Riordan Manufacturing Accounting and Finance Review

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Riordan Manufacturing Accounting and Finance Review

The Finance and Accounting departments within the three operating entities of Riordan Manufacturing are vastly different. Each is managed independently, not only of each other but of the corporation sector as well. The Georgia, Michigan and California branches operate different business systems for their ledgers, accounts, orders, procurement, sales history, invoicing, payroll and all financial reporting. The process to get this information is unique from branch to branch and time consuming for corporate when it comes to consolidation. None of the systems used are integrated, which causes many hardships for the departments and the company in terms of untimely reporting and monthly labor. The three entities need to be running systems which are all integrated. By modifying the systems used, and creating a seamless, or close to seamless process for managing the financial aspects of each branch the corporation will save time and money in the end with less labor costs, easier auditing and faster access to the data needed to manage their accounts and finances appropriately.

A careful review of each department’s Finance and Accounting systems has shown that two out of three are using either a product that is unsupported or a product which they have no source code access. The California or San Jose Branch has a license for a fully integrated ERP financial management system, however, they license does not include application source code. This is important because the branch is unable to modify the system to meet their specific needs. In Michigan the software used came from a vendor which is no longer in business. This means the company can not rely on any resources for support from the vendor which the software originated. Without the option of having vendor support, the company is financially responsible to hire internal or external system support. This branch does own the source code; however, having...
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