Peyton approved is a company that is in the business of baked goods for dogs that are all natural and hypoallergenic, we operate with dogs in mind that have severe allergies and cannot have regular store bought dog treats. Peyton Approved has had unprecedented growth in the market with sale shares over the last few months and want to continue to expand our operations. The purpose of this memo is a request for a loan to help provide the necessary financial backing needed to expand Peyton Approved operations.
Overview of the Company’s Accounting System As a company Peyton Approved believes in proper and accurate reporting of all our assets and expenses as they occur. We utilize an accrual basis for accounting because it provides a much more
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One of the strategies Peyton Approved uses in order to make sure proper financial record are being kept is by the use of the accrual basis of accounting. This method of accounting ensures that Peyton Approved is recoding all of its expenses/liabilities and other aspects of the business as accurately as possible. With the information required by accrual basis accounting we are able to identify and analyze all transactions as they occur. After identifying these transactions, we then record these transactions within our accounting journal and journalize these transactions into either an account for debits or credits. Our company then prepares the trial balances into a spreadsheet so that we can see each of these debits and credits are they occurred. With these trial balances we can then determine and record our adjusting entries and prepare our adjusted trial balance. From there we prepare financial statements recording the closing entries, post-closing trial balances and our reversing entries. This practice is performed each month to provide an accurate monthly picture of Peyton Approved’s financial health. Cash at Peyton Approved is handled by different people with different responsibilities. Ideally we have people who receive the cash that is paid and different people to deposit cash to ensure that each time the cash is changed hands there will be a recounting of the cash to ensure …show more content…
We have maintained our debt ration as low as possible and this shows that we can pay off our debts. We have ensured that we are using the best accounting practices possible to provide the clearest picture of our assets, liabilities, and equity for potential lenders and investors of our operations. Hopefully this picture of our finances will allow us the opportunity to meet and discuss how your bank can help to develop Peyton Approved as a successful company in the hypoallergenic dog product