An Annual Repoertk for Mangement Acconting System of Yaw Tree Limited Company

8/14/2019 An Annual Repoertk for Mangement Acconting System of Yaw Tree Limited Company

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THE YAWTREE COMPANY LIMITED

ANNUAL REPORT FOR MANAGEMENT

ACCONTING SYSTEM

2001

: THE

: YAWTREE

: COMPANY LIMITED


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OUR VISION:-

We are the Company that makes business successful.

OUR MISSION:-

We provide our customers with products and services at affordable and competitive prices.

OUR VALUES:-

To treat all customers equally, irrespective of their financial power, a political influence,

charismatics influences and any differences human being may have.

To abide the word of mouth with a real practical services.

To encourage the spirit of innovative and creatives among our employees.

CONTENTS:-

Page

1. MESSAGE FROM THE CHAIRPERSON OF THE BOARD OF DIRECTORS:- 1

2. THE BOARD OF DIRECTORS:- 2


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3. MESSAGE FROM THE MANAGING DIRECTOR:- 3

4. INTRODUCTION:- 4

5. ESTABLISHMENT OF THE MANAGEMENT ACCOUNT SYSTEMS TO THE COMPANY BUSINESS

OPERATIONS:-

(i) REASONS AS TO WHY SUCH ESTABLSHMENT OF A COMPUTERIZED ACCOUNTING

SYSTEM:- 4-5

(ii) WHAT IS A MANAGEMENT ACCOUNTING SYSTEM, ITS NATURE AND PURPOSES; BENEFITS

AND PROBLEMS THAT MAY BE INHERITED IN USING SUCH A MANAGEMENT SYSTEM.

5-6

6. THE HARDWARE AND SOFTWARE REQUIEREMENTS IN THE INITIAL STAGE:- . 6-7

7. THE BRIEF EXPLANATIONS ABOUT THE COMPUTER HARDWARE AND THE SOFTWARE OF

THE YAWTREE COMPANY LIMITED 7-10

8. THE COMPUTER MANAGEMENT ACCOUNT SYSTEMS EXPERTS:- 10

9. BUDGET AND FUTURE PROJECTIONS. 11-12

10. CONTINGENCY PLAN. 12

11. REFERENCES:- 13

1.MESSAGE FROM THE CHAIRPERSON OF THE BOARD OF DIRECTORS:-

The keystone of the Yaw Tree Company Limited in The Year 2001 was to increase the customers services

and expanding the business to spread throughout the big areas of the United Republic of Tanzania. We have

successes to capture the interest of many customers of our products and services in this year. And so our


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company business has expanded and has come to the point of successful competition in this world of very fast

changes of technology.

The business in this year continues to be more competitive; however the performances of our company

provided a platform for us to consolidate our efforts in achieving growth in total assets and profitability.

In this year 2001 our company made turn-round by realizing a Gross margin of TZs 92,160,000/=, compared

to TZs 81,154,000 /= in 2000.This profit is attributed mainly to improved services coupled with careful

investment.

Sure, as the Chairperson of this meeting of the Board of Directors of our Company The Yaw tree Limited ; I

wish to express my grateful thanks to Mr. Mark Pope the Managing Director of our Company for his strenuous

efforts in managing the companys daily business operations, also the member of the management committees

for their good directives and positive correctives measures and actions, as well as the employees of our

company for their strenuous efforts in making the company goals come true.

Thanks You All People.

Signature of the Chairperson Date

. ..

2. THE BOARD OF DIRECTORS:-

1.MR SHORE ISNSHAKI

2. MR MARK POPE.

3.DR MISS MONAOKIKA NYOKUNDAMBE


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4.MR SAZINGA NJICHEKOFOMBE

5.DR BARIKI MAPUNGAHI

6. MRS HELLEN NGULUCHECHE.

7. DR . MAFALA MAFOYA

3. MESSAGE FROM THE EXECUTIVE BOARD DIRECTOR:-

It is a great day that we are going to hear the operational and financial review of our company in this 31 s

December 2001`.

In this year our company the Yaw tree Limited successes to capture the attention of the customers, we came

to that point of success due because to the strenuous efforts of the management team, the board of directors

directives and the adherences of our employees to accomplish our companys SMART define goals and plans.

Our company continues to increase the services to our customers and expanded to the bigger areas of our

country Tanzania. We have realized the convincing financial performance, financial position of our company

and the rapid increase in the networking capital by 2.5% in 2001 compared to 1.6% in the last year 2000.

To end my address to this board of directors about the 2001 Yaw tree Limited business operations, the

financial performance, financial position, financial health as whole and the prevailing condition of the company.

We have recognized the rapid growth of our company, the management of the accounts now has become a

difficult task to handle and we are squandering most of our time on desks to prepare accounts, prepare the

financial statements, and analyzing accounts manually using the old methods. In this way we failed to give out

the financial information in our day to day operations of the Yaw tree Limited. We do not know the conditions

of the company till the end of the year ,and so that is risk my dear comrades and so we must switch to the

establishment of the management accounting system in the next accounting year so as to make the positive

constructive measures against the prevailing situation of the company. The new way of managing the accounts

of our company by the computerized accounting system will benefits our company in many ways because of its


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nature and purpose. Though there are few problems that may be inherited in using computerized accounting

system ,the benefits overshadow the problems and always these problems are ease to manage if we will hire the

competent computer accounting system analysts , the system administrator and such management system

experts to work in our company. We will also have to take some employees in our company for short courses on

how to use such a technology.

With my grateful heart to the existences and the prevailing of the Yaw Tree Company Limited, I would like

to appreciates the efforts of our board of directors ,the chair person of this end of the year meeting Mr. Shose

Isnshaki ,the Managing Director Mr. Mark Pope and the board of directors as whole ,our shareholders

,contributors ,venders ,stakeholders ,our company staff members and our creditors too, without forgetting MissAllison our company Auditor for they owed their efforts and suggestions to the best level of this company.

Thanks,

Executive Directors Signature Date

4. INTRODUCTION:-

This annual report of the Yaw Tree Limited is prepared by our company experts in repots writing

Dr. Shiyeshyoshe Manjayo .The big part of this report is about the establishment of the management accounting

system in the daily operations of the Yaw Tree Limited day to day business.


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5. ESTABLISHMENT OF THE MANAGEMENT ACCOUNTING SYSTEMS TO THE COMPANY

BUSINESS OPERATIONS:-

(i) REASONS AS TO WHY SUCH INTRODUCTION OF A COMPUTERIZED ACCOUNTING SYSTEM:-

The decision to establish the management accounting system was introduced in this company by our Auditor

Miss Allison when she made conversations with our Managing Director Mr. Mark Pope, though Mr. Mark Pope

tried to be reluctant he was convinced and he posed the issue into the management team committee meeting

where by the shareholders, the employees of the company and some stakeholders joined hand to suggests for

introduction of the management accounting system in our company.

(ii) WHAT IS A MANAGEMENT ACCOUNTING SYSTEM, ITS NATURE AND PURPOSES; BENEFITS AND

PROBLEMS THAT MAY BE INHERITED IN EMPLOYING SUCH A MANAGEMENT SYSTEM:-

Dear comrades and other members of the Yaw Tree Company Limited, we got to know at least what is the

management accounting system , its nature and purposes as well as the problems that we may encounter when

using the system to manage accounts ,production and sales for our company.

To start with the meaning of the management accounting system, this is simply defined as a process designed

to accumulate, classify, and summarize financial data.

It can provide economical computerized accounting system for any business; small, and medium to large.

The system can be used to prepare paychecks, monthly credit card statements and other bills and therefore keep

track of bank account balances. In fact our company can depend on such a computerized system to provide

accurate and timely financial information daily.

THE NATURE AND PURPOSES OF MANAGEMENT ACCOUNTING SYSTEM:-


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The nature and purpose of such a system my dear comrades is to stay in the business and do good job; so w e

can tie some portion of money on this system rather than bank our companys hopes on the manual methods of

accounting which most of the time in managing the companys business is spent on desks instead of looking

around to know more about the business in a day to day routines. More over this computerized accounting

system will help to keep track of what we have or need between the physical when we had done with our annual

inventory using the systems software.

THE BENEFITS INHERETED ON USING THEMANGEMENT ACCOUNT SYSTEM:-

There are simply five direct benefits we will benefit after establish the computerized accounting system; let

me mention them here and give a brief explanations about them.

As I have said early this can help to quickly generate useful and reliable information for the companys

management such as monthly management reports that might include the information which will help the

management is informed of any situation or condition of the company so that the management can take the

correctives measures soon and on time before the situation get worse.

Here are some of those benefits:-

1. We can simply be aware with the revenues and profits which are allocated according to customers, divisions,

sales people, our products and other services we are providing. This will help us to understand where the profits

and losses are being generated.

2. We will also be able to compare the financial performances of our company relative to the financial

projections and budget.

3. We can simply discover the patterns or trends of changes in revenues and costs as times changes or in

different periods.


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4. After introducing the management accounting systems we will be in position to monitor the currents assets

such as accounts receivables, cash and inventory levels.

And therefore we will afford to;

5. Take some various measures of operations efficiency, such as the revenues per employee, the fixed assets

turnover, return on assets, return on equity, the revenues per specific pieces of equipments, and costs of defects

at each production stage.

6. THE HARDWARE AND SOFTWARE REQUIEREMENTS IN THE INITIAL STAGE:-

The hardware requirements are structured as under such that, there are the needs for;

1. (One) central desktop computer for the system administrator

1. (One) desktop computer for accounting

2. (Two) desktop computers for purchasing

1. (One) laptop computer for the sales manager

4. (Four) laptops computer One for each of the four salespeople

The software requirements are listed as under;

Account management, Accounting, and Production management.

We proposed 8 (eight) seats of software

Cabling and installation

We proposed to train 11(eleven) people in the initial training


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We have also some arrangement for the ongoing technical support and training.

7. THE BRIEF EXPLANATIONS ABOUT THE COMPUTER HARDWARE AND THE SOFTWARE

OF THE YAWTREE COMPANY LIMITED IN THE ESTABLISHMENT OF THE MANAGEMENT

ACCOUNTING SYSTEM:

COMPUTER:-

The computer itself is an electronic device that executes the instructions in a program. Or can also be

defined ;as a machine which takes data as its input; processes it using programs (set of instructions) and produces output information as its output, with the following properties such as ;storage capacity-huge if

compared to other machines ,processing speed-higher if compared to other machines based on retrieval and

computation, can do billions of actions per second , accuracy-guaranteed-makes no mistake except that users

are the one who can mess-up ,automation-works with no human intervention ,diligence-can work continuously

for hours, days etc without stopping. , and it is flexible for all types of users to use.

PARTS OF A COMPUTER:-

A computer is made up of two parts that are the computer hardware and the computer software, therefore:-

The computer hardware; Is the physical part of the computer-which can be touched and sensed. And the

computer software; is the set of instructions that make sense to a machine. This software is written in machine

language.

THE INFORMATION PROCESSING CYCLE:-

It has to go through these steps when working; Input-accepts data, processing-processes data, Output- produces

output, storage -stores results.


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COMPUTER SYSTEM:-

Program:- Set of instructions that can be read by a machine or set of machine readable instructions.

Software:- Program used by individuals or is the set of instructions that tell the hardware how to perform a

task. Without software the hardware is useless.

Package:- Something packed for sale and can be used globally or the programs that are used globally by

individuals and business entities.

Note:- All software are programs, but not all programs are software.

HOW TO SOLVE A PROBLEM USING COMPUTERS?

We may encounter some problems when using the management accounting system so that we must be aware

with the following details about solving problems using the computer;


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The first thing is the problem must exist , then a method to a solution must be known ,we must have the system

analysts ,therefore the method must be translated and stored in a computer machine language . From there the

software engineers translate the method into the machine language. The human language is changed into

programming language programmer and vice versa the programming language into machine language

complier. Hence the processor after being instructed will execute the method to a solution

SOFTWARE:-

There are two types of computer software such as; system software and applications software .

System software: Is used to control the operations of the applications software as well as coordinates the

activities of the computer equipment.

Application Software: This consist of programs that direct a computer to process input data into output

information.Forexample, data regarding sale invoices and the number of each item sold is entered into a

computer.

The computer is then able to process these sales facts and printout a sales report showing total sales. Business

managers can use this information to identify inventory items that are fast selling as well as those items that are

slow moving or just not selling at all.

Applications software is also used for specific tasks such as processing payroll checks, creating word

processed documents, calculating electronic spreadsheets and maintaining database files.

BENEFITS OF THE SYSTEM SOFTWARE:-

(i) It offers an opportunity for efficient, economical preparation of financial reports and statements.


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ANNUAL BENEFIT

Sales in 2001 (this year) : TZs 171,080,000/=

Costs in 2001 (this year) ; TZs 78, 920,000/=

Gross Margin 2001: TZs 92,160,000/=

Projected sales for 2002: TZs 300,000,000/=

Projected costs for 2002: TZs 134,920,000/=

(Greater efficiencies reduce costs/sale as it can be seen from the calculations 134/300 which is 45.% compared to

78,920/17108 which is 46%).Therefore cost per sale ratio will reduced by 1% in the next accounting year after

the establishment of the management account system.

Projected Gross Margin for 2009 TZs 165,080,000/=

Increase in Gross Margin TZs 72,920,000/=

10. CONTINGENCY PLAN:-

To be able to take some measures against any threats and risks such as (malfunctions, poor accuracy,

forgery, malpractices viruses, the spays, and security risks in using the computerized accounting system the

Yaw Tree Limited have amount of money set from the portion other the other expenses and charges to buy

some ant-virus (Norton and the Dr. Web ant-viruses) to make sure that no such security risks and spays attack

our system Also from this amount which is 34,000,000/= from 56,000,000/= we will use it to make some

security strategy against any threats and risks.


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11. REFERENCES:-

Price J .E et al (1997) College Accounting; Seventh Edition, McGraw-Hill New York

Powell .P (2000) Financial Reporting Analysis and Planning ; Third Edition, Financial World Publishing.

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An Annual Repoertk for Mangement Acconting System of Yaw Tree Limited Company

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