Question

Describe the application of policies and procedures to managing accounting information(150- 180 words)

Answer 1

Managing accounting information deals specifically with the integrity of internal financial information and the accuracy of financial reports given to outsiders. With proper application of policies and procedures a business can improve both the quality and efficiency of the financial reporting function. Consistency of application; correct accounting treatment; streamlining decision processes and efficient internal control can help in improving the organizational performance in myriad ways. This can be achieved with a proper cash control, separation of duties, audits and information security. Store the copies of all cash register tapes, invoices, receipts, cancelled checks and any other documentation that relates to the cash transactions. The accounting process and its policies and procedures should be communicated to all affected parties through meetings, training, or other types of communication or events. Establishing effective accounting policies and procedures early in the business helps to create a culture of ethical financial management. Thus will help in creating a “trustworthy image” of the: financial position, assets, liabilities and of the represented performance.