Issues

This section aims to look at some of the issues faced by Cameron Balloons running their accounts department. We will raise many questions and though we may not offer many answers it is a chance to see the constraints of operating in the real world. How would you approach some of these, if you were running this business?

The accounts software package was written in-house to be specific to the business. When it needs upgrading would you go to an outside company or aim to write another in-house package? What are the advantages and disadvantages of each approach?

What strategies for further growth could the company consider for the future?

Should they aim to grow any further?

Much of the accounting work is contracted out to a firm of accountants. Should they try to do more in-house? What are the advantages and disadvantages of using a firm of accountants?

What strategies could the company adopt to try to improve the cash flow situation?

How should any future expansion or investment be financed - loans or share issues or debentures or some other means?

How often should internal management accounts be produced for the Board of Directors?