The Company Name Is Elegant Designs Limited. Essays Example
Final Project Quick books Proposal
My mission is to sell designer clothes to the people of United Kingdom, the designer clothes will be manufactured from United States with benefits of economies of scale hence low cost per unit produced. My vision is to maintain high quality designer clothes with constant flow of the exported clothes.
The target market will be adult men and women.
My next year’s plan is to carry out marketing via the media in order to create awareness and get an outlet for stocking my designer clothes. Since I visit the United Kingdom thrice in a year, I shall put a small stock with an aim of allowing my customers to familiarize themselves with the new designer clothes before increasing my stock.
In a span of five years, I want to open a bigger outlet in order to stock variety of designer clothes for both men and women. I shall price them at a competitive price which will help me gain higher profits and high sales turnover per year. I shall enhance the quality of the designer clothes and export them through shipping mode because it is cheaper compared to air and rail. I shall also hire a warehouse to stock my clothes and print business cards which I shall hire a marketer to supply them in order to create more awareness of my products.
In a span of ten years, I wish to open a manufacturing plant in the United Kingdom and construct my own warehouse to store my products. This will further reduce production cost and help me reach many parts of United Kingdom by opening more designer clothes outlets.
The following are some of the chart accounts that I shall use when doing my accounting.
I intend to save from my salary to finance my business and borrow the balance from a reliable financial institution. My savings every month will be 1500 dollars. I shall deposit the amount in bank account named after the business name. This will be the beginning balance of bank account. I shall set aside 2000 dollars to be the petty cash opening balance. I shall use purchase costs for all the assets as the opening balance and inventory shall be represented by the number of pieces of designer clothes initially brought to the outlet. All the other accounts shall have an opening balance of zero; their balances shall accumulate as business proceeds.
The accounting period of my business will begin on 1 January 2016
The ending accounting period will be on 31 December 2016.
Since my business is an imaginary business, I shall develop an imaginary database because I do not know the exact information relating to amount of stock, cost per item and profit margin of each item.
Since this will be a business which I intent to make profits from, I shall use social media such as television, Facebook, Twitter and Instagram to create awareness for my products. Once a customer orders for an item, I shall charge delivery cost for any products delivered. All the other costs will be catered for by the company. The payment methods will be PayPal, MasterCard or electronic fund transfer.
At the end of the accounting period, I shall produce financial statements such as statement of financial position (Balance sheet), Income statement and Cash flow statement. These statements will be used by third parties who might have an interest in investing in the business or the creditors when evaluating the credit worthiness of the business.
The business will be required to maintain its books of accounts in a good format such as filling. Each chart of account shall be printed monthly to show the monthly closing balances and the transactions which took place during the month. These balances shall be reconciled with the source documents.