Capstone Reflection

The most important issue that I was able to find out in this business was the availability of only one type of payment method. This payment method was cash payment and the method to record the payment was also manual. There was no computerized system and the manual system only had a register with a single entry level of cash in it. It is important to note that manual entries are not very reliable and there are many chances of the entry being missed or not recorded. The cashier who has the cash register may also not record the payments intentionally as there are no checks and balance on it. Manual entries can be easily omitted as there is no password protection s in the case of using a computer to record the entries. Everyone can access the cash register and the automatic entry and record of the payment with respect to the item sold is not available. What modern day shops and cafes are doing is that they have their own computerized and integrated systems which enable the cashier to just enter the product sold and its quantity and the automatic receipt is generated for the customer. This helps in preventing errors and omissions together with adding credibility to it.

            Another important consideration that arises out of this method of payment is that people who have cash in their pockets can avail this place only. Those who wish to pay through credit cards are not going to be entertained at this place. This appears to be a very bad point for the company given that it shows that the company is not fully equipped with modern technology. Furthermore, a lot of people these days prefer to carry their debit and credit cards with them instead of cash as it is more convenient for them. Hence, the company will be losing a lot of customers due to its lack of acceptance of this mode of payment. This will end up in creating trouble for the customers who would not be aware of this limitation at the place and they will get to know about it at the end of placing order. This will waste their time and they will not come again to this place.

There are quite a few errors in this simulation. The first error which comes to my eye is that there is an expense for rent alongside an expense for lease at the income statement. But both of these can’t be one the same simulation and technically there should be just one of them. If the company wants to fix this mistake, they need to figure out the way how they wounded up paying a lease along with rent. If the shop is being rented by the company, then there should be only the expenses for rent. If the company is leasing the shop, then a way has to be figured out for transferring that rental expense to the lease expense only. If that mistake is not fixed, the company may find itself in spending more than what it actually meant to. So, it is very important to fix such kind of mistakes and solve them quick.

Are there any statements missing? Which ones? Why are the missing statements needed?

An important thing is missing. That is the statement of cash flows. The balance sheet contains the necessary information which is required for making up the cash flow statement. The company needs to fix this very quickly because mistakes in the financial statement can harm the company and create unwanted losses. Without the cash flow statement it becomes quite tough to make sure the financial statements are perfect and accurate. The investors of the company are told about the amount of money generated by the company through the cash flows statement. They get a clear idea how much money is coming inside and how much is going out. (Robinson, 2009) If that statement is missing, the investors will think the company as an unprofessional one. This may discourage the investors to further invest in the various plans or strategies of the company.  

Reference

Robinson, T. (2009). International financial statement analysis (1st ed.). Hoboken, N.J.: John Wiley & Sons.

All subsections are needed and serve different purposes. Here are some of the subjection and their purpose:

·         First of all, it needs to follow all the regulations and the local requirement and federal requirement should be followed so that a safe environment can be gained such as ethical record keeping as well as legal compliance.

·         Each step of POLC is reviewed through management functions. These are critical for effective and productive management.

·         Accounting and Financing is related to discussions of making better financial gains. Moreover, these things have aided streamlining as well as organizing the financial statement make up elements.

·         It is very much necessary to realize how much money the company is using as well as how much outcomes the company is getting in return of it. The business is based on financial outcomes. So, financial statements are quite vital section as well.

·         In the business period, there will be a lot of problems which will occur. The problems can be of various types and because of this the problem solving section is required too. Here it is also ensured whether the financial statements are given correctly or not.

The company can realize everything about their success and their failure as well as their strengths and weaknesses by reviewing these sections. These also help the organization to make effective decisions and make better plans for the future. (Marting, 1953)

Reference

Marting, E. (1953). A company guide to effective stockholder relations, with sections on The role of the security analyst and the impact of Federal law (1st ed.). New York: American Management Association.

At the present world, the career of accountant is quite an appealing one. It is because of the interesting workloads, the career flexibility and attractive salaries and other benefits. But all the accountants are not able to earn good amounts of money. The decent accountants are able to earn more money than the other ones. There are some particular traits which are necessary for someone to become a decent accountant and become an ideal candidate for an accounting career. Here are some of those traits:

·         A decent accountant needs to be expert at piecing together financial statements.

·         For making a decent career in accounting sector, it is very important to be good with the numbers and the mathematical terms.

·         An accountant must think logically.

·         Some knowledge should be achieved on finance, auditing, payroll taxation and some other basics for becoming a successful accountant.

The sector of accounting is quite a vast one and it is not possible for an accountant to become the master of all of them. I prefer the accounting areas related to managerial accounting, payroll and forensic accounting. I think that I am quite decent at these accounting jobs and I would like to search for these terms when I search for my desired job. If I can’t find a job among these areas, then I don’t mind working on the other accounting fields as I always have the fascination to learn new skills. (Label, 2006)

For the salary and other benefits, I believe that $30000 a year along with the other benefits will be a decent one for the starting of an accounting career.

Reference

Label, W. (2006). Accounting for non-accountants (1st ed.). Naperville, Ill.: Sourcebooks.

The executive summary of a business plan is the main thing that may grab the attention of the investors and readers. Executive summary must be written in a perfect way so that it has no grammatical or logical mistake in it. It is the place where we can convince the potential investors or readers to invest in this business plan. Though it comes at the beginning of business plan but it is being written at the last i.e. once the entire plan had been written then we write its summary that should include the main points of the whole plan. It usually consists of one to two pages maximum. The first thing that is being read by the investor is the executive summary thus it should be written in a way that convinces the readers to read the whole plan. Executive summary should include the name, location of the business and the products or services being sold out by the investor. In the first paragraph of the executive summary we give a brief introduction about our business plan by giving details regarding what our business plan is all about. In the second paragraph we should include the main points including forecasted sales and profits, forecasted units to be sold about, breakeven point and payback period etc. It is better to make use of charts to demonstrate sales, gross margins or profits of the plan at this place as it will help the reader to quickly assess the financial worth of the plan without even reading it (Berry, 2007).

It is important to include the executive summary as many venture capitalists and investor’s don’t have enough time to read the full business plans. Thus they firstly read the executive summary of each business plan they received and then they analyze the worth of that plan. If they get convinced by the idea presented in the executive summary of business plan then they will read the full business plan and decide to invest in it.

References

Berry, T. (2007). How To Write An Executive Summary. Bplans Blog. Retrieved 9 August 2014, fromhttp://articles.bplans.com/writing-a-business-plan/writing-an-executive-summary/207#ixzz0rhxBZtjb