Appendix 2 – SWOT Analysis of current accounting process
Strengths
* Central accounting system in place at head office
* Vehicle hire deposits are held in a separate account from the company trading account
* All cheque/bank mandates payments are authorised by a Partner and the accounts manager adding extra security, and documents held to support the relevant transaction
* Remittances are not issued to be more economic, and payment are sent via internet unless otherwise agreed with the supplier, this will help reduce postage costs.
* A2Z use a car wash machine that cleans the water when it is used and therefore is very economic.
* Introduction of emailed payslips has improved the company economic factor, and also reduced stationery costs
Weaknesses
* Although cheque and bank mandates are authorised by a partner and the accounts manager, for security, it also indicates a weakness as the account manager is located at the head office, and therefore travel or postal time is required for cheques issued away from the head office, and will therefore delay payment to supplier even further, therefore potentially creating a weakness in the accounting system.
* The cleaner is paid cash in hand, poses a risk to theft
* Remittances are not sent to be more economic, however this also becomes a weakness as the supplier may not be able to allocate payment correctly
* Policies and procedures have only been written by the Accounts Manager and not approved by the partners, this would leave the company open to policies that the partners do not approve off and also policies and procedures they are not aware of, for example RTI
* Lack of accounts understanding and training could result in inaccurate advice being offered and accounting errors
* Inaccurate treatment of cash being held on the premises and the way in which the transactions are recorded
* There is a lack of cross training between...