Btn 7-4

MEMORANDUM FOR RECORD DATE: 16 Sep 2014

SUBJECT: Manual Accounting Modifications for Expanded Business

1. This memorandum is being written in order to help assist you in the possible techniques for modifying your current manual accounting system. In doing so, you will be able to accommodate the expanded business activities for your small retail store. I have noticed the methods and system that you normally run in order to obtain your goods on credit using purchase orders, and your sales are primarily cash profit. Your current manual accounting system is recorded using a general journal and a general ledger, and records show that you only make one summary entry for cash sales at the end of each business day. Because there is such a high demand for your products and a higher sales volume, credit sales included, managing your record books has become more of a second job, rather than the normal sit down and balancing of your accounting records. It has become too time consuming, but you show interest that you are still confident in your manual system and you are still willing to run the same system.

2. I would like to provide you with some very important information that would help assist you in continuing your manual system in the most effective way. The information provided will help alleviate stress on your part and allow you to run your business smoothly without having to waste time that is precious to the success of your business. Familiarize yourself with the accounting information system, it collects and processes relevant data from transactions, and organizes them into relevant reports. This particular system is used to report and record the exchange of goods and/or services.[1] You must understand that the transactions that occur in your business are important to the success and progression of your business and its future. Small businesses have been effective with a manual process and the use of subsidiary ledgers and special journals. Your...