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The
Effective Controller in the 21st Century Book
is a practical guide that is suitable for both accountant professionals,
and non-accounting people who are interested in accounting and
finance or have to deal with financial matters in various types
of organization.
The book is full of practical advices with regard to the accounting
and control issues. Certainly the content is derived from the
real-life experience of the author along his career as a controller.
It covers basic business processes that are widely practiced
by well respected companies. The book also suggests accounting
concept for business management. By understanding the ControllerFOCUS
index, the management can develop its customized strategies
for long-term achievements. The book is organized into 8 chapters
that discuss on each aspect of the new accounting concept as
follows: -
Looking Forward to Future Prospects
This chapter encourages employees to give more emphasis on balancing
time and efforts better by shifting from the historical-result
oriented to future prospects management. A lot of activities
should be taken in response to existing risks and available
opportunities. In the dynamic business world, there is an inevitable
need for change and speed improvement. The management team needs
to understand the consequence of doing and not-doing things
today so that they can react to it correctly. The future will
exist only when you care for the future.
Understanding the Business Operation
The word "Back Office" should disappear in this century.
There should be no separation between the back office support
and the front-line operation. Accountants have to radically
change their roles to understand the whole business operations
and provide effective support. Self-improvement is one of the
most important business cultures. By learning and understanding
problems and objectives of each function, concerned people can
perform their tasks in a more cooperative manner. Companies
should create a one team organization so that clearly defined
job description is no longer valid.
Ensuring the Control Effectiveness
There are basic controls that any companies should establish
to prevent any damages that may occur. Each business process's
control points and risks are covered with examples of standard
practices. The business process includes but not limited to
the following items:
• Purchasing
• Receiving
• Payment
• Selling
• Collection
• Fixed Assets
• Payroll
• General Ledger, etc.
The format of internal control questionnaires (ICQ) can be used
to serve this purpose. The questions are used as guidelines
to help internal auditors. Any discrepancy found should be assessed
for severity level before corrective actions and reports are
made accordingly.
Utilizing Corporate Resources
Successful companies are efficient and productive in running
their businesses. They utilize scarce resources wisely and know
where to focus their energy. Controllers have the responsibility
to make sure that the company's time, people and assets have
been utilized for maximum benefits. Companies need to establish
a strong culture that emphasizes utilizing resources for maximum
total operational efficiency. Employees must figure out how
to share the limited resources and reduce costs. The management
must support activities that promote this culture.
System Continuous Improvement
The competitiveness of a company depends on the efficiency level
of its internal systems, which include operations and management.
Most companies use computer software programs to help with accounting
work. This software can facilitate enterprise resource planning
that integrates almost all functions such as purchasing, ordering,
inventory control, material requirement planning, production
reports, sales, treasury, fixed assets, payroll, and general
ledger. Automated systems can improve efficiency and reduce
costs by shortening operating time, reducing headcount numbers,
and preventing errors. In respect to system improvement, a controller's
role is not limited to accounting information. It needs to include
the entire company's information system, which integrates relevant
sub-systems used to link data to the accounting database. The
system interface between the main system and sub-systems has
to be reliable.
This book also proposes a controllership driven improvement
for the business management through the ControllerFOCUS index.
It forms as a start of standard practices for the accounting
and business communities in the future. |
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