general partnership in business

The general staffing (see Appendix A, Table 1) plan in most states are a mandatory requirement, it shows the positions of the staff members, educational experiences, duties/responsibilities, and any potential functions or positions that will be needed in the future of the day care center along with the annual salary. B. The form of your business and the benefits it offers your particular business, The form of business will be a general partnership, where both partners will share in all the risks, liabilities and profits of the Day Care Center.

There are many benefits of the general partnership such as collaboration sharing and earning from each other in a partnership, being taxed once as a whole that is a huge tax advantage, having the ease and flexibility to manage the business (Swanson, Seasons, and Slashes, 2010). C. A chart of accounts specific to your business, including a rationale as to the selection of each account. (Note: The chart of accounts is a blueprint of your business for the lender/investor.

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It should report the expected resources that you will consume in your business (assets), the sources of those resources (liabilities and equity), the sources of revenue, and expenditures that you expect to incur to earn those revenues. You may build a detailed chart that includes business units, divisions, product lines, etc. ) Chart of accounts (see Appendix B, Table 2) is made up of five categories: liabilities, owner’s equity, revenue, and expenses. These categories assets, are assigned numbers and the numbers are broken down further into sub- categories.

These accounts will be used on the balance sheet and the income statement (Weakened, Skimmed, and Skies, (2012). The chart of accounts helps the organization keep in line with the financial reporting standards. 2. Based on the form of your business, analyze whether or not you will be required to SE Generally Accepted Accounting Principles (GAP) or International Financial Reporting Standards (FIRS) accounting methods and how the FIRS / GAP convergence will impact your business.

Suggest how you will incorporate any changes into your books and records. (Note: You need to demonstrate to the lender/investor that you have recognized possible changes to GAP that may impact the accounting and reporting of your accounting events. ) The Day Care Center will not be required to use either the GAP accounting method or the FIRS accounting method. However, Won Day Care will use the GAP cause reporting is standardized across the U. S and it will be easy for anyone to interpret the financial statement.

When it comes to reporting revenue when using the FIRS, there will be a higher revenue reported by FIRS due to the timing of when the revenue is recorded (Foster, Kraft, and Foster, 2009). The IF-RSI and GAP have many similarities as well as many differences. GAP standards are U. S. Guidance and the FIRS is currently international. There are many differences, these differences as in the definition can lead to recognition and measurement differences in methods, presentation, disclosures of notes on he financial statements (Fischer and Marsh, 2012).

These differences will have minimal impact to Won Day Care Center when the convergence occurs because the Day Care Center will not be a publicly traded company. Won Day Care is a service company and both GAP and FIRS are similar in the reporting requirements. With the center the clients are aware of the price in advance for the type of service they will be getting. Revenue is an inflow of cash or benefits and services rendered when the customer actually receives the service (Babushka and Nervous, 2009). These definitions remain similar under OTOH GAP and FIRS.

Whatever minimal changes there will be the Day Care Center will make all adjustment in accordance with the required guidance’s set in place by the U. S. 3. Prepare a pro formal balance sheet and income statement providing the assumptions made and support the valuations assigned. Small business often goes under because they lack the knowledge when budgeting for the business. Preparing both the pro formal balance sheet (see Appendix C, table 3) and pro formal income statement (see Appendix D, Table 4) helps businesses get a better understanding of the budget processes (Sever and Hadley, 1978). . Considering the value of assets (assigned per your balance sheet) used within your business, recommend two (2) specific internal controls that you will implement to protect your company’s assets and resources, justifying how each will provide assurances to management. (NOTE: Safeguarding assets and protecting personal data are paramount to ensuring the viability of a business. Demonstrate to the lender/investor that your assets will be safeguarded and customer information (if applicable) will be protected. ) Two specific internal controls that will be implemented to protect the assets of

Won Day Cay Center is to have 3 signatures for all checks that will be written on the account of the Day Care Center. This way no one can accidentally write themselves a check without it being signed off by 2 other employees. The other would be segregation of duties (Okapi©, 2013). There will not be any 2 employees doing a task that would allow for easy fraudulent activities to occur. Safeguarding of employees and client personal information will be safeguarded. Each employee will be required to sign a privacy policy letter and it will remain on file in the members personnel file.

This letter will be reviewed annually and resigned by the employee. Access to information on the computer will be limited to who needs to know, all employees will be trained on safeguarding the assets and personal information (Leaf, 2007). 5. Based on the internal control recommendations that you made, suggest how you will implement each within your business environment, indicating how challenges or resistances will be overcome. Implementation of the recommended internal controls will be conducted with internal control auditing and the use of technology.

Placing detection devices on he computers will monitor changes that occur to employee’s information and limits unauthorized personnel from accessing information they do not have a need to know (Masc., Peters, Richardson, and Sanchez, 2010). Challenges and resistance will be overcome with keeping the software updated that is used for internal controls, allocating the funds yearly within the budget to maintain the level of security that is needed. Finally, use an internal control checklist with the technology portion to make sure that it is always in compliance. 6.

Evaluate the impact of the regulatory environment, including the Serbians-Solely Act and there regulatory requirements, on your business venture, giving considering to how you intend to comply with the requirements and the general impact to decision making within your business. The impact of the regulatory environment is a constant work in progress. Although the Serbians-Solely Act (SOX) have been in effect since 2002, it has not deter members of large corporation from continuing with their fraudulent ways. Many large corporations have continued to embezzle and steal from the organizations in which they are in position to safeguard the funds.

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