The Source Document and its Function in Accounting
Question:
Discuss about the Firm Performance Business Process Management.
Global management accounting services (GMAS) was established as an organization that could be outsourced in management Accounting services in businesses. These businesses include the small businesses, medium businesses and the professional business services. Although it is in its piloting stage, there are various other testing and servicing models that are used to develop the systems and business processes. It is providing this services to other clients who want to test it at pilot phase. GMAS competitiveness and viability will rely heavily on delivery and efficiency of services in the long-run.
The following are the main purposes of the competitive and viable system offered by GMAS
- Offering targeted support strategically in Business Process management
- Timelinesss in quality outputs in relation to the competitors who meet standards and deadlines.
- Management of labour for better services
- Utilization of resources for better and quality services
- Utilization of resources to cover the entire processes
- Workflow system documentation and the capacity for implementation of resources
- Business intelligence process workflow
- Management of accounting entreprise to be able to meet consumers requirement and beet competitors
The participants in this process are the support staff and the management. There are also various department that are core to GMAS system and includes; accounting department, finance department, the IT department, suppliers and the genral consuymers. The participants are used to check how strong the system is.
- Personnel support
- Maintaining and developing the new system
- Provision of administrative services
- Outsourcing new clients to the business
- Compliance
- Financial nanagement
GMAS process flow is intricate since it is a prototype and require further enhancement. Accounting has a specific control function and has become the fundamental basis of information systems that provide managers with the data necessary for timely decision making. The importance of accounting information for making decisions. Decisions, both for internal recipients and for external recipients.
Input in the system are the structures put in place for it to make the best output. The source document captures the key data of each commercial transaction that occurs. It includes the basic facts of the movement, its date, the purpose and its amount. In addition, during the audits the source documents are used as evidence of each transaction that was produced (Hyo?tyla?inen, 2015). The completion of the Source Document can be its own (that is, the company that owns it) or that of another (of a client or supplier).
Output depends on what is being given out or produced. When a client signs a contract, the copies are sent to the account receivables by the sales team. The accounts receivable are responsible for the mainatinance of the information of customers and depends on the service type, and the payment agreement of the contract. The department is also responsible for billings. When sales is done, two invoices are created and one is sent to the sales team while the other is sent to the client. Accounts receivable will generate forms of unpaid debts.
An invoice delivered by a supplier to whom merchandise was purchased or an invoice of its own, indicating a sale. With each source document that is issued or obtained, the entries that make up the company’s accounting will be made. Others can be a canceled and an example is a credit note for a return customer or the tape from the cash register.
In GMAS, both the duly registered source document and the policy containing the accounting entry can be conceived. In any way it is the document that guides the information for the purposes of registration. It is convenient that the documents comply with the mixed function of being source and accounted for at the same time.
Accounting Policy: The policy is a document that establishes the operations developed by the company and all the necessary information for its identification. A policy is drawn up for each group of accounts. The data contained in the policies will be registered in the daily book, to then be concentrated in the ledger (Tyugu and Yamaguchi, 2006).
Accounts Receivable and Unpaid Debts in GMAS
Once it has been proven that in the case of the failures mentioned by the critics of the Reengineering of Commercial Processes. Business Process Re-Engineering is more about isolated departments that have been restructured by means of BPR concepts, but not of the entire organization, there are many companies that seek the help of independent consulting firms for the realization of their BPR projects, or that even transfer the total direction of the project to a consulting company.
While the electronic process of data within the work process of the last thirty years consisted mainly of a means of streamlining certain processes, modern information technology acquires a vital importance for the company for the first time through the business process engineering or BPR (Business Process Re-engineering. However, in recent years this way of proceeding has changed radically and, with the help of these instruments, it is now attempted in almost all companies to determine the current position and the various objectives (Romney and Steinbart, n.d.). On the other hand, no one stopped, for example, to think about whether a certain commercial activity constituted a basic competence that could lead the company to the right path, or if the right business mix existed.
The change already instituted, from the post-industrial era to the future information society, and the ensuing global recession, has in turn led to dramatic changes in most companies. In short: we are in a historic moment, and in almost all sectors companies will operate in five years in a completely different way than they do now (Soll, 2009).
In the BPR re-engineering, on the contrary, preference is mainly given to a global vision of the company, including the meaning and objective of the commercial activity itself. Taking also into consideration all the areas of that, both in relation to the external effect – amplitude – as internal – depth . The question basically arises as follows: how do BPR measures adopted towards customers and the market to allow for an increase in profits, and how they do so within the company with respect to a reduction in costs and a reduction in costs. Faster information and production processes. The greater the amplitude and depth with which a BPR project is established, the more successful it will be in its effectiveness. The best way to define BPR reengineering is in the form of a fundamental analysis and a radical restructuring of the entire company. That is, not only integrating some business processes, but all, including the functions of Management (Hall, n.d.).
In the meantime, there are already critical voices that, based on the first experiences, doubt that the BPR engineering really contributes the desired successes. However, if these opinions are analyzed, it is easy to see that on the above-mentioned occasions only BPR concepts have been restructured in most cases isolated departments, but not the entire company. And on the other hand, it can easily happen that the processes that remain, and that had been growing historically, hamper the restructured areas more than before. Generally, companies that undertake a BPR project define between 15 and 20 large work groups that wish to restructure.
The first place regarding the frequency of BPR projects is occupied by financial accounting, followed by marketing and distribution(Hall, n.d.). Thus, the consulting company GMAS has recently asked companies that have carried out BPR projects if the objectives sought were met, and how. The failed BPR projects resemble each other. The failed BPR procedures frequently present similar characteristics: – In many companies, the IT departments detect the best of them.
The importance of BPR measures, but they do not receive the order to direct the project. Often a global perspective of all the commercial processes and of their mutual relations in the company is lacking, as a consequence in these companies only a few areas are restructured. , and the least important ones.- It has also been noted that in failed BPR projects have been modified too quickly and certain commercial processes have been fixed too quickly without having carefully analyzed the consequences on the other commercial areas(Hall, n.d.). Many BPR projects are not have developed consistently until the i implementation, and have been frozen halfway in the design phase or in the pilot phase. – One of the reasons for the failure may be the non-participation of the Senior Management in the BPR project in question. BPR projects of success They show three key characteristics: – The companies are concentrated in an absolutely obligatory motive for the modifications of all the commercial processes.- The BPR project is entrusted to the most qualified people of the company, who then resort to the help of specialized consulting firms in re-engineering BPR.- The fears of employees are dominated by permanent communication about the various measures adopted and the concept or total solution (Romney and Steinbart, n.d.).
Conclusion
Once it has been proven that in the case of the failures mentioned by the critics of the Reengineering of Commercial Processes, BRP (Business Process Re-Engineering) is more about isolated departments that have been restructured Through BPR concepts, but not the entire organization, there are many companies that seek the help of independent consulting firms to carry out their BPR projects, or that even transfer the total direction of the project to a consulting company(Romney and Steinbart, n.d.).
References
Hall, J. (n.d.). Accounting information systems.
Hyo?tyla?inen, T. (2015). Steps to improved firm performance with business process management. Wiesbaden: Springer Gabler.
Romney, M. and Steinbart, P. (n.d.). Accounting information systems.
Soll, J. (2009). The information master. Ann Arbor: University of Michigan Press.
Tyugu, E. and Yamaguchi, T. (2006). Knowledge-based software engineering. Amsterdam: IOS Press.
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