Author Topic: Accuracy in deposits and disbursements  (Read 79 times)

0 Members and 1 Guest are viewing this topic.

Offline DebAmstutz

  • Scalliwag
  • ******
  • Posts: 4164
  • Karma: +469/-8
  • It's never too late, until it's really too late...
Accuracy in deposits and disbursements
« on: June 17, 2019, 12:00:53 pm »
Okay...I want to bring this agency's accounting to a point of accuracy and caring about what is correct.  There are four branches, but income/expense is rarely allocated by branch.  Departments aren't used correctly, either.  I don't know how they even have a clue about where their profit/loss originates.  For those of you with multiple branches (I've not dealt with branches before) where checks are written from the main branch, aren't branches and departments used on all deposits and disbursements?  I know it would be complicated for the gals in the main branch at first, but some of the disbursements can be automatically allocated, once the percentage of business for each department is determined, so that would help.  The "worst" thing would be to go over large DB commission statements before entering a deposit because customers from all four branches can appear on those.  I think though, that after a period of time, the deposit people would become accustomed and not have to take the ton of time it will take initially to do that.

At my former agency, I had to take a 50+ page statement (in tiny print) each month and sum up all commercial and personal transactions by producer and enter each producer's personal and/or commercial total, and after the first couple of months, it didn't take all that long as I figured out what to look for.  I didn't have branches to deal with, but I don't think that would have taken too much longer, since all transactions for each producer code were in order.

Shouldn't the department and branch be on all of the accounting income/expense?
Deb Amstutz
Back in the TAM saddle again

Offline Jim Jensen

  • Scalliwag
  • ******
  • Posts: 3770
  • Karma: +401/-7
    • Jensen Ford Insurance
Re: Accuracy in deposits and disbursements
« Reply #1 on: June 17, 2019, 12:43:03 pm »
Your first question before proceeding is to ask management whether they care if it is separated by branch and department. I have 3 departments, but I honestly don't care which department expenses are allocated to. It won't change how I handle planning. For me, the value of departments is for security settings, particularly life and health, to be compliant with HIPAA.

If they are never going to take time to run reports by location (branch) or department, then there's no point in trying to change that culture. If they will or think they would, then it may be worth the time to adapt. You might find that they want to know brach/location info, but not department. Or they may want department info, but branch/location.

You need to define the parameters of what they want to do before you can determine how you want to handle transactions. They may not know themselves and need to understand what can be done to decide what they want.
Jim Jensen
CIC, CEO, CIO, COO, CFO, Producer, CSR, Claims Handler, janitor....whatever else.
Jensen Ford Insurance
Indianapolis

Offline DebAmstutz

  • Scalliwag
  • ******
  • Posts: 4164
  • Karma: +469/-8
  • It's never too late, until it's really too late...
Re: Accuracy in deposits and disbursements
« Reply #2 on: June 17, 2019, 01:16:49 pm »
That's true, Jim. 

Before I present the possibility, I'd like to get some feedback from other agencies that do separate departments and/or branches. 

These folks don't know what they don't know, and they admit it.  It would be good for me to discover how others handle their accounting in a branch situation, since I've never had to deal with that part of the accounting side before.

I know they want the main office to handle all accounting items.  Payments taken at the other branches are entered on a form with money/check in separate envelopes for each client, and everything is collected by the owner every couple of days to be deposited by the main office.  Maybe other agencies with branches allow each branch to deposit their own funds, but not here.
Deb Amstutz
Back in the TAM saddle again