Executive PA Australasia October November 2016 | Page 30

JACK OF ALL TRADES
Tips for EAs working across varying
sectors of their business
Balancing the books
1
What is the purpose of the
accounting department?
Regardless if you’re a commercial business,
not-for profit, or government agency, the
fundamentals of the accounts function
are similar. At a basic level the accounting
department ensures the financial side of
the business is being closely monitored,
that there is appropriate cash flow to allow
the business to meet all its obligations and
that there is a high level of reporting that
provides the information managers need
to understand the drivers to ensure the
business succeeds.
2
What are the accounting basics?
Even for a small business there are
some basics common to all accounting
departments. Accounts payable manages
the process that ensures the bills are paid.
Understanding the terms of payment is
important and any opportunities to save
money through the early settlement of
payments needs to be fully explored.
Accounts receivable is responsible for
the creation of invoices and for tracking
any outstanding payments owed to the
organisation. They should have a good
understanding of what monies are due
to the business and when they are due.
They may maintain a register of any
outstanding payments, or any customers
where there might be recurrent issues with
late or non-payment.
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A critical role for the accounts
department is managing the payroll
function. It is important that staff members
are paid accurately, that the appropriate
tax obligations and superannuation
contributions are met, and that the
information is available to the individual
staff member. Accuracy and confidentiality
are essential parts of maintaining a strong
payroll function.
At the more strategic level, there’s
critical work to be done in business
planning, looking at budgeting and
forecasting cash flow.
3
Does accounting ever change?
Beyond the basics, the role of the
accounting department has changed
significantly over time and in most
businesses now plays a par