1
Illustre Street Davao City
Contact: +639970611169
Email: bdptconsultancy@gmail.com
“Quality consultancy”
Cover Page
Table of Contents
Company Background 2
Vision, Mission, Values and Objectives 3
Organizational Chart 4
Policies 5
Revenue Process 6
Expenditure Process 7
Chart of Accounts 8
Pro forma Entries 9
Part II- Findings and Recommendation
Preface 11
Recommended Organizational Chart 12
Purpose, Scope, Recommended Revenue Policies 13
Recommended Revenue Procedures 14
Purpose, Scope, Recommended Expenditure Policies 16
Recommended Expenditure Procedures 17
Recommended Chart of Accounts 18
Recommended Pro forma Entries 19
Appendices
Proposal Letter 20
Engagement Letter 21
Engagement Plan 22
Gantt Chart 25
Documentation 26
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LAUNDRY SHOPPE
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It started its operation in 2014 when the owner Mrs. Josephine Jemino and
her family wanted to put up a business which is convenient and without
having to look for a new commercialized place. The family imagined of a new
endeavor that focuses on social and economic growth, helpful to the
community and a business that can provide convenience. A business that is
based on daily human and household needs. A business that focuses on
customers’ everyday life, and that’s when a laundry service came up. And, it
is a family business that can be passed on to the succeeding generations. Thus,
the involvement of the 2 siblings as well as the husband in the family is visible
and engaging.
The family, with its residence in Davao City, opened the establishment on
2014 right at their doorstep at 66 Fr. Selga St. Malvar, Davao City an area
where a laundry business has a good potential because aside from being near
the hospital it is also near the downtown area and schools. Despite the strong
competition, Jeanalia Laundry Shoppe penetrated its way to be well known
and widely accepted laundry service in the area.
It provides laundry service and as well as rush laundry. Customer can enjoy
doing their daily tasks without bothering about their laundry, for the
customer can just drop off their laundry and claim it after a few hours or a
day.
VISION
To be able to accommodate more customers by way of purchasing new
units of washing machines and hopefully to be in every strategic place
in the city. To make it the sought-after laundry shop in the community.
MISSION
To provide a high-quality laundry service and a lasting relationship with
customers and commit in being a socially responsible business in the
community where Jeanalia Laundry Shoppe is located.
VALUES
Hygiene
Quality
Efficiency
Timeliness
Integrity
Trustworthiness
Honesty
Teamwork
OBJECTIVES
To provide services which is unequalled by the competitors.
To sustain the business and family needs.
To be always in pursuit of customers satisfaction.
To grow through expansion of customer base and new unit
acquisitions.
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Wife
Husband
Son Daughter
WIFE
Authorizes the acceptance of laundry service.
Handles the washing and folding of laundry.
Accepts payment from the customer.
Buys the detergents and fab-con in the grocery store.
Pays the utility bills.
HUSBAND
Assists the wife in paying the utility bills.
Assists the wife in buying the detergent and fab-con in the grocery
store.
SON
Accepts the laundry service order.
Accepts payment from the customer.
Releases the finished laundry.
DAUGHTER
7. Our liability shall not exceed six (6) times the amount we charge
per item.
10.If the individual laundry service is less than minimum of 3kgs. still
it is charge for 3kgs.
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DOES THE
LAUNDRY REACH Decision making: if YES,
THE MINIMUM
KILOS? proceed to the
preparation of service
order. If NO, still accept
the laundry however
YES NO
charge it as if it is 3 kilos.
CHARGE
AS IF IT IS 3
Acceptance of laundry
KILOS
less than 3 kilos.
Owner
Preparation of 2-copies
SERVICE ORDER 1
of service order (SO1 &
SERVICE ORDER 2
SO2). One copy for the
TO
CUSTOME customer and another
copy for the owner for
filing.
RENDER THE
SERVICE
OWNER
The owner does all the transactions since this is a family owned
business and there is no employee. Therefore, the owner is the
one holding the money and paying all the expenses.
The mode of payment for every transaction is cash.
For the laundry expenses, the owner doesn’t have any supplier.
The owner bought the detergent and fab-con in the grocery store
only.
For the utility bills, the owner could not determine the exact
amount of its utility expenses. It is because the electricity bills, as
well as the water bills, have the same reading meter with the
owner’s house and her owned apartments.
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LAUNDRY SHOPPE
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OBJECTIVES:
If management realizes that the procedures set forth in this manual may
become inadequate because of changes in conditions, management, as
authorized by the owner will revise, modify, and update this manual as
conditions warrant.
SCOPE
The engagement focuses only in the area of cash receipts and cash
expenditures of the company, the organizational structure and specific job
responsibilities, chart of accounts together with the supporting
documentation.
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(RECOMMENDED)
Owner
Liaison
Laundry Releasing
Cashier
Washer Personnel
OWNER
Authorizes the payment utility bills and purchase of laundry supplies.
LIAISON
Pays the utility bill
Buys the laundry supplies
Delivers the laundry
LAUNDRY WASHER
Monitors the laundry supplies.
Washes the laundry.
CASHIER
Accepts the laundry service order.
Accepts payment from the customer.
Releases official receipt.
RELEASING PERSONNEL
(RECOMMENDED)
PURPOSE
The main purpose of designing this recommended revenue process is to provide pointers
to the owner of Jeanalia Laundry Shoppe the importance of the orderly execution in their
respective obligations for the cause of strengthening the controls of cash receipt
transactions. Also, the recommended revenue process that were set is to guide the owner
of the proper methods of recording the transaction and the right way of handling cash on
hand.
SCOPE
This recommendation is intended to cover only the cash receipt and service revenue
transaction.
PROCEDURE
Start by entertaining customer (regular/existing and walk-in customer). Then accept
all customer service order in customer area. It must be properly recorded when
received
Weigh the clothes to check if it reaches the limit kilos.
Decision Making: Check if the laundry reaches the limit of 3 kilos.
If YES start the preparation of three (3) copies of service order. If NO, inform
customer to charge the laundry as 3 kilos.
The 3-copies of service orders will be distributed to the customer, receiving and
deposit area, and to assigned staff for recording purposes.
In receiving and deposit area, service order must be given. Then, start rendering the
service.
After 1-3 days, the customer can claim their cleaned laundry in queue area and the
cashier must collect and count accurately the cash payment based on the service
order given.
After collection, cash must be given to the operation manager.
Then the operation manager will decide if the cash collection is ready for deposit.
Decision Making: If YES, prepare deposit slip and passbook for updates to deposit it
in the bank. If NO, keep it in safety deposit box.
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CUSTOMER AREA
ACCEPT CUSTOMERS
SERVICE ORDER
IS IT 3
KILOS?
YES NO
S
Charge
to 3
kilos
Service order 3
Service order 2
Service order 1
To
customer
Receiving
and Deposit
area
For
recording
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RECEIVING AND DEPOSIT
AREA
From
customers
area
Service
order 2
Washing, cleaning,
and packing of
finish washed
clothes
Claimed Cash
cloths collection
Cashier
Ready
for
deposit
?
YES NO
(RECOMMENDED)
PURPOSE
The purpose of these policies and procedures is to haves a strong control of all the cash
disbursement transactions. Since the owner doesn’t have any established disbursement
policies and procedures, the owner may implement the recommended policies and
procedures.
The suggested improvements of the company will help the owner determine how much
money that is being spent for the expenses.
SCOPE
This recommendation involves only those expenditure transactions of Jeanalia Laundry
Shoppe.
PROCEDURE
The employee will examine the inventory if it is still sufficient or not. If it is sufficient,
the employee will release the inventory whenever there is a service to be render
and if it is not sufficient, the employee will now prepare a purchase requisition to
request for the needed inventories. The employee will prepare a 2-copy purchase
requisition slip, one for his/her to be used for the acquisition of inventories and the
other for the owners copy.
The owner will be the one to check the purchase requisition slip and will release the
cash for the payment to the employee to purchase the inventories from the
supplier. After purchasing the inventories, the employee will now prepare receiving
report, attached the official receipt and present it to the owner for the owner to
compare the owners file copy of purchase requisition slip to the presented
documents by the employee. Afterwards, the employee will update the inventory
records based on the receiving report and then the owner will file the official receipt
together with the receiving report and the purchase requisition slip.
When it comes to the utility bills, the received bills will be check by the owner and
endorse it to the employee the bill and the cash for the payment of the obligation.
The official receipt of the payed obligation will now be filed by the owner.
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START
Examine
Inventory
Release
inventory if
No Lack of
there is Utility Bills
Inventory
Sales Order Received
Yes
Purchase
Purchase
Owner Requisition 2
Requisition 2
Purchase
Requisition 1
Release
Cash for
paymen
t
Purchase
Goods Employee
Goods Receiving
Report & OR
Compare
Update
Inventor
y Record
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(RECOMMENDED)
(RECOMMENDED)
PARTICULARS ENTRIES DEBIT CREDIT
(RECOMMENDED)
Josephine Jemino
Owner
Jeanalia Laundry Shoppe
66 Fr. Selga St. Davao City
We are pleased to present our proposal to provide management consultancy for Jeanalia
Laundry Shoppe.
We are confident that we have the ideal mix of knowledge and skills necessary to address the
issues and concerns in your establishment, thereby providing suitable service. We believe
that your establishment will enjoy advantages in having us as your external consultancy
advisors. Specifically, we wish to focus on the following areas in your business:
Relative to the foregoing engagements, the consultants, without compromising the quality of
our service, are offering this free of charge. We believe our commitments to effective,
relevant, and timely service will serve you well and do whatever is required to get the job
done.
If you have questions about this proposal, please contact or email us. We are looking forward
to discussing it with you in detail. We are excited about the opportunity to be a partner in
your success.
Sincerely yours,
Josephine Jemino
Owner
Jeanalia Laundry Shoppe
66 Fr. Selga St. Davao City
Foremost, we thank you for trusting us to act as advisors in providing financial and
management advice after reviewing the affairs of Jeanalia Laundry Shoppe.
As such, to formalize the terms and agreements we have reached regarding this
endeavor; please see terms of audit engagement below. These accords find its
reference to the proposal we discussed with you.
ENGAGEMENT OBJECTIVES:
The engagement will be conducted from September 27, 2018 to September 30,
2018. The accounting manual shall be endorsed October 1, 2018.
ROLES OF CLIENT:
ROLES OF CONSULTANT:
JOSEPHINE JEMINO
Owner
Jeanalia Laundry Shoppe
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Engagement Team:
Balcita, Kit Bryan M. Portillo, Ivy Luh B.
Del Castillo, Shem Dave P. Taganait, Glory Ann L.
Pagaran, Jocelle A. Tagra, John Jefford R.
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Timeline
Assigned Tasks September Oct
17 18 19 20 21 22 23 24 25 26 27 28 29 30 1
Company Selection and
Distribution of Tasks with
Corresponding Timeframe
Preparation of Engagement
Letter, Gantt Chart and
Engagement Letter
Generation of Interview
Questions
Initial Interview
Preparation of Client's
Company Profile - Company
Background and Organizational
Chart
Observation of accounting
policies including current
processes & procedures
Preparation of Revenue Cycle
Narrative 1 1
Preparation of Expenditure
Cycle Narrative 1 1
Preparation of Data Flow
Diagram 1 1
Industry Analysis
Recommendation 1 1
PREPARATION OF
ACCOUNTING MANUAL 1 1 1 1 1 1
Submission of Accounting
Manual
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