Appropriate accounting policies and procedures for effective use of vehicle in the Churner Group, Inc

• Main Author: Rosali, Ronan B.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4774
• Institution: De La Salle University

Most of the small and medium enterprises (SMEs) have difficulty maintaining records of their activities and control of their funds. It was estimated that around 80 per cent of these companies die after three years due to lack of funds, which was brought about by the lack of discipline in the accounting of expenses (Chhabra and Pattanayak, 2014). Like many SMEs, The Churner Group Inc. (TCGI) also lacked the appropriate policy and procedures on the use of its assets. Specifically, the company lacks the appropriate accounting policies and procedures for the effective use of its vehicle. In order to address this issue, I conducted an action research using the cycle of Coghlan and Brannick (2013). I used the COSO model as my framework in developing internal control in this study. In determining the issue, several one-on-one informal meetings, group discussions, phone conversations and email exchanges were conducted with my collaborators which was followed by planning of the action needed. During planning, my collaborators and I were able to determine the current situation in the company with regards to the use of vehicles. We then identified the desired state that we wanted to reach afterwhich we identified the interventions. To preempt the potential drawback due to organizational politics, we sought the approval and support of the key management first before we implemented any changes. All these activities were recorded using Scheins ORJI. With the support of TCGI management and proper coordination with Sales, Production and Logistics departments, proper guidelines were developed and trip ticket was implemented to control and monitor the itinerary of the company vehicle. Likewise, another output of this research is the creation and dissemination of a process flow that provided guidance on the procedures in requesting and scheduling of trips to all associates. As a result of the implemented policy and procedures, TCGI can monitor now every operational movement of its vehicle and the cost of gasoline it spends per kilometer. The said guidelines had improved the process of scheduling of trips in TCGI and reduced the incidents on the misuse of company vehicle.