HOW TO IMPROVE ACCOUNTS
This is to inform you that as the financial manager for this firm, I carefully took my time to have a look at the statements of accounts of this firm. However, I was shocked by all that I set my eyes on.
Precisely, it means that this firm never produced any remarkable record that can be submitted to the current share holders, leave alone the prospecting ones.
It then dawned on me that our plan of improving the performance of this firm and possibly striving to list this company in the stock exchange. According to our plans, this is what we would do to boost our income.
It was in our plan to produce good results in this 2011?12 financial year. As per our plan, this would enable us to appeal to the larger marketing community from where we would get this additional funds through the selling of debentures, preference shares and ordinary shares.
This was to see us be in a position of even using the company assets as collaterals in acquiring loans and other credit facilities. Because, it was argued in the last annual general meeting that any valuable asset would be used as security to help the company to expand its financial base.
It therefore, means that there was a poor coordination of activities especially in the sales and marketing and supply departments. It must also be accepted that some of the funds were misappropriated especially by the officials in the finance department.
Therefore, as the managing director of this company, I would like to give my well thought recommendations on what should be done in order to liberate this firm from this state and help to uplift its reputation. Hence, I would like to recommend the following:
i) A proper auditing is to be done. This should be done by both the internal and external auditors who are to conduct their exercise transparently without any form of fear or favor.
ii) The suspected departments should be purged. This means that they should be cleared of these suspected officers who should first be compelled to step aside and create an ample opportunity for proper investigations (Edwards, Mark R., & Ewen, A. J., 1996).
iii) There should be a fresh recruitment. This means that all the current employees should be vetted. The non performers should be laid off to create room for a more dedicated team.
iv) The terms of contract should be reviewed. New terms should be introduced and one’s terms should be pegged on the level of their efficiency and productivity.
v) Finally, I would like to recommend that the company should be given some grace period. This simply means that it should be closed for some time to allow the technical team to carry out the needed services. After this service, the machines should be put in use (Goldsmith, M., & Underhill, B.O., 2001). This will definitely make them be more efficient and productive.
In summary, it should be noted that it is our concern as the management of this firm, we should come together to implement there recommendations to help salvage the sole source of our livelihood.
Edwards, Mark R., & Ewen, A. J. (1996). 360° Feedback: The powerful new model for Employee Assessment & performance improvement. New York: AMACOM American Management Association.
Goldsmith, M., & Underhill, B.O. (2001). Multisource feedback for executive development. In Bracken, D.W., Timmreck, C.W., and Church, A.H. The Handbook of Multisource Feedback. San Francisco: Jossey-Bass.
