- Published: October 31, 2021
- Updated: October 31, 2021
- University / College: University of Wollongong
- Language: English
- Downloads: 48
The food chain restaurant ‘La Casa de Tono’ is performing very well on the basis of financial results. However, there are some weak points in the working methodology of the ‘La Casa de Tono’. Therefore, it is recommended to purchase a well developed computer program for creating, maintaining and altering all the financial transactions of the business. Currently, the business is using outdated computer program which is producing results on the basis of assumptions or estimations. Therefore, in these circumstances, it is recommended for the management of the ‘La Casa de Tono’ to hire a computer expert and askhim to develop a customized computer program according to the needs of the business. This action, from the management of the business will reduce the expense of updating the computer system of the business.
Another recommendation for the management of the business is to hire highly qualified and experienced individual, to compile and illustrate the financial performance of the business on annually and quarterly basis. ‘La Casa de Tono’ is generating a huge amount of profits every month; however, there is no clear representation of the expenses and loss making products of the business in the outdated system of the business. By hiring a proper and an eligible individual for the accounts of the business, the management of the business will be in a position to identify the weak areas of the business, such as problems of stock valuation and tax arrangements. Moreover, it is recommended that the management of the business must compare their financial performance with the financial performance of their competitors. By comparing the financial performances, the management can estimate the future business forecast and threads existing in the local markets.