Accounting

Whyit is important to be able to perform accounting functions with theuse of computerization

Computerizationmakes the whole process of accounting more efficient. This is becausemore people can be able to access such records as the same time asyou can easily send them to them via email. Hard copies on the otherhand require more tedious methods in order to make them readilyavailable for everyone else (Keenan, 2014). The records can also beedited or changed more easily then hard copies.

Theyare also less cumbersome and do not take up space in the office. Onecan easily archive and back them up for storage, and storing thingson the internet is much safer in the case of a fire. Moreover, theserecords are much safer as they could be password protected to preventany unwanted viewers from reading them.

Column1

Column2

Column3

BRAWN DEMOLITION COMPANY

UNADJUSTED TRIAL BALANCE

FOR THE YEAR ENDED APRIL 30th 2009

ACCOONT

DEBIT

CREDIT

cash

17000

supplies

9500

prepaid insurance

6500

equipment

140460

accumulated depreciation on equipment

22000

accounts payable

6000

interests payable

0

rent payable

0

wages payable

0

property taxes

0

long term notes

25000

capital

81610

withdrawals

25500

demolitions fees

140000

depreciation expense

0

Wages expense

48000

interest expense

2750

insurance expense

0

rent expense

15400

supplies expense

0

property taxes expense

4400

repairs expense

2100

utilities expense

3000

totals

274610

274610

Column1

Column2

Column3

BRAWN DEMOLITION COMPANY

ADJUSTED TRIAL BALANCE

FOR THE YEAR ENDED APRIL 30th 2009

ACCOONT

DEBIT

CREDIT

cash

17000

supplies

3420

prepaid insurance

2405

equipment

140460

accumulated depreciation on equipment

33000

accounts payable

9980

interests payable

250

rent payable

1500

wages payable

1400

property taxes payable

500

long term notes

25000

capital

81610

withdrawals

25500

demolition fees earned

140000

depreciation expense

11000

Wages expense

48000

interest expense

3000

insurance expense

4095

rent expense

15400

supplies expense

6080

property taxes expense

4400

repairs expense

2100

utilities expense

3580

totals

289840

289840

BRAWN DEMOLITION COMPANY

Column1

INCOME STATEMENT

FOR THE YEAR ENDED 30th APRIL 2009

Revenues

US$

Demolition fees earned

140000

cost of sales

0

gross profit

140000

Expenses

Depreciation expenses

11000

Wages expense

49400

interest expenses

3000

Insurance expenses

4095

Rent expenses

16800

Property taxes expense

4900

repairs expenses

2100

utilities expenses

3580

Total expenses

94875

other incomes

0

Net income

45125

Workplacecompetencies

Twoways accounting department could have a possible impart theirknowledge for the success of the firm:

Onthe company utilize some software that available online in order tocompute the tax returns of the company in a more effective manner(Badmin, 2011). The advantage of using such techniques is that youcan easily alter the figures and check to see which plan would bestsuit the company in terms of revenue sales and costs.

Moreover,the accountants could also make hypothetical financial records toshow the management of the company how the sales and income of theenterprise would change if they changed any of their policies, or ifthey altered any of the variables.

Recommendations

Thecompany could encourage its staff to be keen with the use of machinesso as to reduce the cost of repairs that the company incurs everyyear. Since the company provides one service only, there is noservice that they can outsources so as to minimize the cost incurred.Outsourcing is almost always the best way of reducing cost ofproduction of a company therefore increasing the profits that itreceives. They could look into the tax plan that they have to see ifthey are eligible to more reliefs and what they would need to do inorder to be eligible for these reliefs.

Theenterprise could invest some cash in advertising. This could increasethe company’s publicity and therefore, the company’s sales couldincrease as well. The initial cost for advertising may be ratherhigh, but seeing as the company’s success depends on the amount ofsales that are taking place, then the cost would be justified andrecovered later.

Theycould also try to expand their market by adding complementaryservices to those that are already existing. An example of this couldbe besides demolition of buildings, they could also provide movingservices so that the businesses or companies that were occupying aparticular building may have the means to move their office supplieselsewhere. This additional service would not cost the company muchcapital and would prevent their customers from having to contactanother company when they need their supplies moved prior to ademolition.

Extendingthe geographic reach of their services is also one advisable root forthe company to take. This could be done by advertising their servicesin different states and slowly setting up small offices everywhere sothat other people all around the world could be able to contact thecompany whenever they needed these services (Keenan, 2014). Some ofthe ready customers may be unwilling to get the company’s servicesperhaps because they think that the company’s reach does not reachthe location in question. This is why publicity and advertisementwould also contribute to better sales.

Pricingstrategy is also an efficient way of regulating sales revenue. Thecompany could regulate the pricing such that it is not too high todrive potential customers away and not too low to cost the companysignificant income. This can be achieved by benchmarking the pricingused by its competitors. The company could use a lower price to steercustomers their way, and since the demand for this service cannotincrease with increase in price, as in the case of some goods, thenthe company may be able to win over some customers.

Reducingthe charges incurred in maintenance, repair and shipping of theequipment used. If there is a way of controlling these costs, then itwould be the first place to look into when trying to maximize thecompany’s revenue. Special discounts could also encourage othercompanies or groups that want to get these services (Badmin, 2011).These discounts could be quantity discounts, if they require thecompany to demolish more than one establishment, or seasonaldiscounts depending on the holiday that is around that season.

Thismakes the company look customer friendly, and is also another way ofgetting publicity as such discounts would have to be made publicthrough the media. All in all, it would pan well for the company asit would be able to get more revenue from its customers.

References

Badmin,S. (2011). Six Ways to Improve Profitability. Retreived fromhttp://www.thesba.com/2011/03/22/six-ways-to-improve-profitability/

Keenan,J. (2014, June 2). The Four Key Areas for Increasing Sales. Forbes.Revenuehttp://www.forbes.com/sites/jimkeenan/2014/06/02/the-four-key-areas-for-increasing-sales-revenue/