Role of Principal for Training the New School Bookkeeper - Case Study Example

Role of Principal for Training the New School Bookkeeper Bookkeeping is the process of keeping track of the business financial transactions. (Gartenstein, n.d.) As a bookkeeper the person is responsible for the financial administration. They compute, classify record and verify numerical data in order to develop and maintain accurate financial records. (Ferguson, 2009, p. 41)A school beekeeper has to familiarize with the bookkeeping procedures and be compliant as per the state and the district guidelines for spending and collecting money. (Muchira, n.d.) The Tennessee Internal School Financial Management Manual is issued to the school systems to have a uniform accounting procedures. (“Tennessee Internal School Uniform Accounting Policy Manual”, 2011, p.12) This kind of training is essential for them to take up the responsibility and have smooth and effective results. Role of Principal for training the new school bookkeeper and presenting a refresher course for the system’s personnel It would be ideal to give them training before the academic year commences as it help them to have a clear understanding and execute the work from the beginning. The training shall begin with the basic concepts of bookkeeping like the accounting, Inventory, Payroll, and Cash that provides the basic foundation and help them to understand how this is related with the school accounting. (“Bean Counter's Free Accounting & Bookkeeping Tutorial Site”, n.d.) It is good to have the knowledge of computer usage prior and have the access ready as once the training starts they can look for the data and work as per the requirement. They need to understand that there two kinds of funds available to schools. One would be the Budget funds which is also called County or District funds which are allocated by the State or Federal government. It can be the textbooks supplies, project supplies, administrative supplies and so forth. This money has to be spent first. And the second would be the internal accounts and these funds are in the form of donations, fund raising and cash received. It is also the funds that are collected from the students in the form of fees. It is important to set up folder for each budget account so that when annual audit of the books occurs it would be easier to comprehend. (“School Bookkeeper’s Handbook”, 2008) The training has to be stressed upon the disbursements and the school expenditures. The trainees have to get familiarized with the ‘payment request form’ that contains the information such as date, Originator’s signature, and payable to, estimated amount of purchase, brief explanation and the account name and the Principal’s signature so that upon determining these factors, the school personnel can sanction the funds after verifying the details. (“Receipting”, 2008)The bookkeeper has to keep this form and tally with the exact expenditure once the original receipt comes. If it is less than the approved amount, then it can be changed and fewer amounts can be mentioned. If it is more, then it has to be approved by the Principal .Then they can do the changes accordingly. There are potential errors that may happen in times of paychecks and they need to maintain the records of the attendance record, time sheets signed by the employees, so that the payroll clerk can compute payroll without any errors. This has to be updated in the journal accordingly. There are other expenses that can be in the form of library, stationery and so forth that are checked and they need to be updated. (“School Bookkeeper’s Handbook”, 2008) Once they are proficient with the data collection and how to keep track of the expenses and income they can update it on a regular basis in the ledger account. The main stage is the bank reconciliation process .They need to know how to balance bank statements every month and submit Quarterly reports to the Finance department. (Muchira, n.d.) There are posting interest to account which is the most common reason for deposit balance errors and this has to be rectified once the bank statements are obtained. (Vitez, n.d.) There are various scenarios that they come across such as non sufficient funds checks, fund raising activities like ticket sales, sponsors and field trips, and these cash dealings involve book keeper’s intervention. The checks received has to be stamped and sent for collection so that it is intact and gets registered in the system that has been sent for funding. This can also become an error. (“School Bookkeeper’s Handbook”, 2008) For the above transactions there are criteria that have to be fulfilled and thus have to be recorded on a regular basis. They need to administer the policies that are complaint and check if any request of cash dealing is feasible and in accordance with the instructions provided in the manual. Thus, they can monitor the activities that are happening in the school and take proper steps and supervise, that it is on the same ground as per the guidelines. There has to be monthly and yearly folders. The monthly folders can have the information such as official receipt and deposit information. The yearly folders can consist of internal transfers; monies collected forms, inventories and so forth. This kind of classification ensures that the information that they enter is compliant with all applicable laws and regulations. The bookkeepers are evaluated by the Principal and they need to assist them in establishing the accounts on the school activity, accounting software package, opening a school bank account and so forth.( “School Business Assistant”, p. 1) The system that they use has to be protected and the backup has to be there to ensure that if something happens then also they can retrieve the data effectively. The ledger that they follow has to be kept in safe lockers. They need to understand the responsibility of the job and that money is the property of the respective school. (“Tennessee Internal School Uniform Accounting Policy Manual”, 2011, p. 17) There are inspections that are conducted by the Department of Education continuously and are regulated by legal provisions. They need to bring forth the needs of funds for any specific purpose and to address the same in front of the concerned officials. They can take the initiation to have new infrastructure to the school that can be helpful as they have clear information on the financial data. There are huge investments that are made in the educational institutions and they are monitored by the higher authorities, and the action of the bookkeeper has direct impact on the reputation of the school and it reflects the way it’s functioning and how it is carried forward. So they need to be vigilant and keep accurate trail of all transactions. Reference Bean Counter's Free Accounting & Bookkeeping Tutorial Site.Moodle. Retrieved from http://www.dwmbeancounter.com/moodle/ Ferguson. (2009).The Top 100 Fastest Growing Careers for the 21st century. (4th ed.). New York. Infobase Publishing. Retrieved from http://books.google.co.in/books?id=B-te5czy0Z4C&pg=PT54&dq=bookkeeper+training&hl=en&sa=X&ei=gJUDUJKuKY3rrQfBjYWcBg&ved=0CEoQ6AEwAw#v=onepage&q=bookkeeper%20training&f=false Gartenstein, Devra. Basic Bookkeeping Principles, eHow.com. Demand Media, Inc. Retrieved from http://www.ehow.com/about_6129312_basic-bookkeeping-principles.html Muchira, Martin . School Bookkeeper Job Description. eHow.com. Demand Media, Inc. Retrieved from http://www.ehow.com/about_6601811_school-bookkeeper-job-description.html Receipting, School Bookkeeping Handbook. (2008. Chapters III. Florida. District Auditing. Retrieved from http://apps1.sdhc.k12.fl.us/Auditing/Documents/sbh/SBH_Ch3.pdf School Bookkeeper’s Handbook. (2008). Introduction and Cash Management Guidelines. Chapters I -X. Florida. District Auditing. Retrieved from http://apps1.sdhc.k12.fl.us/Auditing/Documents/sbh/SBH_Ch1Ch2.pdf School Business Assistant. Virginia Beach City Public Schools. Retrieved from http://www.vbschools.com/hr/job_desc/School%20Business%20Asst.pdf Tennessee Internal School Uniform Accounting Policy Manual. (2011). Department of Education Office of Local Finance .12-230.Retrieved from http://tennessee.gov/education/support/doc/July2011TISUAPM.pdf Vitez, Osmond. What Are the Most Common Adjustments on Your Bank Reconciliation? eHow.com. Demand Media, Inc.. Retrieved from http://www.ehow.com/list_6940743_common-adjustments-bank-reconciliation_.html Read More