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How i want to start a business venture: Quick Italian Pizza - Essay Example
Finance & Accounting
Pages 3 (753 words)
The business venture I want to start is called Quick Italian Pizza. Quick Italian Pizza is a restaurant concept that involves providing gourmet pizza at a quarter of the time it takes to cook traditional pizza. …
Corporations provide many benefits to the owner such as the ability to raise capital easier, limited liability, access to more governmental incentives, and tax benefits (Weygandt, Kieso, Kimmel, 2002). The use of the corporation structure allows companies that grow the ability to raise more money by issuing common stocks or by selling corporate bonds. In order to perform these types of financial transactions corporations must register with the Securities and Exchange Commission (SEC) and they must go public. Accounting is a very important function that must be taken very seriously by any person that decides to start a business. Accounting plays a critical role for entrepreneurs. When starting a company part of the business plan includes accounting projections and numbers. The use of accounting can help a businessperson determine whether a business venture is worth investing in based on the financial projections. The use of Pro-Forma financial statements is a great way to project the financial performance of a company in the future. Accounting information can be used to determine the breakeven sales needed to cover all the fixed costs of a company. Accounting can be used by business owners to differentiate between variable and fixed costs. Variable costs are costs that vary based on the sales level, while fixed costs are constant costs that must be paid every month. The recruitment of an accounting staff is necessary to start a business. There are various credentials, personal characteristics, knowledge, and work experiences I look for in an accountant. For a person to work in the accounting department at my company they must possess a bachelor’s in business administration with a major in accounting. ...