FLosSIES Spa and Salon (Pty Ltd) Background Flossies Spa and Salon was registered as a company on 1 July 2015 under the name Flossies Pty Ltd and is involved in the day spa service industry with a small range of exclusive retail products for sale as well. The spa/salon is located in Western Australia (WA) at premises in Subiaco, while the Office is located in West Perth. The company has been operating for 2 years. Supplies and Inventory are sourced locally and some speciality products are imported from overseas. The Managing Director (MD) of Flossies is Mrs Florence Courtier. She is the majority shareholder, holding 70% of the shares. The remaining 30% is held by her husband Mr Scott Courtier (10%) and her two children Ms Iris Courtier (10%) and son Mr Benjamin Courtier (10%). Mrs Florence Courtier is listed as the only director o determined at the end of each year by the MD. The MD is also paid a salary of $100,000 per annum f the company. All shares are classified as ordinary shares and dividends are Flossies Spa and Salon Pty Ltd is classified as a small proprietary company under the requirements of the Corporations Act 2001, as evidenced by operating revenue being less than $25 million, gross assets are less than $25 million and they employ less than 50 staff. [4 full time staff including the MD and 4 part time staff are currently employed). Being classified as small, they are not required to prepare financial statements in accordance with Australian Accounting Standards. However they are required to keep sufficient records for financial statements to be prepared and audited if required Mrs Florence Courtier has contracted ABC Accounting Services to assist her in keeping better financial records. She has decided she wants to use the Xero accounting system. the financial performance of Flossies Spa and Salon and suggestions for improvement. She is going to pay $5,000 for ccounting Services to 1) set-up her accounts and 2) provide a report as at 30/6/2017 outlining FLosSIES Spa and Salon (Pty Ltd) Background Flossies Spa and Salon was registered as a company on 1 July 2015 under the name Flossies Pty Ltd and is involved in the day spa service industry with a small range of exclusive retail products for sale as well. The spa/salon is located in Western Australia (WA) at premises in Subiaco, while the Office is located in West Perth. The company has been operating for 2 years. Supplies and Inventory are sourced locally and some speciality products are imported from overseas. The Managing Director (MD) of Flossies is Mrs Florence Courtier. She is the majority shareholder, holding 70% of the shares. The remaining 30% is held by her husband Mr Scott Courtier (10%) and her two children Ms Iris Courtier (10%) and son Mr Benjamin Courtier (10%). Mrs Florence Courtier is listed as the only director o determined at the end of each year by the MD. The MD is also paid a salary of $100,000 per annum f the company. All shares are classified as ordinary shares and dividends are Flossies Spa and Salon Pty Ltd is classified as a small proprietary company under the requirements of the Corporations Act 2001, as evidenced by operating revenue being less than $25 million, gross assets are less than $25 million and they employ less than 50 staff. [4 full time staff including the MD and 4 part time staff are currently employed). Being classified as small, they are not required to prepare financial statements in accordance with Australian Accounting Standards. However they are required to keep sufficient records for financial statements to be prepared and audited if required Mrs Florence Courtier has contracted ABC Accounting Services to assist her in keeping better financial records. She has decided she wants to use the Xero accounting system. the financial performance of Flossies Spa and Salon and suggestions for improvement. She is going to pay $5,000 for ccounting Services to 1) set-up her accounts and 2) provide a report as at 30/6/2017 outlining