Accounting Cycle and Enterprise Resource Planning
By: Jessica Skrdlant
April, 2015
Bellevue University
AC 645 Accounting Information Systems
Professor McElhaney Executive Summary The accounting cycle is the critical cycle for recording and controlling of the financial aspects of the corporation. This cycle includes transactions, journal entries, posting, trial balance, adjusting trail balance, closing of books and financial statement preparations. These statements are a requirement when the company is publicly traded and regulations are required that they are fair and free of material errors. ERP is business software that processes business activity in a real-time environment. ERP system cover the functional areas: financial and
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ERP software can assist with these requirements, limit errors, monitor information by double checking correct entry, set security features so that information is properly entered and is authorized.
Enterprise Resource Planning (ERP) Enterprise resource planning (ERP) is a business management software that is utilized by enterprises to collect, store, manage and interpret data from all business activities that include: product planning cost, manufacturing or service industries, marketing/sales, inventory management and shipping and payments. EPR can be described as an enterprise-wide set of management tools that balance demand and supply by containing the ability to link customers and suppliers into a complete supply chain, employing proven business processes for decision-making and providing high degrees of cross-functional integration among sales, marketing, manufacturing, operations, logistics, purchasing, finance, and human resources (Wallace, 2001). ERP uses databases that are often in real time to track business resources including: cash, raw materials and production capacity. Applications monitor the status of orders, production, payment and
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Conclusion ERP software can assist corporations in the effective management of resources and maintain smooth operations. The accounting cycle can be integrated into the ERP systems so that all aspects can be maintained and verified. Requirements to maintain system to verify that all transactions are valid, authorized and properly recorded is required when completely the accounting functions and financial statements. Enterprises that have used ERP systems have seen increase in growth, effective production and increased sales. Customer service is increased with proper pricing, shortened delivery time and products available when needed. Managers have better access to budgets, inventory and employee performance measures. EPR software will continue to involve and managers will have access to software that fits there needs. Reference
Ere-source Infotect. (2013). ERP Information Center. Retrieved from: http://www.eresourceerp.com/ERP-benefits.html
Wallace, T. F., & Kremzar, M. H. (2001). ERP : Making It Happen: the Implementers' Guide to Success with Enterprise Resource Planning. New York:
Reimers, Jane L. (2003). Financial Accounting A Business Process Application. Upper Saddle River, New Jersey, Prentice Hall.
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
When a business follows the accounting cycle they are making the correct steps towards a successful business. The accounting cycle makes sure that every transaction is recorded. For three months Peyton approved journalized to track transactions. An accounting cycle has ten steps, in steps 1-4 journal entries and T-accounts are prepared. In steps 5-7 the trial balance and adjusted entries are completed and in the final steps, 8-10 the income statement, a statement of retained earnings, a balance sheet, the closing entries, the post closing trial balance, and reversing entries are completed. Peyton Approved promotes operation efficiency, and it ensures accurate and reliable accounting records by following the Accrual basis of
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
Final Paper BUS 630, Managerial Accounting Name Date Instructor Introduction “Managerial Accounting is the branch of accounting that meets managers' information needs. Because managerial accounting is designed to assist the firm's managers in making business decisions, relatively few restrictions are imposed by outside regulatory bodies and generally accepted accounting principles. Therefore, a manager must define which data are relevant for a particular purpose and which are not” (Schneider, 2012). Managerial accounting is an important part of an organization’s setup that guides the managers and helps them to make important financial decisions. It is an important functional area that is conducted in each and every organization
Transactional Processing The accounting software packages developed and distributed by Sage and Microsoft, respectively, each use their own methods for recording accounting information. Sage 50. There are three different areas that must be discussed. These are the revenue, expenditure, and financing cycles. These areas are written about from the author's own knowledge from using the software, as learned from the book by Carol Yacht (2013).
• “An Enterprise Resource Planning (ERP) system is a software system for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”. Haag, Cummings, Phillips, S, M, A (2007). Management of Information Systems. New York, NY: The McGraw-Hill Company Inc.
"The rate of change in organizations today is tremendous. Just when one downsizing or reengineering effort ends, the latest business software is released and there is something new to learn. The result? An environment in which employees are continuously novices again" (Dawson 29). An EPSS can be used to continually train and retrain employees while providing task specific assistance and training at the touch of a button. An EPSS can also provide assistance to infrequently encountered problems as well as create a consistent set of answers to customers’ frequently asked questions.
The accounting cycle is a series of steps starting with recording business transactions and leading up to the preparation of financial statements. This financial process demonstrates the purpose of financial accounting–to create useful financial information in the form of general-purpose financial statements. In other words, the sole purpose of recording transactions and keeping track of expenses and revenues is turn this data into meaning financial information by presenting it in the form of a balance sheet, income statement, statement of owner’s equity, and statement of cash flows.
First of all, an effective payroll cycle provides accurate and detailed accounting records. These records can be stored in an outside record-keeping
The main basis of this definition involves the interests of management towards stakeholders and contractual outcomes. Earnings management decisions rely on the intent of the managers, which can include reflecting the financial results positively to investors or for the firm to meet contractual obligations. Earnings management is the manipulation, through a selection of accounting policies, to achieve a desired financial reporting result. Accruals can be classified as matching financial activities of a firm to the time that they are incurred rather than when cash is received. Earnings management that manipulates these types of transactions is what essentially composes accrual-based earnings management. Companies can engage in this type of management by increasing or decreasing income by creating accruals, which are often referred as non-discretionary accruals. (2)
ERP helps a business get better visibility, information, and control of its inventory. In restaurants, product lifecycles are short. A good ERP system tracks the performance of a product and collects vital information to make better purchasing decisions. This is the key to a successful business. There cannot be inventory sitting for too long.
Yahia Zare Mehrjerdi, (2010) "Enterprise resource planning: risk and benefit analysis", Business Strategy Series, Vol. 11 Iss: 5, pp.308 – 324.
Accounting is an indispensable tool in business decision-making process, planning and controlling. This has led to the development of more advanced information technologies and many computer products such as software like accounting packages and various accounting database applications. From this point accounting can be divided into two basic categories: those which apply manual accounting and those which prefer computerized accounting systems. (Weber, 2011)