Accounting

Accounting

1. The Revenue Cycle

   • All events that are involved with the exchange of goods and services with customers
   • Personnel
     • Marketing Director
     • Sales Manager
       • Processes Sales Order
     • PR Personnel
     • Marketing
     • Customer Service
   • Logistics
     • Optimal Inventory
     • Orders processed and shipped
   • Finance/Accounting
     • Orders documented
     • Update all records
   • Source Documents
     • Customer Order
       • Customer Orders Goods
         • Receive Customer Order
         • Order Acknowledgement
           • Sent to Customer
           • Details of Order Confirmed
             • Credit Check Performed
               • Major control Ensures customer is able to make payment
         • Trigger
     • Order Acknowledgement
     • Credit Application
     • Sales Order
       • Receipt or verified customer order
         • Process Customer Order
         • Verify goods available
           • Multiple copies of documentation dispersed
         • Trigger
     • Goods Packing Slip
       • After receiving packing slip
         • Ship Goods
         • Goods located and prepped for shipping
           • Shipped after verification
             • Copy of shipping sent to billing
         • Trigger
     • Bill of Lading
     • Shipping Notice
     • Sales Invoice
       • Receipt of Shipping notice
         • Billing and Customer Service
         • Trigger
         • Reconcilliation carried out between shipping notice and sales ordeer
           • Payments received from customers
             • General Ledger updated
     • Remittance Advice
     • Customer Service Log
       • Maintained for all customer enquiries

2. The Payment Cycle

   • Logistics
     • Inventory Control
     • Purchasing
     • Checking Vendors
     • Storing Goods
   • Finance and Accounting
     • Processing Invoices
     • Tax Planning
     • Maintain Accounts Payable
     • Budgeting
     • Update all accounting records
   • Personnel
     • Purchasing Agent
       • Buys on behalf of orginisation
     • Financial Controller
       • Oversees operations of finance and accounting unit
   • Order
     • Request Goods
       • Order Goods
         • Receive and verify goods
           • Pay Vendor

3. CONTROLS

   • Internal Controls
     • Helps the organisation maintain structure and reach its objectives
       • affected and implemented by management to provided reasonable assurance
         • Preventive
           • Designed to errors or irregularities occuring
             • e.g. Input Controls
         • Directive
           • Will not prevent errors from occuring but will alert those who use the system
             • E.g database queries, internal auditing
         • Corrective
           • Designed to correct an error after it has occured
             • E.g Disaster Plan, virus recovery software

4. Corporate Governance

   • Systems by which companies are directed and managed
   • How risk is monitored and systems optimised
   • Factors Leading to strong governance
     • Lay solid foundations for management and oversight
       • Structure the board to add value
         • Promote ethical and responsible decision making
           • Safeguard integrity in financial reporting
             • make timely and balanced disclosures
               • Rspect the rights of shaareholders
                 • recognise and manage risk
                   • encourage enhanced performance
                     • Remunerate fairly and responsibly
                       • Recognise the legitimate interests of shareholders
   • IT Governance
     • Adding Value
       • Minimising Risk
         • Managing IT Strategy
           • Measuring Performance
             • Managing Resources
     • Stages
       • Analysing Needs
         • Acquiring IT
           • Maintaining IT
             • Monitoring IT