PART TWO: ANALYSIS REPORT

Education becomes more effective when there is a combination of theory and practical knowledge. Theoretical knowledge achieved perfection with the implication of practical knowledge. The internship program can combine theoretical knowledge with practical situation. A practical orientation program is really essential for a student as our educational system is mostly text based. Professional experience is very important to be established. In this situation I got a bit practical experience by analyzing financial performance of Medez – Galanto & Associates.

A. SECTIONS IN THE MEDEZ- GALANTO & ASSOCIATES

1. Accounts Payable and Receivable
The accounts payable section of an accounting department records goods and services that it receives and the payments it owes, such as inventory from a supplier or other expenses. The department records each accounts payable as a liability and accounts receivable as assets. Assets such as revenue and customers’ obligations pay for goods and services. 2. Payroll
The payroll function of an accounting department ensures that the organization pays its employees accurately, including bonuses, commissions and benefits. The department monitors employees' time off, vacation and sick days. It pays the government taxes as well as union dues and other withholding from an employee's paycheck. The department reimburses employees for expenses and makes payments to vendor. 3. Inventory
A company's inventory is the goods owned for the purpose of sale. Inventory is usually sold within a year. An accounting department watches the cost of inventory over a specific period against its revenues to ensure that the cost of raw materials, labor and overhead do not negatively impact cash flow. The accounting department tries to find a balance between high inventory levels that satisfy customers but are costly to the company and low inventory levels that satisfy the company's expenses but may dissatisfy customers. 4. Fixed Assets
In order to function effectively, a company may need machinery, equipment, vehicles and other fixed assets it uses over several years. The accounting department is responsible for recording fixed assets on a balance sheet with depreciation. Fixed assets could be intangible--such as goodwill or a trademark--or tangible--such as machinery. As the company needs an upgrade to remain competitive, its financial statements will determine what the business can afford.

B. INTRODUCTION TO AN ACCOUNTING FIRM OR AUDITING FIRM Accounting is a very important term to our modern society. It is the career for men and women who at the start have their eyes set on top positions in industry, management, government, and general business. Accounting is a basic need of every businessmen, from the operator of a filling station to the government of the Philippines. It's so important to our society. None of the business organization can operate without is. They are there-somewhere-in every business. In small business, people use pen, ink and skill keep the records. In large business, modern accounting machines are used to operate. Men and women are directing these machines in the accounting process. Wise businessmen enter business must have some accounting knowledge.
If your friend has ever operated a business and you saw him placing figures in ledgers, then you saw him doing bookkeeping. If you have worked at a service station or supermarket and have seen books with large sheets lined in green and red lying on the manager's table or desk, you saw books of accounting.
In today's society, the demand for good accountants for exceeds the supply. As our country has expanded, business and industry have become more and more complex, so control here is very important. And control depends on a great deal of the bookkeepers and accountants who can analyze figures and advise management on what should be done.

C. COMPANY HISTORY

As early as 1983, the accounting office exist with about 25 bookkeeping clients. Year after year until 1992, the Clients increase in number and together with it the programs encountered also increases. One major problem is providing clients with commercial invoices, office forms and other printing needs. In 1987, they have purchased one mimeographing machine and they have registered a business RR mimeographing services. Aside from catering Accounting clients, they have also accommodate walk-in clients as well as other big companies.
It was evaluated later that majority of the printing needs required learning which the mimeographing services cannot provide. In addition to the trouble of mimeographed services is clients begun ordering commercial invoices in duplicate, triplicate, quadruplicate, and even quintuplicate with the use of colored onion skin as materials. At this point, the purchase of printing machine became a necessity.
In June 9, 1992, D4 Angels Press was registered with the Department of Trade and Industry, having in mind of buying a printing machine in the near future. At this point, printing jobs were abundant and it was spread in several printing press. The delay of delivery of finished products from other printing presses push them to purchase their own machinery. In September 1992, the first set of printing machineries arrived from Cebu.
The set composed of one cutter, 24 inches Nagai brand, 1 Menerva and 1 offset machine, Hamada Star with image size of 14 x 19. On the fisrt operation, the operator was hired in the person of Modesto Tubongan. The machinery were installed at lying in hospital, Luna St., La Paz, Iloilo City and was inaguarated on December 9, 1992.
In January of 1993, the first bindery was hired in the person of Beatriz Gatilago. Jobs were pressing which force them to buy another offset machine Rejobi 480 K sometime on July 1993. Since two printing employees were not enough sets of employees were hired. Another letterpress machine “Vertical” was purchase in Roxas City in 1994 and another Vertical from Carillo Press Aklan in 1995. Sets of Camera Platemakers and graining machines were supplied by the late Mario Castro. He is the man who transfer and rearrage the machinery everytime there is a need. In 1996, the computers were purchased and in 1998, the Management decided to stop using Zinc types, instead, all jobs are all done by offset machineries and letterpress machineries were utilized for numbering only. Innovation in the printing technology cannot be avoided, so that the status of the company to be at par with the other Printing press. In 1999, colored computer printer were purchase. We have also established an office of the plant to accommodate administrative services to the employees.
To date the bookkeeping and printing press is in full operation with the help of modern facilities and well-rounded and skillful employees and with the full support of the management D4 Angels Press and Medez – Galanto & Associates abide its motto, “Get it Done Well and On Time”.

D. MISSION

The Mission of Medez – Galanto & Associates is to enable work to be done that can satisfy the customers. Not only allow work to happen but to deliver on time, improve products and services that interest the customers.
To develop the ability to satisfy and to be paid for in meeting customer needs faster than anyone else.

E. VISION

The Vision of Medez – Galanto & Associates is to have an improve quality of products and services in order to be at the lead in the industry. We are engaged through continuous innovation.

F. DUTIES AND RESPONSIBILITIES

I. General Manager 1. Oversee the whole operation of the company. 2. See to it that the Mission and Visio of the organization is accomplish. 3. Set direction of the organization. II. Personnel & Production Consultant/ Comptroller 1. In-charge of Personnel & Production of the company. 2. In-charge of hiring and firing of personnel and follow- up their employment. 3. Direct and constant consultation with the proprietor. 4. Safeguarding the financial status of the company. 5. Conduct spot audit once in a while. III. Cashier 1. Maintain the financial status of the company. 2. Direct reporting to General Manager as to the financial status of the Company. 3. Submit regularly reports such as Aging of Accounts Receivables, Interest and Penalties paid for the month. 4. Finish work assignment on time. 5. Harmonious coordination with co-employees and management. 6. Don’t hesitate to consult the General Manager if in doubt. 7. Concern and unselfish dedication towards works and management. 8. Loyalty and honesty towards the company you are working for. 9. Willing to undergo overtime if required so. IV. Executive Secretary 1. Maintain Records of the Company. 2. All other records of organizations the Gen. Manager is handling. 3. Finish work assignment on time. 4. Harmonious coordination with co-employees & management. 5. Don’t hesitate to consult the General Manager if in doubt. 6. Concern and unselfish dedication toward works and management. 7. Loyalty and honesty towards the company you are working for. 8. Willing to undergo overtime if required so. V. In - charge of Diversified Project 1. Maintain projects that are introduce by the management. 2. Direct reporting to the General Manager. 3. Get direct instruction from the General Manager. 4. See to it that the project is properly handled in order to minimize losses. VI. Accounting Supervisor 1. Supervision of work assignments to each and every clerks of the department. 2. Constant reporting to General Manager as for daily transactions. 3. Finish work assignment on time. 4. Harmonious coordination with co-employees and management. 5. Don’t hesitate to consult the General Manager if in doubt. 6. Concern and unselfish dedication towards works and management. 7. Loyalty and honesty towards the company you are working for. 8. Willing to undergo overtime if required so.

VII. Receiving Department 1. Receiving of jobs from the customers 2. Follow- up customers personally or by phone. 3. Must entertain customers and gain his or her sympathy. 4. Make suggestion to customer as to job description acceptable to them 5. Be courteous to customer. 6. Always smile to the customer, smilling sastifies your customer VIII. Clerk I 1. Processing of BIR documents both Accounting and Printing Department. 2. Collection of receivables both Accounting and Printing Department. 3. Distribution of VAT returns both Accounting and Printing Department. 4. Preparation of document as to Accounting and Printing requirements. 5. Finish work assignments on time. IX. Clerk II 1. Preparation of SSS/Pag-ibig/ Phil. Health, etc remittances. 2. Follow up city/municipality licenses and payments.

X. Clerk III 1. Recording of Sales and expenses of clients both Accounting and Printing Department. 2. Preparation of Bank Deposit. 3. Preparation of BIR Payments of clients to the bank. 4. Preparation and application of business permits from DTI and other government agencies if required so. XI. Plant Supervisor 1. Do the stripping and camera works of the company. 2. Distribution of jobs and supervision as to work assignment of every operator concerned. 3. Follow-up jobs on the process. 4. Inform the production consultant from time to time as to status of jobs in the process. XII. Releasing In-Charge 1. In-charge of releasing jobs to be forwarded to the office. 2. Accomplish all necessary paper before releasing such 3. Follow instruction from Plant Supervisor of what to do.

G. COMPANY’S PRINCIPLE

During the existence of the Company, so many problems arises especially, the non – cooperativeness of the employees, habitual absents and tardiness and no concern attitude towards work assignments which causes the delay of services rendered to their clients. But through reminders and education those problems has been minimize although it has not been totally irradiated.
Termination and suspension has been done by the management to those employees who are considered liabilities of the company and rewards are also given to those who are deserving and perming well. Series of memorandum had been issued to those who go against the polies of the company in order to let them know that the management mean business when it comes to disciplinary action towards its employees.
The company make it in principle that the management and the employees walk hand in hand in order to achieve the goals that they want to reach.
We pray to God that there will be a harmonious relationship between the management and employees as we walk towards our journey of existence.

H. ABOUT MEDEZ – GALANTO AND ASSOCIATES

Our firm services a varied list of clients, consisting of corporations, federal government agencies, state government agencies, local government, governmental entities, partnerships, individuals, estates, and non‐profit organizations. We provide an extensive array of services including comprehensive auditing, accounting, financial consulting, tax consulting and compliance, and management consulting services in accordance with principles and standards established by AICPA, GAO, federal legislation, OMB, and Treasury guidance.
Additionally, our staff has expertise in a blend of business disciplines, including general management, business management and personnel management. This enables us to respond constructively, creatively, and realistically to client needs. Our firm has the resources to assure that you will receive the timely and competent service you expect from your independent accounting firm. Over the years, the firm has assembled an exceptional team of professionals with experience in various auditing, accounting, financial consulting, tax consulting and compliance, and management consulting services that enable the firm to meet the most challenging and complex requirements.
It is a highly efficient, proficient, and significantly unique source of highly competent professionals integrated together as a team, and since its inception, Medez – Galanto & Associates has provided services to a wide range of industries, striving to continually meet the unique and continually expanding needs of these industries which include real estate and construction companies, wholesale and retail businesses, technology businesses, and professional services corporations, as well as a significant amount of non‐profit organizations, schools and churches. They provide auditing, accounting, and fiscal monitoring services to both federal and state entities, municipalities, and also act in the capacity as sub‐contractors on such contracts.
With the sole purpose of assisting our clients, Medez – Galanto & Associates works together with your staff to help your organization meet its financial goals and objectives. We are committed to providing our clients with an independent assessment of their operations and organizational structures.
Medez- Galanto & Associates is a full‐service certified public accounting firm offering first‐class audit, accounting, taxation and advisory services. Our motto is the driving force behind our services, and our professionals are dedicated to the highest ethical and professional standards. Our Firm has a successful record of accomplishment in serving organizations of varying sizes and organizational structures. We are prepared and ready to perform engagements, and all of our professionals are proficient with new accounting and auditing standards, tax regulations, and current financial trends.
We take time to get to know our clients and understand how they measure success and we are dedicated to a hands‐on approach that is proven to build trusting relationships, which is paramount when it comes to financial and tax matters.
The Firm offers a full range of accounting and assurance services including Audits, Reviews, and Compilations. We view our role in the reporting process as an opportunity to provide constructive solutions for maximizing your company's profitability and efficiency. Audits differ from reviews and compilations, as they are a more intensive examination of your company's systems and records providing the highest level of assurance. Types of audit engagements performed include: Financial and Compliance Audits, Internal Control System Audits, Florida Department of Transportation Audits, Operational Audits, Overhead Audits, Special Examinations, and Pre‐acquisition Audits.
The Firm provides tax‐related services to Corporations, Partnerships, Sole Proprietorships, and Individuals. These services include comprehensive tax return preparation and tax planning. By blending technical expertise with the skills of its experienced and diversified professional staff, the Firm is able to guide companies through the various business cycles including future operations, monthly financial reporting, and annual preparation of tax returns. All of our professionals receive training as required by Government Auditing Standards. All of our audit team members meet the book requirements for continuing education.
Throughout the performance of all of our contracts we have stressed the importance of coordination and communication between the client and our firm. We take great measures and have implemented several policies to ensure that there is established constant communication as well as streamlined coordination.
Strengths
1. A core of CPAs that have established solid reputations within our market. 2. Highly experienced staff with an increase in total billable hours. 3. A state-of-the-art computer system, utilizing the latest software that continues to enhance our productivity and expand our capacity. 4. High client retention, providing consistent referrals to the firm. 5. Expertise in specific vertical markets of medical/health, dental, and lodging industries.
Weaknesses
1. Over-dependence on tax preparation work for individual and business clients and, therefore, a lack of diversification in our revenue sources. 2. Inability to generate sufficient billable hours in the off-season, based on the current capacity of our systems and full-time staff. 3. Difficulty in retaining aggressive non-partner CPAs, as they move to smaller firms that will make them partners sooner. 4. Being perceived as a non-progressive, "too traditional" firm and maybe overlooked as a viable option for new clients. 5. Some individuals within the professional staff do not have an understanding of or a commitment to the marketing activities of the firm.
Opportunities
1. Benefiting from the ongoing increase in population to the San Clemente area, particularly for the retirement segment. 2. Increasing income levels of the population over the age of 60 that have aggressively saved for retirement and have increasingly complex tax planning, tax preparation, and estate planning needs. 3. Growth that is occurring in three industries where we possess expertise; health/medical, dental, and lodging.
Within Medez – Galanto & Associates’ large network of client member firms, the firm has robust audit tools, resources and procedures to provide the means for their professionals to deliver high-quality audit services. In delivering these services the firm adheres to the highest standards of independence, professional objectivity and technical excellence. The Firm’s audit approach is applied consistently around the calendar, while providing the flexibility to serve the unique circumstances and complexities of our clients. Firm’s audit approach focuses on understanding the clients’ global business and control issues from the inside out. It combines a rigorous risk assessment, diagnostic processes, and audit testing procedures as well as a continuous assessment of our clients’ service performance.
In addition to the audit work, the department also carries out various assignments of consultancy work as and when assigned. Different kinds of audit services are carried out by the department such as internal audit, statutory audit, final audit, and interim audit. All kinds of audit services are offered to the companies willing to get their audit done by the firm. Strong independent Audit of companies provides critical information for investors and other stakeholders, a robust and clear perspective to audit committees and timely and constructive input to management.
The main purpose of the tax department is the filing of Income Tax returns of local and multinational companies. Income Tax and Sales Tax returns are both filled by the persons assigned for this tasks and company’s most revenue is generated from these activities of filing income tax and sales returns. Income tax and wealth tax matters of client companies as well as their directors are handled by this department. Medez – Galanto & Associates deliver Tax advice that is perfect for the client’s organization. Medez – Galanto & Associates Business Tax services are designed to meet client’s business tax compliance and advisory needs, wherever in the world they are located.

I. MEDEZ – GALANTO & ASSOCIATES’ STRATEGIC TAX APPROACH:

* Builds sustainable tax strategies based on technical knowledge, combined with practical, commercial and industry knowledge * Provides the deep accounting and compliance knowledge and tried-and-tested methodologies clients need for efficient reporting * Helps clients assess, improve and monitor their tax function’s processes, controls and risk management

J. SKILLS AND TECHINIQUES THAT EACH EMPLOYEE NEED TO HAVE

Accountants need to be able to grasp new concepts quickly - whether it is assimilating new information or data, managing a project, or meeting a new client. In Medez – Galanto & Assicates, there are things that each and every employee and staffs need to have in order to be an effective accounting firm and printing press. * Understanding
Accountants need to be able to grasp new concepts quickly – whether it is assimilating new information or data, managing a project, or meeting a new client. If something is new to you, you need to be able to ask the right questions and follow the right leads during research. Your intellectual skills will not be judged by your academic grades alone: recruiters like to see that you can apply your knowledge to practical situations. Show you really know what the job entails. Recruiters don’t expect in-depth knowledge, but a good grasp of the basics will help you and impress them. * Innovation
Recruiters are on the hunt for freethinkers with fresh ideas who are going to make an impact. Do you have the ability to create or identify new opportunities to develop the business? Many firms use processes that have lasted for years but are frequently tweaked to create improvements. Have you done something similar? For example, if your student society was planning on promoting itself via a stall at a student fair and you suggested giving out some freebies to attract people to the stand, then went about sourcing suitable items, you would have provided a basic innovation to improve society membership and increase awareness among students. * Communication
Accountants need to convey complex information in a professional and jargon-free manner, so learning to tailor your communication style is vital. You will also need to be able to work with colleagues, often in a team, at all levels of the business – good teamwork won’t happen without good communication between members. You need to be able to express yourself concisely, but you also need to be a good listener and good at asking questions. Recruiters will be assessing your communication skills through your application form answers, how you go about answering interview questions, and group work and presentations at assessment centers.

* Commercial awareness
Knowledge of the business you want to work in, the sectors you would be working with, your employer and your employer’s competitors – aka commercial awareness – is essential if you want to work in accountancy and financial management. You can demonstrate commercial awareness at interview even through talking about a casual job. If you’ve worked stacking shelves in a supermarket be able to identify the issues facing the supermarket industry. Who owns the company? How is it structured? If you’ve worked in a pub you could be asked about the issues facing the drinks industry. Give the recruiter answers that demonstrate an insider’s – not a customer’s – perspective. * Enthusiasm
Recruiters are impressed by candidates who take the initiative and are enthusiastic and interested. Candidates who get in touch with recruiters and make themselves known are more likely to stand out. It’s a good idea to attend events and fairs and meet people from the firm you’re interested in. Enthusiasm is also shown by doing research – you wouldn’t bother researching something and keeping up to date with it if you weren’t generally interested in and enthused by it. Mention an aspect of the firm’s work that interests you and find a way to link it to your own skills and experience.

K. CRITICAL TO FIRM’S POSITIONING AS THE FIRST-CHOICE FINANCIAL ADVISORY FIRM FOR THEIR CLIENTS, THEIR KEY STRENGTHS ARE:

* In-depth knowledge and understanding of local markets * Extensive nationwide reach * Strong industry sector expertise * The high caliber of clients with whom firm works * Expertise in highly complex transactions * Excellent local and regional league table positioning * Strong relationships with key stakeholders at all stages of the transaction process
To realize its full potential, every business must deal effectively with the three fundamental challenges of risk, performance and assurance. Without assessing risk they stand to make costly mistakes. Without improving performance they will cede ground to competitors. And without robust assurance they may limit the opportunities for future investment. Medez – Galanto Accountants bring the right people together to address all three tasks. Because firm operates assurance and advisory as a single business, firm’s people gain deeper insight into the key issues facing organizations today and our clients gain the benefit of a broader range of the best skills

L. OBSERVATIONS AND RECOMMENDATIONS

There are matters that I have observed that I will be discussing or shared here. First, other employees usually, if they would have an overtime for a day, the next day they won’t be around, and if a deadline is that day, the other employees that are also in-charge on the office deadline, are cramming because, he/she isn’t around to give them what and where to pay or submit the files. They need to call him or her to get the information and some of it are incomplete description.
Secondly, the tardiness of the employees are an issue. Because, as an accounting office for me, there are a lot of deadlines every day or every month. And if an employee or and in-charge is late, the amount of work to be done will be less for that day. For example, if he or she is late for work and arrives at 9 am, and he or she is needed to go to the Land Bank to pay for the VAT payments, he or she won’t get in, in the 9:30 am cut off of receiving of checks in the receiving area of the bank. Also, I consider having an under time as tardiness. Because, if you are dedicated to finish a job in a day, you won’t be going home as early as 3:00 p.m. for example.
Thirdly, cramming for deadline. In every Accounting Firm that a Centralian is conducting his or her On-The-Job Training, I never forget to ask them what they have felt during deadlines in a bank or at BIR, because I am there also and I get to know them more and have their opinions too. Luckily, I thought I wasn’t the one that is complaining about the cramming of deadline matter, they are “suffering” also. For me, in my opinion, it is not healthy for an accounting office not to remind and call their clients that there is an approaching deadline on that week or so.
Fourthly, constant nagging of my other Supervisor not in to me. But to other clients or dealing with his or her problem. He or She always denies or complain about her employees fault and go directly to pin point the employees that are the ones that is in-charge or had gone wrong with a transaction or a client had a problem or question on his/her BIR or Permit.
Lastly, shortage of staffs is another problem at the accounting office. Many of the staffs would thank me that they are thankful that I am there as an intern and to help them in the processing tasks and also in the office works.
My recommendations or solutions for the following observation of problems that I have noticed at Medez- Galanto and Associates are:
First, they should have a memorandum of what are the things that should be done for the month and have an incentive or give a bonus for those who will not be absent or tardy for a month or so to avoid the people who tend to be absent and late for that month.
Second, they should set a deadline for the clients also. Not the deadline for the following BIR dates and remittances dates, but they should have given deadlines for their clients to pay for them the remittances that must be paid for that month to avoid cramming for the deadline at SSS, Pag- Ibig, Phil-Health and BIR VAT forms and because of the shortage of people working at them, they should be flexible enough with their time of paying at those remittance offices.
The company created a good service to their clients and gave the best training for the students. The students must have a good company that would give them a good training ground and would enhance their knowledge and capabilities. The school must have the good coordination for some companies that offer an annual On the Job Training inside their company. The school should provide more budgets given to the OJT coordinators to have the best monitoring of the training the students are taking. One of the best ways of training is the provincial trainings that would give different experiences to the trainees. An out of town training would give more self-esteem to the students. The Business Management students or in general the Business Administration majors have their training every 4th year and second semester of the year. In some cases having their training during their 4th year of school would sometimes affect the rhythm of their schooling because in Business Management the students OJT have their preferred pre-requisite subjects that once not taken would give a big effect to the arrangement of the student’s subjects. Instead of the regular schedule of years of studying, once being affected by the pre-requisite subjects, the students would waste some of the time spending for the subjects affected by the OJT. But I think it’s worth the pain if you have an OJT and School all together. Because, I get ot feel the thrill to work and study at the same time.
The on-the-job experience I have made in the Medez- Galanto and Associates served as a motivation for me to improve myself and become better as a student of economics and an aspiring professional management professional of the country in the future. The impact that it has made in my field of specialization is that it contributed to my realization in the significant role that economics plays in the national development and the improvement of the standards of living of the Filipinos. In that way, it has given me more interest in the financial aspect of economics and how it relates to the understanding and better participation of the ordinary Filipinos to the economy of the country.