Effective Business Administration: Understanding the Processes - Essay Sample

Introduction

Various organizations, depending on their sizes and nature, are administered differently. For instance, administration of the sole proprietorship form of business is totally different from the way a big corporation or parastatal is operated and managed. Administration entails a deep understanding of the process within an organization to ensure adequate flow and adherence to the set procedures. Administration exists regardless of the business form, and the only variation involves the procedures followed. As part of the administration, internal checks are essential all the time, and various levels exist to enhance the complete check. Administration and the organization of procedures varying in different business with the focus being on wholesaler business, vegetable and fruit auction and in the employment agency.

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Under the wholesale business type, there is the order authorization when procuring. For the new supplies to come in, there must have been a command to do so from the designated person who makes an informed decision after close examination of the associated trend. Once the goods are received, they are reconciled with the placed order by checking the quantity received against the vendor's invoice and signing the copies by the receiving staff. Ideally, various roles are assigned to a different individual to avoid conflicting interest and overlapping functions. For instance, staff placing the order is different from the receiving staff, the warehouse keepers, those in charge of rechecking the invoices and the sales department responsible for dealing with clients. The overall head of the department is tasked with ensuring the sum of vendor's invoice is equal to the total in the recorded purchases which are posted to the purchase ledger. The accounts or finance department prepares the payment after checking and ensuring that all authorizations are met. Additionally, the accounts department checks all the discount and bonuses and follow up for the credit notes before making payment. All these are meant to ensure that vendors are paid only what is due and that employees do not coordinate to steal from the business.

The second type of business involves vegetable and fruit auction, and this is aimed at understanding the direct buying and selling relationship. In this type of business, there is duties segregation between procurement that entails authorization and the auction recording, which is under the auction controller. Here, the controller of the auction does not have the power to influence or change the prices hence indicating that the business has various players who perform varying roles to ensure check and compliance to the rules of the company. Additionally, the receipt department exists to check the quality and the quantity under consideration to maximize fairly play during the process. A given percentage of the revenue here goes to the vendors while a small percentage goes to the controller. For instance, vegetable and fruit farmers receive 90% of the auction revenue. The administration of the process requires data entry which is done by designated persons who are not biased, and after a sale has been made, the prices and the parcel numbers are entered in a process that is normally automated. The billing is made one day after the auction with the final payment taking place after eight days after thorough reconciliation. The critical check involves ensuring that all sales results to account payable entries. In essence, account receivable is equal to the revenue generated less 10%, and this excludes related costs such as packing. The process expires upon making the payment after eight days.

Employment agency depicts a different type of administration as it involves many employees. The employees are paid on a weekly basis, and they are paid per hour, which is based on their attendance at their salaries are administered per temp. In this type of agency, job times are reprinted to enhance the registration of the hours worked. The clients register and sign off, and also the employees sign off. The ticket issued herein forms the basis for the administrative assistant or the receptionist to settle at the end of the week. In this agency, the amount is paid to employees and consequently billed to the clients-the regulatory payments such as pension funds and pension premiums.

The three scenarios depict varying ways of making payment and authorization of the same. Payments take varying lengths with some taking up to one week while others a month. In wholesale, for instance, payment is encouraged based on the discount being offered. In all the scenarios, roles are designated to make the flow protective, and this is further advanced by the authorized documentations or the entries made.

Conclusion

In conclusion, detailed flow and procedures should be in place to ensure the confidence among the participants is enhanced. The whole procedures should be easy to audit at any given time, and a clear record should be kept. Transparent administration is essential in time-saving, making the process efficient, thereby translating to the revenue increase. Despite the size of the organization, administration enhances the auditing process within the business hence advancing the internal control measures.