Paper Trail Accounting for Louie’s Cocktail Lounge
Abandoning the Paper Trail Accounting Method for Louie’s Cocktail Lounge
Lisa L. Hollis
Keller Graduate School of Management
The purpose of this proposal is to examine new accounting methods for Louie’s Lounge, eliminating the paper trail that has become the norm for this establishment. The implementation of a new and improved method for accounting reasons will be thoroughly discussed with the revelation of how the new method can be beneficial to the company. One of the issues that is now being faced by Louie’s is the long and unwinding paper trail of receipts hand written by some of the vendors that currently ...view middle of the document...
It’s obvious that the management realizes there is time for change in some of the traditions of the business. Through this proposal and the research included, management of Louie’s will find the recommendations will be cost efficient and beneficial to the company in the long run.
Background of the Company
Louie’s Cocktail Lounge was established in June, 1965 by the late Mr. Louis J. Hendrix, Sr. As a young child, Mr. Hendrix always had the dream of being a successful business owner. As the years went by, Mr. Hendrix graduated high school and then joined the Army. After serving many years in the military, Louis received an honorable discharged and found employment with The Chrysler Corporation in Detroit, MI where he remained employed for the next 30 years. The whole time Louis was working for Chrysler he was penny by penny, dollar by dollar putting money aside saving for his life long dream of being a business owner. June 25th, 1965 that dream became a reality. The same day he retired from Chrysler, Louis had a grand opening for the first of the three cocktail lounges all on the same street within 1 mile of each other. First there was Papa Dots, Louie’s Lounge and then the Cobra Lounge. Along the way, Louis had begun his family, 5 children, 4 of which are his sons and 1 daughter. Papa Dots and the Cobra Lounge were managed by his two eldest sons, Louis Jr. and Eric, while his name sake Louie’s Cocktail Lounge was managed by himself. Business was plentiful for many years to come. Eventually, business started to slack and Louis made a very important business decision to close down Papa Dots, but before he could shut down, there was an offer placed on the table to sale instead of closing. Needless to say, Papa Dots was sold to an undisclosed investor. This left the remaining two lounges. The Cobra and Louie’s Lounge continued to thrive in business. In 1982, the Cobra Lounge unfortunately was lost in total due to a fire. Louis decided not to rebuild the Cobra and placed his all and all into the remaining, his name sake, Louie’s Cocktail Lounge. Louie’s continued to thrive in sales. Louie’s was known as the neighborhood bar that anyone in need of help could go and Louis was always there to lend a helping hand. Whether it was making large pots of chicken and dumplings to feed the needy or offering the neighborhood handy men financial assistance for repairs and clean up at the lounge. Louie’s continued to build it’s clientele over the years with the help of his 4 sons, and eventually his grandchildren. As one of the grandchildren that live to keep this business afloat; when I became of legal age, I found myself being a frequent visitor to see how business was done and what I could do to incorporate my knowledge to make things run a little smoother. However, Louis and his business state of mind didn’t allow too many people to know exactly how he ran the business, nor did we know exactly how he kept track of everything, from...