Introduction to the business
Listers Group is the largest privately owned motor group in England, operating over 40 dealerships representing the world’s major quality motor brands.
Acting as franchise partners for Audi, BMW, Honda, Mercedes-Benz, Mini, Smart, Toyota, Volkswagen cars and commercials, Lexus and Land Rover, Listers group offers excellence In the sale of new and approved used cars and vans, servicing and parts, and have won a number of national awards in these areas.
Principles of Internal Control
Demonstrate an understanding of the role of accounting within the organisation 1.1a
There are various accounting functions within the Listers Group that deal directly with the department on site.These include Sales, Parts, Site Accounts, Administration and Workshop. The purpose of the onsite Accounts team is to process direct invoices, customer payments and deal with customer finance in relation to purchasing a car. The accounts team are relying on sales to make the initial sale, admin to process all documentation and accounts to finalise the financial side of the deal.Head office accounts team gather all the relevant information from ‘their site’ to process month end accounts with the aid of an accounting system called Elite.Appendix 3 - Dealership numbersIt is important for there to be a strong internal relationships between all teams, resulting in good communication and dependency on either side in order to gather and accumulate accurate information to keep the business growing.Every year in March and September a new registration plate is released – resulting in an influx of orders within the months before and a peak in sales within the months of March and September.It is crucial that the relationship between the Sales department and the Accounts department is very strong.Information and forecast need to be accurate and timely so that budgets can be created and flexed to meet changes. This is very important to the business so that a good cash flow system is kept. 1.2a
Lister’s create financial information and statements to keep a formal record of the financial activities of the business. These are produced with the aid of a system Elite to enable the accountants to make key decisions.The Income Statement reports on the company’s income, expenses and profit over a period of time. The accountants prepare the profit and loss account monthly and this enables them to see plan and forecast into the future, It’s also used to compare budgets to actual costs and see where there have been shortfalls or gains and can be used as a comparison between sites to set targets.The Statement of Financial Position reports on the company’s assets, liabilities and ownership equity at a given point in time. It is mostly used to reconcile stock from the manufacturers to ourselves and to ensure that debts are collected as per the terms.The Cash flow statement reports on the company’s cash flow activities, particularly its operating, investing and financing activities. It is important to ensure that there is enough money in the bank, as we pay for the vehicle on the day of Sale. However sometimes we need to wait for the finance to clear before we receive money therefore generating interest.
Listers is a large privately owned motor group acting as a franchise partners for Audi, BMW, Honda, Mercedes-Benz, Mini, Smart, Toyota, Volkswagen cars and commercials, Lexus and Land Rover, specialising in the sale of new and used vehicles.Therefore there are many stakeholders that the business has critical external relationships with.The main stakeholders of the business are as follows:·
SuppliersPlease see the relevant appendix for a detailed overview of the mentioned stakeholdersAppendix 7 – stake holders interest Grid 1.4a
The organisation consists of dealerships with members of staff in different...
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