Acc 421 - Accounting Cycle

Accounting Cycle

June 3, 2013

ACC/421

University of Phoenix

In this paper I will be discussing the accounting cycle within the company Fiesta Mart that I am employed with. We have different procedures for the different areas that handle income for our store. The front of the store handles cash transactions, debit transactions, charges both public and governmental transactions, and payments to government agencies and public utilities as well as private companies. Some of these transactions happen at our front cash registers and some happen at our service booth but the basically are handled the same way. We then have the back-of-the-house (boh) transactions that happen in our receiving area of our warehouse. This is where we accept stock and invoices that allow us to have products to sell to our front-of-the-house (foh) customers. This area doesn't handle any actual monies but it handles the essential accounts receivable and accounts payable for the company that allows the company to have the product to sell to obtain the cash monies that it takes to runs our store.

I will start with the foh since it has more steps and complexities. We have a cash office manager (com) that handles the main responsibilities of doling out the cash needed for our starting registers for each cashier both in the service booth and at our main registers. The com is responsible for the collections and verifications of all monies in the foh, compiling them into deposits, verifying the accuracy of all totals, and processing the deposits. She doles out the registers to the service booth managers and the front end managers for the cashiers to use for their shift.

Each cashier is responsible for only their assigned register. The front end managers oversee the cashiers and collect register deposits when the cashier has collected over a predetermined set amount of cash. The front end managers take the skimmed deposits to the cash booth for verification of cash and recording to the proper cashier. The same basic thing happens in the service the registers are turned into the cash office for counting and verification. Providing all is balanced and everything has been accounted for, -the coupons balance, the debits are accounted for, the credits are signed and balanced, and all the cash is present then the till is broken back down to its starting dollar amount and the collected monies are placed into the pool for the deposit for that days transactions. After this is completed for the entire day open to close the collected monies and their verification paperwork is turned over to the com for final verification. At this point the cash monies have been verified by three people- the cashier, their direct manager, and then the cash office attendant that