Implementation The team recommends that Classic Gentleman immediately begin to

Implementation the team recommends that classic

This preview shows page 44 - 46 out of 127 pages.

Implementation The team recommends that Classic Gentleman immediately begin to implement QuickBooks Online Plus to prevent unorganized accounting practices from majorly impacting their business. The company will be able to clearly understand the transactions made and will have a chart of accounts to categorize all accounts that are being affected. Any of the three owners, Matt Hanrahan, Willie Holmes, or D Hill, can be responsible for entering transactions into QuickBooks for Classic Gentleman. The above steps should help the client with setting up and maintaining the Chart of Accounts and the Journal throughout the lifespan of the business. Calculating Price Points Current State Currently, pricing events through Classic Gentleman is mainly done on a case-by-case basis without specific amounts established. There are packages in place, but are affected by how many people at the event, syrups involved, glassware, menus, etc. amounting to hundreds of dollars and therefore are essentially based on circumstance. Additionally, some clients are offered even lower prices in order to secure the sale. Fluctuating prices without thorough calculations can cause the client to be losing money. Desired State The team will provide a template that will help Classic Gentleman achieve stable and appropriate price points for each of their events. This template will take into account job cost 43
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accounting which ensures that all costs are truly being covered by the price given to the customer. If the company can understand how much money they would make (or lose) on an event, it will help them make effective business decisions. This will provide the business with a cohesive and profit-maximizing pricing strategy. Research An efficient way Classic Gentleman can establish effective price points for their events is through job cost accounting. Job cost accounting helps businesses understand all the costs that would arise from each job performed so that an accurate price can be given to the customer to ensure that the event is profitable for the company. Classic Gentleman offers one general service of bartending for its customers that causes costs to change based on size of the event and additional smaller items such as syrups and drink menus; therefore, the company needs to first understand the basic costs per job based on a per person or per set number of people attending the event. In job costing materials, labor, and overhead – the non-direct costs – are analyzed to account for all the costs attributed to each job (Bragg, 2019). For Classic Gentleman the materials would include items such as ice, napkins, glassware, syrups, fruit, etc. In regards to labor costs, most events require only two to three bartenders and their corresponding wages as well as the burden rate from other costs such as taxes and workers’ compensation. Overhead would consist of all other realized costs and over time can be accurately estimated to ensure costs are being correctly accounted for. Through carefully tracking the average prices attributed to
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  • Spring '17
  • Trisha Miller
  • Accounting software, Comparison of accounting software, Classic Gentleman

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