Executive Summary

Findings with regards to the model company are stated and recommendations

are formulated to respond to the current inefficiencies present in the accounting system

of the company. This section also aims to assess the different system objectives used in

the study by correlating the findings of the study to the recommendations to be made.

The basis of the findings and recommendations formulated are based on the actual data

gathered and observed by the researchers from its model company.

One of the major findings of the researchers is that the model company is only

starting to use or incorporate an automated accounting system in its daily procedures.

They have been using a combination of manual and automated system in their

processes from the start of their business. In relation to this, the main recommendation

of the researchers is the total automation of the company’s accounting system; starting

from its day to day processes and or activities to automating the company’s database

and data generation. It will not only save the company time, money and effort but it will

also increase the efficiency and effectiveness of the company’s inputs and outputs.

Also, taken from the researchers’ observations, overlapping and or incompatible duties

and responsibilities are present and prevalent. Thus, the researchers propose to strictly

implement proper segregation of duties in performing different types of company

activities; activities such as recording of transactions, custody of company assets and

authorization of particular decisions. Furthermore the company lacks specific processes

and protocols in conducting unusual circumstances and in events that needs immediate

response. Therefore, the researchers recommends to the company to properly establish

and maintain policies and procedures catering different events and circumstances

incidental to the company’s existence.

Moreover, specific findings and recommendations are indicated below for in

depth understanding of the completed accounting system as a whole.

 Findings Recommendations

There is no established It is vital in every company or business to have a

formal organizational chart formal organizational chart in order for the employees

for the company. to have a clearer understanding of what should be

performed and the line of authority he should report to

and be supervised. It would also avoid confusions and

conflicts with duties and responsibilities. Employees

having thorough knowledge of the hierarchy of

authority would be able to work according to what he

is asked of and contribute to the attainment of

business objectives and goals.

Since the business just It is important to maintain a list of valid suppliers who

started, it does not have can provide quality materials at low or reasonable

established guidelines as to cost. It benefits the purchasing process because

the supplier selection transactions can be done fast and easy. Furthermore,

process. It just chooses it can be considered as a control to ensure that

suppliers which are purchases are only conducted with valid suppliers and

suggested by family avoid fraudulent activities when it comes to the

members or friends. purchasing process.

There is no distinction It is recommended that cash received as sales for the

between cash received or day not used as the cash expended for the daily

earned in sales with cash operations of the business otherwise there will be

used for expenditures during ineffectiveness of controls since it will be prone to

the day. misappropriations or theft. If there is distinction, cash

will be accounted for in reconciliation with the cash

actually recorded as cash receipts for the day. All

expenditures, unless impracticable, must be paid in

 check to ensure that risks in handling cash will be in

an acceptably low level.

The business experiences A quality automated biometric timekeeping device is

difficulty with its payroll recommended. The data gathered will be stored into a

process. The daily file which will be further used for the payroll

timekeeping process, an generation of employees. This automated

integral part of payroll timekeeping process can be used as a control to

generation, is faulty which avoid fraudulent activities which are mostly occurring

causes the entity to resort to in manual process. The business should just make

a manual process. sure that data on employee attendance is secured to

avoid data corruption, alteration and hacking.

There is no separation of Billing duties are recommended to be separated with

duties in billing and collection duties. The billing process is assigned to

collection. Receptionists while the collection is for the Cashier.

Receptionists are to encode service availment and

are responsible for updating the reservations file;

thus, their duties also include updating, printing,

issuing Statement of Account to the customer.

Cashiers, on the other hand, are to accept the issued

Statement of Account from the customers together

with the corresponding payment.

Incompatible duties of A Finance Department is to be established to ensure

Finance and Accounting that incompatible duties are not assigned to personnel

departments are lumped into in Accounting department. The latter is in charge of

one department since there recordkeeping and other accounting-related tasks

is no Finance department while the former deals more with cash flows of the

established. entity. The authorization, execution, recordkeeping

 and custody tasks must be separated about

transactions involving both mentioned departments.

Since the business is family- It is recommended to have officers within the

owned, the owners are company to serve as signatory for the check. Before

greatly involved in the checks can be signed, it is to undergo a validation

operations of the business. process to verify the accuracy and existence of the

They serve as signatories for payable.

the generation of checks.

This causes delay when it

comes to the releasing of

checks because not all the

time the owners are present.

Inconvenience and It is recommended to have a cashier station for both

inefficiency in having two the Resorts and Resorts Pool guests because it is

separate cashiers for the easy and convenient for them to pay amount in full in

Resorts and Resorts Pool. one area than paying other transactions in another

designated place.

The business is not yet into The business may engage in online reservations

online reservations when it because most customers nowadays do not have the

comes to the services and time to personally go to the resort and do the

facilities they offer. They only reservation process. They tend to just search the

entertain personal and phone internet and book online. This may prove effective

call reservations. because of the advent of technology. One example of

the controls if online reservations will be implemented

would be an email or phone call confirmation from

agents of the business to confirm such reservation.

The business accepts It may be recommended that the business engage in

payment in cash and in receiving payments through the swiping of debit/credit

check. It does not yet cater cards in coordination with respective banks. Another

customers who prefer new popular mode of payment is the direct fund

payments through transfer that can be processed with the use of smart

debit/credit card and direct phones which will deem convenient to customers and

fund transfer. guests.

Executive officers / owners Policies and procedures should be established in

purchase fixed asset as they relation to the purchase of fixed assets of material

think it would be needed amounts. Proper planning of capital expenditures

without proper procedures should be done to ensure that only necessary and

being followed and they can valid investments are funded. Proposal for capital

reimburse themselves of the expenditures may be submitted by each department

expenses incurred. or division subject to review and approval of

appropriate officers of the company. Out of the

proposals made, an annual capital budget will be

prepared to be approved by the Board which will

serve as the budget for the next operating year.

Purchase of fixed assets can then be processed on

the basis of the budget allotted.

Process for the disposal of It is recommended to establish policies related to the

fixed asset is not yet disposal of fixed assets in order for the concerned

established. officers to know the procedures to undertake, The

process can start with a request to dispose from the

engineering department or some other department

with the same function. It is to be backed up by a

recommendation from a superior. A validation process

 will then follow to ensure that only valid and

necessary disposal can be made.

Separate Stockroom for Food Implementation of Just in Time (JIT) system is

and Beverages is recommended in maintaining inventories to reduce

maintained. space needed in storing, to reduce waste and it only

requires small investment. Provided that the company

conducts an intensive planning for inventory levels,

ensuring suppliers are able to meet different volume

requirements at different times.

The company uses a The researchers propose to automate the whole

combination MYOB system accounting processes of the company specifically the

(a simple accounting system general ledger system including:

for SME’s) and manual  Automatic update on assets, liabilities,

accounting system. revenues and expenses accounts.

 The use of a standard journal entry list. The

controller should create a standard journal

entry list from those transactions that have

been used repeatedly in prior months and

check off items from the list as part of the

standard month-end closing process

 Restrict access to a specific officers so all

journal entries flow through and are tracked by

just the designated persons.

 Prune the number of general ledger accounts

on a regular basis by merging similar accounts

to avoid erroneous entries in the wrong

accounts and finding and fixing these entries.

Chart of accounts is Usage of uniform and or identical charts of accounts

maintained. is recommended. Chart of Accounts maintained must

be based on codes specifically designated for each

department or accounts for better tracking, encoding

or entering journal entries. A coding system that suits

the company’s activities such as using alphanumeric

or numeric codes.

The company uses a Computerized Database should be maintained since

combination of manual or databases make it easier for you to enter and store

paper-based databases and data, storing and organizing information in a

starting to use computerized computerized database makes that information more

databases. easily accessible and data analysis is much quicker

that reports can be automatically generated.

The company uses a The researchers propose to automate the back office

combination of manual and processes to produce financial reports, such as

automated preparation of balance sheets, accounting reports, profit and loss,

Financial Statements of the financial statements, among other financial reporting

company. reports. It does not only save hours of tedious work in

preparation of financial statements but also increases

efficiency and effectiveness.

The company prints Financial The company can either continues to print generated

Reports for its different users financial reports from the system or process

of information. generated financial reports from the system by

automatically sending such reports for approval and

correspondingly distributing to its users of information

via automated system without the need of manually

printing such documents.

The company manually The company is recommended to maintain storage

stores their printed financial areas in its system for its financial reports which

reports in the offices. enables the company to save space and resources.