Accounting Manager - Financials

Solution Preview

Applied Accounting

I have just purchased a small mfg. company that does not have an accounting manager.

We Mfg. 3 to 5 products from raw materials to the finished product.

I have hired two (2) two year accounting graduates to work in the accounting dept. One will be the accounting manager and the other will be the assistant and complete other administrative tasks. They both will wear many hats.

I have also hired a Vice-President to oversee all administrative activities.

We have purchased the QUICKBOOKS ACCOUNTING SOFTWARE package for use in our company.

We will be doing the following processes in-house:
? General Ledger/financials
? Payroll
? Accounts Receivable
? Accounts Payable

Question

You are being hired to compile a reference manual for the accounting dept. to use for:

? Monitoring the financial side of the business.

Every month the general ledger will be examined by the accounting manager and he will report on any unusual transactions related to the assets of the company, the liabilities, the owner's equity, revenue, expense, gains and losses.
Also the accounting manager will examine the payroll totals during the months and report to you if there are any unusual payments that are outside the policy of the company. The accounting manager will also monitor the deductions made from the pay of the employees and report if the deductions are unusual in any way.
The accounts receivable shall be monitored at the end of every month and the figure compared with the average accounts receivable monthly figures. If there is a variation that is greater than 10% of the average the accounting manager will investigate the cause and report it to you.
The accounts payable will also be examined by the accounting manager every month and if a figure is more than 10% greater than the normal monthly average, the accounting manager will investigate the cause and report it to you.
The accounting manager will also be required to report on the financial performance of the firm every month and should comment on the variances from the budgeted costs, expected revenues and exceptional receivables/payables transactions.

? Maintain good financial controls.
There following will be the control requirements for cash:
1. The transactions entered in the cash book by the accounts assistant must have back up documents like bank statements, deposit slips, check requisitions, paid check or invoice. Each of these documents will be stored chronologically.
2. The cash receipts are to be issued only through computerized receipts and they will be number serially.
3. Petty cash issued will have vouchers that will be filed in a numerical order and will have a purchase receipt.
Cash registers and documents will be kept in secure cabinets provided and cash will be stored in automatically locking cash registers.
In addition,
The accounting manager will ...