Quickbooks Policy

| CHINA TRADE, INC.|
Memo
To:James Madison and Mae Ling, Directors
From:Jose Frausto, Accountant
Date:8/31/2011
Subject: Internal Control Policies and Procedures
Features of QuickBooks that will help the society implement sound internal examine policies and procedures;
* Access to explanation records should be exceptional to designated individuals.
* Once a transaction has been entered, the efficacy to change or delete it entirely should be limited to some new(prenominal) individual, preferably an accounting manager.
* Financial statements should be prepared monthly, with gross profit percentage and expense percentages, so that management can question apparent mistakes or omissions.
* The monthly financial statements should be comparative, i.e. show last years figures alongside this years, preferably with percentages as well as dollar amounts, to make apparent whatever significant variations in revenue or expense items that should be investigated for possible error or even fraud.
* Bud numbers should be prepared, and variances between actual and budgeted figures should be shown on budgetary income statements each month.




The deficiencies with this program for internal control starts when you initially set up your accounts, you enter in your inauguration account balance amounts (unless you are a brand freshly company with no activity). The problem is that if you do not arousal an amount, or input an amount correctly, the difference will go to Opening Balance Equity. If it is not fixed, it will stay at that place indefinitely. QuickBooks will allow you to enter a transaction for any date that you wish. While this is convenient for purposes of making projections, it can pass water bad consequences if you go backwards. QuickBooks retains every transaction you enter from the twenty-four hours you started using it. While this is useful to get historical information, on a practical basis, the file sizes can easily get large enough to be unmanageable and slow your computer. The other kinds of errors and...If you want to get a full essay, order it on our website: Orderessay



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