Riordan Finance and Accounting
- Submitted by: roliasmot
- Views: 672
- Category: English: Creative Writing
- Date Submitted: 07/11/2011 01:49 PM
- Pages: 4
- Report this Essay
Finance and Accounting
Unfortunately, there are many problems with Riordan Manufacturing’s accounting system as well as their financial handling methods. The company has started on the right foot by having company wide systems put in place at each location. These systems include a general ledger, accounts payable, accounts receivable, order entry, procurement, sales and purchasing history, invoicing and shipping, payroll, financial reporting, EDI, bar code reading, and EDSS. However, the last three systems are only in place at the San Jose office. Michigan or George never received these systems because of the “diligence process in which Riordan acquired the operating entities.”
Just because the company received the two entities from other companies does not mean that they should ignore the accounting and financial system problems. According to company records, the main location in San Jose receives some information from data files, some on paper that has to be reentered, and some comes with the wrong account codes so the data has to be redirected. The company is wasting time and money not updating these systems. The first thing that Riordan needs to do is address the different financial programs in each location and get everyone on the same page.
They need to install a bar code reading system in every location as well as set up an EDI system. The company also needs to implement there new financial software programs in all locations as soon as possible. Doing so will decrease the amount of money the company is spending on the financial systems and according to the last Income Statement put out by the company they need to reduce the company’s costs. A fortune 1000 company subsidy like Riordan Manufacturing should not have a decrease in income from the year before.
If costly financial audits had been reduced to maybe two to three per year instead of once per month, a decrease in income may have been prevented. Audits take time as well as money away...
Unfortunately, there are many problems with Riordan Manufacturing’s accounting system as well as their financial handling methods. The company has started on the right foot by having company wide systems put in place at each location. These systems include a general ledger, accounts payable, accounts receivable, order entry, procurement, sales and purchasing history, invoicing and shipping, payroll, financial reporting, EDI, bar code reading, and EDSS. However, the last three systems are only in place at the San Jose office. Michigan or George never received these systems because of the “diligence process in which Riordan acquired the operating entities.”
Just because the company received the two entities from other companies does not mean that they should ignore the accounting and financial system problems. According to company records, the main location in San Jose receives some information from data files, some on paper that has to be reentered, and some comes with the wrong account codes so the data has to be redirected. The company is wasting time and money not updating these systems. The first thing that Riordan needs to do is address the different financial programs in each location and get everyone on the same page.
They need to install a bar code reading system in every location as well as set up an EDI system. The company also needs to implement there new financial software programs in all locations as soon as possible. Doing so will decrease the amount of money the company is spending on the financial systems and according to the last Income Statement put out by the company they need to reduce the company’s costs. A fortune 1000 company subsidy like Riordan Manufacturing should not have a decrease in income from the year before.
If costly financial audits had been reduced to maybe two to three per year instead of once per month, a decrease in income may have been prevented. Audits take time as well as money away...