitbooks, 2019).
Crowdfunding seems an easy to way collect money, but actually it is not. Tim has to
present his company in such a way that other business are attracted and are interested
in investing in the company (Profitbooks, 2019).
d. The accounting information will help Tim in maintaining the financial information of his
business. Financial accounting will help in the management of all the financial
transactions of the business. Tim will record all the transactions that are credited and
debited in the business. Once the financial statements are prepared, Tim can judge
where the spent unnecessarily and where the money was effectively (Gadenne, 2016).
Also, the creditors will also access the creditworthiness, solvency and liquidity of the
business. The accounting information will also provide the investors a baseline and they
can also compare the financial health of the company with other companies in the
5

market. The investors will also contribute some amount of money after reviewing the
financial information.
e. For managing the business, following skills are required
- Proficiency in written and oral communication
- Time management skills for meeting the deadlines
- Problem-solving skills for resolving an issue
- Strong business acumen
- Excellent knowledge about business handling
- Critical analysis skills for judging the best option for business
- team working ability
- excellent presentation skills (Gadenne, 2016)
6
financial information.
e. For managing the business, following skills are required
- Proficiency in written and oral communication
- Time management skills for meeting the deadlines
- Problem-solving skills for resolving an issue
- Strong business acumen
- Excellent knowledge about business handling
- Critical analysis skills for judging the best option for business
- team working ability
- excellent presentation skills (Gadenne, 2016)
6
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Conclusion
The assessment was about the business accounting. During the assessment the
discussion was about the various business options for starting a business. Also, how
funds can be raised in order to start a business was also discussed in the assessment.
Along with this the needs and importance of the accounting information is also
discussed in the assessment. The assessment was concluded providing the skills and
knowledge an individual should have for handling a business.
7
The assessment was about the business accounting. During the assessment the
discussion was about the various business options for starting a business. Also, how
funds can be raised in order to start a business was also discussed in the assessment.
Along with this the needs and importance of the accounting information is also
discussed in the assessment. The assessment was concluded providing the skills and
knowledge an individual should have for handling a business.
7
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References
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Gadenne, L., 2016. Tax me, but spend wisely? Sources of public finance and government
accountability (No. 2068-2018-1275).
Kcsourcelink, 2019.Forms of Business Organization [Online].Kcsourcelink.Available at-
https://www.kcsourcelink.com/guides/start-a-business/register-and-license-your-
business/forms-of-business-organization [Accessed on 30th August, 2019].
Profitbooks. 2019. 10 funding options to raise start-up capital for your business.
[Online].Profitbooks.Available at- https://www.profitbooks.net/funding-options-to-raise-
startup-capital-for-your-business/ [Accessed on 30th August, 2019].
8
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Gadenne, L., 2016. Tax me, but spend wisely? Sources of public finance and government
accountability (No. 2068-2018-1275).
Kcsourcelink, 2019.Forms of Business Organization [Online].Kcsourcelink.Available at-
https://www.kcsourcelink.com/guides/start-a-business/register-and-license-your-
business/forms-of-business-organization [Accessed on 30th August, 2019].
Profitbooks. 2019. 10 funding options to raise start-up capital for your business.
[Online].Profitbooks.Available at- https://www.profitbooks.net/funding-options-to-raise-
startup-capital-for-your-business/ [Accessed on 30th August, 2019].
8
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