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

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

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

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