Peyton Approved is a companythat specializes in making hypoallergenic and all natural dog treats.
All of the treats are formulated for dogswith allergies and eliminate any additional allergen exposure. The company wasstarted after discovering that the family dog (Peyton) suffered from severefood allergies. After a successful yearof making and selling homemade all-natural hypoallergenic treats out of thehome.
The opportunity to open and own adog treat bakery has presented itself. Forthis reason I formally present this request for funding to expand PaytonApproved.Overview ofthe Company’s Accounting SystemPayton Approved currentlyuses the accrual basis of accounting to track its finances. This accounting method helps the business stay organizedand project for its future. It also allows the business the ability to seek andtake advantage of opportunities as they become available.
In addition, by using the accrual basis of accounting,the business is more equipped to manage any financial challenges that mayarise. It also helps support responsiblepractices within the company by maintaining and properly managing the company’srevenue and expenses without risking the success of the business.Accounting Process and Internal Controls for CashPeyton Approved uses several strategies to ensure responsiblefinancial accounting practices. Thesestrategies include, but are not limited to: consistently journaling accountingtransactions, creating monthly and quarterly accounting cycle reports, followingall steps of the accounting cycle report process, creating monthly andquarterly income statements as well as implementing accountable internalcontrols and separation of duties.
Thesestrategies have been selected because they keep a business organized and theyhelp recognize any opportunities for improvements. These strategies also work to show thetransparency of how the business is operating and helps reduce or avoid anypoor business practices. The overallaccounting process consists of recording entries as soon as a transaction takesplace. All statements are produced andreviewed on a monthly basis to help reduce and/or avoid any discrepancy when closingout accounting cycles. The company’s cashinternal controls include a separation of duties by having various employees handlethe accounting cycle process.
Eachemployee is responsible for a different step in the accounting cycle avoidingany opportunity of one employee having too much control over the financialaspects of the business. This allows thecompany to have accountabilityof its financial position at all times. Allemployees responsible for a portion of the cash internal controls are hired aftera full background check has been conducted. To ensure minimal or no mistakes, alltransactions are recorded as soon as they are received. The company also performs a daily count andbalance, as well as surprise audits.
Results of Operations and Strengths and Weaknesses ofthe CompanyThe results of operationsfor Peyton Approved have demonstrated a very solid business with tremendousopportunity for grown and expansion. Theseresults tell the company how well it is performing and if there are anyopportunities that can be pursued. Thecompany is doing well in maintaining its accounting and the process used tocreate its products. The company alsomaintains a high customer satisfaction rating and provides excellent customer serviceand client relations.
Currently, theonly aspect the company needs to improve on is to hire more employees in orderto continue delivering its excellent product and customer service. The company’s financialstatements show the company’s financial position by disclosing its performance andindicating where improvements need to be made. In other words, by using the roleof ratio analysis, the financial statements are able to show the companies’ability to pay its long and short-term liabilities and its profitability.Analysis and OpportunitiesOverall, Peyton Approved is headingin the right direction by proving its ability to maintain a steady growth and hasperformed with transparency. Given its strengths, the company can seek new opportunitiesin a nationwide market. These opportunitieswill be beneficial in providing the company with more revenue options andproviding growth potential on a much larger scale.
In completing this bank memoI wanted to present you with Payton Approved and provide you with informationregarding its successful trajectory. Iwanted to share information regarding our business practices and accountingprocedure to back-up its success statements. My goal in providing this bank memo was also to showthe business potential Payton Approved has with the requested financialassistance.
At this time I would like torequest a meeting with you at your earliest convenience in order to provide youwith the company’s reports and financial statements.