Buddy prepares a list of inventory to order each week and gives it to Rob who places the order and records it in the accounting system. When the order arrives from the vendor, Buddy does a physical count of the items received and verifies this count to the delivery list or packing list. Buddy inspects each of the items for quality and on occasion requests that received items be returned to the vendor. When this happens he completes an item return form and places the items to be returned in a special place in the cooler or storeroom. The physical count, verified packing/delivery list, any discrepancies, and an item return form (if there is one) are left in the office for Rob. If there is an item return form, Rob contacts the vendor for permission to return the item. When the invoice arrives, Rob compares the invoice to the annotated packing or delivery list done by Buddy. He notifies the vendor of any needed changes to the invoice (e.g., return not reflected or a vendor mistake in the order) and prepares the check to make payment and makes all the needed entries in the accounting system. After Sally signs the check, Rob mails it to the vendor. Buddy schedules the work shifts for all the servers, cooks, and prep cooks. All employees' hourly pay rates are set by Buddy and Sally. Buddy's and Sally's salaries are set by Sally in consultation with Buddy. Each day they work, the hourly employees record their hours on a paper time card Rob prepares the bi-weekly payroll by first verifying the time cards against the work schedule. Any discrepancies are noted and given to Buddy for resolution. Once the hours are verified, Rob prepares the paychecks, makes the necessary entries in the accounting system and gives the checks to Sally for her verification and signature. Sally then distributes the signed paychecks. During each pay period, Sally's and Buddy's work attendance is verified by Rob and their checks prepared. Sally signs and distributes these checks too. At the end of each calendar year, which is also the accounting year, Sally has a local, independent CPA, Alan Brady audit the accounting "books," prepare the financial statements, and tax returns for BSR. Upon review of the financials, Sally decides the amount of profit to take for personal use and the amount to leave in retained earnings. Additionally, using these financials Sally determines the need to take out an operational loan from her commercial bank or to repay carly any existing operational loan.