Explain the importance of accounting to angelina norway
Angelina Norway opened a medium sized restaurant in July 2015. After only one year of operation she finds that her Restaurant Manager, Bolt Norman, has not been maintaining the financial records of the business effectively. Whilst she freely admits that she has been borrowing money from the business and offering some free functions to her friends, she finds out that Bolt has not been keeping any formal record of transactions. After looking into Bolt’s background, she finds out that he has no formal qualifications and has never managed a restaurant in his life (his CV was fake). Placed in a very difficult situation, Angelina decides to approach you (the consultant) to provide her with a written report on how she should manage the finances of the business.
As the chosen consultant, you are required to prepare a report for Angelina Norway, addressing the below issues:
1. Explain the importance of accounting to Angelina Norway and how accounting functions can help her manage and grow her business. Provide appropriate definitions and references.
2. Describe how she should manage financial transactions. In doing this, explain:
i) The different types of accounts and how profit is calculated. Provide at least four examples of different transactions and how these should be managed;
ii) How she should manage tax payments and the methods that should be used.
3. Advise Angelina Norway on how to audit her business before starting a partnership with a potential business partner
4. Explain the advantages and disadvantages of the different types of ownership and provide a recommendation which one she should use in the future
This is a formal written report, and therefore requires appropriate report layout and formatting. Referencing must be included and in the correct format. An executive summary should be included