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Revenue Cycle essay
← What Business Ethics IsAIS Information System →

Revenue Cycle. Custom Revenue Cycle Essay Writing Service || Revenue Cycle Essay samples, help

Revenue cycle in a firm is applied in sales order processing and accounts receivable systems. The first innovative change in this cycle will involve the use of computerized systems. This will enable the firm to recognize its sales from the first step to the last. This type of accounting system normally indentifies sales and their resulting effect on increasing revenue with the increase in cash as well as the receivable (Gerald, 2003). This transaction will then be processed automatically using the computerized system. The second innovative technology that goes hand in hand with the use of computerized systems is the use of point-of-sale software. This software allows the accounting information fed into the system to be scanned (Raymond, 1995). This is followed by the transfer of data to the accounting system in the real time. This technology will be very crucial and helpful in managing the flow of cash as well as inventories in a firm.

Expenditure cycle relates to activities involving data processing operations within a firm. It is closely linked to the payment and purchase of goods and services. Some of the new technologies that can be adopted in this cycle include: firstly, online processing of data. This is done through the use of integrated database for systems such as MRP and JIT. Secondly, the firm can use Electronic Data Interexchange (EDI). This is appropriate for transmission of POS to the vendors (DePaul, 1996). Thus, through the use of these two technologies, a firm is able to process purchasing functions through AIS. 

One technological innovative change that can be used to enhance human resources is the provision of immeasurable added value. In this type of system all the payroll and components are computerized. It involves computerizing all information including management, attendance data, gathering and analysis of data involving the employees. In addition, this change will enable the firm to process the payroll, reporting, provide web services to the employees as well as simulations. Helpful web services such as Smart Pay Slip services will enable the firm to provide automatic services to the employees without unnecessary delays (Senid. 2000). The system will also allow diverse operations to take place, such as supervisions, cost analysis and processing.

Another innovative change is the object based web system. It operates on a single database. A comprehensive management of all organization’s payroll ranging from recruitment to retirement is finally achieved. Moreover, if this change is adapted, the firm will be able to fully meet the needs of its clients (Raymond, 1995). This will be made possible by the use of computerized authorization mechanism that is uniquely made for accessing data. This system will also be able to provide up-to-date information. Another added advance to the firm is that it will be able to find solutions to the most complex problems. The adoption of HRIS will enable the firm to store large volume of data as well as monitor and track the demographics of its employees for analysis such as turnover and absenteeism (Gerald, 2003). On the other hand, employees will be able to use the data and respond accordingly.

Financial reporting pertains to all the operational levels of a firm where events such as production, purchasing as well as selling are done. Some of the technologies that can be used in financial reporting include quick books pro enterprise and Peachtree accounting. This system allows the firm to share data and other resources over a network (DePaul, 1996). Thus, users and managers can share vital information concerning the firm. They also provide various processing capabilities for many users of the system. Thus, different accounting packages can be compiled and designed according to the needs of the company. Moreover, changes in the accounts can be reflected automatically when initiated.

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