Analysing the Activities of Accounts Department: A Study on Expo Freight Limited (EFL)

Abstract

The accounting department records the goods and services paid by the company and ensures that all business expenses are paid on time. It also typically tracks all scheduled payments in an organization, such as inventory, payroll, and other business-related expenses. The company that is being analysed in this report, Expo Freight Limited (EFL), is a leader in global supply chain solutions. EFL has provided air, sea, warehousing and other solutions to the international shipping community. The company offers an extensive menu of services and is backed by its network of offices and innovative facilities.

The purpose of preparing this report is to deliver a broad understanding of the activities conducted by the accounts department of EFL. Moreover, to mention specifically, the study focused on three objectives that are to analyse the way the EFL Accounts Dept records and processes its different accounting variables; to analyse how EFL Accounts Dept manages cash and payroll-related activities, and to analyse EFL Accounting's procedures for preparing internal and external reports.

To prepare the study exploratory research method has been followed it allows us to explore a specific issue where no previous information is rarely available. This study was prepared with information from both primary and secondary sources. The primary data of this study are found by face-to-face conversations and daily activities. Alternatively, secondary information is acquired from the EFL's personnel handbook, website, and related literature. Some remarks and suggestions have been made based on personal experience and results.

Some important practical findings are listed in the findings chapter of this report about the activities of the accounts department of EFL. To meet our first objective, several accounting variables are observed and their recording procedures are mentioned. To meet the second objective which is the ways to manage cash and payroll, it is found that Expo Freight Limited collects money from clients by offering aeroplane, ocean, warehouse, and distribution services, as well as customs brokerage, project logistics, and import services, and pays cash in four ways: wage payment, employee payment, other activities payment, and external payment. However, in terms of attaining the third objective, it is found that all financial transactions throughout the year are recorded in a computerized accounting system. For greater clarity, EFL's financial reports sometimes include narratives. Accounting theories, circumstances and norms are followed when preparing statutory financial reports. In financial reports, accounting dates for summarization, tabulation, and collection are shown. On the other hand, EFL prepares five financial statements: Balance Sheet, Profit and Loss Statement, Cash Flow Statement, Owner's Equity Statement and Notes to Financial Statements. On the other hand, EFL prepares two types of internal reports: monthly reports and annual reports.