Business Systems I/BSA 500
November 19, 2012
Riordan Manufacturing Accounting Systems, Part II
Comprehensive accounting systems and practices assist companies in monitoring cash flow expenses and investments as well as identify new sources of income. Riordan Manufacturing’s current accounting system lacks consistency across multiple locations and basic accounting modules. Each location has a closed system and dos not incorporate other department systems such as Marketing and Sales, Production, and Operations. Streamlining each accounting system to include the basic accounting modules and incorporating other company systems will help to ensure compliance and identify spending costs and potential capital investments.
With the three operating entities (Georgia, Michigan, and California) and the joint venture in the People’s Republic of China, Riordan Manufacturing has a complex accounting setup. All information gathered from the operating entities is compiled at their corporate office in San Jose, California. Similar to that of other companies, Riordan Manufacturing must ensure that there is cohesion between the various entities by instilling basic use of accounting functions and methods.
Although the accounting configuration and distribution is transparent to their customers and suppliers, the aggregation process is complex. The recommendations presented by Team A will help to build an integrated approach to their accounting and distribution setup. At a minimum, the basic components of each operating entity accounting system include the following functions: General Ledger, Accounts Payable, Accounts Receivable, and Inventory. The company has published balance sheet information that shows this level of data by comparing fiscal year ending September 30, 2010 vs. September 30, 2011.
Assets for the Riordan Manufacturing include the following: information received...