1.

Developing, Preparing, and Reviewing Accounting Plans and Designing a

System Flow for a Company

Financial plans of a business are usually the product of the company’s

accounting plans. These plans are prepared and developed by accountants
starting from classifying and summarizing the financial information recorded by
the company’s bookkeeper and then preparing and analyzing financial reports.
With the financial reports generated, accountants help the management to plan
the firm’s financial strategy. Moreover, in order for a company to ascertain if their
pre-determined goals are achievable and still relevant, a financial plan review
should be performed. Again, the review of a financial plan typically starts from
evaluating the entity’s financial information reflected in its financial statements.
The auditor or reviewer’s work is to guarantee that the financial reports are free
from material misstatements and verify if it reflects the true and fair view of the
company as a whole. Furthermore, accountants also play a vital role in designing
and managing the financial system of a company. Designing the system flow
includes outlining where source documents come from, implementing individual
accounting functions, creating outputs such as financial reports and financial
statements, determining the final recipient of the accounting information, and
using that accounting information in making good business decisions.

2. Identifying and Recommending Accounting Solutions

One of the most common types of fraud in a business is the management’s

manipulation of the company’s financial records. One of the reasons why
management manipulates statements is to have a direct incentive to paint a rosy
picture of the company's financial condition in order to meet established
performance expectations and bolster their personal compensation. They try to
exaggerate current period earnings on the income statement by artificially
inflating revenue and gains, or by deflating current period expenses. This
approach makes the financial condition of the company look better than it
actually is in order to meet established expectations. This problem calls for the
concept of transparency. It will help the company to ensure that both employee
and employer’s expectations are appropriately set and fulfilled. In addition,
accounting reports need to be transparent so that investors can easily
understand a company's financial details. In that sense, it is recommended for
companies to assure the completeness and accuracy of their financial records by
including the comparative data and informational reports. Lastly, rather than
squeezing every possible comparative figure into a single report, which might
 result in too much information, they should consider issuing multiple reports
instead for greater understandability.

3. Performing Accounting Tests to Assure the Quality of Company Policy,

Facility Operations and Ambient Conditions

Total quality management (TQM) is a managerial accounting concept in which a

company aims to produce higher-quality products with fewer flaws before
shipping them to customers. Total quality management is a lean business
practice that is frequently linked to continuous improvement and just-in-time
inventories and production. The introduction of Total Quality Management (TQM)
into an organization changes the job of management accountants in terms of
their function within the organization. Most of these changes are related to the
need for new, non-financial measures of quality.
TQM adoption results in various firms have been variable, ranging from highly
successful to highly unsuccessful. As a result, the factors that determine the
success or failure of TQM are receiving a lot of attention.

The following are common characteristics of organizations that fail in TQM:

1) A strategic perspective
2) A systems perspective
3) A client emphasis;
4) Lack of management understanding and involvement
5) Training without a goal;
6) No cost-benefit analysis;
7) No organizational structure that supports TQM implementation;
8) Excessive bureaucracy;
9) No measurements or incorrect measurements;
10)Lack of (or unsuitable) rewards and recognition;
11)Out-dated accounting methods;
12)Five P's are not aligned.

Because of their knowledge and abilities, management accountants can make

significant contributions in all of these areas: knowledge of sound cost
accounting techniques and a wide variety of computer applications; ability to
work as part of a team; ability to translate cost accounting language into
customer language; knowledge of the organization's operations and other
aspects of their businesses; desire and confidence to participate in strategic
decision-making.
The TQM idea encompasses more than just product development; it also
encompasses the improvement of the entire business. Even in general and
 administrative expenditures, waste is recognized in any department of the firm.
Customer service quality standards are also examined for improvement because
customer service is such an important aspect of any modern firm. In essence, the
whole quality management approach examines all parts of a company's
operations in order to increase efficiency and reduce waste. TQM also aims to
boost intangible assets such as a company's image and brand. For sales and
product price tactics, a customer's perception of a brand is critical. The complete
quality management system would support a corporation doing public service or
increasing promotional efforts to boost its public reputation. Total Quality
Management is about in improving the company as a whole, this is a way to test
quality of company policy, facility operations and ambient conditions of a firm.

4. Accounting Recommendations on Changing of Policies and Procedures

When there are different accounting periods, it’s important to maintain a

comparison between the policies and to maintain them every time. However, one
thing to note here is, if there are any sorts of changes in accounting policies, the
financial statements must hold true. Such changes can be anything and do not
require an option in specific.

To be more specific, if Anafara is to change their policy on accounts receivable,

here are the recommended accounting procedures:

Account receivables shall be monitored and reviewed in an Accounting system or

software operated by authorized personnel of the company.

Procedures:

a. An accounting system shall be installed and organized by Anafara

Company that generates invoices when an executed grant is
contracted.
i. 2. The configured accounting system shall sequentially
numbered and properly classified all invoices pertaining to
procedure No.1 automatically or manually inputted by the
system user or by other authorities.
ii. 3. Anafara shall create three separate departments responsible
for receiving of payment, issuance of receipts, and updating the
receivables accounts in the system.
b. The Finance Coordinator shall monitor and review receivables on a
weekly or monthly basis.
i. Funds collected shall be recorded in Philippine Peso when
foreign currency is received.
 ii. Ensure that the prevailing foreign exchange rate is used in the
accounting system when recording.
c. The Coordinator shall review aging receivables and follow up on
mature receivables recorded in the accounting system.

After the policy has been changed, the accountant should provide the necessary
disclosures:
 Change of nature in the policies.
 The probable reasons behind the relevant information that is easily
accessible to gain more reliable details.
 Adjustments that were made every time.

References:
 Basic Accounting Procedures – Introduction to Business (opentextbc.ca)
 How to Design an Accounting Information System (bizfluent.com)
 What To Do When Your Balance Sheet and Income Statement Are
Incorrect (growthforce.com)
 Microsoft Word - Panos Caribbean_Financial & Accounting Procedures
Manual_31 March 2014.doc (cepf.net)
 Changes in Accounting Policies: Reasons,Accounting
Treatment,Examples (toppr.com)
 Cockrell, Susan R., Meyer, Dan, Franklin Business & Law Journal. 2012,
Vol. 2012 Issue 4, p1-18. 18p. 3 Diagrams
 What is Total Quality Management?, My Accounting Course,
https://www.myaccountingcourse.com/accounting-dictionary/total-quality-
management