Gym
Content
4.0 Issue/ Issue/ Proble Problem m faced faced by entit entity y
It is normal for business to have problem during running their business. There are several problems that occur at Mygyc Mygyc Gym. The problems are: 4.1. 4.1.1 1
Over Over dele delega gati tion on of power power In Mygyc Gym, since the owners live far away from Puncak lam, therefore
they delegate their power to the staffs. !asically the staffs have power to control over daily activities of the business. ll the operations are handling by the staffs. There are lacks of supervision supervision by the owner towards towards their staffs. "elegation "elegation of power sometimes could be good to the business, but in this case shows that over delegation of power gives negatively effects to the business. This is mainly due to no specific task for each staffs. In other words, no segregation of duties between the staffs as a s all staffs are responsible and doing for all works. ll staffs handling handling in sales as well as deposit deposit the cash sales. This may lead to fraud since manipulation of sales may occur within the staffs. The staffs open and closed the gym by themselves. The The other problem problem is some of the staffs staffs sometimes sometimes are not punctual and take granted with the opening opening time of the gym. #$I%I&G 'T(() 'T(() 4.1. 4.1.2 2
No pro prope perr d doc ocum umen enta tati tion on In Mygyc Gym, there is no proper of documentation for the transactions occur.
The owner did records transactions, but sometimes there are a few items or tran transac sacti tion onss have haven* n*tt been been recor recorde ded. d. This This is due due to the the owne ownerr have have no knowledge on accounting and they lack of e+pertise in handling the a ccount. It may give problem to calculate either the gym have reached breakeven or not since the recording are not accurate. 4.1. 4.1.
!arr !arrie ierr wit" wit" upper upper man manag agem emen entt In Mygyc Gym, the staffs did mention that there is barrier between the owner
and staff. 'ince the owner is not always in the gym, therefore they have problem to communicate efficiently with the owner. s said by the staff, there is minor damage in one of the euipment at the gym. The problem is the owner did not alert on what have been told by the staff. The owner took very slow action to solve the issue even the staff has informed the owner many times. #.0
$ecommendation $ecommendation to improve t"e current situation for t"e sustainability of t"e entity in t"e industry
#.0.1
%&ert "ig"er internal control
Mygyc Gym should implement higher internal control since there is delegation of power towards their staffs. s in the gym, the owner has already put in cctv inside the premise to monitor the gym operations as well as their staff. &evertheless, owner need to e+ert higher internal control to since put in cctv only is not an effective way to monitor daily operations. -wner need to do a spot check to ensure that the operation is in usual activity. !esides that, the owner t needs to supervise their staffs regularly to ensure that their staffs are doing work accordingly and correctly. !esides that, the owner need to ensure that there is segregation of duties between the staffs. #.0.2
'ired e&pertise
'ince the owner has no any backgrounds in accounting, therefore he needs to hire an e+pertise or accountant to keep and organie the account record. part from that, proper filling is a must in a business. ll the receipts and bills need to be file in. /eeping the account safe and accurate is essential no overview the financial performance of the business. !esides that, owner can make a budget or planning strategies if the financial infor mation is properly recorded.
0.1.2
It is normal for business to have problem during running their business. There are several problems that occur at Mygyc Mygyc Gym. The problems are: 4.1. 4.1.1 1
Over Over dele delega gati tion on of power power In Mygyc Gym, since the owners live far away from Puncak lam, therefore
they delegate their power to the staffs. !asically the staffs have power to control over daily activities of the business. ll the operations are handling by the staffs. There are lacks of supervision supervision by the owner towards towards their staffs. "elegation "elegation of power sometimes could be good to the business, but in this case shows that over delegation of power gives negatively effects to the business. This is mainly due to no specific task for each staffs. In other words, no segregation of duties between the staffs as a s all staffs are responsible and doing for all works. ll staffs handling handling in sales as well as deposit deposit the cash sales. This may lead to fraud since manipulation of sales may occur within the staffs. The staffs open and closed the gym by themselves. The The other problem problem is some of the staffs staffs sometimes sometimes are not punctual and take granted with the opening opening time of the gym. #$I%I&G 'T(() 'T(() 4.1. 4.1.2 2
No pro prope perr d doc ocum umen enta tati tion on In Mygyc Gym, there is no proper of documentation for the transactions occur.
The owner did records transactions, but sometimes there are a few items or tran transac sacti tion onss have haven* n*tt been been recor recorde ded. d. This This is due due to the the owne ownerr have have no knowledge on accounting and they lack of e+pertise in handling the a ccount. It may give problem to calculate either the gym have reached breakeven or not since the recording are not accurate. 4.1. 4.1.
!arr !arrie ierr wit" wit" upper upper man manag agem emen entt In Mygyc Gym, the staffs did mention that there is barrier between the owner
and staff. 'ince the owner is not always in the gym, therefore they have problem to communicate efficiently with the owner. s said by the staff, there is minor damage in one of the euipment at the gym. The problem is the owner did not alert on what have been told by the staff. The owner took very slow action to solve the issue even the staff has informed the owner many times. #.0
$ecommendation $ecommendation to improve t"e current situation for t"e sustainability of t"e entity in t"e industry
#.0.1
%&ert "ig"er internal control
Mygyc Gym should implement higher internal control since there is delegation of power towards their staffs. s in the gym, the owner has already put in cctv inside the premise to monitor the gym operations as well as their staff. &evertheless, owner need to e+ert higher internal control to since put in cctv only is not an effective way to monitor daily operations. -wner need to do a spot check to ensure that the operation is in usual activity. !esides that, the owner t needs to supervise their staffs regularly to ensure that their staffs are doing work accordingly and correctly. !esides that, the owner need to ensure that there is segregation of duties between the staffs. #.0.2
'ired e&pertise
'ince the owner has no any backgrounds in accounting, therefore he needs to hire an e+pertise or accountant to keep and organie the account record. part from that, proper filling is a must in a business. ll the receipts and bills need to be file in. /eeping the account safe and accurate is essential no overview the financial performance of the business. !esides that, owner can make a budget or planning strategies if the financial infor mation is properly recorded.
0.1.2
