1

BA2001 & BA2101

Individual Assignment Report

2

Table of Contents
1. Name of the organization & registered address....................................................3

2. Nature of business & types of product offered.....................................................3

3. Source of capital or business finance....................................................................3

4. Roles of human resources.......................................................................................3

5. Accounting supporting documents........................................................................3

6. List of assets & liabilities.........................................................................................3

7. Categories of revenue & operating expenses.......................................................3

8. Types of accounting statements or reports...........................................................3

9. Closing date of accounts.........................................................................................3

10. Challenges of the owner from accounting perspective....................................3

3

1. Name of the organization & registered address:

a) Name of the business: Meal Buddy
b) Registered Address: Masai, Malaysia. In Giant Hypermarket Plentong

2. Nature of Business & types of the product offered

Demand for the market has never been greater in terms of healthy food, economic
value, and good taste. This is the last market with many open opportunities for
development. Conventionally, fast food is eaten in good restaurants, typically in a formal
setting or at a low price. As fast food has moved into the middle class as a food that
tastes right and good for you, Meal Buddy has positioned itself to deliver the services
required by the Malaysian consumers, a variety of affordable, healthy, and delicious
food. The main focus is to provide the customer with a healthy, economically balanced
diet.

a) Products:

Meal Buddy, the menu focuses on a range of dishes with different meals. Most of the
food is cooked on site. It also offers individual burgers, a line of sandwiches, and a
selection of milkshakes. Meal Buddy’s menu items are accessible for consumption or
extraction. Meal Buddy has a whole party menu. Cooking for any size event is available.

The services of Meal Buddy are different, the main goal of the employee is customer
satisfaction. As the main motto of the company is “the customer is always trued”. Most
of the companies are having lack of good customer service, we build a trues business
which provides the best possible services in an efficient and friendly environment.

The main product Meal Buddy have is burgers, fries, sandwich, nuggets, coffee, etc.
[ CITATION mor20 \l 1033 ].

b) Menu:

Following is the picture of the menu which includes the number of food items that are
offered by Meal Buddy.
4

Figure 1. Menu for Mead Buddy

5

3. Source of capital or business finance

SOURCE OF CAPITAL:

Meal Buddy generates revenue through restaurants and sales of fast food and
beverages straight to customers.

The company makes a large amount of its income in the form of deals directly collected
to consumers at the fact of sale, including sales through the restaurant system and its
online order structures.

The company also creates a portion of its income in the system of a license and an
asset income, made under franchise agreements with third parties.

Meal Buddy’s business model relies on its aptitude to deliver high-class products to
customers efficiently and quickly. As the nature of the business, the main resources are
the nature of it and its intellectual property, franchise partners and online order forums,
its online order forums and IT structure, its assets and, its partner's network, supply
chain, and its employees.
6

4. Roles of human resources

Lynn Ott
The President and
Secretary

David Huff Jodi Jones Cameron Kathleen Olivera

Samuel Smith William Stewart
Vice President Director of Operations and Chief Financial
General Manager Buildout Manager
and Director Marketing Training Manager Officer

Figure 2. Organizational Structure of Meal Buddy

1. Lynn Ott

 The Secretary and President / Treasurer have since been appointed

 Sixteen-year experience in the food industry
 Specialist in restaurant supervision, business management, real estate sales,
and marketing
 He had a successful fast food restaurant

2. David Huff

 He is the Vice President and Director of Meal Buddy

 He is responsible for planning and implementing the food truck system
 Deputy President and CFO of a fruitful real estate company
7

 He is in charge of all financial considerations for day-to-day operations and the

human resource manager of all employees. Established and integrated all
accounting systems for multi-site management
 He has numerous years in the food service industry where he was in charge of
food management, ordering and asset management, and developing new food
products and their promotions.
 Expert in multi-site spills, retail sale, and finance

3. Samuel Smith

 He is the General Manager of Meal Buddy.

 Skilled in management and operations
 Head of the marketing strategy, performance development, Research
development, and franchise growth
 He organizes franchise sponsorship efforts among stores
 He oversees the succeeding and developmental applicants for the franchises
 Considered nationally as an expert in the field of franchise marketing

4. Jodi Jones

 Director of Marketing in Meal Buddy

 Makes all printed media material used for promotion and advertising in stores
 It carries a publicity message and guarantees that Meal Buddy is successful in
reaching the target market
 Twenty years in the business of advertisement
 He owns and operates his own advertising company

5. Kathleen Olivera

 Chief Financial Officer

 Manages Financial reports
 Approved a Business Account
 He works and manages the financial accounts of the company
8

6. Cameron

 Training and Operations Manager

 Expert in the workplace
 Large written sections of the Meal Buddy Operations Manual

7. William Stewart

 Manager of the buildout

 Planned food truck operations manager
 Six years of experience in handling food trucks
 Twenty years of restaurant management experience with Pizza Hut and Best Boy
Restaurants

5. Accounting supporting documents

a) Invoice slip:

Figure 3. Invoice Slip of Meal Buddy

An invoice slip is a document that lists the contents of a shipment. It includes item
names, SKU numbers, weights, dimensions, and quantities.
9

When a buyer receives a shipment, they compare the package’s contents to the items
listed on the packing slip.

The accounting section of the vendor's company uses the account to inform the
purchaser of the due balance, and also to keep a record of receivable accounts, or
outstanding invoices that have to be paid yet. The purchaser's accounting section uses
the invoice to plan expenses and also to make assured that the amount paid is right. It
is also careful bookkeeping practice to double-check the mathematics on an invoice, to
make certain that the purchaser hasn't been overpriced. Invoices list the objects that
have been sent, as well as the amounts of the items. If a point is out of the store, this
material is more likely to seem on the packing slip than on the invoice, because this info
is related to the reception section, which levers inventory. The accounting section
doesn't essentially want to know about the out-of-typical items because no expense is
owed for these matters. However, if the accounting section has delivered a buying
order, the detail that an item is out of stock will be applicable, because the invoice sum
won't agree with the purchase order sum[CITATION Dev19 \l 1033 ]

b) Credit Note:
10

Figure 4. Meal Buddy Credit Note

Credit notes are usually used in the event of an error in the invoice that has already
been issued, such as an improper amount, or when the customer needs to change his
or her unique order. The credit notes can be castoff in any situation which may
necessitate the invoice to be amended and reissued.

A credit note is typically related to a current invoice, but can also be delivered
disjointedly, for future use invoices. Also, always recall that a finished invoice must not
be deleted. This is where a credit note converts an important tool in the payment
process [ CITATION GoC21 \l 1033 ]

6. List of assets & liabilities

a) Assets:
 Cash
11

Companies want cash to function. Cash purchases land, buildings, equipment, and
stock, and pays bills and employees.

 Land

It is a long-term, asset or capital because the grips of business are for more than one
year. Companies mostly purchase land with or for offices, plants, or other places for the
company or the commercial and building development

 Buildings

Buildings like offices, stores, plants, and houses for the initiative activities. The archives
of the balance sheet are the building prices in the year which are bought. The assets
mostly last for many years, and after that losing their valuable life.

 Equipment

Businesses are dependent on equipment to create, develop the land, products and run
offices and construct the building. The equipment, which is measured as private
possessions since it is transferable, can comprise of such objects as computers, tools,
machines, automobiles used for the delivery, and cash records.

 Inventory

It is an individual property that a company gets or for resale, styles. Inventory is not a
wealth or long-term asset as the business wants to trade the records relatively other
than keeping them.

 Intangibles

These assets deliver rights and worth, but these are not corporal objects. These objects
comprise brand names, patents, copyrights, computer systems, trademarks, and
research, staff with different skills and knowledge, and corporate business.

 Accounts and Notes Receivables

12

Companies uphold AR for auctions made on the credits or an ability to wage on an

upcoming day, like 30 days from the transfer, or from once a bill or invoice is directed
[ CITATION Chr18 \l 1033 ].

b) Liabilities:

Liabilities, in accounting, are economic ones. These liabilities are noted down as both
amounts which are billed to the creditors and pays the sum for the upcoming services.
For a business liabilities which are incurred are interest payable, accounts payables,
notes payables, income taxes payables, or wages or salaries payable to the employees.
Deposits, prepayments, and amounts that are unearned costs are also liabilities of a
company. This kind of debt is payable as well when the customer makes deposits or
repays, these are considered to be unearned or deferred payments revenue.

7. Categories of revenue & operating expenses

The company’s start-up cost of food will differ contingent on whether it rent or own the
place, what equipment it will be needed, how much it has a plan to repair etc. Though,
the kinds of start-up prices of the restaurant that will encounter are not well established.
Here's what to expect:

 $ 2,000 to $ 12,000 security deposit. (depending on location)

 Borrow 10% on the purchase of a building.
 The cost of building and renovating buildings varies from place to place and
contractor.
 Costs License Fee:
 $ 100- $ 1,200 business registration fee and renewal
 Costs Liquor license costs $ 50 to $ 300,0000 contingent on the type of license
and country
 License will cost it $ 200 to $ 2,000 / year
 Permits health permits, Building permit, food handling permit, liquor tax, land
reform permit.
 Professional services such as accounting, bookkeeping, and consultation
13

 The equipment of the restaurant will cost $150,000 to $350,000 depending on

the kind of equipment, whether it is new or recycled or if the company prefer to
rent or purchase
 POS costs start at $ 600 per hardware (number of terminals, vary by vendor and
solution)
 Pre-launch costs, marketing costs such as signs and advertisements
 Commencement of goods
 Rent First-month income, salaries, and salaries

Operating expenses:

 Rental and utilities including water, electricity, cable, internet, and telephone: 6%
- 15% of revenue
 Cost of food: 26% - 42% of food sale.
 Cost Staff Expenditure: About 31% of revenue including salaries of management
of 12%
 Insurance differs by provision and type. For example, property insurance will cost
the company $11,000 to $2,800
 Monthly advertising cost
 Various costs such as breaking costs [ CITATION Nic19 \l 1033 ]

8. Types of accounting statements or reports

a. Balance Sheet:

The determination of the balance reflects the financial position of the company as a fact
in time. The statement displays the object's value (asset) and it owes how much
(liability), and the value financed in the trade (equity). This material is especially valued
when the balance sheets for several consecutive times are gathered together so that
the altered linear styles are viewed. A potential business owner drafts the balance to
see if any asset can be confiscated deprived of harming the original business. The
acquirer may link the stated inventory balance with transactions to determine the level
of revenue, which may reflect the existence of surplus inventory. A similar judgment can
be functional to the available account. Otherwise, the value of a fixed asset can be
14

associated with sales to obtain a rate of fixed asset, related to high-end businesses in
the same industry to see that investment is fixed and much higher [CITATION Acc \l 1033 ].

b. Cash Flow statement

A cash flow statement is a vital measurement of the strength, profitability, and vision of
a company’s future. CFS can assist to control if a business has sufficient money or
enough to cover the costs. The business can custom the CFS to forecast the cash flows
in the future, which aids in budget matters.

For depositors, a CFS mirrors the financial life of a company because the more money
a business earns, the better it becomes. Though, this is not a fast and hard rule. In
some cases, a minus cash flow is caused by a business's growth strategy in the face of
increased efficiency [ CITATION Chr21 \l 1033 ].

c. Profit and loss account

The P&L statement is one of three types of financial statements prepared for
companies, the other two being the balance sheet and the cash flow statement. The
purpose of a P&L statement is to reflect the company's income and expenditure above
an era of time, typically one financial year. With this information, analysts and investors
can measure the business's profits, often joining this evidence with info from two other
financial statements [ CITATION Jas20 \l 1033 ]

d. Income Statement

The main purpose of the income statement is to show the reader that how much loss
profit the company has made during the period of reporting. This material is especially
important when the revenue statements from several repeated periods are gathered
together, so the dissimilar accounting and financial styles can be observed.

The company’s income statement comprises the number of subheadings that can help
determine how the profit or loss is made. The total profit is resulting from the income
and expenses of the products sold together and provides an indication of the business's
skill to set points for the prices customers will receive, as well as to keep the cost of
goods and services provided. Another major downside is operating income, which is the
15

total profit deducting all operating costs (such as sales and administration costs). This
lower amount discloses the company's ability to generate revenue before the results of
financial transactions are included in the final profit margin [ CITATION Acc21 \l 1033 ].

9. Closing date of accounts

The closing dates of the account of the company will be monthly. The accounts will be
closed on a monthly basis.

10. Challenges of the owner from an accounting perspective

1. Cash flow

Management of the cash flow is a major challenge for small businesses and startup
businesses. According to a U.S. banking study, 82% of failed businesses do so due to
cash flow issues. Small businesses find it problematic to set aside money to cover
recurrent costs and have the company afloat. In order to stay on top of the cash flow,
carefully analyzing the debts and taking care of the payments which are rushing from
the customers.

2. Unexpected costs

If a trade store earns $ 160,000 a year after expenses, it might appear like a good deal,
until the slippery case costs the store 1.3 million dollars and has no assurance. Even if
the small expenses, like a government tax one time on all companies in a specific
region or a growth in the CGS, can reason a dramatic change in the item. To overcome
this problem, the company should prepare an existing debt so that it can manage its
short-term expenses and also look at the long-term expenditures and also look at the
long-term gains to have ensured about the changes in cost which do not threaten the
total income.

3. Preparedness of disaster

Unexpected natural disasters are having a shocking effect on human life and business,
but they mostly affect small businesses badly.
16

The company may plan the strategies of disaster recovery, but the company needs
money to ensure you can revitalize your business after a disaster event.

4. Taxes

All businesses have to pay taxes, but making good use of the deductions can reduce
the amount you pay until the tax date.

5. Wage management

Having a role of HR or payroll professional can be hard for a business owner. If the
company does not know how to properly classify its new employees, it may face
expensive fines.

In an Ernst & Young study, 85% of businesses surveyed said that there was a place for
development in its payment procedure. The most mutual problems were connected to
structural incompatibility, with the improper filing of tax, late payment, and non-payment,
mismatched software, following staff absenteeism, agreement issues, and managerial
responsibility.

6. Stay on top of costs

Keeping the path of the company’s receipts and recurrent expenses can be very
difficult, but keeping a record of expenses is essential for small businesses to thrive in
the marketplace.

Fortunately, there is no longer a need to keep all the receipts of paper in the closet or
box for later use. There are many accounting software choices on the marketplace
which can assist company to avoid paperwork. The whole process is dissimilar,
however, so do the company’s research to find the right one for your business wants.

7. Synchronize your books

Closing the company’s accounting books is a daunting task, especially establishing

without the proper accounting system. It is easier to make mistakes that can be leading
to the calculations which can be inaccurate, IRS audits, and fraudulent data analysis,
which is why it is important to verify every business transaction monthly of the company.
17

If monthly is not possible then weekly or even on the daily basis. The company might
have to make it habitual to use the accounting books at each day’s end while the
transaction is fresh in the mind.

8. Analyze your finances

Making a decision of finance is in three steps. These steps are analyzing, interpreting,
and advising. No matter what reports a company uses, the first step is creating the
numbers. The company must use these steps to analyze the finances to keep itself
away from future problems.
18

References
AccountingTools. (2021). Purpose of the income statement.

AccountingTools. (2021). The purpose of balance sheet.

Darlington, N. (2019). The Ultimate Guide to Restaurant Costs.

Fernando, J. (2020). Profit and Loss Statement (P&L).

Gartenstein, D. (2019). The Difference Between a Packing Slip & an Invoice.

GoCardlesss. (2021). How and when can your business issue credit notes?

morebusiness.com. (2020). Fast Food Restaurant Business Plan. Retrieved from

https://www.morebusiness.com/fast-food-restaurant-business-plan/

Murphy, C. B. (2021). Understanding the Cash Flow Statement.

Raines, C. (2018). List of Assets in a Business.