ACC202InvestorReportTemplate.pptx
7-1 Project: Investor Report
April 18, 2022ACC202ProjectWorkbook2.xlsx
April 18, 2022The Paw Spa
Investor Report
Prepared by Brittany Scuefield
Instructions: Replace all text in brackets with your own information.
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Introduction
Vision
Supporting in creating memorable moments for you and your pets.
Building lifelong connections with our consumer and paw friends.
Foster a luxurious relaxing environment where everyone feels cared for.
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Paw Spa is one of the only pet centered small business on the west coast to provide one shop stop for all pet essentials. We have been servicing your pets for only a month now. Although a newer company, we have been interviewed with the Smart Pet Magazine due to all the amazing feedback around from consumers. Our pets are most important in a lot of our lives. Pet Spa wants to help you create the best memories with your pets and ensure you are able to pamper your pets while they delight in the finest treats and toys. Our future plans for the next 5 to 10 years is to grow across all 50 states. As well as have a stronger online presence accessible for overseas consumers as well.
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Purpose
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Creating an Investors Report is extremely beneficial for not only the investors but the companies leadership. This will be a deep dive into our financial picture over the last month, quarter or even at an annual level. We will use this time communicating and concentrating on the success of the business. We would provide numbers that show increase in sales. lower overhead cost from previous report, etc..
At this time, we would share our commitments we made as a company to our investors, the risk factors and how we are compensating for these. This will reassure our investors return of any of their investments will and are possible to be returned. We will provide this information from our financial and performance data to the investors to also look at future growth opportunities. For the investors, reviewing the financial strategies and statement will help them determine the worth of the business and make decisions on future plans of operating from which they can make decision whether to invest in business or not.
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Provide a full picture of Paw Spa’s financials.
Show investors the financial growth/development.
Plan and strategize for future decision on the direction of the business
Methods and Approach
The American Institute of Certified Public Accountants consist of 6 Principles
Responsibilities
The Public Interest
Integrity
Objectivity and Independence
Due Care
Scope and Nature of Services
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As an owner of a business, it is important to me that investors trust me and feel I am providing accurate financial data and making decision with ethics and integrity. When determining my costing strategy, I used the marginal analysis, inventory valuation and product costing and trend analysis and forecasting techniques to assess our profits and trends over the first month of business. To ensure I am following the AICPA Professional Responsibilities, I spend time reviewing each 6 Principles frequently and confirming that how I am operating directly aligns with each of the principles. As a business owner who is also completing investors reporting it is important that I hold myself to each responsibility I have to our consumers and investors. . In everything I do I have a responsibility to act with professionalism and honesty. I act with integrity and ensure all data recorded is accurate and true. I hold myself and employees accountable and to a high moral standard. We remain objective and fair. I do not fabricate data one way or another and do not take bribes from others to falsify numbers. To ensure I am always performing to the best of my ability and/or the CPA we continuously take training, double check each others work to ensure we are following all technical and ethical requirements of accounting. We have multiple safeguards in place to limit the number of unethical practices in our business, which lowers the risk for our invertors.
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Financial Strategy
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Costing System
[Outline why the job order costing system works best for the business.]
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For Paw Spa the job order costing system is used and the best fit for this business. This specific costing system determines cost for each work order, rather than one base cost, as each job has individual cost requirements. Job order costing is based on the individual costs to a job or service, rather than the production department. It is often used when goods are made to order. This is suited for this business because there is so much that is offered, and each item requires specific magnitude of labor. For example, assume a puppy mom orders a leash and collar with custom stitching and request it to be 1 foot longer than the standard leash. Because this is uniquely designed for her pup, it will be designed and priced specific to her requests and needs So, using the job order costing system would tailor the cost for each job. Batch costing would not work for this company because each job and product differs in labor and cost in materials depending on the customizations made for each one. Contract costing would not apply for Paw Spa because changes are applied daily, location to location, the need and labor changes. Contract costing typically stretches over a long period of time and covers multiple locations.
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Selling Prices
[List the selling price you chose for each product.]
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[Explain and defend the selling prices that you established for each product. Why did you choose these selling prices? Be sure to reference your cost-volume-profit analysis in your defense]
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Contribution Margin
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[Share and explain your contribution margin per unit. How did you arrive at these numbers? Be sure to reference your cost-volume-profit analysis in your defense. ]
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Target Profits
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[Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.]
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Financial Statements
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Statement of Cost of Goods Sold
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[Compare the actual cost of goods sold over the last month and evaluate the company’s performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.]
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Income Statement
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[Based on your income statement, logically interpret the business’s performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.]
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Variances
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[Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?]
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Significance of Variances
[Share a summary of your variance analysis. Were the variances favorable or unfavorable?]
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[Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean? Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.]
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References
[Include any references cited in your paper in full APA format. Don’t forget to include in-text citations as well.]
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