Sandwich Master Ltd Essay Example

cards. Additionally, this system will ensure secure storage of employee payroll records.

The recommended sage computerised payroll package has an approximate cost of ?305 + VAT for purchasing the software. Additionally, there will be a charge of ?55 + VAT per payroll clerk for training them on how to use the software package.

Section 10 of this report contains a comprehensive cost benefit analysis, measuring 2.5.

Implementing the suggested improvements will strengthen controls and reduce fraudulent payroll acts within the system. Consequently, this will enhance the organization's finances and overall performance, resulting in increased profitability.

The methodology is as follows:

3.1 The current accounting system had various problems, including the collection of information from retail outlets and its reporting by managers.

During a six-month period, the current system underwent evaluation to assess its performance and create strategies for enhancement and administration. This evaluation encompassed random spot checks, employee interviews, as well as gathering their feedback and addressing their concerns regarding existing workplace practices.

During a six-month period, the current accounting system was reviewed to perform a SWOT analysis (Appendix 2), which helped identify weaknesses and propose recommendations for improving the existing system.

To support the development of recommendations and investigation into external regulations affecting SML products, research was conducted by accessing and reviewing multiple websites. The websites used for this research included http://shop.sage.co.uk/payroll.aspx, http://www.clockingsystems.co.uk/clock-cards.htm, and http://www.bakersfederation.org.uk.

The accounting system was examined using a Fraud matrix (Appendix 5) to detect and examine potential fraud. Additionally, a thorough analysis of the existing controls were conducted to prevent such incidents.

Introduction to the Organisation

Background:

4.1

SML is a bakery business in the retail industry, with over five years of trading experience and a rich history spanning over seventy years. The company operates a chain of more than eighty retail outlets and has expanded by establishing six regional bakeries in recent times. Its specialty lies in creating sandwiches using bread that is freshly baked on-site.

The business, operating for over seventy years, was a medium-sized family-run company in the midlands. However, it was acquired by four partners - Courtney, George, Emma, and Jane - upon the retirement of the original owner. Since then, they have expanded the business and set up its head office near Nottingham where the management and accounting departments are located.

The business's growth and expansion have mainly been funded through bank loans, with a small portion of the owners' personal capital being utilized.

The following text is a customer profile:

4.2.1 The organization's main customers are primarily individuals who buy products for lunch. A large portion of the revenue comes from retail outlets during the lunch period, and there are also trade customers.

The structure of the organization is as follows:

4.3.1 There hasn't been much personal investment from the owners towards business expansion.

The head office of the company is located in Nottingham, which houses the management and accounts departments. The company has a flat and centralized structure, with all five senior accounts staff reporting to the company accountant. The company accountant is responsible for approving all payments and preparing monthly management accounts and reports for the finance director, George Bartlett.

George Bartlett has overall responsibility for the company's accounting procedures and systems. (Organisation chart Appendix1)

The structure of systems is 4.4.

The system structure is decentralised, with each system having its own computer. There are a total of 38 computers at the head office in Nottingham and one computer for each retail outlet. All computers in the organization operate on the Windows Vista system. Inventories and purchase orders are created using MS Excel spreadsheets.

4.5 The organization is affected by external regulations.

The financial statements of Sandwich Master Ltd must be prepared according to the specific requirements outlined in the Company's Act 2006. It is crucial for the company to stay informed about any updates or modifications in legislation associated with this Act.

The UK's Data Protection Act 1998 sets out guidelines for processing data on individuals. It places specific obligations on organizations regarding data handling and the need to register with the information commissioner’s office.

Non-compliance with the statements and standards set by the International Accounting Standards Board (IASB) can result in legal action, penalties, and prosecution for the reporting organization.

All businesses in the food sector must adhere to the rigorous food safety laws and regulations outlined by the Food Safety Act, ensuring compliance with food hygiene standards.

4.5.5 The bread and flour regulations encompass the allowed ingredients in bread and the labeling requirements outlined by the food labeling regulations.

All food producers must follow DEFRA's guidance at http://www.defra.gov.uk/ to properly dispose of food waste.

The Health and Safety at Work Act, in conjunction with its regulations, pertains to health and safety within all business premises. Employers

have the duty of guaranteeing the well-being and safety of their employees. This includes creating a written policy statement when there are five or more employees on site.