Hardware and Software Selection Essay

invoice Cycle Description PaperAn organizations story in do workation system embroils collecting in word formation then dividing the information into bouts. This stem result identify the five history cycles and specifically how Riordan Manufacturing uses the expending cycle. The strengths and weaknesses of the intimate controls related to the expenditure cycle will be examined. This news report will explain how to integrate the expenditure cycle into an enterprise-wide bill information system. The divers(a) types of information systems necessary to achieve this integration will be illustrated. Lastly, this paper will demonstrate the full point of write up information through Riordan Manufacturing.Accounting CyclesThe five be cycles be the revenue, expenditure, financing, fixed-asset, and conversion cycles. Each has its specific swear out within the chronicle system. Almost every alliance uses the first iv accounting cycles, not all will use the conversion cycle. A s a confederacy grows, it is important for perplexity and employees to understand the reasons for severally accounting cycle and ways the information needs to flow. The accounting cycles build upon each other. Without the revenue cycle, n one and only(a) of the other cycles would come into play. Once a troupe has revenue producing activities, the expenditure cycle is necessary to remuneration the bills incurred in producng the goods essential for the revenue cycle.The financing cycle is necessary to give the company approachability to purchase the necessary buildings and machinery for production along with making sure in that location are funds for the shareholders. The fixed-asset cycle records depreciation on the buildings and machinery along with the organisation of said items. The conversion cycle is important to manufacturing companies who use cost accounting to determine production costs. Table 1 (UOP, 2009),explains each phase of the accounting cycle and what enumera tions and ledger accounts are affected by that cycle.Source University of phoenix workweek 1 Read Me FirstRiordan Manufacturing uses the expenditure cycle by generating purchase orders and receiving reports to surmount their purchases. Riordan then uses these documents to request payment for the purchases. Riordan uses HRIS to keep track of employee hours, pay rates, vacation and holiday time then uses this information to mother payroll checks. The company also has gross sales personnel who submit put down 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 learn goals and objectives, organizations such as Riordan Manufacturing, establish internal controls. Internal control is the scheme of organization and methods a business uses to safeguard assets, provide accurate an d real information, promote and improve operational efficiency, and encourage adherence to prescribed managerial policies, laws, and regulations (UOP, 2009). In looking specifically at the expenditure cycle, Riordan Manufacturing has both untroubled and weak internal controls.Strengths accommodate internal controls in trading operations and attribute control. To ensure consistency of operations and quality control, Riordan Manufacturing manages receipts of raw materials, tracks product, and accounts for destroyed goods inventories. Internal controls include the sales discussion sectioncompleting the sales orders and entryway them into customer exile and billing system. Shipping then wads the sales orders and chronicle clerk updates the enrolment system based on those tape transport documents. Another example is the production reports. They include a project name, document history including the revision date, approvals, and distribution. Project history data is archived in an approve location.However, weaknesses in Riordan Manufacturings benevolent resource department are abundant. Employee files are kept by individual managers instead of by human resources in a central employee file area under lock and key. Changes to person-to-person information such as name, marital status, and exemptions are submitted by employee managers which should be requested by employees not their managers. A third-party provider keeps its own records of employees on workers compensation but Riordan does not. Excel spreadsheets which include training and development records, applier information, and individual compensation decisions are kept in unsecure areas and inletible to anyone. Enterprise-wideIn order to integrate the expenditure cycle into an enterprise-wide accounting information system, Riordan watchfulness should examine the human resource department method of handling employee records. For instance, in an enterprise-wide system, the accounting information system should focus on cardinal objectives including strategic, operations, reporting, and compliance. In order for a business process management system to be implemented, the managers of the company need to evaluate certain criteria of the human resource department which thunder mug affect the expenditure cycle. First, management needs to identify the objectives of the human resource department in regards to employee records. This has a direct encounter on the strategic objective of the enterprise-wide system.Secondly, the input function needs to be reevaluated. For instance, since the company has four different branches, all input data should be on one method of input. This analysis and pending action would increase the operations function. Thirdly, make 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 taking to report expenses.Necessary information strategys for IntegrationThe various types of information systems necessary to achieve this integration would include analyzing the following hardware, software, data, people, and procedures (Bagranoff, Simkin, and Strand, 2008.) Three types of controls necessary to keep in mind include preventive, detective, and corrective. The company has already established 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 treat to take effect, in-person action forms and employee payroll deduction authorization forms should be established. Riordan should consider a SOX Assurance and Compliance Application. Additionally, only managers should have access to compan y records. All records, electronic or hard copy should be kept in one central location, thus the use of covert management information software. Furthermore, policies and procedures for all departments should be retained with a records management system.Flow of Accounting teachingThe flow of accounting information regarding farm animal begins with a log of raw materials and shipping documents which are supervisor approve 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 use of goods and services form is provided by the manufacturing staff to the inventory clerk to be entered into the inventory system which tracks raw materials and subassemblies. Manufacturing 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 customer shipping and billing system. Shipping prepares 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. thereof the systems are not compatible which makes the consolidation of information at the incarnate office difficult and labor intensive. Much 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 information 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 March 11, 2009. ACC340-Accounting Information Systems Processing. https//ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/RioMfgHome002.htm Bagranoff, N., & Simkin, M., & Strand, C., (2008). Core Concepts of Accounting Information Systems (10th ed.) University of Phoenix Custom Edition E-text. New York, NY Wiley. Retrieved from University of Phoenix, ACC/340 Accounting Information System 1 Web site. University of Phoenix (2009). Week five overview. Retrieved March 12, 2009, from University of Phoenix, Week Five, rEsource. ACC340-Accounting Information Systems 1 Course 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.