Monday, 3 September 2012

Cashflow monitoring and variances

Hi Platinum,
I’ve been checking job vacancies lately. And I feel confused about 3 roles of assistant accountant or AP officer which is monitoring cash flow, cash flow variance analysis and supplier reconciliation. So my questions are:
1.       What’s procedure of cash flow monitoring
2.       General description about cash flow variance analysis and is it similar to P&L analysis  involving comparing P&L with budget
3.       What’s supplier reconciliation? And what support documents are needed?
Thank you,

1 comment:

  1. Hi Tina
    Thanks for your question.
    Analysis of variances is the same in principle across most disciplines. You need to look at why its different and if there is any trend you can identify to improve the business.

    For cash flow analysis, you are looking at cashflows in particular, not P&L and not for each different account. You will however be looking at the following items to reconcile and see if there is a discrepancy or anything that needs further investigation:

    · Bank statements
    · Bank reconciliations
    · Deposit receipts
    · Transfer statements
    · Debt agreements
    · Receivables or Payables logs

    For supplier analysis and recs, the following documents are likely to be used for reconciliation:

    · Raw material receipts
    · WIP reports
    · Physical inventory analysis
    · Order logs
    · Customer invoices
    · Customer revenue reports
    · Product revenue reports
    · Shipment logs
    · Cash receipts

    Good Luck with your job hunting Tina.