Hi Friends,
                                              Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.
                                                  There is just no time to look back, no time to wonder,"Will anyone read these pages?"
                                       With regards,
                                       Hemen Parekh
                                       27 June 2013

Saturday, 28 March 1998

ACCOUNTS- FINANCE & RELATED FUNCTION


DAILY

Bank balance in all accounts must be checked & tallied daily with the cheques issued / received and the Passbooks.
All entries in Software package “TELLY” must be backlog at the end of the day.
“ Imprest” account book should be up-to-date. Only Person authorized by Nirmit should be able to operate imprest a/c. In each individual’s case, upper/max limit must be specified and a/c must not be replenished without first clearing old earlier withdrawals by submission of Proper Vouchers/ bills.
Electricity Bills/ Water Bills/ Phone Bills/ Society Bills etc.

             These must be paid before the due to appropriates authorities & whenever possible recipients’ signature be obtained on the counterfoil. For each of these Payment a running- Record (moth-wise) must be maintained on Computer so we know at a glance, when exactly each month’s payment was made along with bill no/ Bill amt/ Cheque no. Etc.

DAILY OUTSTANDING FOLLW – UP

One, very important daily activity shall be the follow-up of our Clients and collection of all outstanding payments. This has to be done/ Carried- out Vigorously (but quite politely although persuasively)
As soon as
An invoice is released
A payment cheque is received, it should get posted on computer & the software must instantaneously “rework/ recast” the.

COUSTOMER OUTSTANDINGS STATEMENT
In
Chronological order and
Descending order of Amount wise.
This Statement (Auto generated) should have following details:
Customer Name/ Ph/ Fax/ Email
Contact Person Name/ Design / Ph. No.
Assignment / Customer order no. & Date
Position Filled Person Appointed
Invoice No/ Date/ Amount (Less Adv.) & Net Payable
Date due / No. of days overdue
Details of past promises made etc.

DAILY OUTSTANDING FOLLOW-UP

If a Particular Client owes us amount against several assignments (Several Invoices), the software should be capable of outo- generating client-wise outstanding statements (in descending order of value) which, accounts officer, should send out attaching a STANDARD covering- letter
By
Email
Snail mail ( Print – outs)
Depending upon the last time / date on which such to a given Customer, the Accounts officer, will decide when to send-out the next Statement.
Software must Keep Track of
All past statements sent to a client (date wise)
All Phone- calls Made (Date wise) & “Promised” Date.
On the “Promised” date, a screen should automatically, POP-UP as a reminder to Accounts officer to follow-up
Clicking on Client Name Should concept Accounts officer to Client.

OUTSOURCING OF ACCOUNTS- FINANCE & RELATED FUNCTION
DAILY ACTIVITIES

Preparation/ entry of all expenses Vouchers
Preparation/ entry of all cheques
Cheques should be made as per credit terms agreed- upon by suppliers.
No post- dated cheques must be issued without prior ok from Nirmit.
All inward (receipts) cheques must be deposited in Bank A/c on the same day.
All cheque-looked must be kept under look & key. Same for pass-book, Pay-in-slip and all accounts/ Finance related documents.
No cheque payment must be made without a purchase order (PO0 (Whether typed a emailed).
There must be a PO for goods or Services, for which separate PO numbering serial should be developed.
No Payment should be made (Whether by cheque or by cash) unless relevant “GOOD/ SERVICE RECEIPT NOTE” is duly signed (for receipt) by the person who has received it.

MONTHLY

Preparation of rolling (next 3 months) Cash Inflow/ Cash outflow statements based on
“NEXT 3 MONTHS FORECAST “STATEMENT
Each consultant must fill-in figures relevant to his/ her activity ONLINE (on our intranet).
By adding –up each individual Consultant “Forecast”’ a consolidated COMPANY-WIDE Statement could be prepared to forward out if our cash flow position would be satisfactory
It would permit us to deploy surplus cash (in instruments such as short-term FD etc.) and earn interest.
These “forecasts” must not be confused with monthly/ quarterly/annual “Budgets/Targets”
Monthly “Performance Companions” (Budget vs. Actual & variances) shall be only with respect to BUDGETS & TARGETS & not with respect to these “rolling” forecast , which are made, strictly for one purpose viz. to figure out CASH-FLOWS & MANAGE/ RQUIDITY/ Payment issues.
Such detailed, individual Consultant wise BUDGET/ TARGETS must be “published” on our Intranet in a transparent manner (for everybody to see at any time). This must be done at the beginning of the year as also when each new consultant joins.
Ideally, the appointment letter issued to each Consultant should contain his/ her “Performance Targets” and the “Incentive scheme” applicable to him/ her.
In case, the incentives- payment is jointly applicable to a “group”/ “team’ of consultant, such group budget/ target must be specified in the appointment letter.
Monthly “Variance” statements (for the whole company as well as for each individual consultant) must be posted on corporate intranet for everybody to see. Such transparency boosts employee morale since everyone knows that there is no “adhoc-ism / favoritism”, and that same “rules” apply uniformly to everyone.
With second quarter coming to an end, we must hurry-up with formulation / framing of all “budgets/ targets” for 3rd & 4th Qtr and publish the same by 20/9/2000

MONTHLY ACTIVITIES

Incentive Payment
We have just introduced an incentive – Scheme for our Program – Manager, chetan Shah. This will call for monthly payment of incentives- amount; this should be studied carefully & implemented. All record (of Performance & Incentives earned) must be maintained on computer.
Budget vs. Actual
At the end of each month “Budget vs. Actual” statements must be prepared (on computer) for the following:
Expenses               Must be “ Budgeted”
Invoicing/ Billing             & Compiled for each
Outstanding                   Consultant individually
Order Booking         & for the entire
Order Backlog         Company Totally.
Obviously this (Comparison / Variance Statement) would require ANNUAL / QUARTERLY / MONTHLY BUDGETS to be prepared at the beginning of each year, in minute details. (With all “assumptions” explicitly stated). These will need to be prepared for each consultant individually.
Salary Payment / Retainer ship Payments
From appointment letters/ retainer-ship letters, all salary + perks details must be entered into relevant software.
Details of authorized leave (with pay/ without pay) must be entered from the leave- card on daily basis, so automatically by the software. For this purpose salary/ retainer-ship payments must be linked with “ATTENDANCE” system. Monthly “Salary- slips” must get automatically printed- out.
I Suppose “TELLY” has built-in “PAYROLL ACCOUNTING” feature.
Timely payment of salary/ retainer-ship is an important monthly routine.
 All salary payments must be made by cheques only.
 If all employees agree to open personal accounts in saraswat Bank, it should be possible to effect a CONSLLDATED payment to the bank rather than issuing individual cheque to employees. This should be seriously exploved & implemented. It will save a lot of time/ effort & ensure timely crediting of each employee’s accounts.

PERIODIC ACTIVITIES

These will comprise:
Timely renewal of all Insurance Policies
Office (bldg + equt.) Insurance (fire/ that/ burglary etc.)
Car Insurance
Mediclaim (for staff)
Timely noticed of renewal of all “Contracts”
HW maintenance
Telephone maintenance
Pesticide maintenance
Photocopying maintenance
Electrician maintenance
Stationary Supplies (rate contracts)
Website Maintenance (?)
Outsourcing of “ Accounts”
ATS (Annual Technical Support) for Software’s (e.g. oracle & Database) Postmasters.
Attendance Recording System
Fire Protection Equt. Maintenance
Z- cop Security
Web- Server ( digital Nation)
Websites domain- name renewals
Virtual Private Networks ( VPN )

ANNUAL ACTIVITIES

P & L statement / Balance sheet, preparation
Income tax returns filing
Preparation of next year’s Annual Budgets/ Targets & release to all
(For whole company & each individual covered by any incentive- scheme)

STATUTORY ACTIVITES

Payment of TDS
Payment of Professional Tax
Payment of Income tax ( corporate)
Payment of Service Tax
Payment of PF

DUTIES / RESPONSIBILTIES OF ACCOUNTANT



Statutors
Financial Accounts / Invoicing
Management Accounts (MIS)
Cost-Control
Budgets
ACRA (Annual Calendar of Repetitive Activities)
Insurance/Renewal
Purchases & Payments
Salary Payments / Attendance

STATUTORY

Timely payment of Income Tax company as well as family members.
Filing of Income Tax Returns


FINANCIAL ACCOUNTS

Prepare vouchers for all purchase and make payments after comparing/checking
Purchase Order(Qty/Price/Value/Serial No. of delivered / commercial terms/taxes etc.
Delivery challan
Vendor Invoice

Raise Invoices for all executives appointed follow-up till money received Raise Debit/Credit notes out-of-pocket expense invoices.
Preparation of monthly P&L Account
All banking matters (Deposit/issue of cheques, passbook, fixed deposits, tallying bank statement with our internal records etc.)

OUT-OF-POCKET EXPENSES

This arrangement is cost of our Terms
Main OOP are
Courier charges (Call letters/Interview Letter)
STD/ISD phone charges (very frequent)
Outstanding travel (occasionally)
Outstation travels are only undertaken by Nirmit-so it is easy to ask him, where he went, on whose (which client) behalf & how much did he spend. He can fill in a simple form, attaching supporting voucher.
I believe “Courier Charges” are being complied reasonally well. Please check can this record be computerized ? Discuss with Sajida.
Biggest chunk is STD charges for which Telesoft Software has been installed for over 6 Months now. There were some “hitches”. Are these sorted out ? Is software still “Clumsy”? what happens operate forgets to enter a few STD calls daily ? Do we have a fool proof method ?
If not streamlined, this is one area where we could lose lakhs of rupees annually !
When we get MTNL’s STD bill at the end of each month & discover “unaccounted” STD calls, it is too late remember & recondite!!

FIXED ASSET REGISTER
Asset No:
Depreciation Rate:
Asset Name / Description
Asset Category
Comp. H/W     Furniture    Office Equi
Comp S/W       Vehicle         MIS
Manufacturer :

Model:
PURCHASE DETAILS
Name of Supplier:
Add. Of Supplier:
Phone of Supplier(O):
Fax No.:
                                 (R) :
E-Mail :
Contact Persons:
Purchase Order No:
Order Date:
Suppliers Dely. Challan No:
Date :
Suppliers Invoice No:
Date :
Purchase Order No
(Incl. of taxes/ octroi)
Per Piece (Rs.)
Qty (No)
Total Value (Rs.)



Product Serial No.

Guarantee / Warranty

Intimated to Insu. Company
(for inclusion) on date

DEPRECIATON – SCHEDUE
As on
Opening Book Value
Depreciation Amount
Year-end Book-Value
1 April
1 April



In case Asset Scrapped
Book Value:
Realised Value:
Date:


MANAGEMENT ACCOUNTS (MIS)

Prepare monthly/ Quarterly/ Annual Budget
Capital Budget
Manpower / Salary budgets
Revenue expenditure budgets
Sales / Invoicing budgets
& compare Budget vs. Actual, find “Variance” (& causes) & modify Budget for Balance Period.
Maintain / Update 3 month rolling Budget.
Use rolling “Cash Inflow / Out flow statements to alert Nirmit
Re:-
Surplus funds (and possible Short term/ Long term  Employment )
Shortage of Fund (and suggestions on where to borrow from temperately.
COST- CONTROL
Prepare List of
Cost Centers
(Cost) Account Heads.
Set up a System to compile “costs against each.
Develop “Cost- trends’ from historical data and use these trends for future Projectctions for the Budget Preparation, Cash outflow statements.
Cost- Variance analysis.
Quantity (Consumed ) Variance
Price Variance
For every “account – head”
Suggest corrective – Action to bring costs under Control.

INSURANCE

       We have to ensure that Insurance policies are (Value) updated every 3 Months and renewed every Year.
These Policies Should cover



Office Premises including furniture Cabins


Computers & other office Equipment H/W.


Vehicles (Cars)



PURCHASE & PAYMENT

We buy
Computer H/W
Other office Equipment
Software
Software maintenance (Contract ) Service
H/W Maintenance Service (Yet to Start )
Stationery (General )
Stationery (Computers)
Consumables ( Computers)
Consumable (General )
Maintenance Contracts for
EPABX
Pest Control
Copier
Telephone Bills
Electricity Bills
Society Bills (Municipal Taxes)
Society Bills (Maintenance Charges)
Newspapers / Magazines / Subscriptions
Repair Bills
Insurance Premium
Taxes / Rents.
All of alone must be paid on time / must be budgeted / must form part of Expected Cash flows. Rule is “NO SURPRISES EVER!”

SALARY PAYMENTS / ATTENDANCE

A Computerized “Personal Folder” must be created for each & every employee, giving his joining Salary & annual Increments and new salary on 1st July of each year.
       For each month, depending on no. of working days (including Paid holidays) DAILY SALARY should be worked out for each employee.
       To multiply by “no. of days working days ‘’ to arrive at monthly salary Payable.
       A Computer Software is already installed for this.
       All Employee to be issued Appt. Letters/ (Check with Mr. Salil Gandhi First.)
       All Employee to be allotted a PS no. (Pay Sheet No.) & issued Plastic ATTENDANCE – RECORD CARD) after entering the “PS No.’ & “Full Name’ & “Monthly Salary “Data into the concerned Software.
       We may Create physical folders (Pieces of Papers) – one for each Employee – to begin with and, after using for 4/6 months and gaining experience, change over to ELECTRONIC (COMPUTER – BASE ) FOLDERS thereafter. I have already prepared a Folder to Sheetal.
FAMILY ACCOUTS & FINANCIAL MATTERS.
No./ Name of each Family Member for each Family member, compile
Bank Accounts
(Current / Saving / NSS / PPF etc.)
Fixed Deposits
Shares
Units
Other types of Investments/ Current assets
LIC Policies
Med claims
Fixed Assets (Car/ Land/ Flats etc.)
Prepare For each Member
Yield Chart
Renewal Chart
Premiums / Interests to be received month wise & Actual receipts.
Follow-up non-receipts / late receipts.
Pay Personal – Bills (thru Cheques) & Deposit all Cheque received & Keep all Bank accounts up to date.
Prepare individual CASH- FLOW charts to decide upon deployment of surplus
File Personal (Income tax/ Wealth Tax) returns entire.