Ronel’s PC Repair lacks an accounting system, thus, profit or loss of the entity cannot be determined. The business is also often close because the owner usually attends home services.
There is no business permit
Objective of the Engagement
To provide the best service available to the community at an affordable price and to have constant growth in sales by designing an accounting system best suited to the business so the operating performance is measured accurately.
To help the owner in managing his business by hiring an apprentice
To assist the owner in applying business license for his business operation
Statement of Facts
Personal Market Research by the owner indicates an attractive niche for the services of which PC Repair will take full advantage. The very nature of technological advancement, creates a constant need for businesses skilled in updating and advising customer on computer-related issues
Our group has conducted an interview of the owner’s clientele; we’ve found out that 9 out of 10 customers are dissatisfied with other existing repair shop such as electronics repair shop, the one that’s nearest to the owner’s home office, considering the prices that they offer
In addition, the owner stated that he will focus mainly on the small business market since the legality of its existence is still questionable since he hasn’t applied for a business permit, and as these customer typically don’t have a full-time IT person, but have full time IT needs
Upon observation, there is no assistant employed to help him with the customers especially when he is not around. Moreover, customer are seeking skilled help with everything from installation of software and hardware components, to networking, to transferring files from an old computer to a new one,
Findings and Conclusion
Since there is no accounting system, determination of profit and loss are impossible because there is no recording of transaction especially for a proprietor who carries volume of transaction. It would be more convenient as a start up to use single entry method to record his transaction. In Single-entry bookkeeping transactions are recorded in registers with most transactions requiring only a single line to record the transaction.
Marketing strategy will be implemented as well to promote the growth of the business and eventually hire an assistant to help the owner in managing the business and apply his business permit
We recommend the use of Single-entry systems in the interest of simplicity. They are usually less expensive to maintain than double-entry systems because they do not require the services of a trained person. In addition, we will also recommend the owner to hire an assistant to help him; perhaps one of his apprentices before can be hired and to apply his business permit in the near future