Hardware and Software Selection Essay

accountancy Cycle Description pieceAn organizations be selective discipline dust includes collecting breeding and indeed dividing the info into rhythms. This paper testament chance on the quin explanation daily rounds and specific wholey how Riordan Manufacturing subprograms the economic consumption bi round of drinks. The strengths and weaknesses of the native contains related to the wasting disease cycle will be construed. This paper will explain how to integrate the expenditure cycle into an enterprise-wide accounting schooling constitution. The variant types of randomness systems necessary to progress to this integration will be illustrated. Lastly, this paper will test the menstruation of accounting tuition with Riordan Manufacturing.Accounting CyclesThe five accounting cycles atomic number 18 the taxation, expenditure, financing, fixed-asset, and conversion cycles. each has its specific swear out within the accounting system. Almost all pol itical party habits the first quadruple accounting cycles, not all will function the conversion cycle. As a bon ton grows, it is important for solicitude and employees to understand the reasons for severally accounting cycle and ways the information needfully to flow. The accounting cycles build upon all(prenominal) other. Without the revenue cycle, n nonp beil of the other cycles would number into play. at once a familiarity has revenue producing activities, the expenditure cycle is necessary to collapse the bills incurred in producng the goods required for the revenue cycle.The financing cycle is necessary to give the ph whizzr availability to acquire the necessary buildings and machinery for drudgery along with making sure in that respect argon funds for the shareholders. The fixed-asset cycle records wear and tear on the buildings and machinery along with the disposal of utter items. The conversion cycle is important to manufacturing companies who use cost acc ounting to settle down issue costs. Table 1 (UOP, 2009),explains each word form of the accounting cycle and what scrolls and ledger accounts are affected by that cycle.Source University of phoenix Week 1 Read Me first-class honours degreeRiordan Manufacturing uses the expenditure cycle by generating purchase orders and receiving reports to track their purchases. Riordan then uses these documents to request earnings for the purchases. Riordan uses HRIS to keep track of employee hours, pay rates, pass and holiday while then uses this information to generate paysheet checks. The company too has gross revenue personnel who submit outgo reports for reimbursement of expenses incurred during sales calls. Riordan Manufacturing uses purchasing and payroll records to determine the amount of taxes necessary to pay for sales tax, FICA, FUTA, SUTA and any other taxes due.Internal ControlsIn order to meet goals and objectives, organizations such as Riordan Manufacturing, establish in ternal controls. Internal control is the plan of organization and regularitys a descent uses to safeguard assets, provide accurate and undeviating information, promote and improve operational efficiency, and kick upstairs adherence to prescribed managerial policies, laws, and regulations (UOP, 2009). In looking specifically at the expenditure cycle, Riordan Manufacturing has both strong and weak internal controls.Strengths include internal controls in trading operations and quality control. To ensure consistency of operations and quality control, Riordan Manufacturing manages receipts of raw materials, tracks overlap, and accounts for absolute goods inventories. Internal controls include the sales sectioncompleting the sales orders and entering them into guest shipping and billing system. Shipping then make full the sales orders and arsenal shop salesclerk updates the fund system based on those shipping documents. Another example is the take reports. They include a pro ject name, document muniment including the revision date, approvals, and distri plainlyion. Project history selective information is archived in an approved location.However, weaknesses in Riordan Manufacturings benevolent resource segment are abundant. Employee blames are kept by individual managers instead of by human resources in a central employee file area under lock and key. Changes to individualised information such as name, married status, and exemptions are submitted by employee managers which should be pass by employees not their managers. A third-party supplier keeps its own records of employees on workers compensation but Riordan does not. Excel spreadsheets which include training and suppuration records, appli rottert information, and individual compensation decisions are kept in unsecure areas and accessible to anyone. Enterprise-wideIn order to integrate the expenditure cycle into an enterprise-wide accounting information system, Riordan management should exam ine the human resource surgical incision method of handling employee records. For instance, in an enterprise-wide system, the accounting information system should focus on 4 objectives including strategic, operations, reporting, and residence. In order for a employment process management system to be implemented, the managers of the company need to evaluate certain(prenominal) criteria of the human resource department which cease affect the expenditure cycle. First, management require to identify the objectives of the human resource department in regards to employee records. This has a direct continue on the strategic objective of the enterprise-wide system.Secondly, the stimulation function needs to be reevaluated. For instance, since the company has quartet different branches, all input signal data should be on one method of input. This analysis and pending fulfil would increase the operations function. Thirdly, output time would radically increase for all four branches. The types of output Riordan should consider are the compliance and reporting objectives of the enterprise-wide system. Furthermore, to have the expenditure cycleimplemented, this would decrease the amount of time that Riordan is winning to report expenses.Necessary Information Systems for consolidationThe various types of information systems necessary to achieve this integration would include analyzing the following sturdyware, software, data, people, and procedures (Bagranoff, Simkin, and Strand, 2008.) one-third types of controls necessary to keep in legal opinion include preventive, detective, and corrective. The company has already found computer hardware for each of the four branches. In order to determine a software accounting program, the company needs to establish policies and procedures in regards to source documents. This has a direct impact on the data that is accumulated for the company.In order for payroll processing to take effect, personal carry by dint of fo rms and employee payroll deduction authorization forms should be established. Riordan should consider a SOX Assurance and conformity Application. Additionally, only managers should have access to company records. All records, electronic or hard copy should be kept in one central location, thus the use of privacy management information software. Furthermore, policies and procedures for all departments should be retained with a records management system.Flow of Accounting InformationThe flow of accounting information regarding inventory begins with a log of raw materials and shipping documents which are supervisor approved and taken to an inventory clerk who enters the information into the inventory system. Once entered into the inventory system, accounting personnel can pay supplier invoices. An inventory physical exertion form is provided by the manufacturing staff to the inventory clerk to be entered into the inventory system which tracks raw materials and subassemblies. Manufact uring also provides the inventory clerk with an inventory form accounting for subassemblies and final products when added into the inventory system. In the final product shipping process, sales orders are created and entered into the guest shipping and billing system. Shipping uprises the loads according the sales order information generated and ships accordingly. Then accounting can prepare the invoice after matching the sales order with the inventory system which illustrates the goods shipped.Each of the three operating entities of Riordan Manufacturing has their own accounting system. Therefore the systems are not harmonious which makes the consolidation of information at the incarnate office difficult and labor intensive. a lot information is conveyed via email and spreadsheets. Employee personal information changes are requested through a written form and are entered into the system by the payroll clerk.ConclusionThe five accounting cycles in an organizations accounting i nformation system and specifically how Riordan Manufacturing incorporates the expenditure cycle into its system was explained. Strengths and weaknesses of Riordans internal controls related to the expenditure cycle were commented on. This paper explained how the expenditure cycle could be integrated into an enterprise-wide accounting information system. The various types of information systems necessary to achieve this integration were illustrated. Finally, the flow of accounting information through Riordan Manufacturing was demonstrated.ReferencesApollo Group, Inc. (2006). Riordan Manufacturing. Accounting Information System 1 overview. Retrieved borderland 11, 2009. ACC340-Accounting Information Systems Processing. https//ecampus.phoenix.edu/secure/aapd/cist/vop/ line of credit/Riordan/RioMfgHome002.htm Bagranoff, N., & Simkin, M., & Strand, C., (2008). Core Concepts of Accounting Information Systems (10th ed.) University of genus Phoenix Custom Edition E-text. New York, NY Wile y. Retrieved from University of Phoenix, ACC/340 Accounting Information System 1 sack up site. University of Phoenix (2009). Week five overview. Retrieved March 12, 2009, from University of Phoenix, Week Five, rEsource. ACC340-Accounting Information Systems 1 prey Web site. University of Phoenix (2009). Week one overview. Retrieved March 12, 2009, from University of Phoenix, Week One, rEsource. ACC340-Accounting Information Systems 1 Course Web site.