Implementing more assertive policies

Oct 13, 2025 by thesweetdesigns.com 143 views

Analysis of Internal Control of Cash Receipts and Expenditures at PT. Trust Finance Indonesia, Tbk

Introduction

In today's fast-paced business environment, internal control is a crucial aspect of any organization's financial management system. PT. Trust Finance Indonesia, Tbk, a leading finance institution in Indonesia, has implemented various measures to ensure the effectiveness of its internal control system. This study aims to analyze the internal control of cash receipts and expenditures at PT. Trust Finance Indonesia, Tbk, and provide suggestions for improvement.

Background

PT. Trust Finance Indonesia, Tbk, is a company engaged in financing in the form of providing capital goods or funds paid in installments with a lease system (leasing), receivables, credit card financing, and consumer financing. The company obtained a business license as a finance institution from the Minister of Finance of the Republic of Indonesia through Decree No. 159/KMK.06/2001 dated April 3, 2001, and has been revised by Decree No. KEP-078/KM.6/2003 dated March 24, 2003.

Methodology

This study uses descriptive methods to analyze data by explaining and describing the internal system of cash receipts and expenditure at PT. Trust Finance Indonesia, Tbk. The data collected is qualitative, consisting of primary data and secondary data. Data collection techniques used in this study are field research techniques, through documentation and interview techniques.

Analysis of Internal Control of Cash Receipts and Expenditures

Based on the analysis conducted, it can be concluded that the internal system of cash receipts and expenditure at PT. Trust Finance Indonesia, Tbk, has been implemented in accordance with the company's operational standards and procedures as stipulated in the Standard Operating Procedure (SOP) No: TFI/SPO/09.00/VI/2005. The application of this system allows companies to find out the flow of cash in and outgoing cash, as well as prevent irregularities and abuse of authority and tasks.

Deeper Analysis

Some things need to be considered related to internal control of cash receipts and disbursements at PT. Trust Finance Indonesia, Tbk.

*** Increased Cash Receipts: ** Although the cash receipt system has been structured, efforts need to be made to minimize the late payment from the client. Companies can consider more assertive policies, such as giving warnings or sanctions to clients who are late in payment.

*** Petty Cash Management: ** Petty cash removal system needs to be clarified and implemented consistently. The current procedure, where cash disbursements are below Rp. 300,000,- using cash, while on top using checks/current accounts, seem less efficient. Imprest system or fixed funds applied with a value of Rp. 2,500,000,- it needs to be reviewed to ensure its effectiveness.

Suggestions for Improvement

Here are some suggestions to increase the effectiveness of internal control of cash receipts and expenditure at PT. Trust Finance Indonesia, Tbk:

*** Application of Reporting Mechanisms: ** The company can require clients to report directly every late payment. This will make it easier for the company to control cash flow and take the necessary actions.

*** Adjustment of Petty Cash Procedures: ** The company needs to review the petty cash procedure by considering efficiency and effectiveness. The option to use an imprest system with a fixed value needs to be evaluated and adjusted to the company's needs.

*** Increasing Employee Awareness: ** It is important to increase employee awareness related to the importance of internal control and comply with applicable procedures.

Conclusion

By implementing the right strategy, PT. Trust Finance Indonesia, Tbk can strengthen internal control of cash receipts and expenditure, so as to increase operational efficiency and maintain the company's financial integrity. The suggestions provided in this study can be a starting point for the company to improve its internal control system and ensure that it is in line with the company's operational standards and procedures.

Recommendations

Based on the analysis and suggestions provided in this study, the following recommendations are made:

PT. Trust Finance Indonesia, Tbk should consider implementing more assertive policies to minimize late payments from clients.
The company should review and adjust its petty cash procedure to ensure efficiency and effectiveness.
The company should increase employee awareness related to the importance of internal control and comply with applicable procedures.
The company should consider implementing a reporting mechanism to track late payments and take necessary actions.

Limitations of the Study

This study has some limitations that need to be acknowledged. Firstly, the study is based on a single case study, which may not be representative of other finance institutions in Indonesia. Secondly, the study relies on secondary data, which may not be up-to-date or accurate. Finally, the study is limited to the analysis of internal control of cash receipts and expenditure, and may not cover other aspects of the company's financial management system.

Future Research Directions

This study provides a starting point for future research on internal control of cash receipts and expenditure in finance institutions. Future studies can build on this study by:

Conducting a comparative study of internal control systems in different finance institutions.
Analyzing the impact of internal control on financial performance and risk management.
Examining the role of technology in improving internal control systems.
Investigating the effectiveness of internal control systems in preventing irregularities and abuse of authority and tasks.

Conclusion

In conclusion, this study provides an analysis of internal control of cash receipts and expenditure at PT. Trust Finance Indonesia, Tbk. The study highlights the importance of internal control in ensuring the effectiveness of a company's financial management system. The suggestions provided in this study can be a starting point for the company to improve its internal control system and ensure that it is in line with the company's operational standards and procedures.
Q&A: Internal Control of Cash Receipts and Expenditures at PT. Trust Finance Indonesia, Tbk

Q: What is internal control, and why is it important for PT. Trust Finance Indonesia, Tbk?

A: Internal control refers to the processes and procedures put in place by a company to ensure the accuracy, completeness, and reliability of its financial transactions. It is essential for PT. Trust Finance Indonesia, Tbk to maintain the integrity of its financial management system, prevent irregularities and abuse of authority and tasks, and ensure compliance with regulatory requirements.

Q: What are the key components of internal control of cash receipts and expenditures at PT. Trust Finance Indonesia, Tbk?

A: The key components of internal control of cash receipts and expenditures at PT. Trust Finance Indonesia, Tbk include:

Cash receipt system: A structured system for receiving and processing cash payments from clients.
Petty cash management: A system for managing small cash transactions, such as cash disbursements below Rp. 300,000,-.
Reporting mechanisms: A system for tracking and reporting cash transactions, including late payments.
Employee awareness: Training and education programs to ensure employees understand the importance of internal control and comply with applicable procedures.

Q: What are some common challenges faced by PT. Trust Finance Indonesia, Tbk in implementing internal control of cash receipts and expenditures?

A: Some common challenges faced by PT. Trust Finance Indonesia, Tbk in implementing internal control of cash receipts and expenditures include:

Late payments: Clients may delay payments, which can affect cash flow and financial performance.
Petty cash management: Petty cash removal system needs to be clarified and implemented consistently.
Employee awareness: Employees may not fully understand the importance of internal control and may not comply with applicable procedures.

Q: What are some suggestions for improving internal control of cash receipts and expenditures at PT. Trust Finance Indonesia, Tbk?

A: Some suggestions for improving internal control of cash receipts and expenditures at PT. Trust Finance Indonesia, Tbk include:

Implementing more assertive policies: Consider implementing more assertive policies to minimize late payments from clients.
Reviewing and adjusting petty cash procedures: Review and adjust petty cash procedure to ensure efficiency and effectiveness.
Increasing employee awareness: Increase employee awareness related to the importance of internal control and comply with applicable procedures.
Implementing a reporting mechanism: Consider implementing a reporting mechanism to track late payments and take necessary actions.

Q: What are the benefits of implementing effective internal control of cash receipts and expenditures at PT. Trust Finance Indonesia, Tbk?

A: The benefits of implementing effective internal control of cash receipts and expenditures at PT. Trust Finance Indonesia, Tbk include:

Improved financial performance: Effective internal control can help prevent irregularities and abuse of authority and tasks, which can improve financial performance.
Increased efficiency: Effective internal control can help streamline cash transactions and reduce the risk of errors.
Enhanced reputation: Effective internal control can help maintain the integrity of PT. Trust Finance Indonesia, Tbk's financial management system and enhance its reputation.
Compliance with regulatory requirements: Effective internal control can help PT. Trust Finance Indonesia, Tbk comply with regulatory requirements and avoid penalties.

Q: What are the next steps for PT. Trust Finance Indonesia, Tbk in implementing effective internal control of cash receipts and expenditures?

A: The next steps for PT. Trust Finance Indonesia, Tbk in implementing effective internal control of cash receipts and expenditures include:

Reviewing and updating internal control procedures: Review and update internal control procedures to ensure they are effective and efficient.
Providing training and education: Provide training and education programs to ensure employees understand the importance of internal control and comply with applicable procedures.
Implementing a reporting mechanism: Consider implementing a reporting mechanism to track late payments and take necessary actions.
Monitoring and evaluating internal control: Regularly monitor and evaluate internal control to ensure it is effective and efficient.