Integrated Accounting Cycle

Learning Team A
ACC 340?Accounting Information Systems I
January 16, 2017
Judy Thomas

Integrated Accounting Cycle Final Report
Riordan has continued to establish itself throughout the years as an efficient and well-managed manufacturing organization. The company has been able to do this successfully through its continued emphasis placed on the controls within the operations of the business. Establishing the Riordan study team within the company and following the blueprint of the Systems Development Life Cycle (SDLC) has allowed the team to continuously plan and investigate the company?s Accounting Information System (AIS) and its processes on a yearly basis. The study team?s investigation is able to identify needs, strengths, and weaknesses in various accounting cycles, such as the accounts payable process that was previously analyzed in a past report. In addition, the team is also able to analyze the physical hardware involved in these processes and update the software when it is needed. The analyzing process will help to identify which employees within the company may need or may no longer need access to particular computer capabilities as well as what reports may need to be updated to produce the necessary information for continued success. The team can then design the changes that are needed and eventually perform the continued maintenance and follow-up on the system as needed. As a result, applying the SDLC and its four main stages is one of the main factors in maintaining a valuable AIS and detecting the updates that are constantly available in what has become a technologically driven business environment.
Accounting Cycle?Accounts Payable
The accounts payable division is one area within Riordan?s accounting cycle that the study team will be following up on and continuing to maintain. With the procedures that were previously in place multiple users were given access and communication along with the input process of data were not meeting company standards. The study team was able to identify the input of both incorrect and repeated information that created unorganized chaos within the company?s system. Bills were being paid twice and vendors were left trying to clean up the mess as Riordan attempted to reconcile the differences. As a result, the company was spending more time and money doing the same job twice. Riordan has made the conscious decision along with its study team to update the process surrounding this phase of the accounting cycle. In addition the company will also be upgrading the software so that cloud computing will now be available. The design phase of the SDLC has the study team implementing these new procedures that creates more of a checks and balance system so that the input errors may be corrected. The payable division employees will continue their inputs as usual and in addition supervisors of the division will be reviewing the data input each day and cross referencing it with money going out of the department. This new procedure in combination with the new cloud-based system will allow for faster and more convenient updates to the data entry and payment system. Consequently, information will no longer be delayed and the processes will only be done once? making accounts payable more accurate and effective than ever.

What did you identify as strengths and weaknesses in their current system?
Riordan?s main weakness is that the company is running four different accounting systems. This leads to the next weakness, which is the manual entry of the accounting information from the other three locations into the headquarters ERP system. This leads to mistakes and duplicate payments of invoices.
Riordan?s main strength is that the company headquarters decided that the company needs to overhaul their ERP and AIS systems.

What did you identify as strengths and weaknesses in their current system?
In the analysis stage, what access was needed and what reports should be generated, what controls need to be included, etc.?

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