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By Steven M. Bragg

ISBN-10: 0471391832

ISBN-13: 9780471391838

* Discusses concerns no longer lined in different books, together with top practices budgeting, last the books, and regulate structures. * comprises curiosity issue tables, pattern kinds for info access, pattern record codecs for inner in addition to exterior stories. * beneficial properties flowcharts and checklists for key regulate issues within the significant accounting tactics.

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The general process flow is shown in Exhibit 3-2. Initially, it appears that the accounting department is only concerned with the very end of the disbursements process. However, there are several key control points in the process that are of considerable concern to the accountant. For example, the “match documents” step in the exhibit refers to the comparison of purchasing, receiving, and supplier invoicing information to ensure that all payments are authorized and correct in amount. What happens to this step if the receiving department decides to allow the receipt of all 19 Pay Suppliers Approve Unmatched Receipts Match Documents Approve Receipt Place Purchase Order Requisition Materials ✔ Production Planning The Cash Disbursements Cycle Process Steps Exhibit 3-2 ✔ Receiving ✔ ✔ Purchasing STOP ✔ Accounting 20 Ch.

Payroll. If there is a company policy requiring manager approvals of pay rate changes, overtime payments, or shift differentials, then there must be a continual information flow between the accounting department’s payroll staff and all department managers. 3-7 SUMMARY The discussion in this chapter has shown that the accounting department does not conduct its operations in a vacuum. On the contrary, nearly every transaction it processes requires some degree of interaction with another part of the company.

The previous argument can be turned around for an active accounting department. If the accounting staff rigidly enforces company standards and acquires a reputation for no deviations from them, the rest of the corporation will be dragged into line. It is especially important that the controller adhere closely to the highest standards, for the rest of the accounting staff will follow the controller’s lead. Conversely, if the controller does not maintain a high ethical standard, the accounting staff will have no ethical leader, and will lapse into apathy over the issue.

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Accounting reference desktop by Steven M. Bragg


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