Analysis and Recommendations to Improve the Accounting System

Oct 13, 2025 by magicalceylontours.com 143 views

Accounting System for Purchasing Raw Materials and Cash Expenditures: Case Study of PT. Deli Steelindo Medan's work

Introduction

As the company's development, supervision of operational activities has become increasingly complex. Delegation of authority and responsibility to subordinates requires an effective accounting system to ensure strict control. For manufacturing companies, the purchase of raw materials is a vital process that requires careful planning and supervision. PT. Deli Steelindo, an iron casting manufacturing company in Medan, faces challenges in managing the process of purchasing raw materials and more complicated cash disbursements. This case study aims to analyze the current accounting system implemented at PT. Deli Steelindo's work and provide recommendations to improve it.

Current Accounting System at PT. Deli Steelindo's Work

The current accounting system implemented at PT. Deli Steelindo's work is no longer adequate to support company growth. One of the main weaknesses lies in the unification of the function of the recipient of the goods and the storage of goods. This condition causes obscurity regarding the items that have been received and allows repetitive ordering. Without a report on the receipt of structured goods, the purchase department is difficult to track the status of the ordered goods. This situation not only affects the efficiency of the purchasing process but also leads to potential losses due to unnecessary expenses.

Analysis and Recommendations to Improve the Accounting System

Based on the analysis of the current accounting system, the following recommendations are made to improve the accounting system of PT. Deli Steelindo's work:

1. Separation of Functions for Recipients of Goods and Warehouses

The current unification of the function of the recipient of the goods and the storage of goods is a major weakness in the accounting system. To address this issue, PT. Deli Steelindo's work should separate the function of the recipient of the goods from the warehouse. This separation will increase efficiency and transparency in the process of receiving and storing raw materials. By separating these functions, the company can ensure that the receipt of goods is accurately recorded and stored in a secure location, reducing the risk of loss or damage.

2. Receipt Report of Goods

The recipient part of the goods must be required to make a detailed receipt of goods. This report will provide accurate information to the purchasing department regarding the status of the goods received, so as to minimize repeated reservations and maintain the smooth production process. The receipt report should include details such as the type of goods, quantity, and condition of the goods received. This will enable the purchasing department to track the status of the ordered goods and make informed decisions regarding future purchases.

3. Implementation of Accounting Information Systems

PT. Deli Steelindo's work can consider the application of an integrated accounting information system. This system can help automate the process of purchasing, receiving goods, and cash disbursements. That way, companies can obtain more accurate, real-time, and integrated data, which supports more effective decision making and supervision. The accounting information system can also help to reduce errors and improve the efficiency of the purchasing process.

4. Regular Internal Audit

Performing regular internal audits of the process of purchasing raw materials and cash disbursements are very important. This audit will help identify potential risks and weaknesses in existing systems, so that corrective action can be taken immediately. The internal audit should be conducted regularly, at least once a year, to ensure that the accounting system is functioning properly and to identify areas for improvement.

5. Human Resources Training and Development

Increasing employee competencies in understanding and implementing a good accounting system is very important. Through sustainable training and development, PT. Deli Steelindo's work can ensure that employees have adequate knowledge and skills to carry out their duties and responsibilities professionally. The training program should cover topics such as accounting principles, financial reporting, and internal control.

Conclusion

By applying the recommendations above, PT. Deli Steelindo's work can improve the accounting system for purchasing raw materials and cash disbursements, so that company operations become more efficient, controlled, and transparent. This will have a positive impact on company growth and increased profitability in the future. The implementation of the recommendations will require a significant investment of time and resources, but it will ultimately lead to improved financial performance and increased competitiveness in the market.

Recommendations for Future Research

This case study provides a comprehensive analysis of the current accounting system at PT. Deli Steelindo's work and provides recommendations for improvement. However, there are several areas that require further research, including:

The impact of the accounting system on company performance
The effectiveness of the internal audit process
The role of human resources training and development in improving the accounting system
The implementation of the accounting information system and its impact on company operations

By conducting further research in these areas, PT. Deli Steelindo's work can gain a deeper understanding of the accounting system and its impact on company performance, and can make informed decisions regarding the implementation of the recommendations.
Frequently Asked Questions (FAQs) about Accounting System for Purchasing Raw Materials and Cash Expenditures at PT. Deli Steelindo Medan's work

Q&A

Q: What is the current accounting system at PT. Deli Steelindo's work?

A: The current accounting system at PT. Deli Steelindo's work is no longer adequate to support company growth. One of the main weaknesses lies in the unification of the function of the recipient of the goods and the storage of goods.

Q: What are the main weaknesses of the current accounting system?

A: The main weaknesses of the current accounting system are:

Unification of the function of the recipient of the goods and the storage of goods
Lack of a report on the receipt of structured goods
Difficulty in tracking the status of the ordered goods

Q: What are the recommendations to improve the accounting system?

A: The recommendations to improve the accounting system are:

Separation of functions for recipients of goods and warehouses
Receipt report of goods
Implementation of accounting information systems
Regular internal audit
Human resources training and development

Q: Why is it important to separate the function of the recipient of the goods from the warehouse?

A: Separating the function of the recipient of the goods from the warehouse will increase efficiency and transparency in the process of receiving and storing raw materials.

Q: What is the purpose of the receipt report of goods?

A: The receipt report of goods provides accurate information to the purchasing department regarding the status of the goods received, so as to minimize repeated reservations and maintain the smooth production process.

Q: Why is it important to implement an accounting information system?

A: Implementing an accounting information system can help automate the process of purchasing, receiving goods, and cash disbursements, and provide more accurate, real-time, and integrated data.

Q: What is the purpose of regular internal audit?

A: The purpose of regular internal audit is to identify potential risks and weaknesses in existing systems, so that corrective action can be taken immediately.

Q: Why is human resources training and development important?

A: Human resources training and development is important to ensure that employees have adequate knowledge and skills to carry out their duties and responsibilities professionally.

Q: What are the benefits of improving the accounting system?

A: The benefits of improving the accounting system include:

Improved efficiency and transparency in the process of purchasing raw materials and cash disbursements
Reduced errors and improved accuracy of financial reporting
Increased competitiveness in the market
Improved financial performance and increased profitability

Conclusion

The accounting system at PT. Deli Steelindo's work is no longer adequate to support company growth. Improving the accounting system is essential to ensure that the company operates efficiently, effectively, and transparently. By implementing the recommendations outlined in this article, PT. Deli Steelindo's work can improve the accounting system and achieve its goals.

Recommendations for Future Research

This article provides a comprehensive analysis of the current accounting system at PT. Deli Steelindo's work and provides recommendations for improvement. However, there are several areas that require further research, including:

The impact of the accounting system on company performance
The effectiveness of the internal audit process
The role of human resources training and development in improving the accounting system
The implementation of the accounting information system and its impact on company operations