Private Fitness, Llc

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Now Rosemary must decision to keep Kate or to replace her. I would recommend that she keep Kate as an instructor only and hire an office manager to handle the daily operations and bookkeeping. Rosemary also need to implemented a check and balance software system. She could use an accounting software system that she could also access at home to check that the daily revenue is record in the system and daily bank deposits are correct. She can also install video cameras at the business location to always have access to see what clients are going and coming. With a check and balance software system and video surveillance she can compare the daily activity with the revenue that is being recorded. That way she would not have be on site all day every day during the hours of operations. She can keep the friendship with Kate by giving her the opportunity to stay as an instructor and also with handling the marketing for the fitness club that way she have no access to the money or accounting records.

Some guidelines for hiring an office manager, Rosemary may need to go through a recruiting company where background checks can be conducted before she even start interviewing the future office manager. Rosemary need to make sure that the applicant can be honest with a high level of integrity, and can the applicant truly do the job and will they fit into the company’s work culture.

References:

Slayter, Mary Ellen. Toronto Star [Toronto, Ont] 15 Sep 2007: B9. The pitfalls of going into business with friend; Even if pay is good and the future looks promising, it is usually an unwise decision: [ONT Edition]

Wang, Ying.; Kleiner, Brian H. Management Research News 28.2/3 (2205): 11-12. Defining Employee Dishonesty.

Beebe, Tod V.; McCurnin, Thomas E. Orange County Business Journal 25.22 (Jun 3-Jun9, 2002):26 Even trusted staff can become dishonest bookkeepers.

Anthony, R., Hawkins, D., Merchant, K.A. (2011) Accounting: Texts and Cases (13th edition). Vitalsourse Bookself

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