11-11-2007, 04:14 PM
Last month My elder brother died by heart attack, I came Pakistan and due to family situation i quit from study of my ACCA and took initiative to help father and family business. Because it was their wish, i stay with them.
After joining, I realize there is a lot of potential to expand it in near future. But right now I am facing few problems like most of data is in old form of account.
I want to change it in computerize way. I would like to follow IAS (International accounting standard) or at least Pakistan accounting standard to get a true picture of business.
<b>
Let me tell you some bird eye view about business, and then you can suggest me how I can improve it or should I use traditional or existing accounting methods.</b>
Well business is related with Distribution of Cement in a whole District. We directly buy from manufacturer and further sale it to small shop keepers. And 2nd type of work is sale of all building material construction items in our 7 shops in one location.
<b>Should I use Excel/spread sheet or Sage 5.0? </b>
<b>Benefit</b> I can easily present my family about Excel, and about Sage I have done work on it.
<b>Drawback</b> Excel is less analytical and advance. Sage is complicated sometimes for new users/family members
<b>I explain you flow of our work then you can understand and suggest me in more depth</b>
<b>Flow of work</b>
Type of sales
Cement sale is totally on credit, where as other products are are on cash sale.
<b>Credit Sales </b>
Manufacturer /Company head office > we buy it > Sale it to shop keepers.
We pay company their amounts in Advance, where as Debtors pay us Weekly, twice in month or some pay once in month.
<b>Other key points</b>
*Booking differences like number of tons booked and number of tons distribute by us
*Company sends us month end report
*we just make accounts don't send debtors month end reports?shoud we?
*Collection from debtors once in week.
<b>
Creditors</b>
We have 3-4 main creditors, whom we paid weekly, monthly or yearly. No stocks valuation because there are plenty of small items. So it sounds hard to make stock valuation system except 2-3 main items.
<b>Expenditure side,</b>
No record of expenditure except bigger amounts.
<b><font color="red">My questions</font id="red"></b>
<b>1)</b>Does accounting system may help me or in future to understand more in depth or in such business we use traditional methods of accounts?
<b>2)</b>What is best way for collection from debtors? weekly or twice in a week.
<b>3)</b>Should I start full record of expenditure and outgoing for home use from business or simply no record like in the past? Except bigger amounts.
<b>4)</b>Should I write down even cash sales? Right now we have fully record of Credit sales only.
<b>5)</b> How many books/files needs to make a system to cover all these transaction, or simple one spreadsheet for one work?
<b>6)</b> Which is more usefull <b>Excel or Sage</b> or other <b>programme</b> to handle such business where alot of debtors involve?
After joining, I realize there is a lot of potential to expand it in near future. But right now I am facing few problems like most of data is in old form of account.
I want to change it in computerize way. I would like to follow IAS (International accounting standard) or at least Pakistan accounting standard to get a true picture of business.
<b>
Let me tell you some bird eye view about business, and then you can suggest me how I can improve it or should I use traditional or existing accounting methods.</b>
Well business is related with Distribution of Cement in a whole District. We directly buy from manufacturer and further sale it to small shop keepers. And 2nd type of work is sale of all building material construction items in our 7 shops in one location.
<b>Should I use Excel/spread sheet or Sage 5.0? </b>
<b>Benefit</b> I can easily present my family about Excel, and about Sage I have done work on it.
<b>Drawback</b> Excel is less analytical and advance. Sage is complicated sometimes for new users/family members
<b>I explain you flow of our work then you can understand and suggest me in more depth</b>
<b>Flow of work</b>
Type of sales
Cement sale is totally on credit, where as other products are are on cash sale.
<b>Credit Sales </b>
Manufacturer /Company head office > we buy it > Sale it to shop keepers.
We pay company their amounts in Advance, where as Debtors pay us Weekly, twice in month or some pay once in month.
<b>Other key points</b>
*Booking differences like number of tons booked and number of tons distribute by us
*Company sends us month end report
*we just make accounts don't send debtors month end reports?shoud we?
*Collection from debtors once in week.
<b>
Creditors</b>
We have 3-4 main creditors, whom we paid weekly, monthly or yearly. No stocks valuation because there are plenty of small items. So it sounds hard to make stock valuation system except 2-3 main items.
<b>Expenditure side,</b>
No record of expenditure except bigger amounts.
<b><font color="red">My questions</font id="red"></b>
<b>1)</b>Does accounting system may help me or in future to understand more in depth or in such business we use traditional methods of accounts?
<b>2)</b>What is best way for collection from debtors? weekly or twice in a week.
<b>3)</b>Should I start full record of expenditure and outgoing for home use from business or simply no record like in the past? Except bigger amounts.
<b>4)</b>Should I write down even cash sales? Right now we have fully record of Credit sales only.
<b>5)</b> How many books/files needs to make a system to cover all these transaction, or simple one spreadsheet for one work?
<b>6)</b> Which is more usefull <b>Excel or Sage</b> or other <b>programme</b> to handle such business where alot of debtors involve?
