Axia College of University of Phoenix
The concept of Earthbound Basics came shortly after a small community suggested ways to improve the town. Many people enjoy the basic services most small towns provide like a butcher shop, bakery, and even some clothing outlets. However, one thing the community wanted was an eco-friendly fitness center. Earthbound Basics will provide the town with a fitness center that will accommodate multiple fitness classes, user-friendly equipment, and feature an organic oasis. This business plan shall layout the company’s intention to provide a proprietorship, accounting budgets for services, and how the company intends to use net income to substantiate future growth.
Company Initiatives The first important factor is ownership of the company. Earthbound Basics will be operated by an established partnership. The people involved have chosen this proprietorship because a sole proprietorship would not have the resources necessary to make this company a success. (Kieso, Kimmel, & Weygandt, 2003) The partnership for Earthbound Basics can easily finance the construction, employment, activities, and maintenance needs for the company. Each partner will be able to bring new ideas to Earthbound Basics’ list of services.
Services Provided by Earthbound Basics Each partner will sign an agreement with an outline of the services that he or she shall be financing. These services include an organic oasis that will serve a variety of fresh smoothies and protein snacks. Fitness classes like pilates, yoga, aerobics, and dance will be available on a daily basis. There will also be a variety of equipment like free-weights, weight machines, and cardio machines available for member use. Items intended for daily use like mats, jump ropes, and other essentials will also be provided by the establishment. Earthbound Basics will also purchase organic clothing, eco-friendly water bottles, and bamboo mats. These items will be sold to earn profitable net income for future expenses.
Accounting for Company Expenditures The second factor Earthbound Basics has developed is the accounting strategies. The accounting departments will play an important role in the company’s daily operations. Each department will have the responsibility to account for finances within the company department budgets. All company decisions will be influenced by the statistics provided by the accounting department such as employment, supplies, maintenance and financing. Therefore, employment requirements for the accounting teams are very important to the company’s success.
Welcome to Earthbound Basics Additionally, Earthbound Basics has the aspiration to open more facilities within the next 10 years; this is not possible without the experience of a strong accounting team. The accounting staff for Earthbound Basics will have set standards for employment. An associates degree in accounting, or a related field, and one year of experience will be required for employment consideration. (Courtney, 2009) Experience-related work is required because the staff needs prior experience in cash management and maintaining budgets. Ethics will also be a determining factor. A survey will be completed prior to employment. The survey will ask a series of ethical questions to determine the prospective team member’s views about certain areas like internal controls. Ethics are important because honesty in accounting ensures proper practices of required procedures. (Kieso, Kimmel, & Weygandt, 2003) A comprehensive understanding of managerial and financial accounting is detrimental to the success of Earthbound Basics’ interests.
Internal Controls In the same way that the accounting departments must be experienced and ethical, company assets must be protected from fraud. Assets can be maintained by using internal controls. Internal controls are methods of dividing responsibilities amongst the accounting