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Autor: anton 26 December 2010
Words: 911 | Pages: 4
Hardware and Software Selection
There is a necessity to have either hardware or software to integrate the accounting information into an automated system for viewing by the proper individuals. Below, Learning Team A will show who needs to access this information, what controls will be implemented, the type of reports to be generated from these hardware or software and importantly what type of information will be available through corporate Intranet and the Internet. Having the proper hardware and software integrating Riordanâ€™s data into automated systems will make life easier for those involved with all the accounting cycles, especially accounts receivable.
Who Needs Access To What Information
Many different departments of Riordan will need access to different levels of the new system. The accounting clerk needs access to enter and edit billings, payments, and adjustments of credits/debits, but only needs to view reports such as the General Ledger and Month End Reports. The General Accountant and the General Accounting Supervisor, on the other hand will need access to edit these reports. The Director of Accounting and Finance will need access to review and edit these reports as well as reports from other departments in the Finance area, such as Accounts Payable and Credit. The President, CEO, COO, and CFO will need access to view the entire system, from month end reports down to payment reports. Although, upper and middle management will normally not need to view the lower reports, questions arise from the month and year end reports that require investigation using reports such as payment histories and Agings.
The controls that need to be in place for this are preventive, detective, and corrective controls. To integrate the accounts receivable process into an automated system for Riordan Manufacturing, management needs to reduce the likelihood of risks happening in the future. Management needs to identify possible events that represent a problem to the firm then determine appropriate responses to those problems (Dunn, Cherrington, Hollander, 2004). A detective control is designed to uncover an undesired problem that has transpired. This control is necessary when the preventive control has failed (Dunn, et al, 2004). The third is the corrective control, which is designed to restore a system to an approved or last known good state. A company usually establishes corrective controls to remedy problems that are discovered by the detective controls. One advisable procedure that can be implemented for this control is establishing training programs that can teach employees how to use the new automated system that can help them perform their job functions more efficiently and effectively.
It is necessary to recognize that any control strategy has to be tailored to address the risks to objectives that management identifies as unacceptable for the integration. The objective should be detecting risks that are materially threatening the goals of the organization and to reduce them to the point that management is more willing to accept.
With regard to software and which one is best when dealing with accounts receivable, there are many different programs available. The main thing the company must look at when purchasing software is that the system works for the company. There are many reports that are useful to companies within the Accounts Receivable cycle. We will name the one report that is the most important and gives the most information on monies owed to the company.
The report that provides customer payments information is called the Accounts Receivable Aging report. This report breaks down the information by customers and the payment due date. It also has a breakdown of how many days a customer is late in 30 day increments up to 90 days. This report also has a column for accounts that are overdue by more than 90 days.
Internet and Intranet
Riordan will have some reports available on the internet for stockholders and outside interests to access. These reports will include quarterly and year end reports that will be uploaded after approval by the CFO. This will allow research into the financial standings of Riordan in order to show the stability of the company and the strength of the stock holdings.
There will also be a corporate intranet available to all internal interests. Most reports will be available on this system in order to keep satellite locations in the loop on financial decisions and information. The IT department will give different access to the various levels of the company through the use of password protection. As described in the access section above, not all levels will need to view all reports. For example, A/R clerks will need access to Agings but not General Ledger entries, while the Board members will have use of most reports from all departments of the company.
Having a properly integrated software can be beneficial to all those involved with the finances of the Riordan organization. This software and hardware are viable assets to every member of the financial team from the CEO to the general accountant. Implementing the controls as described will assist those in Riordanâ€™s accounts receivable team. Access to the Internet and the Intranet will make any data imported onto either accessible to a number of individuals. Allowing access to certain sections will help implement a level of security to certain data. Therefore, what has been set forth will put the Riordan organization on the right track to implementing the proper software or hardware to integrate data into the automated system.
Dunn C.L., Cherrington J.O., Hollander A.S. (2004). Enterprise Information Systems: A Pattern- Based Approach, 3e. The McGraw-Hill Companies, copyright 2004.
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