Mr. Sabado is a member of the Philippine Institute of Certified Public Accountants.

It is globally recognized and integrated national organization of Filipino Certified Public Accountants in all sectors. He established a name for himself and known for his quality service. The main objective of the firm is to gain profit, to render good quality service and to be able to satisfy their clients. 1.1 Main Office EF Sabado Accounting Office is located at #20 Delmar Subdivision, Purok Malakas, General Santos City. It is situated in a residential area and it has no name that can be easily recognized as an accounting office. Despite of the location, it is not a hindrance for the firm to get the extent of its clients. The firm has no other branch in the national and local area. 1.3 Services EF Sabado Accounting Office caters accounting, auditing, consultancy services and retainers agreement. The firm has various clients which may vary from small business to large corporate ones. Accounting Services is their main service which involves construction of the financial statements of their clients. It involves Statement of Financial Position, Statement of Financial Performance, Statement of Changes in Owners Equity for sole proprietorship, Statement of Partners Equity for partnership, Statement of Stockholders Equity for corporation, Statement of Cash Flows and

Supplementary Notes.

Auditing Services involves evaluating the reliability and credibility of the financial statements of their clients and as well as the systems and processes responsible for recording and summarizing that information. The firm conducts fieldwork to analyze documents and transactions to ascertain the degree of compliance with the generally accepted accounting principles (GAAP). The firm then makes an independent auditors report after obtaining findings throughout their audit process. Consultancy Services involves preparing and filling of returns for BIR, preparing reportorial requirements for SEC, accepts engagement for conducting a feasibility study of putting up different businesses and other management accounting services. Retainers Agreement constitutes an agreement between the client and the firm for consulting services for the period specified. During this period, the firm agrees to devote up to number of hours per month on assignments to be determined by the client. 1.4 Number of Personnel EF Sabado Accounting Office is composed of 10 active employed individuals in whom four of them are Certified Public Accountants. Each of them has their designated tasks to be performed.

1.5 Organizational Structure The organizational structure is designed to ensure that individuals and departments that need to coordinate their efforts have lines of communication that are built into the structure. This part includes the organizational chart, duties and responsibilities and its qualifications. 1.5.1 Organizational Chart The organizational chart of EF Sabado Accounting Office includes the individuals who are responsible in its operational activities. This will help in the making the flow of authority and responsibility in orderly manner. Figure 1 depicts the organizational chart of EF Sabado Accounting Office. Figure 1. Organizational Chart of EF Sabado Accounting Office

1.5.2 Duties and Responsibilities This part defines the duties and responsibilities of the personnel based on the position they have in the firm. They have provided job description and specification so as to avoid overlapping of duties as well as confusion in their work. OWNER/MANAGER Responsible for day-to-day operation of the firm Signs the reports prepared by the firm for the client Do the final review on various reports prepared by the firm

ASSOCIATES Finalizes the preparation of financial statements of clients Audits the financial operations of clients

ASSISTANT MANAGER Assigns duties and monitors quality of work; assures staff conforms to organizational policies and procedures and government

regulations Hires, trains, supervises, motivates, and develops accounting staff and manages workflow OPERATIONS HEAD Plan, direct and coordinate the operations of the firm

Liaison with top management. Assist in the development of strategic plans for operational activity. Implement and manage operational plans.

FINANCE HEAD Ensure credibility of finance group by providing timely and accurate analysis of budgets, financial trends and forecasts. Ensure that effective internal controls are in place and ensure compliance with GAAP and applicable federal, state and local regulatory laws and rules for financial and tax reporting. STAFF Do the actual fieldwork Do various transactions with different agencies Coordinate with clients for necessary documents

1.5.3 Qualifications The firm is consists of personnel and each of them has a role. The personnel were deliberately assigned to where their qualifications may fit so that there is matching of skills to the job. OWNER/MANAGER A graduate of Bachelor of Science in Accountancy Has a professional experience in any related accounting practice Must be a Certified Public Accountant

Must be Competent and dependable Must be hardworking and dedicated to work Good in oral and written communication

ASSOCIATES A graduate of Bachelor of Science in Accountancy Knowledgeable in Accounting Principles and Standards Has a professional experience in any related accounting practice Must be hardworking and dedicated to work Good in oral and written communication

ASSISTANT MANAGER A graduate of Bachelor of Science in Accountancy or Management Accounting Has a professional experience in any related accounting practice Can work independently Must be hardworking and dedicated to work Good in oral and written communication

OPERATIONS HEAD A graduate of any related business courses Has good leadership skills Can work under pressure Must be obedient, hardworking, and dedicated to work Good in oral and written communication

FINANCE HEAD A graduate of Bachelor of Science in Accountancy or Management Accounting Trustworthy and be highly trainable Can work independently Must be hardworking and determined to work Good in oral and written communication

STAFF A graduate of any business courses Must be computer literate Must be hardworking and can work under pressure Good in oral and written communication

1.6 The Accounting Systems This part refers to the accounting system used by the firm. This contains the revenue and expenditure accounting system. Revenue accounting system is the inflows of cash to the entity as the entity render services or sells goods. Expenditure accounting system is the outflows of cash from the entity as it pays for the expenses it incurs while selling the goods or rendering various services. Conversion accounting system is not applicable in this company since it is a service type of business and not the manufacturing type of business This part also consists of data flow diagram, document flowchart, narrative descriptions of transaction processing and internal controls. 8

1.6.1 Revenue Accounting System The revenue accounting system of EF Sabado Accounting Office has a simple way of recording transactions. When the firm finished the reports needed by the client, the firm prepares source documents for the payment of the client. 1.6.1.1 Accounting Records Accounting records are the documents or files usually used by the firm to record their business transactions so that they will have their bases for future references. The following are the accounting records used by the firm: Documents. A document provides evidence that an economic event has occurred and is used to initiate transaction processing. The documents used by the firm include billing statements and official receipts. Journals. A journal is a record of chronological entry. The journal holds complete records of transactions and thus provides a means for posting to accounts. Ledgers. A ledger is a book of accounts that reflects the financial effects of the firms transactions after they are posted from the various journals.

1.6.1.2 Data Flow Diagram Data flow diagram uses symbols to represent the entities, processes and data flows, and data stores that pertain to the system. It is used to represent systems at different levels of detail from very general to highly detailed. Figure 2 presents the data flow diagram of the revenue accounting system of EF Sabado Accounting Office. See page 11. 1.6.1.3 Document Flow Chart A document flow chart is used to depict the elements of a manual system, including accounting records, organizational departments involved in the process, and activities that are performed in the departments. Figure 3 presents the document flow chart of the revenue accounting system of EF Sabado Accounting Office. See page 12.

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