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Need For Effective Store Accounting In An Organization
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CHAPTER ONE
1.0 INTRODUCTION
Accounting has been identified as one
of the most important activities carried out in any organization. This
is because materials is the life blood of an industry.
Materials
constitute money and have been bought to meet certain needs, in order to
ensure that these materials meet the needs for which they were bought
and to avoid unnecessary cash loss arising from losing of materials due
to ineffective accounting which therefore, affect the profit margin of
the organization with this development every organization has realized
the need to invest in accounting. This is so for any profit oriented
organization.
1.1 BACKGROUND OF THE STUDY
Accounting is one of the
most important aspect of store management. Accounting of stores in a
broad sense covers not only theft and fraud but it extends to areas of
stock deterioration , damage location and special storage requirement.
Organization may decide to seek the services of professional accounting
outfit that supply a trained team of accounting guards and other
personnel to guard against theft.
However, he recommend that the
effort time and expenditure of money should be proportionate and
relative to the importance of the materials and that of accounting must
be commensurate with the benefits which may occur from accounting
measures.
The role of store accounting is very important which
according to carter and price (1993:10) reflect both the value of stock
and its operational role within the organization. They added that stock
record becomes meaningless as a means of stock control if stock is lost
and not recorded. The calculated level of stock indicated by the stock
card will bear no resemblance to the actual stock hold. Production
operation will highly be hampered if the stores accounting functions are
not properly and effectively carried out. The basis store accounting
function is that of holding stock thus the need for proper stock control
becomes imperative.
According to Marrison (1987:9) said that stock
control involves activities designed towards the effective management
and control of all inventory item held in stock. Stock represent a major
part of the organizational working capital or money , therefore any
stock cost because of theft fraud of damage will have to be replaced
which will increase the organization costs and reduce its profit. The
value of stock cost every year is impossible to calculate hence, the
figure must run into billion of naira to which must be added the loss of
profit and revenue arising from production hold ups and lost contracts.
Good
store accounting will therefore real definite financial reward for the
organization. In occupying out this project therefore, an attempt is
being made to pinpoint the factors that hinders them effectively on
stores .
Accounting aimed at rendering effective services to the user
department and therefore by achieving the organization objectives.
Unama Nigeria limited was incorporated in October 1982 as a private
limited liability company. The company is located at old Nekede Owerri
West Imo State. The company with indigenous and is owned by numerous
shareholders including former East Central states, it is a unique joint
stock company . it is made up of six departments namely: administration
finance, stores, production , maintenance and internal audit
departments. The company is a paper co wrapper, waxing , sheeting of
papers and production of progress over the years and has now embarked on
a programme of diversification and expansion as a result of research an
search and finally settled on paper milling. The paper is ideal as for
now all papers will produce the types of papers available. The paper is
known as bleached kraft†while others are sourced locally such as toilet
roll care, tambourines and printing ink. The company has various
machines which performs different works example printing machines,
cutting machine, waxing machine, sheeting machine, toilet log machines ,
core making machine and sheeting machine.
CHAPTER ONE -- [Total Page(s) 4]
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ABSRACT - [ Total Page(s): 1 ]Alternatively, organization may put the responsibility of store accountability on individual stock keeper or manager for the stock held in their charge.As a result of this, most organization rely on them to control store accounting. Stores accounting and safety is one of the important areas of concern in stores management as a result of the need to protect the company’s huge investment is stock. All goods must have value to a company else they should not have been in stock.According to Mo ... Continue reading---
