David’s Used Car Business Report Samples †MyAssignmenthelp.com

Question: Discuss about the Davids Used Car Business Report. Answer: Having read Mr Davids used car weird scenario i wish to attest that for real there exist mountains of problems in the whole operations that require immediate possible radicle surgery to save this business. Most of us will agree that the finished product item of sales as well as spare parts he trades in are indeed very expensive hence if not properly accounted for there may exist possible crisis resulting from poor inventory and sales management that may further lead to business disclosure. I wish to point out that the three main problems that David used car business faces are; (a) Lack of accountability. (b) Lack of system, procedures, appropriate channel in our things ought to be done and finally (c) Limitation of appropriate information thus barring good decision making If these three problems are dealt with thoroughly then David business will be safely operating. Accountingfor inventory is of great essence to David venture by look of things I can definitely state that there is no effective inventory control since there exist no physical activities trying to verify, authenticate and cater for completeness of the stocks i.e. the cars and the spare parts Lucas(2006.Pg. 23). David Steele is however seen to control stock through numerous paperwork sheets but due to the cumbersome nature of the transaction he seems not able to fully control. This leaves a loophole for inventory loss, damage, missing or even obsolescence. Paperwork means of control is not enough since it creates a chance for persons to maliciously change and corrupt the figures in the paper hence stealing from the company. The paperwork means of accountability which is seen to be used all over is prone to get worn out, catch fire or even become blurring. These paperwork data most likely do not have back up hence in case of these emergencies data relating to inventory gets lost hence lack of accountability. To curb David used cars inventory and whole system accountability there need to introduce an accounting inventory system that captures stock both for cars as well as spare parts that will be factoring all the processes from acquisition or purchase to sales. I suggest the configuration of the data to be just as similar as to that David uses. This will facilitate accounting for stocks whereby random stock take should be conducted now and then to authenticate the system stocks and that physically. This will fully control any aspect of malpractice as well as control the issue of FIFO hence obsolescence dealt with as well as creating awareness on items in stock such that there exist no single day a sale is not made or purchase because nobody is aware of the closing balances. Like any other business the sole objective of maximizing profits in Davids used car venture has to be factored too. This can be achieved by mainly conducting cost control as well as pushing sales. Cost control maximizes profit since if David is able to save cost on purchase as well as control of overall spillage, misuse, theft and obsolescence the sales automatically rises. This cost control can be done by ensuring that any activity taking place is accorded to one specific person and that person is entitled to give feedback to David. David should be seen to be delegating most of these tasks because that is the only way he can entrust his business for efficiency purposes. Mr David is not omnipresence to know all that happens in his compound hence by trusting and allocating duties to the personnel who works for him and create sense of responsibility expectation from them he will be able to smooth line the process Sakuma (2005).Pg. 151. The system should likewise be seen to control sales at the moment the current system of vouching sales is not effective enough thus there exist the need to link the point of sales system with the inventory hence as sales is made inventory depletes hence able to vouch cash collected by the cashier against the system sales. Again we expect to see Mr David trust the persons in charge of the sales and POS as well. Mr David is further advised to engage once in while external auditors to examine all the operations and provide advice and suggestion Romney (2012.Pg 13). Concerning security resource I request Mr David to invest in installation of CCTV cameras as well as system identification programs that identifies persons accessing the premises as well as identifying item leaving the premises. This should be accorded to security personnel who will be in charge of all security issue Cohen (2008.Pg 7). I conclude by stating that it is expensive and demanding to implement all this outlined measures and internal controlling system but trust me it worth because it will save a lot and create efficiency in the processes Bauer (2003.Pg 700). References Armband, P.B., Taylor, M.A. and Wood Jar, H.E., Vue Technology, Inc., 2006. Intelligent station using multiple RF antennae and inventory control system and method incorporating same. U.S. Patent 7,084,769. Cohen, C.J., Scott, K.A., Huber, M.J., Rowe, S.C. and Morelli, F., 2008, October. Behavior recognition architecture for surveillance applications. In Applied Imagery Pattern Recognition Workshop, 2008. AIPR'08. 37th IEEE (pp. 1-8). IEEE. Bauer, D.G., Buiel, E.R., Campero, R.J., Carpenter, W.J., Metzler, S.P., Nordgren, R.E., Sakuma, T., Aoki, T. and Kaneko, Y., 2005. Inventory control system and method. U.S. Patent Application 11/255,151. Lucas, M.T., Unisone Corporation, 2006. Inventory control system and methods. U.S. Patent 6,996,538. Romney, M.B. and Steinbart, P.J., 2012.Accounting information systems. Boston: Pearson.