Sheila Fernando
Mr. Ambrosio M.Arbutante
Business accounting unit 5
10th December 2020
Sheila's coffee company
Task 1-P1
Sheila's coffee company is a company that sells iced coffees, hot coffees espressos and other
varieties of coffees. Throughout the business it is particularly important to keep track of the
financial records and the management within the business to assess the performance and position
of the business to be successful and not cause a loss.
Recording transactions is essential as they need to be accurate and up to date this allows to
identify all the assets expenses and incomes. Such as cost of production for the materials needed
to make the products like example Hot espressos, you will need to firstly purchase a coffee
machine maker to be able to produce the product to sell, you will need to buy coffee beans and
exactly how many kilos needed this is important to not overspend all those costs need to be
recorded, invoice of suppliers and supplier payments are required to be recorded to allow the
company to know how much they owe the supplier and if they have repaid them back, keeping a
recorded receipt in their journal entry as well as salaries rent water and electricity bills, are all
expenses that need to be recorded, income example sales made from selling the products. This
way you can see the strengths and weakness of the business in particular which products sell well
and which are not selling to expectation this ties into knowing where you need to cut back if
expenses are too high and leads to an overdraft the purpose is to make better financial decisions
, for the future. The advantages of recording transactions are that managers and owners can
strategically make economic decisions according to their cash flow forecast, income statement
and balance sheet. (Bragg, 2020)
Monitoring activity focuses on the efficiency of performance by employees and the level of
achievement more specifically implementing project activities such as a new item added to the
menu employees could organize a small event within the cafe such as tasting of the new item and
through which collecting records to confirm if it was executed with high quality and performance
however it is also used to determine the weaknesses that require management attention going
back to recording transactions if a product is doing poorly, by monitoring this helps to recognize
the issue and make changes to any specific product like removing it , changing or improving the
flavor. This will tremendously improve the quality of the business as you can pinpoint the
problems within Sheila's coffee company easily. This record must be kept up to date for the
company to always have current information such as if they are on credit from their suppliers,
they should keep a record of how much they owe or vice versa if they offer credit sales to
customers, they will know how much they are owed meaning it is very important the owners
monitor the activities within Sheila's coffee company.
Control helps to measure productivity across the organization and protect Sheila's coffee store.
Ensuring all financial statements are accurate when presented to bankers, investors and
auditors for example when you show your records to an investor you must make sure its
exact and up to date because It is one of the four primary managerial functions, along with
planning, organizing, and leading as well as investors need to evaluate how well the
Mr. Ambrosio M.Arbutante
Business accounting unit 5
10th December 2020
Sheila's coffee company
Task 1-P1
Sheila's coffee company is a company that sells iced coffees, hot coffees espressos and other
varieties of coffees. Throughout the business it is particularly important to keep track of the
financial records and the management within the business to assess the performance and position
of the business to be successful and not cause a loss.
Recording transactions is essential as they need to be accurate and up to date this allows to
identify all the assets expenses and incomes. Such as cost of production for the materials needed
to make the products like example Hot espressos, you will need to firstly purchase a coffee
machine maker to be able to produce the product to sell, you will need to buy coffee beans and
exactly how many kilos needed this is important to not overspend all those costs need to be
recorded, invoice of suppliers and supplier payments are required to be recorded to allow the
company to know how much they owe the supplier and if they have repaid them back, keeping a
recorded receipt in their journal entry as well as salaries rent water and electricity bills, are all
expenses that need to be recorded, income example sales made from selling the products. This
way you can see the strengths and weakness of the business in particular which products sell well
and which are not selling to expectation this ties into knowing where you need to cut back if
expenses are too high and leads to an overdraft the purpose is to make better financial decisions
, for the future. The advantages of recording transactions are that managers and owners can
strategically make economic decisions according to their cash flow forecast, income statement
and balance sheet. (Bragg, 2020)
Monitoring activity focuses on the efficiency of performance by employees and the level of
achievement more specifically implementing project activities such as a new item added to the
menu employees could organize a small event within the cafe such as tasting of the new item and
through which collecting records to confirm if it was executed with high quality and performance
however it is also used to determine the weaknesses that require management attention going
back to recording transactions if a product is doing poorly, by monitoring this helps to recognize
the issue and make changes to any specific product like removing it , changing or improving the
flavor. This will tremendously improve the quality of the business as you can pinpoint the
problems within Sheila's coffee company easily. This record must be kept up to date for the
company to always have current information such as if they are on credit from their suppliers,
they should keep a record of how much they owe or vice versa if they offer credit sales to
customers, they will know how much they are owed meaning it is very important the owners
monitor the activities within Sheila's coffee company.
Control helps to measure productivity across the organization and protect Sheila's coffee store.
Ensuring all financial statements are accurate when presented to bankers, investors and
auditors for example when you show your records to an investor you must make sure its
exact and up to date because It is one of the four primary managerial functions, along with
planning, organizing, and leading as well as investors need to evaluate how well the
