Hal Mart Case
The controller reviews sales and collections bi-monthly.
The sales and collection controller of the company review the sales and collections of the company bi-monthly, which have the best capability to regulate the sales and net collections of the company from each three branches. The sales and collections of the company has a direct impact on the economic health of the company it is because it if the sales of company increase then it raise the revenue of the company but it is very important to regulate the sales and collections of the company. It is possible to reduce the risks of sales and collection of the company by reviewing them bi-monthly.
The risks regarding the sales and collections can be reduced by training the control through following strategies:
- Setting up new strategies regarding collections and sales
- Ensure the quality customers experience
- By alleging the team on AR collections
The documentary transaction trail for all credit sales is documented in company policy manuals. It includes credit checks on all customers applying for credit facility.
Although the company documented the transaction trails for all credits sales in their manuals which include all credit checks on all customers applying for the credit facility, it is healthy for the company that shows the strength of the company in the market but it is very important for the company to regulate these operations in proper way. While the company has documentary transaction trails for all creditors that may reduce the risks but it is very important to ensure the healthy operations and policies regarding the credit checks. The company should set certain policies of credits sales and credit checks which aid the review and regulate the credit sales of the company.
Hal mart uses a Microsoft Excel program to calculate depreciation expense. An accounting manager tests the calculations sample and evaluates the overall reasonableness of depreciation expense.
Although the company uses Microsoft excel programs for the calculation of the depreciation expense of the company. The tools used for the calculations regarding sales and expenses protect the company from various risks. The Microsoft excel program is a suitable tool for the company to calculate the depreciation while the calculation of the depreciation can be improved by MACRS depreciation method and Straight line method.
The risk analysis is the most common way of seeing genuine issues and client’s requirements and proposing answers for address those issues. The objective of risk examination is to acquire a superior comprehension of the risk being tackled prior to fostering the solution. Hal mart on the other hand is the big retailing store that has several branches and characterized by variety of products affirmation. These bunch of branches and product categories for sure leads to sudden risks that become hard to identify sometimes. In order to combat these issues in the big retailing store like Hal mart, the main thing that is important is the hiring of professionals and trained personnel and products and inventory management. There is a variety of risks analyzed in the case of Hal mart which needs to be assessed and controlled by proper measures. These risks includes;
- Inventory theft and spoilage
- Maintenance and repairing issues
- Scanning pricing and financial issues
Theft and inventory spoilage
The stock of a superstore is material, and it is the biggest current resource on the balance sheet. Halmart Stores Inc. underlined shrivel as a critical issue at its stores. The issue isn’t because of only one sort of burglary or misfortune, yet goes from little drag shoplifting, significant robberies of enormous things or a lot of things, worker robbery, and unfortunate stock administration. Bloomberg noticed that this accentuation on psychologists and robbery is a strange move for retail organizations, even those with significant shrink issues. They think that this particular issue will not only continue to grow if not suspected and also decelerates the company’s growth.
Moreover, it has also been identified that the few articles were robbed by the employees themselves and they are further sold by them at discounted prices. These cases were growing and nobody was able to detect that eventually.
The most effective way to control and combat the issue is to recruit individuals with legitimate proficient training. It is vital to prepare the individual appropriately in regards to the control measures and stock administration methods. Besides, it is vital to present the more powerful store observing frameworks and RFID labels that can follow stuff and let a retailer know where it’s going.
Moreover, to avoid any theft, Walmart needs to increase the employees’ wages and pay them more for their hard work. It is also important for Hal mart to properly label all the things and monitors them so that they cannot come under worker’s robbery or misfortune. Moreover, the organization needs to properly assess the monitoring techniques and note down the details of each product and rechecked them with proper personnel again and again. In this way, it could be beneficial for the organization to keep a proper eye on the product and check where they are going.
Scanning pricing issues
Another risks analyzed in the case is the inadequate scanning of prices. The manager had seen the mistakes in the pricing of several scanned articles that has been sold. Further investigations have shown the issue related to the scanning machine that it has been scanned the outdated prices of a few articles categories. These issues lead to decelerating the company’s overall profit and increase the risks of product lacking.
Software issues are one of the major issues that lower the company’s gross profit without even knowing them. Since every biggest store needs proper cloud computing management techniques and could not be handled manually. So, the proper usage of software inventory along with the certified training professionals is highly important to mitigate the risks of any misfortune. To resolve the issue, Walmart needs to follow proper safety and control protocols. Any software program correction must be supported by client offices after testing the whole program with test information. Moreover, it is important to hire experienced personnel that makes sure the software and scanning system are working well and tested before properly…..
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