Figure 3: System flowchart of purchases system
The manual receiving report helps in accompanies the goods to the inventory warehouse and updating of subsidiary ledger to ensure that maximum information can be gathered positively. on another hand, the reconciler of all the documents are needed to record by receiving the invoice through fetching documents from temporary file (Herrera and Ibeas, 2015). In this process, the inventory controls and accountability payable control are generated from computer terminal. Hence, it can be stated that these process of purchase support organisation in generating a legitimate cash flow within organisation for sustainable development positively. In addition, the final stage of purchase system supports organisation in recording all the documented. Under this process, the clerk sends the receiving report, invoice along with copy of purchase order to= the cash disbursement department. Through critical analysis of Bells Studio, purchase system, there is a chance of error and brought problems during selection of supplier that influence the decision making process of an organisation (Hamza et al. 2015). It can clearly asserted that constructive and comprehensive approaches are required to apply that help in prevent from adverse effect of unexpected bankruptcy and inability for meeting quality requirements positively (Eclkc.ohs.acf.hhs.gov, 2019). On the contrary, a sequential approach may help in enhancing progressive developments of the company without compensate with qualities and standard of business operation successfully. Through critical analysis of business operation, it can be asserted that a positive change within organisation is required to amend to enhance sustainable growth of business.
System flowchart of cash disbursements system
The cash disbursements system is one of the effective and reliable ways to monitor the cash flow within organisation in which all the payments are included such as lender and vendors payment. The systematic flowchart helps in accessing the issues with respect to organisation positively to ensure that a proper designed cab be developed without any error and invalid invoice positively. In regard to Bells Studio, it has been identified that the clerk prepares a cheque for the cheque to the vendors that help in record all necessary document related to payment such as subsidiary ledger, accounts payable and account payable. In order to prepare systematic flow charts of cash disbursement, it is essential to consider all respective business transaction along with checks to ensure that maximum information can be gathered positively. Through critical analysis of systematic flow of cash disbursement system, it is easy to manage the cash by forecasting all cash receipts for an adequate cash balance (Ambler et al. 2018). On another hand, the system records all the requisite data and information related to purchase and vendor payment that help in control cash flow with the help of opens accounts and following expenditure cycle positively.
Figure 4 : System flowchart of cash disbursements system
Under this process, it is essential to include estimate revenue that is essential to run the business positively. A systems flowchart of cash disbursement system required all payment associated with Bell Studio such as vendor payment and employees wages. In this process, management plays a significant role in managing inventory and subsidiary ledger for maximum result. Through critical analysis of business operation of an organisation, it can be asserted that each element of accounting is required to formulate vigilantly to ensure that a firm payment information to employees and vendors are need to validate a systematic manner to ensure that business operation of Bell Studio can be gradually upsurge.
System flowchart of payroll system
This systematic cash flow of payrolls system is require full infoemation off selling and purchasing of products or services for progressive development of an organisation. Under the process, the validation of services and products are required to validate each management process by validation time cards and payroll department.
Figure 5: System flowchart of payroll system
Through critical analysis of Payroll system of Bell Studio, it has been found that there is lack of proper inventory control and cash flow management to ensure that respective stress and probability of stress can be minimised positively. One of the major advantages of payroll system is consistency accuracy that increased the reliability of forecast cash flow within organisation for maximum result. Through critical analysis of payroll system, it has been evident that a digital invoice is required to produce positively without compensate with feasibility and business operation of cash flow for sustainable development. Under this process, several software and equipments are used to ensure that each activity within organisation can easily be effectively monitored positively. Through development of a firm flowchart of payroll, it is easy to make crucial decisions that helps in enhance and validation of cash flow positively. Hence, it can be stated that the systematic and comprehensive are needed to amend during formulation of effective flow chart that assist in driving business into sustainable development positively. In addition, it has also been evident that an effective payroll system help in enhancing sustainability of business by compliance with relevant tax law and regulation to ensure that maximum benefit can be gathered. Through critical implementation of payroll system, it is easy to monitor time and attendance of all associate employees that eventually increased the productivity by reducing estimate cash flow within organisation.
Description of internal control weakness in each system and risks associated with the identified weakness
This is considered as one of the reliable and effective system in producing effective result by compliance with firm product detail both selling and purchasing. Through a critical analysis of system, it has been witnessed that there is a lack of list of suppliers and vendors that creates difficulties in producing cash flow within organisation. The present system and software is not effective in monitoring or tracking valid information and\ detail related to products or services that reduce the sustainability of business operation positively.
By evaluating significance and reliability of purchase system, the major risk of current purchase system is purchasing of quality and standard material significantly (Businessecon.org, 2019). The current purchase system is not reliable in determining potential risks and valid supplier that reduce feasibility of business operation.
Cash disbursements system:
The cash disbursement system is effective in producing valid payment system to ensure that the cash flow within organisation can be controlled positively. By evaluating different attributes of cash disbursement system, it has been identified that the major weakness of this system is ineffective controls of decision making through appropriate funding. Due to= theses weakness of an organisation, the relationship with supplier and vendor get slowly reduced that also reflect on fiscal performance (Usmf.org, 2019). On another hand, it has been found that there is a lack of proper accountability a within respective management that increase the potential of Bell Studio.
The purchase system is one of the important aspects of an organisation that help understand cash flow related to purchasing and rendering of products or services. Through critical analysis purchase system of bell studio, it has been found there is a lack of proper management of activities within organisation in which cash flow manual updating of products and service have been critically examined. This is one of the major weaknesses of business operation m that reduce the validation and reliability of business due to lack of digital invoice. Due to lack of proper implementation of digital updating in terms of validation and purchasing cash flow that reduce the efficiency of business positively. Similarly, it has also been we identified that there is a lack of proper implementation of law and regulation that increase the reliability and sustainability.
On another hand, it has been witnessed that there is a major risk of purchase system is incorrect record and invalid data to ensure that reduce the progressive development of an organisation. On another hand, the present’s payroll system is not reliable and effective in producing accurate data and firm forecast of cash flow within organisation. Through this payroll system, the probability of risk related to business operation gets increased that influence the sustainable development of Bell Studio.
The expenditure cycle of Bell Studio signifies that there is lack of proper management of financial and cash flow with organisation that reduce the reliablility of business operation. It has been witnessed that the present financial system such as payroll, purchase and cash Disbursments System is not reliable and enhansing the business operation.
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