Digital Circles Preliminary Investigation

Ellenmae Magalona

Sir Jonel Uy

November 24, 2016

Preliminary investigation—Digital Circles

Digital Circles Asia is a digital marketing services firm which specializes in organizing online media events and digital campaigns utilizing the most popular social networking sites as tools.

Nature of the Problem:

Digital Circles often develop financial accounting problems due to lack of financial literacy, specifically reading financial report, submitting audited financial statements to BIR, and most of the time recording cash flow. It sometimes results to mixing up business with personal finances. Management does not know how to keep proper accounting records.

Other accounting problems are listed below:

The way of taking the money (profit) from the customer. (Payments and Billing)

Objectives:

The main objective of the company is that they must automate their own accounting system. Manual records can be misplaced by the owners. Other objectives are listed below:

Educate managers/owners on the need to keep accounting records. Motivate managers/owners to adopt accounting records. Hire consultants for SMEs for financial statement analysis who can manage the profit,

payroll and also for taxation purposes. SMEs need to be more financially literate. Excess funds are highly recommended for reinvesting for business expansion. Set up a separate bank account that should only be used for business-specific transactions

only.

Scope:

The scope of the problem is limited to the Accounting Procedure of Digital Circles and is also applicable to some Small and Medium-sized Entities.