Debtors filling system will be the responsibility of the accounts clerk and is prepared when the business is preparing and updated on a weekly basis. The records are prepared and recorded in the debtors’ accounts. The debtors’ accounts may either be debtors’ receivables or the debtors’ payments accounts and this is determined by the payment method of the debtors. The accounts are usually reviewed either on quarterly basis or annually depending on the volume of work carried out by a business. They may also be reviewed when an audit is being carried out and this has no specific time, since it may either be an internal audit or an external audit. Debtors system filling system is very essential to a business and ought to be part of the accounting systems since it will determine and indicate the financial position of the business. The business is able to know the amount of monies that is out of the business such that when it’s carrying out its financial analysis, such amounts are also accountable.
Cash Book/Accounting System Petty Cash
Preparation of cash book / accounting system petty cash is the responsibility of the accountant. Cash book records only the cash transactions that have taken place in the business, in essence only the cash transactions are recorded. In case of the cash book it is prepared at the end of the month, or when an interim audit is being carried out, that is, after six months period. The period of preparation of such an account also depends also depends on the system undertaken by the business. A petty cash book in this case is a bit different. It is prepared by a petty cashier and records daily activities that are so minimal to be included in the cash and after they accumulate in the petty cash then they are accounted for in the cash book at the end of the period. Mostly, petty cash book is prepared on weekly basis. It is very important to prepare petty cash book since the small transactions within the business that are ignored are the ones which may account for a greater loss when they accumulate.
Ordering System /Creditors System
Ordering system is an indispensable accounting system for business set ups that are large and carrying out large operations. It is mainly prepared by a buyer to a supplier ordering for supplication of materials that are usually specified on the ordering book. A creditor in this case is the supplier. It is a document that is usually prepared in duplicate- one copy is issued to the supplier while one copy is retained by the buyer which might be used for future references. A business requires this book of account as it will be helpful when the buyer receives the goods he or she had ordered for. In essence it will be used to compare what had been ordered against what have been supplied. Ordering system creditors system is reviewed on a daily basis to keep a proper record of the creditors. It also works as an assurance that all what had been ordered were actually received, recorded and accounted for.
Wages- Job Costing
Wages -Job costing is an indispensable accounting analysis in a large business set up with profound business activities. In most cases it is prepared by a financial accountant when determining the remuneration rate for the employees. This is very essential since it aids in determining and analyzing the profitability ratio of a business. It is mostly vital in business set up that is involved in manufacturing activities where there are numerous variables that are involved in producing the final product. Wages job costing will look into all the activities that involved fixed costs, variable costs or both and determine the best way to account for the wages. This is only used when a certain activity is ascertained to have fixed and variable costs attributes. If a business activity does not have such attributes then this aspect lacks any importance in within the business operation. Wages job costing requires to be reviewed whenever a business activity that has the said attributes is carried out as this will ensure that all the costs are accounted for in the final analysis when the business is determining its finances during its financial period.
Taxation Records -Cash Flow Projection
After cash transactions have been projected and accounted for in the financial books, annual tax returns ought to be forwarded to the ATO. This is an essential record to the business as it will help the business know the much it parts with to the government and whether there is some profit generated out of the deductions made. This is carried out on annual basis.
Superannuation- Progress Claims/Invoicing
Superannuation is the process undertaken by the organization in remunerating the employees. This aids the business to determine the progress of the employees depending on the production capability of the employees. Some jobs are remunerated according to the volume of work done. The business will therefore be in a position to determine the reliability of its workforce.
Charge Out/Pricing -Preparing Financial Reports
Preparation of the financial reports is the last step in a business set up and it is carried out on an annual basis. It the responsibility of the financial accountant to prepare financial report, and assign costs for different products so as to come up with the best prices for various products. The financial reports prepared takes into account all the activities carried out the whole year, accumulates them to determine the financial position of the business. The accountant ensures that all the costs are well accosted for in order to avoid underestimation or overestimation of the profits.