ACC 557 Assignment 2_You are an Entrepreneur - 17519

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Student life does not generally afford a great deal of free time to pursue your
personal interests; however, at one point, you may have considered turning a
personal interest or hobby into an official enterprise. Today, you have finally
decided to turn that hobby into a business but have realized that you need
start-up capital from a lender or investor.

To obtain funding, you need
to convince a lender / investor that your business is more than a hobby. You
need to demonstrate that you have a firm grasp of your business, the accounting
practices that impact your business, the controls needed to safeguard assets,
and which accounting system will produce accurate and relevant financial
information.

Write a six to eight (6-8) page business plan in which
you:

  1. Describe the type of business you have created including: 
    a. The product
    or service, and general staffing plan. Provide a rationale for your
    plan. 
    b. The form of your business and the benefits it offers your
    particular business,
    c. A chart of accounts specific to your business,
    including a rationale as to the selection of each account. (Note: The chart of
    accounts is a blueprint of your business for the lender/investor. It should
    report the expected resources that you will consume in your business (assets),
    the sources of those resources (liabilities and equity), the sources of revenue,
    and expenditures that you expect to incur to earn those revenues. You may build
    a detailed chart that includes business units, divisions, product lines,
    etc.)

 

  1. Based on the form of your business, analyze whether or not you will be
    required to use Generally Accepted Accounting Principles (GAAP) or International
    Financial Reporting Standards (IFRS) accounting methods and how the IFRS / GAAP
    convergence will impact your business. Suggest how you will incorporate any
    changes into your books and records. (Note: You need to demonstrate to the
    lender/investor that you have recognized possible changes to GAAP that may
    impact the accounting and reporting of your accounting events.)

 

  1. Prepare a pro forma balance sheet and income statement providing the
    assumptions made and support the valuations assigned. 

 

  1. Considering the value of assets (assigned per your balance sheet) used
    within your business, recommend two (2) specific internal controls that you will
    implement to protect your company’s assets and resources, justifying how each
    will provide assurances to management. (NOTE:  Safeguarding assets and
    protecting personal data are paramount to ensuring the viability of a business.
     Demonstrate to the lender/investor that your assets will be safeguarded and
    customer information (if applicable) will be protected.)

 

  1. Based on the internal control recommendations that you made, suggest how you
    will implement each within your business environment, indicating how challenges
    or resistances will be overcome.  

 

  1. Evaluate the impact of the regulatory environment, including the
    Sarbanes-Oxley Act and other regulatory requirements, on your business venture,
    giving considering to how you intend to comply with the requirements and the
    general impact to decision making within your business.

 

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