Leonor Blg. Door No.

1
Illustre Street Davao City
Contact: +639970611169
Email: bdptconsultancy@gmail.com

“Quality consultancy”
Cover Page
Table of Contents

Part I- Company Analysis

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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“Jeanalia Laundry Shoppe” is a service-oriented kind of business which offers

laundry services such as washing and folding of clothes. It aims to serve the
laundry needs of household and industrial clients such as hospitals,
restaurants and especially students near the establishment.

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.

Jeanalia knows and understand that to do laundry is a very basic household

need and that customers’ time is important, and that they offer the best care,
and provide quality service and highly hygienic operation. Jeanalia Laundry
Shoppe operates 7:00 am to 8:00 pm during weekdays. To date, the business
has successfully made its way to be known where it is located.
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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

Accepts the laundry service order.

Accepts payment from the customer.
Releases the finished laundry.
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1. We will not be responsible for weak, defective or adulterated

materials or dyes not obvious to prior processing.

2. We do not guarantee stain removal.

3. We will not be responsible for loss or damage of buttons,

ornaments and any other objects fastened to the garments.

4. Errors must be reported within 24 hours from time of claim

accompanied by this invoice.

5. Garments if not claimed within 30 days after due date will be

charged double or exceeding 40 days be sold to convert charges.

6. We will not be responsible in case of fire or force majeure.

7. Our liability shall not exceed six (6) times the amount we charge
per item.

8. This is a contract of service and receipt of the above articles.

9. Individual Laundry Service shall be in a minimum of 3kgs.

10.If the individual laundry service is less than minimum of 3kgs. still
it is charge for 3kgs.
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ACCEPT CUSTOMER JOB ORDER

Accept job order from
regular and walk-in
customer.
CHECK IF LAUNDRY REACHES A Check the laundry if it
MINIMUM OF 3 KILOS
reaches the minimum of
three (3) kilos.

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

Perform the service

requested.
CASH COLLECTION
Collect payments from
the customer.
TO SAFETY
DEPOSIT
BOX
Deposit cash to safety
deposit box.
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OWNER

LAUNDRY EXPENSES CASH UTILITY BILLS

BUY DETERGENT AND FAB-CON IN THE ELECTRICITY AND WATER

GROCERY STORE

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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STATEMENT OF FINANCIAL STATEMENT OF PROFIT OR LOSS

POSITION ACCOUNTS ACCOUNTS
Account Title Account Title
ASSETS REVENUES
Cash Laundry Income
Supplies
Washing Machine EXPENSES
Supplies Expense
LIABILITIES Light Expense
Income Tax Payable Water Expense
Internet Expense
EQUITY Tax Expense
Josephine Jemino, Capital Transportation Expense
Josephine Jemino, Drawing Repairs Expense

PARTICULARS ENTRIES DEBIT CREDIT

Service rendered Cash xxx
for cash

Laundry Income xxx

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PARTICULARS ENTRIES DEBIT CREDIT

Purchase of Supplies Supplies xxx

Cash xxx

Payment for Light Light Expense xxx

Cash xxx

Payment for Water Water Expense xxx

Cash xxx

Payment for Internet Internet Expense xxx

and Telephone
Cash xxx

Payment for Taxes Tax Expense xxx

Cash xxx

Payment for Transportation xxx

Transportation Expense
Cash xxx

Payment for Repair Repair Expense

Cash

Cash Withdrawal by Josephine Jemino, xxx

owner Drawing
Cash xxx
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LAUNDRY SHOPPE
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OBJECTIVES:

The realization of the engagement is to provide JEANALIA LAUNDRY SHOPPE

with guidance in fulfilling its fiscal responsibility towards its funding sources.
The Accounting Policies and Procedures Manual establishes the
organization’s guidelines in relation to the appropriate accounting for Cash
Receipts & Cash Disbursements. In connection with this, the engagement
team have come up with the following recommendations:

- Recommended organizational chart

- Recommended revenue policies and procedures

- Recommended expenditure policies and procedures

- Recommended chart of accounts and pro forma entries

This manual is to be used by JEANALIA LAUNDRY and its employees to assure

that financial resources are properly safeguarded and utilized only for
authorized purposes.

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

Releases the finished laundry

Accepts the claim stub.
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(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.

RECOMMENDED REVENUE POLICIES

After weighing the cloths, the authorize person should issue three copies of Service
Order Receipt. One copy is for the customer, the second copy should be attached in
the package of the cloths, and the third copy is for accounting purposes.
The duties of the person who receives the payment and the person who maintain
the accounting records should be separated.
The income earned from the laundry services should not be used for personal
expenses.
The cash on hand that is ready for deposit should be kept intact in a safe box, cash
on hand should be deposited monthly.

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

WEIGH THE CLOTHS,

CHECK IF THE CLOTHS
REACHES 3 KILOS

IS IT 3

KILOS?

YES NO
S

Charge
to 3
kilos

Prepare service order,

get the name and
contact no. of customer

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

Queue area and

cash collection

Claimed Cash
cloths collection

Cashier

Ready
for
deposit
?

YES NO

Bank Deposit Safe

cash box
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(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.

RECOMMENDED EXPENDITURE POLICIES

All inventory items, whenever possible, will be made on a “Purchase Requisition

System” except for utility expenses.
There must be a set of policies and procedures in order to assure and avoid
unnecessary purchase of inventories and that inventories are being monitored.
All disbursement must be accompanied by supporting documents.
Copies of official receipt must be properly filed to ensure that it is charged in the
appropriate accounting period.
The company must have a supplier for their inventory to minimize price volatility
and can reduced cost.
Additional employee must also need if the company wants to expand in order to
improve their productivity.

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)

Statement of Financial Position

Statement of Profit or Loss Accounts
Accounts
Acct Account Title Acct Account Title
No. No.
100 ASSETS 400 REVENUES
101 Cash 401 Service Income
102 Accounts Receivable
103 Unused Supplies
104 Property and Equipment 500 EXPENSES
105 Accumulated Depreciation 501 Supplies Expense
502 Light and Water Expense
200 LIABILITIES 503 Telecommunication Expense
201 Accounts Payable 504 Depreciation Expense
202 Income Tax Payable 505 Taxes and Licenses
506 Transportation Expense
507 Repairs and Maintenance
300 508 Miscellaneous Expense
EQUITY
301 Josephine Jemino, Capital

302 Josephine Jemino, Drawing

303 Income and Expense

Summary

(RECOMMENDED)
PARTICULARS ENTRIES DEBIT CREDIT

Service rendered for Cash xxx

cash
Service Income xxx

Collection of Cash xxx

Accounts Receivable
Accounts xxx
Receivable
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(RECOMMENDED)

PARTICULARS ENTRIES DEBIT CREDIT

Payment of Accounts Accounts Payable xxx
Payable
Cash xxx

Purchase of Supplies Unused Supplies xxx

Cash xxx

Payment for Utilities Light and Water Expense xxx

Cash xxx

Payment for Internet Telecommunication Expense xxx

and Telephone
Cash xxx

Payment for Taxes Taxes and Licenses xxx

Cash xxx

Payment for Transportation Expense xxx

Transportation
Cash xxx

Payment for Repair Repairs and Maintenance xxx

Cash xxx

Payment for Miscellaneous Expense xxx

Miscellaneous
Cash xxx

Cash Withdrawal by Josephine Jemino, Drawing xxx

owner
Cash xxx
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September 26, 2018

Josephine Jemino
Owner
Jeanalia Laundry Shoppe
66 Fr. Selga St. Davao City

Dear Ma’am, Jemino:

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:

1. Accounting Information System

2. Operations and Management Audit
3. Business Process Re-engineering

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.

Thank you very much.

Sincerely yours,

Kit Bryan Balcita

Industry Representative
BD-PT Consultancy Services
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September 27, 2018

Josephine Jemino
Owner
Jeanalia Laundry Shoppe
66 Fr. Selga St. Davao City

Dear Ma’am, Jemino:

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:

To develop an accounting manual which contains the following:

1. Pro forma of financial statements specifically statement of financial position

2. Organizational structure, accounting policies and procedures used through a
flowchart
3. Forms necessary and common to the company’s conduct of business
4. Pro forma of book of accounts befitting for the business

NATURE AND SCOPE OF WORK:

1. Review of accounting system and provision of accounting manual.

2. Inquire appropriate personnel for thorough understanding of the operations
of the business and assessment of controls employed
3. Inspect records and documents in substantiating the flow of resources of the
entity
4. Review and analyze business affair

FEES AND BILLING:

This engagement will be conducted free of charge.

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TIMETABLE AND DELIVERIES

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:

The client agrees to cooperate fully with the Consultants by:

1. Providing complete information or documents that volunteer deems useful
or necessary for the representation during the project;
2. Assisting consultant in obtaining information and documents from any other
sources which volunteer deems useful or necessary for the representation during
the project; and
3. Maintaining regular contact with Consultant as is necessary to complete the
project.

ROLES OF CONSULTANT:

Consultant will rely on the information and documents provide by Client.

Consultant agrees to:
1. Keep the client informed about the status of the project;
2. Keep all sensitive information provided by the client confidential unless
authorized by the Client to disclose it;
3. Consult with the client before making any significant decisions about the
project; and
4. Return all original documents that were furnished by Client.

Confirmed and Signed:

KIT BRYAN BALCITA

Industry Representative
BD-PT Consultancy Services

JOSEPHINE JEMINO
Owner
Jeanalia Laundry Shoppe
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BD-PT COSULTANCY SERVICES

ENGAGEMENT PLAN
COMPANY: JEANALIA LAUNDRY SHOP

Assigned Task Assigned Personnel Estimated time to

perform the Task
• Company selection and distribution All members Sept. 17
of task with corresponding time
frame.
• Preparation of Engagement Plan, Portillo, I. L. Sept. 18
Ghantt Chart and Engagement Taganait, G.
Letter. Pagaran, J.
• Generation of interview questions. All members Sept. 19
• Initial interview All members Sept. 20-21
• Observation of accounting practices- Balcita, K. Balcita Sept. 21
Current process and procedures. Tagra, J.J.
Del Castillo, S.D.
• Preparation of Client’s Company Balcita, K. B. Sept. 22
Profile- Company Background and Pagaran, J.
Organizational Chart.
• Preparation of Revenue Cycle Portillo, I. L. Sept. 22-24
Narrative Del Castillo, S. D.
• Preparation of Expenditure Cycle Tagra, J. J. Sept. 22-24
Narrative Taganait, G.
• Industry Analysis and All members Sept. 22-24
Recommendation
• Preparation of Accounting Manual All Members Sept. 25-30

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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