Peyton from severe food allergies. After a successful

Peyton Approved is a company
that specializes in making hypoallergenic and all natural dog treats.  All of the treats are formulated for dogs
with allergies and eliminate any additional allergen exposure. The company was
started after discovering that the family dog (Peyton) suffered from severe
food allergies.  After a successful year
of making and selling homemade all-natural hypoallergenic treats out of the
home.  The opportunity to open and own a
dog treat bakery has presented itself.  For
this reason I formally present this request for funding to expand Payton
Approved.

Overview of
the Company’s Accounting System

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Payton Approved currently
uses the accrual basis of accounting to track its finances.

This accounting method helps the business stay organized
and project for its future. It also allows the business the ability to seek and
take advantage of opportunities as they become available.  

In addition, by using the accrual basis of accounting,
the business is more equipped to manage any financial challenges that may
arise.  It also helps support responsible
practices within the company by maintaining and properly managing the company’s
revenue and expenses without risking the success of the business.

Accounting Process and Internal Controls for Cash

Peyton Approved uses several strategies to ensure responsible
financial accounting practices.  These
strategies include, but are not limited to: consistently journaling accounting
transactions, creating monthly and quarterly accounting cycle reports, following
all steps of the accounting cycle report process, creating monthly and
quarterly income statements as well as implementing accountable internal
controls and separation of duties.  These
strategies have been selected because they keep a business organized and they
help recognize any opportunities for improvements.  These strategies also work to show the
transparency of how the business is operating and helps reduce or avoid any
poor business practices.  The overall
accounting process consists of recording entries as soon as a transaction takes
place.  All statements are produced and
reviewed on a monthly basis to help reduce and/or avoid any discrepancy when closing
out accounting cycles.  The company’s cash
internal controls include a separation of duties by having various employees handle
the accounting cycle process.  Each
employee is responsible for a different step in the accounting cycle avoiding
any opportunity of one employee having too much control over the financial
aspects of the business.  This allows the
company to have accountability
of its financial position at all times.  All
employees responsible for a portion of the cash internal controls are hired after
a full background check has been conducted.  To ensure minimal or no mistakes, all
transactions are recorded as soon as they are received.  The company also performs a daily count and
balance, as well as surprise audits.

Results of Operations and Strengths and Weaknesses of
the Company

The results of operations
for Peyton Approved have demonstrated a very solid business with tremendous
opportunity for grown and expansion.  These
results tell the company how well it is performing and if there are any
opportunities that can be pursued.  The
company is doing well in maintaining its accounting and the process used to
create its products.  The company also
maintains a high customer satisfaction rating and provides excellent customer service
and client relations.  Currently, the
only aspect the company needs to improve on is to hire more employees in order
to continue delivering its excellent product and customer service.  

The company’s financial
statements show the company’s financial position by disclosing its performance and
indicating where improvements need to be made. In other words, by using the role
of ratio analysis, the financial statements are able to show the companies’
ability to pay its long and short-term liabilities and its profitability.

Analysis and Opportunities

Overall, Peyton Approved is heading
in the right direction by proving its ability to maintain a steady growth and has
performed with transparency. Given its strengths, the company can seek new opportunities
in a nationwide market.  These opportunities
will be beneficial in providing the company with more revenue options and
providing growth potential on a much larger scale.

In completing this bank memo
I wanted to present you with Payton Approved and provide you with information
regarding its successful trajectory.  I
wanted to share information regarding our business practices and accounting
procedure to back-up its success statements.

My goal in providing this bank memo was also to show
the business potential Payton Approved has with the requested financial
assistance.  At this time I would like to
request a meeting with you at your earliest convenience in order to provide you
with the company’s reports and financial statements.

x

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