Help - Need Ideas

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hey Guys,
Could do with some ideas. I'm doing my project and need some more strengths as i seem to have alot of weaknesses to the systems used which could be seen as a personal view. Anyways back to the task in hand basically I need some more strengths as to why cheques should be used within business (already have signatories, cash liability and traceability) The next subject I need more strengths on is employee expense reimbursement current system is excel based for both sterling and international currency (only have Receipts as strength!) any more ideas?? And lastly Good ole Petty Cash, currently there is no procedure there is a tin with money and receipts in but no record kept nor has it been put through accounts! I have once again only got receipts as a strength. Any ideas? I would be really grateful

Ta in advance
:D

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help - Need Ideas

    Re expenses, we use a form which requires the claimant to give details of dates, mileage or other expenses and the reason. The front side is for the staff member responsible for expenses payment to complete including details of any computer cost codes you use for these, whether miles are taxable etc. The boss has to sign them. Petty cash, we use carbonised chitties which have a numbered system, 5 for financial year 5/6 followed by a unique number. They have to be authorised by one person, and paid out by another. We also only have one designated person to handle petty cash. The authoriser will do the reconciliation when necessary. When considering strengths, don't forget your staff. Experience and knowledge is a powerful strength and will help you with the staff management part of the project.

    Hope this helps,
    Jackie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help - Need Ideas

    Thats funny I dont remember ever being taught cheques should be used over BACS or other forms of payment (except physical cash).
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help - Need Ideas

    I'm in the process of changing the business from cheque to bacs payments over the net but because i can see all the weaknesses in the current systems i am getting no strengths and this report has to be unbiased!
    Thanks for your input too Jackie, unfortunatly I only have one other person based at office with me so I won't be forgetting staff lol
    I'm still open for any other ideas tho
    Cheers
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help - Need Ideas

    One strength is that the handling charges and administration time are reduced, which in the scheme of things is a plus! Ie: you don't spend as much time writing cheques, posting cheques and then being charged by the bank for the processing of the cheques! All of which have more cost attached to them than using the BACS method.

    You also get the added benefit that the BACS payment does not get "lost in the post" as it is generated by computer (okay so you have to make sure that the account details are correct - but once they are then the job is done!)

    I am sure there are far more, however this one springs immediately to my mind!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help - Need Ideas

    Cheques allow more flexibility for cash management. BACs payments hit your bank account immediately whereas cheques will go through more slowly. Also, you can send the cheques as money is in your account and your suppliers will not be surprised if it is a day or so later than usual.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help - Need Ideas

    You can stop a cheque if you find there was an error or for some other reason.
    With BACS, I find it is worse to try to get the money back.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help - Need Ideas

    Thanx guys! I totally forgot about stoppin a cheque cool I have a more even analysis now! phew Now on to the recommendations :D

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