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COMPANY PROFILE

Company Name: ECB Worldwide Transport INC.

Year Established: 2008

Business Type: Trucking and Cargo Consolidator

Business Entity: Non-stock Corporation

Main Service: Transportation and Cargo Forwarding

Company Location: PSO 246 Wireless Subangdaku, Mandaue City

Contact Numbers: +63 32 3437879 / 3444019

COMPANY DESCRIPTION

EBC Wordwide Transport Inc. is a non-stock trucking all Filipino corporation geared to
provide a one-stop processing system of custom brokerage and cargo forwarding to its
customers along with the Embrado Customs Brokerage. It aims to provide a high-quality and
viable service to local and international clientele. It is registered as an International Freight
Forwarded, NVOCC, Breakbulk Agent and a Cargo Consolidator. Also, duly accredited by the
Bureau of Customs, Economic Processing Zone Authority, Philippines Shippers Bureau and a
member of the Chamber of Customs Broker, Inc. The company resolutely continues to fulfill
its doctrine of maintaining a harmonious and lasting relationship to its clients through a
dynamic and systematic transport, delivery and forwarding system.

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 COMPANY HISTORY

ECB Worldwide Transport Inc. is originally one of the existing firms derived from Embrado
Customs Brokerage which offers import and export cargo facilitation and documentation. But
with the extensive need of their customers not just for brokerage service but also with the
delivery, forwarding and transportation of their products and goods, the owner Mr. Julwindo
Embrado established the company on the year 2008. It started out with one truck only which
delivered products and goods to places within Metro Cebu. For the first 6 months, they were
only servicing few customers catered by the brokerage firm. Through referrals and
recommendations, the company had expanded their customer line to other patrons not part of
the clientele of the brokerage firm. Within almost two years, the company purchased two more
trucks which enable them to deliver to places far North and South of Cebu. As years progress,
the company invested not just with additional trucks but also trailers that enable them to
deliver not just goods but also cargos and freight. Their market segmentation expanded to
clients outside Cebu taking on service placements from and to Ilo-ilo and Leyte. At the
present, the company has seven trucks and 41 trailers which consist of 36 regular trailers and 5
special trailers namely lowbed, tandem and flatbed trailers. The company is currently
prospecting to purchase a container forklift that will lift the cargo from the trailer.

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 REVENUE CYCLE
This cycle starts from taking up the customer order up to the collection of cash for the services
rendered. The revenue cycle is divided into 4 basic activities. Sales Order Entry, Shipping,
Billing and Cash Collection

In the sales order entry part, customer will call the office to place order. Because the entity is
into trucking, this process is quite complicated. First a dispatch slip will be filled out by the
owner in accordance with the customers detailed specifications. This document contains the
rules, terms and conditions set by the company with regards to the handling of the cargo. This
is in 5 copies white for office file, yellow for the customer, green for the accountant and the
blue & pink are extra copies given if someone needed it filed with the white copy. The owner
will then notify the operations manager regarding the order for the preparation of the truck and
trailer needed for the delivery. The owner will also asked the customer to fax or email the
document from the shipping company so that the driver may be able to secure the cargo. The
owner will take note in his logbook the pending sales order because all of the 5 copies of the
transaction slip including the shipping document shall be delivered to the operations manager
at their pounding lot where all the trucks and trailers are located and park. When the
operations manager will receive the dispatch slip, he will then assign the order to one driver
and one assistant for the order. This will be the end of the sales order entry.

Next will be the shipping portion, in the trucking business, you dont need a lot of trucks but
you need many trailers. The company only has 6 trucks with 41 different types of trailers. The
company system in delivering and completing the order starts with one driver being assigned
with many orders based on the number of trucking orders for that day. So when a truck
executes one order, it will bring a specific trailer detailed in the transaction slip. He will bring
the transaction slip and shipping document to be able to retrieve the cargo from the shipping
warehouse. When the cargo is already secured, it will be then delivered to the specified place.
Upon arrival, the driver and the assistant will signed and most importantly, the receiver will
also sign the transaction slip. The yellow will be given to the receiver or the customer.
Because the company still dont have the metal lift that will unload the cargo from the trailer
they just left both items at the premises. Normally, it takes 1-2 days to empty the freight so the

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company gives the customer 3 extra days before they will get the cargo along with the trailer.
The cargo will then be delivered back to the shipping company. The shipping company
usually has a rule that if the trucking business doesnt return the cargo within that duration
they will be fined by the shipping company. The trailer will then be available for use for the
next orders. The white, blue, green and yellow copy will be then delivered to the office. This
will be the end of the shipping process.

Third will be the billing process, this activity only involves the owner and the accountant. First
the owner will fill out either the billing statement or the statement of account. Both of these
documents are in 3 copies, yellow for the customer, white office file and green for
accountants copy. The blue copy will be the accountants basis on how much will she initially
put in the customers billing statement or statement of account. Usually, the billing statement
is issued for customers who pays immediately or didnt avail to any terms of payment. This
document only shows the total amount and is use as the reference document for the official
receipt. In the other hand, the statement of account is for customers who are under a term
agreement with the company. This document contains the breakdown of the amounts they
need to pay including previous balance and additional penalties paid by the company to the
shipping company. This document is specifically delivered or faxed to the customer in contrast
to the billing statement that is usually not delivered because the owner will just inform the
customer of the total amount. To rectify this, the official receipt issued upon payment contains
the composition of the customers total payment. The accountant will then record to the MYB
general journal the transaction and eventually post to the MYB general ledger. The basis will
be the green copy of the billing statement or statement of account. This will be the end of the
billing process.

The final process will be the cash collection process. During cash collection, the customer may
drop by the company to pay or the owner will personally meet the customer. Upon payment,
the company will issue the official receipt for the customers with the billing statement slip for
customers with statement of account. Along with these documents, the company will give the
white copy in exchange of the yellow copy of the billing statement (if they have) or statement
of account document which signifies that they no longer have any recurring balance in the

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company. If customer is outside Cebu the company will no longer require the exchange of the
white copy and yellow but instead they will just faxed or email these documents. Usually a
photocopy of the white copy will be kept as office file as substitute of the yellow copy.

NARRATIVE REPORT

Person Activity
1. Receives customer orders
Owner
2. Monitors daily operations
1. Oversee day-to-day operation of the
Operations Manager
company
1. Updates the accounting records related
Accountant to the sales General Journal and
General Ledger

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INTERNAL CONTROL
CONTROL ACTIVITY SALES PROCESS
Credit Check
Transaction Authorization
Return Policy (N/A)
Credit is separate from
processing ; Accounts
Segregation of Duties Receivable subsidiary ledger
is separate from general
ledger
Supervision Overall Head
General Journal and General
Accounting Records
Ledger
Overall Manager has physical
Access
access to trucks
Independent Verification General Ledger
Cash Receipts
Dispatch Slip
Statement of Accounts/
Billing Statement
Official Receipt
Cash Receipts are seoareate
from AR and cash account;
AR subsidiary ledger is
separate from GL
Overall Head
General Journal and General
Ledger
Owner and Accountant can
access accounting records
General Ledger

Transaction Authorization
Before the accountant can make an entry to Accounts receivable for sales made on credit, the
owner will authorize the transaction. Recording of sales is only done after the acquisition of
the dispatch slip with driver, assistant and customers signature. Sales return authorization is
not applicable because orders are not initially recorded but only after assured sales which is
after return of dispatch slip back to the owner after execution of order. Transaction
authorization most of the time not executable due to the fact that owner is the one to enter
transaction in the MYOB accounting software

Segregation of Duties
Transaction processing is done by the accountant while transaction authorization is done by
the owner. Most of the times, transaction processing and authorization is done both by the
owner because accountant only goes to the office weekly.

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Supervision
Employees working hours and activities are monitored by the overall manager who is situated
in the pounding area. The owner monitors the business activities through calling the overall
manager or through physical and actual visit in the pounding lot.

Accounting Records
The company keeps a general journal and general ledger with subsidiary ledgers.

Access
The owner and the accountant are the only people allowed to access accounting records and
files. On the other hand, overall manager has the direct access to the trucks and trailers. He
also has access to employee Daily Time Record (DTR).

Independent Verification
Physical verification comprises the owner doing an on-site check to monitor trucks and trailers
condition as well as the operation managers record of the sales order. Verification on
accounting records shall be done by the accountant through checking the amounts between the
general ledger and subsidiary ledger.

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MATRIX
Conditions Criteria Effect Recommendations
Owner at most times do both Segregation Some accounts and Upon absence of
transaction processing and of Duties journal entries may accountant, owner
authorization not coincide should allow his
secretary to make
transactions he will
authorize

Accountant does verification Independent There may be Owner should be the

on accounting records. Verification misstatement of one to execute
amounts that should independent
be corrected. verification on
accounting records.
Findings
Through our study, we discovered that the owner executes and performs solely the
administrative activities. The business is not departmentalized resulting to owner delegating
the task of operations supervision to operations manager. Also, independent verification is
not done by the owner but by the accountant. Transaction processing and transaction
verification are at most times not separated due to accountant only going to the office at
weekly basis.
Analysis
With the findings gathered we analyzed that the owner seemed to be the only one doing the
administrative work due to the fact that he doesnt delegate task to anyone. This is actually
understandable because the company is still small in the trucking business so complex
departmental procedures are not necessary. Also, the owner is reducing the risk of having
misstated accounting records. On the operations side, the operations manager seems to be
trusted by the owner but even with this, owner still maintains control over operations through
on-site visits and even updating from the customers the current status of their order through
call.
Conclusion
The current management and operations done by the owner is sufficient to cover and complete
customer orders. But with the continuous and significant increase in customer and sales, this
method may no longer be sufficient in the near future.

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RECOMMENDATIONS
With the findings and analysis, brought out from this study, these are some recommendation
that is appropriate for the companys revenue cycle.
First, the large workload carried by the owner alone may be sufficient at the present but will
be ineffective in burdensome in the future, so we recommend that the owner should employ an
assistant that will help him in managing and maintaining the administrative workload in the
company. This may be an added cost but the benefit will be in long-term basis especially that
company is already on its way on being a medium-sized company.
Second, the accountant is just part-time in the company so there are some transactions that are
not updated so the owner is the one who executes the transaction process. To eliminate this
problem, we recommend that the owner shall assign a person, maybe his secretary to do the
transaction process that he will authorize.
Lastly, we notice that the company doesnt maintain credit limit to their customers. I think it
would be better if they set credit limit so as to control the sales made out of credit made by the
company.

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ACTUAL REVENUE CYCLE DIAGRAM

Sales Order Operations

Customer Owner
Shipping Manager
Document

Dispatch Slip &

Approve Sales
Shipping Document
Order

Shipping
Document
Collect Cash Note and Execution of
from record sales Order
Customer order in
logbook

Statement of Account/
Bill of Statement Dispatch
Slip

Post to Record Sales

General Accountant
Ledger

General Ledger General Journal

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IDEAL REVENUE CYCLE DIAGRAM

Sales Order Operations

Customer Owner
Shipping Manager
Document

Dispatch Slip &

Approve Sales
Shipping Document
Order

Shipping
Document
Collect Cash Note and Execution of
from record sales Order
Customer order in
logbook

Statement of Account/
Bill of Statement Dispatch
Slip

Owner
Record Sales
Post to Accountant
General
Ledger
Approve by
Owner

General Ledger General Journal

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 EXPENDITURE CYCLE
The expenditure cycle is composing of 3 activities: ordering, receiving and payment. Because
the company is a service business, they only need fuel and parts for the maintenance of the
trucks and trailer.
In the ordering process the first consideration will be the gasoline. The company established a
contract with a fuel supplier here in Cebu. The company bought a fueling pump to be able to
transfer gasoline to the trucks. The company saved a substantial amount of money due to the
fact that the fuel supplier sells less compared to purchasing from fueling stations. The second
consideration is the purchase of parts necessary for the maintenance of the trucks and trailers.
Compared to fuel, the purchase of vehicle parts is different. The companys mechanic is the
one responsible for monitoring the condition of the trucks and trailers. If there are repairs
needed, he contacts the owner and informs him of the necessary parts needed along with the
approximate selling price. The owner gives money to the mechanic and he will be the one to
purchase the parts.
Next will be the receiving process. The fuel supplier will deliver 6,000 liters of gasoline per
month regularly to the pounding station. The operations manager informs the owner about the
delivery. In the other hand, the receipts on the purchased service parts will be forwarded to the
owner for file.
Lastly, the payment of the fuel is done after the end of the month. The owner will be the one to
pay directly to the fuel supplier using checks.

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NARRATIVE REPORT

Cash Disbursement System

Person Activity
1. Prepares check
Owner
2. Releases check
1. Records document in Cash
Accountant Disbursement book
2. Files related document

Purchase System

Person Activity
3. Prepares check
Overall Head
4. Releases check
3. Records document in Cash
Accountant Disbursement book
4. Files related document

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INTERNAL CONTROL
Control Activity Purchases Processing System Cash Disbursement System
Transaction Control of supplies AP authorizes payment
Authorization
Segregation of Duties AP subsidiary ledger separate from the Separate AP subsidiary ledger,
general ledger cash disbursements and general
ledger functions
Supervision Pounding area
Accounting Records AP subsidiary ledger, general ledger, AP subsidiary ledger, general
Inventory Record ledger cash accounts
Access Security of physical assets. Owner and Proper security over cash.
accountant are only people who can Owner and accountant are only
access accounting records above. people who can access
accounting records above.
Independent AP reconciles source documents Final review by cash
Verification before liability is recorded. General disbursements. Overall
ledger reconciles accuracy of process. reconciliation by general ledger.
Periodic bank reconciliation by
owner

Transaction Authorization
In purchasing processing system, the fuel and different spare parts for truck maintenance
cannot be purchase without being confirmed by the owner. Same with the cash disbursement
system where most of the time, the owner is the one who issues the check to be paid to the
supplier.

Segregation of Duties
The company still doesnt have a separate person who ensures the acquisition of supplies lie
fuel and spare parts. This work is mostly done by the owner.

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Supervision
The operations manager is the one that supervise all the activities in the pounding area. The
receipts from purchasing transaction are given to him whom hell turn-over to the owner.
Accounting Records
Each customer under a company has a separate subsidiary ledger for a better monitoring of
account balances and transactions.

Access
Only the owner and the accountant have the authority to access all the accounting records.

Independent Verification
The accountant is the only that verifies the accuracy and correctness between the balances of
the general ledger and its subsidiary ledgers.

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MATRIX
Condition Criteria Effect Recommendation
The owner is doing Segregation of Duties Some supplies may There should be a
many roles and duties not be sufficiently separate personnel
in the company. and effectively that monitors the
bought because the amount of supplies
owner is the one who and other materials
is authorize to issue a needed for the
purchase. company
There is no Purchase Accounting Records Monitoring of The company should
Order File set-up inventory record will set-up a purchase
be more easier if PO order file.
File is set-up
Accountant does Independent There may be Owner should be the
verification on Verification misstatement of one to execute
accounting records. amounts that should independent
be corrected. verification on
accounting records.

Findings
Based from the information collected from our study, the owner still plays the major role in
the purchasing processing system and cash disbursement system. This is due to the fact that
supplies needed for the trucking company are only limited to fuel and service parts necessary
for maintenance of trucks and trailers. Also, under independent verification, only the
accountant verifies the accuracy of the amounts recorded in the general and subsidiary ledgers.

Analysis
The current structure of the purchasing processing system and cash disbursement system
where the owner plays a big role in both processes is necessarily not a bad thing because first

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supplies are only limited to fuel and service parts for maintenance of trucks and trailers. But
with the increasing number of customers, the company will probably plan to purchase
additional trucks and trailers to be able to accommodate the increase number of orders. Also
the shortening of the service life of the trucks and trailers will result to increase numbers of
repairs. This event will be the cause for the increase in the amount of supplies needed for the
company.

Conclusion
Based on the findings and analysis derive from the study, we conclude that the current
structure for the purchasing processing system and cash disbursement system is currently
sufficient but in a long run, this structure may no longer be sufficient.

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RECOMMENDATION
Upon gathering all information, we recommend to the company that they should hire new
personnel in near future that shall be responsible for the purchase of supplies. Also, owner
should do an independent verification on the general ledger and subsidiary ledger after its
preparation. Lastly, the owner should approve the entry before posting it to the general ledger

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ACTUAL PURCHASE SYSTEM

Owner
Supplier Set-up
Accounts
Payable

Monitor Receive
Inventory goods
Record Post to
General
Ledger

Cash

Update General Ledger

Inventory
Buy inventory Record

A/P
Details

Inventory Subsidiary
Received Ledger

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IDEAL PURCHASE SYSTEM

Owner
Supplier Set-up
Accounts
Payable
Monitor
ed

Purchase
Keeper
Receive
goods Post to
General
Ledger
Monitor
Inventory
Record

PO Copy 2 Update General Ledger

Inventory
Record

Prepare A/P
Purchase Details
Order

PO Copy 1 Inventory Accounts payable

Purchase Order Received Subsidiary Ledger
File

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ACTUAL CASH DISBURSEMENT SYSTEM

Accounts payable
Subsidiary Ledger
Owner
Identify Due
Liabilities

Payment
Details

Prepare Cash Update Post to

Disbursement Accounts General
Payable Ledger
Accounts
Payable
Summary

Cash

General Ledger
Supplier

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 PAYROLL
The owner is the one that does the payroll process using the Manual Payroll System and
accrual basis of accounting. The overall manager and mechanic are given fixed amount of pay
while the drivers and assistants are paid on the distance and number of trips that they do per
day. The company still maintains a DTR to ensure that employees in and out of the company.
The DTR is for the office but for the pounding area, a logbook is sufficient enough.

NARRATIVE REPORT

Person Activity
1. Prepares the payroll
Overall Head
2. Distributes payroll through check
1. Updates the Accounts Payable
Accountant
2. Sets the Cash Disbursements

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INTERNAL CONTROL

Payroll Control
Transaction Authorization Daily Time Record and Logbook
Segregation of Duties Operations Manager- securing logbook
Owner- preparation of payroll
Supervision Owner
Accounting Records DTR, Logbook, Journals and Ledgers
Access Control DTR, Logbook for owner
Independent Verification Verification of time, number and distance of
trips is done by operations manager.
Issuing of cash for salary is done by owner.
Accountant set-ups the accounts payable.

Transaction Authorization
The DTR is use for the employees situated in the office (including brokerage firm employees)
. The record for the employees in the pounding area like the drivers and assistants as well as
the operations manager and mechanic are recorded in a logbook. This is to monitor if
employees working hours are accurate.

Segregation of Duties
Operations manager is the one responsible for securing the logbook but with regards to the
preparation, the owner is the responsible for that.

Supervision
Owner is the one that executes all supervising activities.

Accounting Records
1. Daily Time Record
2. Logbook

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 3. Journals
4. Ledgers

Access Controls
Only the owner, accountant and operations manager are allowed to have access on the above
accounting records.

Independent Verification
1. Time Verification- DTR is use to monitor accuracy of time spend for work.
2. Trip Verification- the logbook with the support of the dispatch slip is use to confirm
the distance and number of trips done by driver and assistant.
3. Accounts Payable- after the preparation of payroll, accountant will update the A/P

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MATRIX

Condition Criteria Effect Recommendation

The owner is the one Segregation of Duties There will be a lag Company should hire
to prepare the payroll between the time of a payroll clerk who
system the execution of the will update and
order and the record appropriate
recording of the payroll for the day or
appropriate payroll they can delegate task
allocation based on to the secretary or one
the number of trips of the current
and length of employees in the
distance. office.
There is no Independent Probability of The accountant
verification on the Verification misstatement of should check the
accuracy of the amount in the accuracy of the
amounts in the payroll. payroll. If there will
payroll system done be a payroll clerk,
by the owner owner will also verify
the payroll prepared.

Findings
From the study we have come up with the information that first, the owner is the one who
prepare the payroll. Next there is no verification on the accuracy of the payroll prepared.
Lastly, a significant lag between the execution of the customer order and the recording in the
accounts payable is found out.

Analysis
Based on the findings, there is quite understandable why the owner is the one that solely
prepares the payroll system, but with complexity of the system of calculating the payroll, the
weekly preparation of payroll will be tasking and time consuming. Also, the absence of

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verification on the payroll prepared by the owner may cause misstatement and possible
inaccuracies in the amounts in the payroll.

Conclusion
Based from the findings and analysis, we conclude that the payroll calculation should be done
on a daily basis to avoid making the process strenuous and time-consuming. Also, verification
on the payroll is a must and should be done by the owner or accountant, or better yet both of
them to ensure the accuracy of the amounts in the payroll.

RECOMMENDATIONS

With the findings, analysis and conclusion we recommend to the ECB Worldwide Transport
Inc. to hire a payment clerk or delegate the task to one of the current employees in the office to
prepare the payroll. It should be verified by the owner and then the accountant.

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ACTUAL PAYROLL DATA FLOW DIAGRAM

Prepare
Logbook Payroll
Owner

Distribute
Prepare
Payroll Details Cash to
Accounts
Accountant Employee
Payable

Payroll Cash
Paycheck

Update
Accounts
Employees
Payable

Receive Cash

General Ledger

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IDEAL PAYROLL DATA FLOW DIAGRAM

Prepare Payroll
Logbook Summary
Payroll Clerk Payroll Owner

Approved by
Prepare
Payroll Details
Owner
Accounts
Payable Accountant

Payroll
Paycheck

Update Distribute
Accounts Cash to
Payable Employee

Employees
Receive cash

General Ledger

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 CONVERSION CYCLE

The conversion cycle transforms input resources such as raw materials, labor and overhead
into finished products or services for sale. The cycle consists of both physical and information
activities related to manufacturing product sale. Production is triggered by customer orders
from the revenue cycle and/or by sales forecasts from marketing. These inputs are used to set a
production target and prepare a production plan, which drives production activities.

The conversion cycle exists conceptually in all organizations, including in those in service and
retail industries. In the case of ECB Worldwide Transport, the conversion of materials to work
in progress is insignificant so we opt not prepare a conversion cycle.

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ACCOUNTING SOFTWARE

MYOB Accounting Software has the following functions to help users manage business

Accounts (Chart of Accounts, Budgets)

Banking (Bank Register, Bank Reconciliation, Payment Vouchers, Official Receipt)
Sales & Receivables (Enter Sales Quotes, orders and Invoice, Receive Payment, Print
Invoice, Print Statement, Analyze Receivables)
Purchases & Payables (Enter Purchase Order and Bills, Print PO, Pay Supplier
Bills, Analyze Payables)
Inventory (track quantity and value of items you buy and sell)
Card File Management (Maintain Customer, Supplier and Employee details)
Jobs Management (Maintain project details - income and expenses, budget)
To-Do List (Quick access to important tasks)
Reports

MYOB Accounting Software provides advantages like:

1. Powerful, easy to use Accounting Software
2. Easy setup
3. MYOB Accounting is GST ready creating new tax codes and showing collected paid
accounts
4. Printing cheques in MYOB
5. Convenient Security functions
6. No accounting experience
7. Does not require high System Requirements for computers
8. MYOB Accounts functions
9. Reconciling Bank Statement in MYOB
10. Templates for Recurring transactions
11. MYOB project management
12. MYOB Reports & Charts
13. Gain Understanding with Business Insights

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Despite the MYOB Accounting Software being efficient in most ways it has certain
disadvantages like:
1. There are no stated backup procedures in case the MYOB Accounting Software crashes.
2. Since users with no accounting experience can use the software because of a lot of its
automatic programming; the information may be less useful compared to softwares that
require accounting experience.

Financial reporting is the process of producing statements that disclose an organization's

financial status to management, investors and the government. It is the final step in the overall
accounting process. In the ECB Worldwide Transport Incorporated, all transaction cycles
occur within the MYOB accounting software. Within this software, they are able to input data
to capture the transaction. The software then categorizes this certain transaction into a
specified customers file. MYOB provides the user the ease of handling much work. In this
company, the accounting software is either managed by the accountant or the owner himself.

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NARRATIVE REPORT
ECB Worldwide Transport Incorporated already has computerized accounting. This
computerized accounting involves making use of computers and accounting software to
record, store and analyze financial data. Having this current accounting software already
provides automation, accuracy, and reliability to the company's financial reports. A good
bookkeeping system will enable the company to keep track of the invoices, to manage cash
flow: and ultimately to establish whether the company is running at a profit or loss.
Currently, the company has the MYOB Accounting Software. This is accounting software for
small and medium sized enterprises (SMEs). It offers a choice of programs which work
online or on personal computers. It comes with Accounting modules, Sales & Purchasing
modules, and also the Inventory modules. This business accounting software helps the
company process sales and purchases, track receivables, and payables. Users can email their
quotes, and invoices. With MYOB Accounting's inventory management system, users will
know what is in stock, on order and committed. MYOB Accounting system is also used to
manage cash receipts and expenditures, manage your stock, goods or inventory, and generate
the accounting reports for management and financial reporting purposes.

Person Activity

Submit business transaction recorded in each

Overall Head
transaction file

1. Journalize the transactions.

2. Post to ledger accounts
3. Prepare trial balance
4. Journalize and post adjusting entries
Accountant
5. Prepare an adjusted trial balance
6. Prepare financial statements
7. Journalize post-closing entries
8. Prepare post-closing trial balance
Examines and checks the accuracy of the
Auditor
reports and controls of the entity.

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RECOMMENDATIONS

Small business accounting can quickly become complex if the owner does it on his own. He
might feel that hes losing control of who owes him money and how much, an accountant can
help you get back on track. The company does have an accountant but not present on a daily
basis. Problems could occur when peak seasons or busy days happen and the accountant is not
present. This could bombard the accountant or the owner himself with many transactions
needing to be updated. With that accountant not present most the time, the owner is left to do
the work by himself.

Company now is focused on just keeping track of their transactions. They may also want to
measure key business metrics, such as the ratio of salaries and other employee payments to
total revenue. This helps the company strategize better regarding their finances. An accountant
can help here by managing your payroll and producing graphs so the company can see how the
ratio changes over time. This helps the company adjust to the needs and changes of the
financial world. We know that the owner himself can handle all the work but record keeping
could have provided him more useful information than he thinks. The foundation of solid
business record keeping is learning to track expenses effectively. Its a crucial step that allows
him to monitor the growth of his business, build financial statements, keep track of deductible
expenses, prepare tax returns, and support what they report on your tax return. As students
who are studying accounting, we recommend that they add a permanent person to manage and
facilitate their transaction cycles. This will not only help the owner himself from doing all the
work but also formulate more ideas and strategies that could put the companys money into
better use.

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IDEAL FINANCIAL REPORTING SYSTEM DATA FLOW DIAGRAM

Accountant Record Post to Prepare Trial

transaction Ledger Balance

General Journal General Ledger Prepare

adjusting
entries

Prepare
adjusted trial
balance

Post to Prepare post- Prepare post- Prepare

general closing trial closing Financial
ledger balance entries Statements

Financial
Statements

Submit to Examines
Auditor Auditor Owner financial
statement
reports

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 IDEAL FINANCIAL REPORTING SYSTEM DATA FLOW DIAGRAM

Owner Record Post to Prepare Trial

transaction Ledger Balance

General Journal General Ledger Prepare

Record
transaction adjusting
entries

Accountant
Prepare
adjusted trial
balance

Post to Prepare post- Prepare post- Prepare

general closing trial closing Financial
ledger balance entries Statements

Financial
Statements

`
Examines
Submit to financial
Auditor Auditor Owner statement
reports

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40 | P a g e
The Management Reporting System is often called a discretionary reporting because it is not
mandated. Management reporting has long been recognized as a critical element of an
organizations internal control structure. It is to be used to direct managers attention to
problem on a timely basis to promote effective management and to support the organizations
business objective.

As for the ECB Worldwide Transport, the entity applies management principle which provides
insight to their management information needs. Mr. Embrado, as the overall head/owner takes
responsibility to his subordinate and authority in the management. He delegates responsibility
and allows his subordinate to make necessary decision within the range of their responsibility.
He himself acts as the top manager who makes strategic planning decision and other decisions
related to their business.

The system that the entity has fits for the type of business they have because it is a senescent
one. However, we think it is the best of the business if the management has more employees
because they direly needed it. This enables them to externally bring new ideas and talent to the
entity. Hiring a skilled and experience external candidate may also reduce training costs and
give the organization a competitive advantage. In addition, we think that the management
needs to divide their management function and the decision type they made equally rather than
allowing only one to take the majority actions. Lastly, we think that the owner is doing a
pretty good job managing the business in spite lacking of employees.

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 JEY ANN D. AUXTERO

Personal Information:

Address: Urban Deca Homes, Tisa Cebu

Date of Birth: August 29, 1998

Place of Birth: Lapu-lapu City

Father's name: Benedicto A. Auxtero

Mother's name: Elizabeth D. Auxtero

Educational Background:

Elementary: Bankal Elementary School

Highschool: Cebu Institute of Technology University

College: University of San Carlos Downtown Campus

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 DANIEL JULWIN A. EMBRADO

Personal Information:

Address: Countryside Homes Phase - 1, Tayud, Liloan Cebu

Date of Birth: April 30, 1998

Place of Birth: Cebu City

Father's name: Julwindo A. Embrado

Mother's name: Cleofe A. Embrado

Educational Background:

Elementary: Marie Ernistine School

Highschool: Sacred Heart School - Ateneo de Cebu

College: University of San Carlos Downtown Campus

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 TRIXIE E. MENDOZA

Personal Information:

Address: Jubay, Liloan Cebu

Date of Birth: November 11, 1998

Place of Birth: Cebu City

Father's name: Jerome Y. Mendoza

Mother's name: Guadalupe E. Mendoza

Educational Background:

Elementary: Zapatera Elementary School

Highschool: Cebu City National Science High School

College: University of San Carlos Downtown Campus

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 KRISTIAN ROMEO L. NAPIAS

Personal Infromation:

Address: Napias J. Labra St. Gabutin Compd. Guadalupe Cebu City

Date of Birth: December 1, 2000

Place of Birth: Cebu Community Medical Center

Father name: Romeo B. Napias

Mother's name: Gloria L. Napias

Educational Background:

Elementary: Don Bosco Technology Center

Highschool: Don Bosco Technology Center

College: University of San Carlos Downtown Campus

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 JULIUS N. NAVARRO JR.

Personal Information:

Address: Labangon Tres Cebu City

Date of Birth: October 25, 1998

Place of Birth: Butuan City

Father's name: Julius Tesiorna Navarro Sr.

Mother's name: Elaine Noguerra Navarro

Educational Background:

Elementary: Enfant Cheri Study Centre Inc.

Highschool: Agusan National High School Science class

College: University of San Carlos Downtown Campus

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 CHERRY MAE B. PINGKIAN

Personal Infromation:

Address: M. Sanchez St. Alang-Alang Mandaue City

Date of Birth: January 13, 1998

Place of Birth: Cebu City

Father's name: Edmund Y. Pingkian

Mother's name: Flordeliza B. Pingkian

Educational Background:

Elementary: Colegio Immaculate Conception Mandaue

Highschool: Colegio Immaculate Conception Mandaue

College: University of San Carlos Downtown Campus

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 LYNDON A. TINGSON

Personal Information:

Address: Nashville Nasipit Talamban Cebu City

Date of Birth: April 26 1998

Place of Birth: Chong Hua Hospital Cebu City

Father's Name: Felizardo N. Tingson

Mother's Name: Jocelyn A. Tingson

Educational Background:

Elementary: University of San Carlos North Campus

Highschool: University of San Carlos North Campus

College: University of San Carlos Downtown Campus

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 JULIAN DAVE S. TIU

Personal Information:

Address: Pelaez ext. Cebu City

Date of Birth: August 29, 1998

Place of Birth: Surigao City

Father's name: Virgilio S. Tiu

Mother's name: Dahlia S. Tiu

Educational Background:

Elementary: Sapao Central Elementary School

Highschool: Saint Paul University Surigao

College: University of San Carlos Downtown Campus

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51 | P a g e
 BUSINESS DOCUMENTS

Dispatch Slip
A commercial document issued to the customer. This contains the details of the order as well
as the agreement, terms and freight attributes. Document has 5 copies; white for office file,
yellow for customer, green for accountant and blue & pink are extra copies and filed with the
white copy.

Statement of Account
Document that shows the total amount and the details of the amount the customer is liable to
pay to the company. This is usually use for customers who availed trucking service on
account.

Billing Statement
Document issued to customer who immediately settles dues. This only contains the total
amount of the service charge.

Official Receipt
Document that acknowledges settlement customers liabilities to the trucking company.

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Appendix A

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Appendix B

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