1. DESCRIPTION OF WORK AND THE ORGANISATION
1.1. The Organization:
Namaste Indian Restaurant is a famous Indian hotel that offered the internship opportunity for a managerial accountant. The organization is the fastest growing hotel business among Indians and South Asian residents in Melbourne, Australia.
The mission of Namaste Indian Restaurant is “to offer Indian taste with quality management services to all ages and people residing in the locality”. Namaste Indian Restaurant started its journey in 2001. The primary goal of the restaurant management is to create a simple food menu that includes Indian food taste in combination with Nepalese Himalsyan flavor. The restaurant is a small business with a capacity of 50+ dining seats in the Melbourne. The restaurant offers diversified menu ranging Indian, Nepalese and fusion of both (Namaste Indian Restaurant, Official website, 2017).
The restaurant offers to dine in, takeaway and catering services. The restaurant has 30+ staff members handling catering, delivery, and dine-in services. There are five key managerial personals i.e. Restaurant Manager (Owner), Head Chef, Head Waiters, Head of Finance/Accounts and Head of logistics. Under these four key personals, other staff members are responsible for routine tasks that include cooking, procurement, serving customers, recordkeeping and others.
1.2 My Involvement
I did an internship as a “managerial accountant” in Namaste Indian Restaurant. During the internship period, following duties I was responsible for performing following duties:
- Book keeping: Accounts Department
- Stock management: Logistics Department
- Staff roaster: Scheduling tasks
- Cash handling: Accounts Department
- Daily sales control: Accounts Handling
- Help in serving: Kitchen Area
- A leadership role: Overall management
My direct involvement was in the accounts department and in-house activities of the restaurant from which I have learned the management of hotel employees.
2. Occupational, Health and Safety Regulations and Procedures
According to the “Australian Workplace Barometer”, the three high-risk industries count restaurants and cafes for workplace health and safety hazards (Dollard, et al., 2012). For restaurants, basic health and hazard challenge incorporates with the work areas and food hygiene. Particularly in a restaurant, dealing with workplace injuries such as burns, strains/ sprains, cuts and other injuries is common. Therefore, occupational health and safety procedures in a restaurant must ensure employee safety training for handling equipment, maintaining appliances and machines, cautions for danger areas and other education. In addition, restaurants must create emergency plans and risk assessment in addition to keeping the environment clean and hygienic.
3. Analysis of Theory
According to experience, accounting is a fundamental activity of any business. Entrepreneurs can do their accounting all alone, however many put resources into an accounting administration that will spare them not simply valuable time but rather the danger of committing expensive money related errors (Rubino, Mazzotta, and Veltri, 2016).
In the restaurant, accounting theories are applicable in different areas. My primary task was accounts handling. Accounting is the way toward recording all the money related exchanges and occasions that happen in the business. Buys, deals, profit, receipts, and installments recorded with the goal that all the cash that streams all through business representation.
The important task was tracking receipts and checks, and recording the transactions. According to GAAP principle, each transaction should be recorded as it happens. I recorded every entry sequentially into assigned books, or PC accounting programming using MS Excel. This type of cautious bookkeeping may appear to be over the best, yet it is basic to the well-being and accomplishment of a business (Aryee, et al., 2015).
In logistics department, I was responsible for managing entries of inflow and outflow. It helped to assess the details of procurement on daily basis. In addition, I was able to utilize the essential data from accounting records to do things like draft budgetary articulations or create critical money related reports. Cash handling activities additionally require accounting records to investigate the monetary condition of their business. Without accounting records, restaurant does not have the capacity to perceive how much cash they are truly making, versus how much cash they lost, nor get a firm feeling of what their benefits are. Likewise, they will not have the capacity to find out regardless of whether meeting money related objectives (Christensen and Nikolaev, 2017).
Using Xero (accounting software), I was able to understand cash handling, forecasting and decision making based on records and data pattern. Accounting software enables you to see whether the profits are sufficient to cover the costs and gives the data that aide the monetary choices. On the off chance that company is not making enough to cover the costs and still procure enough benefit, for instance, at that point in light of the subtle elements in the records, the company can choose where to build profit or cut expenses. The fundamental reason and hypothesis of monetary bookkeeping and announcing is that money related bookkeeping data, as budgetary articulations, ought to give data that is valuable to settling on business and financial choices (Aryee, et al., 2015).
Xero is an exceptional accounting system that helps in managing inventory. The inventory management through Xero enables logistics control. This means one is able to manage shelves and keep the amount as required. This also enables to apply the “Just in Time” (JIT) concept that keeping the useful amount of raw material at the end so that there is less waste. One can efficiently save money using JIT concept and Xero helps in inventory management by displaying exact information of shelves at the back store.
As a leader, I was able to schedule daily tasks of staff using Point of Sale (POS) system. It enables to review employee performance and manage their records. The basic hypothesis that monetary announcing ought to give valuable data to basic leadership likewise perceives that detailing does not exist out of the financial, lawful, political and social condition that the organization works in and where the revealing happens. The fundamental speculations of bookkeeping perceive that bookkeeping rules must be sufficiently adaptable to permit change as the earth changes (Rubino, Mazzotta, and Veltri, 2016).
The applied system of bookkeeping gives that bookkeeping data ought to be important, dependable, tantamount and steady. Importance in bookkeeping alludes to the nature of data to have any kind of effect to a leader. Unwavering quality implies that clients of bookkeeping data ought to have the capacity to depend on the exactness of the data. This quality improvement is by having standard bookkeeping tenets and prerequisites. Likeness and consistency likewise advantage from having sound accounting standards, or GAAP. Requiring money related articulations cling to GAAP implies they are reliable from year to year, and the monetary proclamations of various organizations are about, to some degree, to assess the relative budgetary remaining of numerous organizations (Christensen and Nikolaev, 2017).
4. Critical Review of Industry Related Issue
The restaurant management is largely facing frauds in handling cash/account at a very small scale that they go unnoticeable. There is a need for proper documentation and reporting system for the restaurants to manage the accounts and increase profitability. The relevant literature reveals many significant aspects of frauds in the industry.
Frauds are the deliberate trickiness made by a worker to harm the company resources (Luca and Zervas, 2016). In late history, much real scale cheats executed by workers highlights crevices in organizations inward controls (Law and Kusant, 2014).
Ostensibly, small business ventures have far more atrocious frauds issues than their bigger partners. Most private companies not trading on the public market and in this way do not follow regulations by SOX guaranteeing legitimate bookkeeping systems and interior controls (Law and Kusant, 2014). Resource misappropriation is one of the biggest frauds issues confronting private company because of this void in a direction (Song, et al., 2017). Resource misappropriation is the point at which a man utilizes the property of assets that have a place with someone else for an unapproved reason. This kind of extortion is more pervasive in private company than some other sort of frauds (Bruce, 2017).
At present, amid harder financial circumstances, a few organizations that have satisfactory inner controls frequently let them go to the wayside while attempting to keep up benefits to remain in business. Because of the absence of assets, private ventures regularly confront even a harder time directing the bookkeeping methodology and cash taking care of than their bigger partner organizations. This, thusly, can make significantly more issues for the independent ventures (Sankoloba and Swami, 2014).
According to the study of Yost and Croes, (2016) several restaurants in the industry exemplifies that the internal controls of the firm are weak and therefore, the deficiencies leads to the fraud activity. This is why frauds in small restaurants are increasing at the ever growing rate. Their study validates the fact through qualitative data collection concluding internal control weakness as a reason for frauds in restaurants.
The internship was a great opportunity to increase personal and professional knowledge. In the accounting field, it reveals the much practical need for utilizing the theories. In a small business such as Namaste Indian Restaurant, little knowledge of bookkeeping can revolutionize the overall process of working. It will help in transparent a monetary activity that leads to profits. In addition, the learning outcome is that people need professionalism in even small businesses for moving towards business expansion. In general, application of accounting knowledge can lead to self-determination and job performance justice revealing frauds and handling misconceptions in monetary related activities.
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Namaste Indian Restaurant, Official website, 2017. [Online] Available at: http://namasteindian.com.au/ [Accessed 22 July 2017].
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Yost, E. and Croes, R., 2016. Conditions Associated with Increased Risk of Fraud: A Model for Publicly Traded Restaurant Companies. The Journal of Hospitality Financial Management, 24(2), pp.92-109.