Hi friends
I have got the job of setting up the accounts department in a manufacturing company. Could you help me by suggesting the steps for the same?
Tell me about the number of people required(400 crs turnover approx), how to go about filing system, ensuring payment of all statutory dues within time etc.
Understand the current systems related to sales, purchase, expenses, cash and bank transactions. Make notes on the above and then prepare Accounting Practice Manual giving details on the following:
Cash payments, data entry
Cheque payments, data entry
Sales invoice preparation, inventory record, data entry
purchase invoice, inventory record, data entry
adminstrative expenses e.g salary, electricity, telephone, misc ecp, data entry
journal vouchers such as booking expenses or income, data entry
statutory payments such as TDS, PT, ESIC, PF, VAT, IT etc, data entry
These are just the basics. As you start making notes, you can go into details of each transactions taking place and how to record those. Also prepare schedules of payment for taxes, insurance, memberships, renewals etc for the whole year.
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