Accounts and Financial

Services

OFFICE ADMINISTRATION
FEBRUARY 2022
MISS TOWNSEND
Voluntary deductions that are made at the request of the
employee. These are:
A. Individual insurance premiums- health, pension plans,
life, educational
B. Trade Union Contributions
C. Credit Union Shares
Net pay – this is the amount of earnings remaining after
all deductions have been made.
⚫ Payslip- this slip shows the employee’s gross pay,

allowances, income tax deductions and net pay.

⚫ Payroll/Pay sheet- this is a list of employees and the

payments due to them for wages or salaries for a pay

period, usually weekly, bi-weekly or monthly. It
summarises the gross wages or salaries, the total
deductions and the net pay of each employee.
The format of payslips varies from business to business
Example: Employee’s Payslip
Example: Employee’s Payroll Sheet
⚫ Employee Record Card- each employee has a

record card. The information on the payslip is

transferred to this card each week or month as
appropriate. The card summarises the gross wage or
salary, deductions and net wage or salary for the year
to date.
⚫ Debit note- this is a document made out by the seller

whenever the purchaser (the customer) has been

undercharged on an invoice, or when a charge is to be
made on a customer, which increases his/her debt.
⚫ Credit note- this is raised when:

- Customers think that the goods are unsatisfactorily for

some reasons- wrong colour, size, imperfectly finished or
damaged when being delivered and so on.
⚫ Receipts- these are written acknowledgements of

money received and evidence that the amount stated has

been paid. The receipt book can be used as a means of
reference or validation for accounting purposes.
⚫ Statement of Account- this summarises the

transactions of all credit customers on their account

during the period and act as a reminder to the customer
to pay any outstanding balance.
 Resources used in the Accounts Services

⚫ HARDWARE

- Calculators

- Adding machines

- Computers

- Printers

- Scanners

- Copiers
⚫ Software

✔ Accounting packages- most computers in accounts offices

now have specialised accounting software in
addition to the usual word processing and spread sheet
software.
Preparation of accounts is increasingly done using
specialised accounting software and saves a great deal of
time as adjustments can be made quickly without having to
retype them each time a change is made.
✔ Spread sheet packages- these are probably the most

useful tool available to accounts personnel as they

can be used for a variety of purposes, including:
- As a calculating tool

- As a database

- For forecasting
 Types of financial institutions

A financial institution is a business organisation which collects

funds from the public and places them in financial assets, such
as deposits, loans and bonds.
Financial institutions include:
- Central bank

- Investment companies

- Credit union

- Insurance companies

- Cambios
⚫ Central banks- as an institution which has deep

interest in the country’s development, the central bank

performs the following functions:
- Regulates the issues, supply and available of money

- Acts as banker to government and commercial banks.

- Advises government on monetary matters.

- Managers the island’s foreign exchange reserves

- Manages the public debts.

⚫ Commercial banks- what is commonly referenced
to as simply a ‘bank’. The primary operations of
banks include:
- Keeping money safe while also allowing withdrawals
when needed.
- Providing personal loans, commercial loan and
mortgage loans.
- Issuance of cheque books
- Issuance of debit and credit cards
- Allowing financial transactions at branches or by
using Automatic Teller Machines (ATM)
⚫ Investment company- is a type of financial service

entity, which instead of lending money directly to a

business, helps businesses raise money from other firms
into the form of bonds (debt) or stock (equity).
⚫ Credit union- established by and for a set of people

with a common bond, often employees of the same

company, provide many of the same services of banks,
but often at lower rates and other member benefits.
Services offered by credit unions include:
- Saving and investment

- Loans and mortgages

- Bill payments

- Legal services
⚫ Insurance companies- insurance is a form of risk

management primarily used to hedge against the risk of a

contingent loss.

An insurer is a company selling the insurance; the insured

or policy holder is the person or entity buying the insurance.
Some types of insurance:

- Home

- Health
- Life

- Property

- Auto insurance

⚫ Cambios- these trade in most major foreign

currencies. Competition rates are offered and an

ample supply of currency is provided to its clients.
 Procedures for making and receiving different
types of payments.

Most payments and receipts in business are made by

cheque. However, there are other means of making
and receiving payments including the following:
- Cash

- Electronic transfer

- Credit cards

- Standing order
 Interpret information on cheques

⚫ Cheques- a cheque is a written order to a bank

requesting them to pay the sum of money stated on the

cheque from an account to a person or company name.
The following parts of a cheque be completed:
✔ The date the cheque was written

✔ The person/company to whom the cheque was made out

(payee)
✔ The amount the cheque was made out for- this

should be written in words and figures.

✔ The signature of the person authorised to write the

cheque.
 Open cheque

A cheque is called ‘open’ when it is possible to get cash

over the counter at the bank. The holder of an open
cheque can do the following:
- Receive its payment over the counter

- Deposit the cheque into his or her own account

- Pass it to someone else by singing on the back of a

cheque.
 Certified cheque

A certified or manager’s cheque is one which is issued

by the bank upon the request of the customer.

⚫ Crossed cheque- this is a cheque with two parallel

lines drawn across the face with or without the words
‘Account payee’ with the lines. The cheque may only
be paid into a bank account and may not be
presented for cash.
⚫ Post-dated cheque- this cheque is dated ahead of

the current date. A bank will not honour the cheque

if it is presented before the due date.
⚫ Stale-date cheque- this is a cheque which is

invalid because it was drawn a long time before being

presented for payment. A cheque is considered valid
up to six months after the issue date.