Gift Shop Red Flags Essay

The interest expense on the income statement for the year is $1,560. This one is kind of tricky you have to take over interest on loanwords there is really no way approximately it. You could either pay off the loan with the money that is in nest egg this would save you a ton on interest or you could essay to find a nonher bank with a lower interest rove for this. Because this is a non-profit judicature paying interest on a loan is really unrealistic If I were in control of the budget this would be paid off with the money that is in the checking account.Red Flag 4 The balance sheet shows that the checking account has over $20,000 in it, and the account does not pay interest. The turn over shop does not have an interest complaint account. This is a problem because the gift shop is a non for profit organization so it really needs to be a little smarter with its finances this checking account should really be an interest baring account. This needs to be switched over it mig ht not make a fortune effective now it would definitely be better served if we were gaining interest on this money that is just sitting here.Red Flag 5 You notice that in the floral cooler there are many flower arrangements which are sounding as if they are dying. Not only is this not appealing to the customers that do come into the gift shop but this overly means that whomever is doing the edict for the gift shop is edict more than they are selling soul needs to go throw and make sure that there is not a lot of vertebral column stock for the gift shop ordering more than the gift shop is selling is an internal control that behind be fixed. Red Flag 6There are quintet employees who are paid one fulltime and the rest are part-time. The fulltime employee gets the stock, which is to be resold. She places purchase orders, receives the goods, and pays vendors. Her sister is also a part-time employee. I really do not see the need to have that many employees running a gift shop that is not making any profit. If cutting dressing some hours would help until we can get the gift shop back to a profit or even just where we are glide path out even then I think that should be done.We also need to make sure that there is just one someone handling the books if we have to many employees doing the ordering and such than mistakes whitethorn happen. Our fulltime employee needs to take on more responsibility in the gift shop so the part time employees can be cut back. Since there is going to be a cut in what is being ordered for the shop this should increase her time to be subservient to customers and clean the gift shop.