Inkwell Ltd Intro Essay - 716 Words

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Inkwell Ltd Intro

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Inkwell Ltd like every other company will need to use accounting in their business. Inkwell are a printer cartridge company who recycle old ones, but then re-manufactures them to give them back to their customers. They are well known for high quality products, with a 100% guarantee product. Obviously they will need a good accounting system to be able to maximise profits, like every other company.

With Inkwell working on a just in time system and being a company boasting in the quality of their products, it is essential that they have good relationships with their external stakeholders. Due to working a JIT system, Inkwell will need to maintain a good relationship with suppliers, because if one supplier is late or delays or has reduced quality goods, Inkwells production and be slowed or disrupted very easily. This stall in production can then have a knock on effect to the customers, because the quality of Inkwells cartridges may be reduced.

Accounting systems will be affected by the organisational structure, because if a company has a complex structure, it may be very hard and time consuming to get things approved for accounting (investment etc.) which can cause the business to lose out. Also, again the JIT procedure/system can affect the accounting department, because Inkwell will need to make sure the suppliers are paid on time so no disruption to JIT will take place. Business transactions will need to all be done correctly and noted, so they can be placed into the purchase ledger etc. correctly.

Accounting plays a vital and pivotal role in the success of every company. The purpose of accounting is to be able to make decisions on where to invest money into the company and which areas to focus on to make costs as low as possible, to be able to maximise profits for the company. This is done by using financial data within in the company to be able to create reports about the company to show the financial position and strength of a... Show More

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