The Accounts Department Essay
The Accounts Department
5.0 CPL was formerly part of the Ashstead Plc but was the subject of a management buyout (MBO) from its previous owners six year ago by five directors-Greg Pearce, Jane Yip, Ruth Jones, Ahmed Khan and Susan Marther. Ashstead and in the everything from brick of the butter and it 2005 when the initial decision was made to move the business model away from being a conglomerate. It was decision that lead to MBO to Chic Paints Limited. 5.1 In early April 2013, Jane Yip, who was that finance director of Chic Paint Limited left the company and was replace by Dave Whistler. 5.3 The purpose of the accounts department is to complete all activities relating to the production of the accounts including sales and purchase ledger and payroll. Due to some of the identified weakness there is management accounting activity or cash flow forecasting. An organization chart is included in appendix 1 5.4 The accounts department-key internal stakeholders
5.4.1 The accounts department consists of finance director who has responsibility for the general strategy of the company as a whole; he is in charge of all accounting, finance, and IT issues and personnel. Many of these day to day responsibilities are delegate to the Chief Account. He also produces the manual report, including its statutory accounts, deal with all the banking and finance issues, fulfills the role of the company secretary to handles all legal issues. 5.4.2 Chief accountant is responsible for day to day running of CPLs Accounts Department. Involves in supervising the work of the accounts clerks who run the transaction accounting system on the general ledger, She has number of staff reporting to her including the costing technician, payroll clerk, accounts payable, accounts receivable clerk ,credit controller, general ledger clerk and accounting system technician. She personally management accounts, bottom up annual production and co-odination, authorizes payment of invoices, make NIC and PAYE, managing day to day cash flow and ensuring the working cycle is kept to level set out by the finance directors.
5.4.3 Accounts Payable Clerk is responsible for entering all suppliers’ invoices and credit notes into the accounts payable or issuing debit notes where necessary, for reconciling supplier’s statements to the accounts payable ledger and for controlling creditor payments 5.4.4 Credit Controller is responsible for all data input into the ledger, which involves raising sales invoices and credit notes, producing monthly statements and reconciling debtor payments. As the ledger is only updated monthly, she has to use spreadsheets for credit controls purposes, and also for carrying out the company’s credit control procedures, This involves making online credit checks on all new credit customers and recommending a credit limit to the finance directors and Sales Manager
5.4.5 The accounts department is required to inter-relate with other departments in CPL such as production department so they are can be aware of inventory and staff hour worked for the production of payroll. They also need to interact with sales department so invoices can be produced and payments are required to the purchasing department to order goods and make. 5.4.6 The accounts department uses micro excel spreadsheet to record transactions which it then manually moves to the ledger at the month end which run on the software written for CPL and enable trial balance and financial statement to be produced, inventory control is done by excel and sage 50 used for payroll.