Accounting

[Name of the Institute]Accounting

Introduction

The following essay is written in the light of my past experiences. I have worked in the XYZ firm in which I had performed the role of assistant accounting manager. In performing the role I had learned the practical implication of managing cash and account receivables in an organization. After that I have worked in the warehouse in which my role was to manage the inventories along with this I have also performed the role of Credit grating. The focus of the following paper will be on the above four roles that I have performed, and in the lights of past experience I will be discussing the role of each of the above four categories and will discuss the importance of managing cash, account receivables, inventories and Credit granting in an organization.

Discussion

Internal Control for Accounts Receivables and Cash

Accounts Receivables internal control starts along with the creation of the invoice of the customer, there are several issues that are required to be minimized at any cost during the creation because they can have set of control over the key assets. The maintenance duration of the accounts receivables, and their exclusion through payments either from the customers or the initiation of credit letters. The following are the key control that needs to be considered (Chen, 1992).

Credit Approval

There is a problem when collecting accounts receivables, if the order that is being shipped to the customers had have bad credit rating. Thus, the approval of the credit department on all the orders of the sale is required over the certain dollar amounts (Kang, 2010).

Contract Terms

If the terms of the payments are unusual, there is need of verifying an invoice. If it is not done, invoices will be contained by accounts receivables and customer may refuse to pay.

Proofread Invoices

If an error is contained in the large amount of dollars in an invoice, the payment of the customer may be hold up until the revised invoice is send. There is need to consider the required proofread for the larger invoices in order to alleviate the problems.

Authorize Credit memos

Individual having access for the incoming payments of the customers can intercept cash and also can create credit memos in order to cover up their tracks. There is need for the final approval of the manager in order to create the credit memos that are to be verified later, by the internal audit staff. There is need for the approval for the small credit memos which allows the staff of accounting for the creation of the small ones without any approval, in order to sweep the remaining balances of accounting.

Restriction of Access

There is need for the creation of password in order to protect the access and also develop the billing software in order to prevent against the illicit generation of the credit memos.

Segregate Duties

There is no need for any individual for handling the payments of the customers and creation of credit memos, due to which the tracks credit memos can be covered. Thus it is ...