In order to assist in the set up of Riordan Manufacturing's revenue cycle, some changes are needed. Riordan Manufacturing is going to incorporate the systems development life cycle to their system. Along with this, some detail on how participants in the accounting function will assist in the development of the system will be mentioned as well. There will be information on how the changes have impacted the areas of measure and control that tie to operational performance.
Riordan Manufacturing sells plastic bottles, fans, heart valves, medical stints and custom plastic parts. The company's clientÃÂ¨le include automotive parts manufacturers, The Department of Defense and appliance manufacturers. This paper will outline how to integrate the cycle into an enterprise-wide accounting information system, the hardware needed and show how the accounting system flows through Riordan Manufacturing.
Riordan Manufacturing is owned by Riordan with annual revenue in excess of one billion dollars. Riordan uses the income statement to show investors what the income is, and how management is controlling expenses.
Riordan Manufacturing does not have an integrated accounting system at this time. All locations have separate systems and the information is sent to headquarters. The company admits that the current accounting system fails in many areas and needs to be replaced.
In regard to cost of goods, the company has a common set of procedures for inventory management. Each process is explained thoroughly to insure everyone involved understands. A common set of procedures is necessary to guarantee that all cost of goods is reported properly.
A main weakness for Riordan is many portions of the accounting process are still manual where electronic devices could be used. Another weakness is one throughout the entire company. The locations are not interconnected and headquarters rely on specific locations to send in the proper information and they combine...