Appendices Examples

Appendix 1 - Structure of Accounts Department of XXXXX

Finance Director 30% Shareholder

Managing Director 40% Shareholder

Sales Director 30% Shareholder

Company Accountant

Accounting Technician

Payroll & Personnel Database Clerk

Costing Technician

Accounts Payable (Purchase Ledger) Clerk

Accounts Receivable (Sales Ledger) Clerk

General Ledger and Inventory Clerk

Appendix 2 – Financial Statements In limited companies one of the major roles of the accounts department is to fulfil the requirements of the ‘Accounting Standards Board’ (ASB), a board governed by the ‘Financial Reporting Council’ (FRC). As a UK limited company, the law requires that they prepare a set of financial statements annually, the Companies Act 1985 (CA85) sets out the formats and content of these statements and as such any UK limited company must prepare the following: 1. Statement of Financial Position (Balance Sheet) 2. Statement of Comprehensive Income (Profit & Loss Account) 3. Statement of Cash Flow Under the regulations set out in the CA85 and by the ASB, four important accounting concepts underpin the preparation of these set of accounts: Going concern – accounts are prepared with the assumption that the business continues to trade for the foreseeable future. Consistency – transaction and valuation methods used are treated in the same way at each accounting period. Where accounting policies are changed, this is to be disclosed and the impact of any changes explained. Prudence – profits must not be recognised until the sale has been completed. Assets and profits must be realistic and take account of non recoverable bad debt and damaged goods. Accruals – the effects of transactions are recognised when they occur and are reported in the financial statements in the period in which they occur. Once complete these financial records must be filed with the ‘Registrar of Companies’ where they are publicly made available to the stakeholder of the company. These...