Gift Shop Red Flags Essay

The fire put down on the income statement for the year is $1,560. This one is kind of tricky you have to pay affaire on loans there is sincerely no way around it. You could either pay off the loan with the cash that is in savings this would save you a ton on interest or you could try to regulate another bank with a lower interest rate for this. Because this is a non-profit organization 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 invoice.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 gift give away does not have an interest bearing account. This is a problem because the gift shop class 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 expose account. This needs to be switched over it might not pos it a fortune but it would unimpeachably 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 ar many flower arrangements which ar facial expression as if they are dying. Not only is this not appealing to the customers that do come into the gift shop but this also means that whomever is doing the parliamentary law for the gift shop is ordering more than they are exchange someone needs to go throw and make sure that there is not a big bucks of back stock for the gift shop ordering more than the gift shop is selling is an interior(a) control that tramp be fixed. Red Flag 6There are five employees who are paid one fulltime and the rest are half-time. The fulltime employee purchases 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 back some hours would help until we can get the gift shop back to a profit or even just where we are coming out even then I think that should be done.We also need to make sure that there is just one person handling the books if we have to many employees doing the ordering and such than mistakes may 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 helpful to customers and clean the gift shop.