Accounting Internship

Accounting department:

The accounting department was introduced to me as the core of the company. All cash flows in and out of the company are prepared in this department, receivables and payables, processing invoices, costing of the purchased materials and products, the relative cost center to each expense spent, expenses and revenues, assets and liabilities of the company, as well as the bank operations including issuing checks to suppliers and preparing the bank position (cash position) of the company.

In my first few days, I spent time reading about the accounting process at Mitsulift and all the accounting policies and principles, and the system used in the company (BUSINESS PACK). Afterward, the accounting manager gave me a general idea about the basics of accounting: the debits and credits, the daily entries that should be made based on the company operations, the class of the main accounts (1: capital, 2: assets, 3: inventory, 4: suppliers, 5: bank accounts, 6: expenses, 7: revenues) as well as the sub classes of these accounts.

Then, I was introduced to simple entries concerning indirect expenses of the company (such as: offices supplies, maintenances, printing, computers, transportation…) that are paid in cash. This process is called petty cash. The entries include, beside the debits and credits, allocating the expenses to the relative cost centers. I was asked to prepare one; it was my first accounting practical experience.

I was also introduced to the way prepaid expenses are entered as current assets and amortized over their relative periods

Since the company purchase materials from different suppliers on regular basis, the accounting department is in charge of processing suppliers’ invoices and preparing payments based on the payment terms. So I was introduced to the way invoices are processed as well as the payments:

the invoices are entered to the system with their relative cost as either direct receipts or store receipts (based on the relative operation), and when the payment is due, a payment voucher is entered to the system in which a check is prepared to the supplier. And to ensure that all suppliers’ accounts are compatible with the company’s accounts, each supplier is asked to send a statement of account in order to do reconciliation between the two accounts.

I also learned how to cost each project based on the materials purchased for it, the expenses spent

Concerning the revenue of the company which is