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.
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.
ERP is a huge resource managing tool used by companies today. Some systems preform general ledger, accounting and order management for the company. ERP systems are a great asset and greatly improve a company, so a company should defiantly look into implementing ERP systems! However, Gartner estimates that 75% of all ERP projects fail. Why is there so much of a high failure rate? This paper will take an in depth look at reasons to why ERP systems fail.
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...
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
ERP is a business system that joins all the aspects in the business world such as planning, manufacturing, sales and marketing, projects. The ERP has become more popular in the software which used to help the business actives including order tracking, customer service, finance, inventory control and human resources. The ERP databases contain all the data about the business whi...
Lastly, the ERP system helps with keeping up with compliance documentation. When auditors or customers need compliance documentation for a certain product, the ERP system should have it stored in its database. This makes it easily accessible for the business owner to pull the information from anywhere that they are, instead of having to dig through paper documents filed away.
described the ERP system as packaged (but customisable) software applications, which manage data from various organizational activities and provide a fully integrated solution to major organizational data management problems. They provide for both the core administrative functions, such as human resource management and accounting, as well as integrated modules which can be selected to support key business processes, such as warehousing, production and client management.
ERP systems are meant to make companies and businesses operate more efficiently when they are not. The main goal for a company is to choose a vender that will give them the safest and easiest way to operate efficiently and achieve their business goals.
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)
First of all, an effective payroll cycle provides accurate and detailed accounting records. These records can be stored in an outside record-keeping
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.
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)
"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.