Riordan Manufacturing Revenue Cycle
Riordan Manufacturing Revenue Cycle
Accounting information systems provide the tools to operate and maintain important data related to an organization and interpret the information to develop quality financial reports. The revenue cycle of Riordan Manufacturing reflects sales and the components associated with sales such as inventory, freight, cost of goods sold and accounts receivable, yet this information is not readily available to each facility. Because the forecast for the company is positive and production and wages are expected to increase having source documents available within each branch of the company would improve the efficiency of the organization. Developing a plan to integrate an accounting information system for the revenue cycle of Riordan Manufacturing can be accomplished by establishing the functions of each accounting cycle in relation to the organization, examining the systems already in place, knowing the monetary resources available, and identifying the systems needed to operate a cohesive environment. The five accounting cycles that a business may use to operate different functions within the company play an important role in the decision making process. These cycles are the revenue cycle, the expenditure cycle, the financing cycle, the fixed asset cycle, and the conversion cycle (University Of Phoenix, 2007).. The revenue cycle portrays transaction such as accounts receivable accounts payable. Sales, inventory, and cost of goods sold (COG) transaction are made in the revenue cycle which helps ensure that a company is providing quality service and or product to their customers. The expenditure cycle is used by companies with the focal point is towards purchases, inventory payment responsibility such as payroll, and payroll deduction types. “Expense accounts such as labor, vacation, utilities, rent, and others; inventory accounts; and liability accounts, such as accounts payable, taxes payable, wages payable, and cash,” stated in Week 1
Accounting information systems provide the tools to operate and maintain important data related to an organization and interpret the information to develop quality financial reports. The revenue cycle of Riordan Manufacturing reflects sales and the components associated with sales such as inventory, freight, cost of goods sold and accounts receivable, yet this information is not readily available to each facility. Because the forecast for the company is positive and production and wages are expected to increase having source documents available within each branch of the company would improve the efficiency of the organization. Developing a plan to integrate an accounting information system for the revenue cycle of Riordan Manufacturing can be accomplished by establishing the functions of each accounting cycle in relation to the organization, examining the systems already in place, knowing the monetary resources available, and identifying the systems needed to operate a cohesive environment. The five accounting cycles that a business may use to operate different functions within the company play an important role in the decision making process. These cycles are the revenue cycle, the expenditure cycle, the financing cycle, the fixed asset cycle, and the conversion cycle (University Of Phoenix, 2007).. The revenue cycle portrays transaction such as accounts receivable accounts payable. Sales, inventory, and cost of goods sold (COG) transaction are made in the revenue cycle which helps ensure that a company is providing quality service and or product to their customers. The expenditure cycle is used by companies with the focal point is towards purchases, inventory payment responsibility such as payroll, and payroll deduction types. “Expense accounts such as labor, vacation, utilities, rent, and others; inventory accounts; and liability accounts, such as accounts payable, taxes payable, wages payable, and cash,” stated in Week 1
References: Bagranoff, N. A., Simkin, M. G., & Strand, C. (2008). Core concepts of accounting information systems (10th ed.). [University of Phoenix Custom Edition e-Text]. New York: John Wiley & Sons. Retrieved March 24, 2008, from University of Phoenix, rEsource, Accounting Information Systems 1 ACC/340 Web site. University of Phoenix. (2008). Read me first. Retrieved April 4, 2008, from University of Phoenix rEsource week 1 reading.