Financial and monitoring strategy Essay Example | Topics and Well Written Essays - 750 words

Financial and monitoring strategy - Essay Example The new Office and Finance Manager has proposed the following financial and monitoring system with special attention to the legal and tax information requirements of ATO. As Real-time is registered for paying both GST and PAYG, the company is liable to maintain and provide records pertaining to tax calculations. These records should be kept for a minimum of 5 years as per legal requirements. As the company registered last year for payment of both these taxes, it is proposed that back up copies of accounting records and information listed as below to be kept in both hard copy forms as well as in soft copies written to CDs. As Real-time is currently having a computerized accounting system with customized business software, it is not a difficult task to acquire the necessary information and reports. However there is a marked lack of procedures for maintaining some of the above records and proof of information such as cheque stubs, deposit slips and credit card dockets. At most times, these items are discarded at month end or misplaced without being file and kept for record keeping. As such it is proposed that a record room be allocated separately for safekeeping or accruing records, bearing in mind the minimum five year requirement for maintaining business records to meet legal requirements. Investment in a low range server is also proposed so that the company’s computer system can be updated and all personnel be linked via network connections. This upgrading will also facilitate the implementation of the fleet tracking and monitoring software program proposed in a bid to minimize idle times, and other costs associated with ineffective delivery activities. As GST is payable on the service bills of Real-time, the GST component of 10% of bill value will be recorded in all invoices. The invoicing system has been already adjusted to carry out this task and the GST payable component is calculated automatically by