Riordan Manufacturing Accounting Systems, Part Ii

RiordanManufacturingaccount Systems, Part II wrinkle Systems I/BSA 500 November 19, 2012 LiseHautzinger Riordan Manufacturing Accounting Systems, Part II Comprehensive bill corpses and practices assist companies in monitor hard currency flow expenses and investments as well as observe crude sources of income. Riordan Manufacturings current invoice strategy lacks consistency across quaternary locations and basic score modules. Each location has a closed system and dos non in unified other department systems such as Marketing and Sales, Production, and Operations.Streamlining each score system to include the basic accountancy modules and incorporating other company systems go out help to gibe compliance and identify spending costs and potential capital investments. With the three operational entities (Georgia, Michigan, and California) and the word venture in the Peoples Republic of China, Riordan Manufacturing has a heterogeneous be setup. All information gathered f rom the operating entities is compiled at their corporate office in San Jose, California.Similar to that of other companies, Riordan Manufacturing moldiness ensure that there is gluiness between the various entities by instilling basic use of accounting functions and methods. Although the accounting configuration and distribution is transp arnt to their customers and suppliers, the aggregation process is complex. The recommendations presented by Team A volition help to build an integrated coming to their accounting and distribution setup. At a minimum, the basic components of each operating entity accounting system include the side by side(p) functions General Ledger, Accounts Payable, Accounts Receivable, and Inventory.The company has make balance sheet information that shows this level of data by comparing fiscal year ending kinsfolk 30, 2010 vs. September 30, 2011. Assets for the Riordan Manufacturing include the following information received from General Ledger, Accounts Payable, Accounts Receivable, and Inventories. Fiscal year ending September 2011 yield total assets of $47,409,137 comp ard to fiscal year 2010 numbers of $34,825,498. That is an summation of $12,583,639 or approximately 26. % in 2011 compared to 2010 assets. In addition to the aforementioned accounting functions, Riordan Manufacturing uses the specimen accounting methods of cash and accrual. Both methods are similar, but one of these methods will be used based on timing. In pecuniary reporting, the cash method of accounting is used when accounting records revenue when cash from customers is received, and records expenses when they are paid in cash (Sanker, 2012). Therefore, cash basis does not cope accounts receivable or payable.Conversely, accrual method of account include items when they are earned in addition to claiming deductions when expenses are incurred (Sanker, 2012). There are chain reactor of software chopines available to help an organizations accounting needs. W ith so many available finding the right software program stick out be a burden. Evaluating the needs of an organization as well as the size of the organization will help one find the sort out software program. When selecting the software program it should be upgradeable for future needs as well as be able to troubleshoot and fix any errors in the program.The cost of the accounting software will as well play a huge part in deciding on an accounting program. Riordan Manufacturing has double divisions of the company. When it comes to accounting software there are different programs used end-to-end Riordan Manufacturing. The San Jose plant use a different accounting software program than the Michigan and Georgia plants. This often causes a delay in financial reporting, which has caused Riordan Manufacturing investors confidence to decrease. The delay will also impact the issue of future capital investments.When are there errors in accounting and financial documents this will often lead to errors and spark costly audits (Perry, 2006). The different departments of accounting such as accounts payable, accounts receivable, and order entry need to be kept up(p) by one system and an individual server with mirroring will perform for the above needs and of course, a proper backup solution will be for safekeeping of this data (Perry, 2006). Microsoft produces a program that can knock against the needs of Riordan Manufacturing. Solomon Great Plains program is the recommendation for Riordan Manufacturing.The functions needed by Riordan Manufacturing and price makes this the logical choice for accounting software. This program will altogetherow all divisions to report back to the central point, therefore providing instance reports. One moldiness find a compatible program that works well with the system currently in place. Riordan Manufacturing requires accredited(prenominal) systems to create an effective and efficient accounting system. Systems such as sales, acc ounting, financing and human resources need to cast off assenting to the accounting system (Apollo Group, Inc. , 2012).Point of sale and cash register systems must continuously, during vexation hours, be connected to the accounting system. Reason being, sales are track and verified instantaneously. Inventory must also be considered within the accounting system to make certain that all inventory levels are monitored and replenish without user input. Monetary needs for inventory replenishing is tracked within the accounting software system. Billable hours must be tracked for cost purposes to make certain the company is working within budgetary and time constraints.The accounting systems straightaway connected to accounting software must also contain the world(a) ledger accounts, accounts payable, and accounts receivable. leveraging orders for plastics orders must nonplus bills to customers. Collections must also have access to the companys accounting system because many times b ills do not get paid, therefore collection action must be pursued. These requirements must also be as secure as possible, behind a firewall, and virtual local area network (VLAN). Expense accounts must also be tracked within the accounting software to make certain every expense is accounted for.Finally, payroll, which includes salary and wages, payroll taxes, and deductions must be accounted for and budgeted. integration different modules provide a well-rounded accounting software parcel of land with the ability to keep management informed of the financial status of the company. Riordans current system does not include basic accounting departmental functions or modules. The company must devote funds and time to generate accurate Income Statements, Balance Sheets and the General Ledger in a unite effort with external auditors.As a result, a coordinated effort should be made to consolidate systems, link associated databases, and purchase appropriate accounting software. Purchase or development of software will reduce data redundancies and increase efficiency and productivity. By undertaking these measures Riordan will be able to ensure compliance, therefore cutting costs, and focus on identifying new sources of revenues and cost nest egg initiatives. References Apollo Group, Inc. (2012). Riordan manufacturing intranet. Retrieved on November 4, 2012, from https//ecampus. hoenix. edu/secure/aapd/cist/vop/Business/Riordan/index. asp University of Phoenix. (2010). BSA/500 course notes. Retrieved from University of Phoenix, BSA500 Business Systems I website. Perry, Cornell. (2006). Riordan Manufacturing Proposal. Retrieved November 18, 2012 from http//www. scribd. com/doc/48198199/Riordan-Manufacturing-Proposal Sanker, S. (2012). Accounting Methods Cash vs. Accrual. Small Business Chronicle. Retrieved November 19, 2012, from http//smallbusiness. chron. com/accounting-methods-cash-vs-accrual-3732. hypertext mark-up language