Swot Analysis Chic Paints
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- Date Submitted: 11/01/2015 09:17 AM
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Appendix 2: SWOT Analysis of The Accounting Function of Chic Paints Ltd.
STRENGTHS
• Sage 50 payroll is professional software
• All cheques need 2 signatures
• There are some good points in the IT Policy to guide staff THREATS
• There are no replacements for two directors who want to retire.
• The recession is continuing to affect cash flow across all market sectors
WEAKNESSES
• The chief accountant (Hazel Richmond) has too many responsibilities and not enough time to carry out her job properly.
• There is very little segregation of duties eg. Susie James, Payroll Clerk calculates wages, fills the cash envelopes and distributes the wages with no checks being carried out.
• There is no integrated IT system- only stand alone computers.
• There are 42 computers but only a 40 user licence for Microsoft Office
• The ledgers are only updated at the end of each month and so are not up to date and are done manually from data held in EXCEL by journal entries.
• The IT policy is not known to all staff and no internal controls are in place to check it is being adhered to (for instance memory sticks are being used and staff’s own software is being loaded onto computers)
• Some wages are cash, some are BACS (this is time consuming and is open to errors/fraud)
• There are few internal controls in place to check for errors/fraud
• Appears to be no staff development plan
• Staff are only able to carry out their roles – causes problems during holidays and periods of sickness
• Credit control is poor and losses are uninsured. OPPORTUNITIES
• Job specifications and staffing levels could be reviewed to ensure that all staff are able to do their jobs to a high standard.
• An updated integrated IT package such as Sage Accounting could be purchased to save time, repetition, errors, fraud and so that ledgers are updated immediately and stock levels are correctly recorded and that security is tightened up.
• Correct licences for software must be purchased.
• A review...
STRENGTHS
• Sage 50 payroll is professional software
• All cheques need 2 signatures
• There are some good points in the IT Policy to guide staff THREATS
• There are no replacements for two directors who want to retire.
• The recession is continuing to affect cash flow across all market sectors
WEAKNESSES
• The chief accountant (Hazel Richmond) has too many responsibilities and not enough time to carry out her job properly.
• There is very little segregation of duties eg. Susie James, Payroll Clerk calculates wages, fills the cash envelopes and distributes the wages with no checks being carried out.
• There is no integrated IT system- only stand alone computers.
• There are 42 computers but only a 40 user licence for Microsoft Office
• The ledgers are only updated at the end of each month and so are not up to date and are done manually from data held in EXCEL by journal entries.
• The IT policy is not known to all staff and no internal controls are in place to check it is being adhered to (for instance memory sticks are being used and staff’s own software is being loaded onto computers)
• Some wages are cash, some are BACS (this is time consuming and is open to errors/fraud)
• There are few internal controls in place to check for errors/fraud
• Appears to be no staff development plan
• Staff are only able to carry out their roles – causes problems during holidays and periods of sickness
• Credit control is poor and losses are uninsured. OPPORTUNITIES
• Job specifications and staffing levels could be reviewed to ensure that all staff are able to do their jobs to a high standard.
• An updated integrated IT package such as Sage Accounting could be purchased to save time, repetition, errors, fraud and so that ledgers are updated immediately and stock levels are correctly recorded and that security is tightened up.
• Correct licences for software must be purchased.
• A review...