Internal Control Essay
4. Administration background
Inkwell Limited is a maker of re-cycle inkjet and optical maser toner pressman cartridges.
Inkwell Limited pressman cartridge is widely applicable. The chief commercial focal point is on strong retail market that demand cheaper and greener merchandises
Inkwell Ltd has a twosome of little chief providers that produce
4. 1 Inkwell Limited is a limited company. established in 2003. The caput office and Warehouse is based in Birmingham West Midland.
4. 2 Their concern theoretical account is to offer a portion exchange installation whereby client either station used cartridge to the company’s on the line store or physically take them onto one of over 60 stores in the company’s concatenation that are situated in all major UK metropoliss. and many big towns. If clients do conveying their old cartridge in they are so given a 10 % price reduction against the cost of a replacing cartridge.
4. 3 Its brinies mission is to salvage clients money by non compromising quality and at the same clip aid guarantee a greener environmental hereafter by better usage of inkjet and toner cartridge.
4. 3 Inkwell is a company. chiefly owned by stockholders. The pull offing manager own the most Numberss of portion. while both the sale manager and the finance manager ain equal portions.
4. 4 The three managers and the company comptroller are the chief determination shapers in the company with the aid of directors and supervisors.
4. 5 The store directors are responsible for their ain staff by fixing Rotas and guaranting equal staff coverage for all of the gap hours of their store.
4. 6 Finance. Selling and Gross saless are the chief sections In Appendix a there are a organisation Chart.
5. Structure and Function of the accounting System at Inkwell See Appendix a for Organisation Chart
5. 1 Inkwell is a ‘tall’ construction company. They are different degrees of people. each degree is control by the degree above. This really common of such a large administration where each degree is centralised.
5. 2 The accounting map is a little subdivision of Inkwell Limited. It consist of Anil Gupta as the Finance Director who his to the full responsible for all finance. legal and accounting processs and systems. This in tail bring forthing the company one-year study. covering with all banking and finance issues. Michael O’Panye the Company Accountant. who’s responsibilities are bring forthing the monthly direction study. O.K.ing all payments to providers. However his chief function is to pull off the work of the accounting technicians and clerks.
5. 3 Alex Fox. history technician compilation this study. have worked for Inkwell for the past 6 months reexamining the company’s systems and processs pin indicating any recommend charges where needed. The chief responsibilities that’s covered within the history section by others consist of gross revenues and purchase leger entries. fixing supplier’s payment. payment allotment. hard currency book entry. junior-grade hard currency sum-up. cost analyst. bank rapprochement. paysheet tally and personal informations up maintain.
6. Failing and determination of the current system
6. 1 A SWOT analysis has been carried out on the current accounting map in Inkwell demoing the Strengths. Weaknesses. Opportunities and Threat ( Appendix – ) From the SWOT analysis it can be seen that there are the undermentioned key failings in the paysheet procedure.
6. 2 System Integration – Whiles the paysheet is integrated with the forces information system. leting them to speak to one another. information could be sent from one application to the other. it is non been used to its full potency due to clip devouring caused by deficiency of experience and cognition
6. 3 Hourly paid – The hebdomadal hourly paid staff wage is calculated manually from a hebdomadal Rota prepared by the store manager’s. This state of affairs is non ideal its unfastened to errors and possible to fraud. By merely put ining on-line clip clock terminuss lets directors command where employees clock in/out from by puting up specific clip clock locations and switch planning’s web-based clip clock package gets rid of the demand for expensive stand-alone equipment while streamlining the procedure of clip sheet direction leting the paysheet clerk to take work informations direct to payroll.
6. 4 Time Management – The paysheet clerk is responsible for pull offing a hebdomadal paysheet Including ciphering overtime worked and gross revenues committee for over 60 stores. two separate monthly paysheets ( the sum employee is around 180 ) issues all statutory signifiers required by HMRC. and the one-year revenue enhancement returns. updating and keeping the forces database. Pull offing a huge work burden is really hard and any possible ways of bettering the procedures to do them more efficient should be taken advantage of. By put ining an on-line clip clock terminus can let troughs to be after displacements automatically. It cut down the clip exhausted ciphering single clip sheets and let the paysheet clerk the information direct to paysheet.
6. 5 Knowledge – The paysheet clerk is responsible for the both the paysheet and the forces database which is integrated. As the paysheet clerk merely had one-day in house intensive developing class on the system therefore the paysheet found it hard to acquire to grips with both the paysheet and the forces information system after merely one day’s of preparation. By the company providing preparation. the paysheet clerk can execute more efficient and experience more confident.
6. 6 Commission – All gross revenues staff and store directors earn a committee of 2 % each on the first ?4000. 00 of gross revenues per month. and 5 % on any gross revenues over that figure. this is based on for each store instead than the person. Inkwell Ltd have over 60 stores. with 3 or 4 employee per store with one-year turnover of 16 million lb would propose the mean sum per store per hebdomad is ?5. 128. 00. Every store staff including directors would be paid committee each month
6. 7 These four factors outline the chief jobs impacting the accounting map paysheet. The committee to all shop staff is one of most obvious cost effectual that could be saved each month. due to hebdomadal intake’s from each store over ?5. 000. 00. Not merely would Inkwell salvage a great trade of money which in bend could be sent on other things such as bettering the public presentation of the accounting system.
6. 8 Cuting the committee to merely single per store would intend besides the Less clip spent fixing the figures for fillips. more hours addition to make other Thingss