Accounting_Final

Accounting 220 Final Craig Parr Axia College of University of Phoenix Final The name of the company is Call-A-Nerd, L.L.P. The reason this have chosen this name is I already own it, and have done nothing with it in years. My goal during my schooling is to reopen it based on all I learned in all my classes. The company structure is a Limited Liability Partnership. This business structure keeps the partners personal assets protected from any possible liability claims. This business type allows for the appointment of additional partners by offering percentages to those who assist in the development of the company. Call-A-Nerd, L.L.P. will focus primarily on service calls to small to medium businesses. The sales of new units and parts will be a side benefit of those sales calls. The company will also offer custom built game computers, business servers, both blade and small scale. Along with our repair services we will also provide business and home voice over internet protocol (VoIP) systems, network cabling and full office setup. Currently in this market companies are blossoming, like Geek Squad. Their business plan is directed toward customers who frequent their stores. This leaves a large gap in the small to medium business market that no company is serving. In most cases these customers just replace the broken unit as opposed to repairing it at a fraction of the cost. As many have learned by examples in the text many successful companies have an accounting system in place. This structure must begin at the start of any company. Even a company as small as Call-A-Nerd, L.L.P. there must be accountability. Starting a small company without an accounting department or system could be fatal. In the beginning we will use a multi-role staffer who can handle the tasks of assigning customer calls, all accounting duties, accounts receivable, accounts payable and billing. These procedures will be followed up by the sales manager for each department. The secretary will be responsible for verification of all accounting. Checks will only be signed by the President. This chain of command will verify that all funds are verified and cross checked to avoid fraud. All billing will be handled using a 20 day net, and the service technicians will give a receipt with every office or home visit. Larger sales calls will be billed direct by the accounting department based on a net 20 payment schedule. Quarterly all finances will be verified by an outside accountant or firm. The enterprise software we will use is Microsoft Accounting Professional 2009. The reason we chose this software is the ability to integrate with all Microsoft Office 2007 programs using a structured query language (SQL) server. By using this type of server, laptops, PDA’s and portable printers, we can consolidate all customers accounting, contact and billing information on one server. This data would be available across a wide spectrum of hardware and software. The accountant we will hire must have at minimum of an Associate’s Degree in accounting. The company may consider an employee with less than a degree. The stipulation would be that they have completed the core accounting programs or the equivalent of four years in work experience with a CPA. This person must be able to provide references to verify the validity without the degree. Due to the companies starting size the need to hire an accounting manager will come on later with growth. Once the company has grown beyond the accountant, we will hire a full-time accountant or accounting service. Even though this is a start-up company the accountant must have a full understanding of all aspects of budgeting. Because this is a service industry, each department from sales to parts must have an accurate accounting. Each part must be inventoried and accounted for. In the start up phase this business will rely completely on its ability to predict sales volumes. Breaking down these sales figures for each sales and service technician will provide management the information it requires to verify the performance of each department. In this position the accountant and management team can create a sales projection based on number of service hours required for the companies break even. Once that number is established a general profit line or sales goals can be calculated. This report will allow management to establish individual goals for each department, both sales and service. Each department manager can break down these goals for each individual sales and service person. Accountability reporting will also allow for the tracking of the sales and service force. Using accurate reports will allow managers to track each individual’s time and sales data. Nonperforming sales and service employees will appear in their tracking reports. In both prior paragraphs we see how the chain of reports works in each department. The backbone of the company is the ability to process information at an instantaneous speed. Vital information is the key to every business no matter how new or old. Running a company without a competent accounting department of any kind will destroy a company. In most cases the information would not become available in a timely manner. Eventually in most cases if an accounting plan is not put into place the business will fail. Sometimes even a basic accountant with a pencil, paper and calculator is the answer. In this case at minimum there is an accounting plan in place. References; Kieso, D., Kimmel, P., & Weygandt, J. (2003). Essentials of accounting: Tools for business. Hoboken, NJ: John Wiley & Sons, Inc.