Internal cash management and control including implementation of a software program : Case company: ABC Ltd
Dmitrieva, Maria (2014)
Dmitrieva, Maria
Hämeen ammattikorkeakoulu
2014
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014112616979
https://urn.fi/URN:NBN:fi:amk-2014112616979
Tiivistelmä
The following thesis was commissioned by the ABC Ltd to conduct the research concerning the financial loss problem, including search and implementation of a suitable software program, which would comply with the requirements of the company. ABC Ltd is an English language school, which operates in England, France, and USA. The primary objective of this thesis was to investigate the current situation, and based on the analyzed data, to develop and recommend ways to improve the company’s activities in the future.
The theory applied in the thesis is devoted to the problem and consequences of weak internal cash management, internal control, absence of software program and small business issues. Cash management and internal control theory was used to understand how the poor management could result in financial loss. Other theory sources on this topic were used to identify the ways to solve existing issues and also look and compare how other small entities are coping with similar problems.
Two research methods were used to collect the information. First of all, the author interviewed the Operations Manager, who is directly connected with the subject of the project. Secondly, as the other research method author has chosen participant observation, it was more practical than other methods and more applicable to the current problem.
The main results pointed on several kinds of problems that exist and are not being taken care of so far. The major problems that the author could identify were weak internal cash management, absence of suitable ac-counting software and lack of internal control. In addition, due to season-ality of the business, the company was not able to find professional accountant or at least student with financial background for several years in a row.
Finally, the author introduced a development plan. It included the development of the Cash Reserve Fund handling procedure, implementation of internal control activities and integration of the software program, together with the hiring proper specialists to save time and money.
The theory applied in the thesis is devoted to the problem and consequences of weak internal cash management, internal control, absence of software program and small business issues. Cash management and internal control theory was used to understand how the poor management could result in financial loss. Other theory sources on this topic were used to identify the ways to solve existing issues and also look and compare how other small entities are coping with similar problems.
Two research methods were used to collect the information. First of all, the author interviewed the Operations Manager, who is directly connected with the subject of the project. Secondly, as the other research method author has chosen participant observation, it was more practical than other methods and more applicable to the current problem.
The main results pointed on several kinds of problems that exist and are not being taken care of so far. The major problems that the author could identify were weak internal cash management, absence of suitable ac-counting software and lack of internal control. In addition, due to season-ality of the business, the company was not able to find professional accountant or at least student with financial background for several years in a row.
Finally, the author introduced a development plan. It included the development of the Cash Reserve Fund handling procedure, implementation of internal control activities and integration of the software program, together with the hiring proper specialists to save time and money.