business report
Business studies
Final report
Re; Ronald smith & co
Key business functions: the firm offers accounting and Taxation services together with finacial planning. The firm Ronald smith and co needs to generate approximately $750 a day to cover the expenses like electricity, wages, loans and other business effecting costs. One of the most important is Internet connection without this the business cannot lodge tax returns, Business activity statement (bas). You need to keep up the payments or your Internet is cut off until you pay it off. It’s has an affect on the technology you use because if the technology is not up to standard it can slow your business down. In the year of 1997, which to some people that was not along time ago, they only had a modem of 36 k which is very slow in today’s standards.
My firm’s way of generating money is through providing accounting srevises and preparing tax returns, while you pay 10% extra on everything for GST reasons, my firm finds things that you didn’t need to pay the extra for so all of those that you did not need to pay the extra for builds up and you have a refund. Because the government tries to get the most from the public’s payments, chartered accountants just find ways to penetrate through the laws affecting taxpayers.
Establishing the business: Establishing a business from scratch is very difficult but all businesses started somewhere whether it be second hand or new. Buying a business has it’s ups and downs.
Buying a business
Avantage : Include the fact that you can have a very good chance at what ever business you are buying. You don’t have to start from scratch your all ready in a well establish business, no long after hours work trying to sort out the loans or the new employees, the business is all ready established
Diadvantage : A business can cost a lot of money and in order for you to be able to pay for this business you can take out a loan, but you have to pay back the money that you borrowed and more, the extra that you have to pay for includes interest, tax and bank fee’s.
Establishing a business
Advantage: when you start out on your own you have no-one telling you what to do, no-one telling you how much your going to earn, the hours you work is up to you and you can take holidays or “sickies” whenever you like. You can also choose you name of your company.
Disadvantage: When you start from scratch you have know guarantee that people will chose your business over all the rest. You have no idea of the cost of the keeping the business afloat; you can only make a rough estimate. And sometimes you have to work long hours making sure you can pay of the occupancy and the administrative costs are all up to date.
The target market for my business would best be described as wealthy investors. The manager of the business tries [next page]