Accounting Information System

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Riodran Manufacturing, Incorporated manufactures plastics and has several different locations throughout the United States they have a branch located in Michigan which specializes in custom plastic parts, Georgia manufactures plastic beverage containers and California which is the head of research and development, as well as a joint venture location in China which manufactures plastic fan parts. Each location has acquired their own financial and accounting system and all data input into their own systems is sent to the corporate headquarters in San Jose, California.

They provide the information to corporate to be combined into corporates information systems. This information is provided to the San Jose location either by hardcopy reports that must be re-entered or data files that must be converted to become compatible with San Jose’s information systems. Each location employed different vendors to process their financial and accounting information, and handles accounts payable, accounts receivable, order entry, sales and purchases, payroll, financial reporting amount many other financial components.

When each location purchased vendors to develop their information system the issue of compatibility of these systems was not addressed causing many issues when transmitting data to the corporate office in San Jose. This has caused additional labor cost to convert data into a format that could be uploaded into San Jose’s information system or causing the information to be re-entered manually by employees at headquarters from hardcopy reports.

The San Jose location uses a Windows based enterprise resource planning software that handles manufacturing, distribution and financial management that has been specifically designed for plastic manufacturing. This allows the corporate location to utilize one system to process profit and loss reports, financial, accounting, payroll among many others within the one system. However, the systems uses by the other locations are not compatible. Michigan purchased an outside vendor that developed software to handle financial, distributing and accounting however the vendor they hired is no longer in business.

The system is a virtual memory system that utilizes multiple workstations to enter data. Georgia also purchased a vendor developed software program however it was not the same program utilized by the Michigan location. This software utilizes a different operation system. All four locations are connected though a wide area network (WAN) the connection from China and the corporate connection is connected though a satellite link. Each location has multiple workstation computers that are networked together.

They also have multiple phone lines, printers, backup servers, power servers, routers as well as firewalls. The hardware used is sufficient to support each information system and prevent against the loss of data within the company. Riodran Manufacturing has covered all the necessary hardware requirements to protect itself from outsiders from accessing the information as well as in the event of a system failure. Where Riodran lacks is in the compatibility of each locations information system.

The information systems uses at each location are not compatible with each other however; the software applications are compatible the locations software. They are able to input the various data into their own systems the issues do not lie within the software or hardware that the company uses but only within the software’s compatibility to transmit the input data to the corporate office. With the information given through Virtual Organization I was unable to find any issues with the compatibility of software and information systems they work adequately and efficiently together.

Since all locations handle their financial and accounting systems, and these systems do not interact with each other this causes delays in financial information. According to University of Phoenix Riodran Manufacturing, Inc. (2013) consolidating the information into the corporate San Jose office is labor intensive and it can take fifteen to twenty days after the end of the month to generate company financials such as profit and loss and balance statements. It is necessary to perform audits each month and it is very labor intensive as well as costly for the company to perform.

Compliance with government reports and requirements is extremely challenging due to the incompatibility of software. This is not an efficient way to run a fortune 1000 company that employs hundreds of employees worldwide. This leaves the company vulnerable to inaccurate data entry and miss-transmitted data. The recommendation I would give to Riodran Manufacturing regarding their software, information and hardware systems would be to hire an outside technology company that specializes in designing a seamless information technology systems.

To use or design an enterprise resource planning information software program that can be utilized by every location and that would allow them to network all locations into one server. Of course there would be a transition period, but if they outsource to the right company to design their IT department they would be able to offer the necessary training needed for the new system. By networking all locations information could be accessed by the corporate office in real time enabling them to make better business decisions and having an accurate picture of the company’s performance.

This could also reduce the work load at each location by consolidating departments such as payroll and human resources. Save the company money by lowering the labor needed to re-enter data or convert data from the other locations. By moving payroll and human recourses to one location this could allow the other locations to concentrate on the operation and manufacturing department, enabling the company to grow and expand while saving money.

Riodran Manufacturing may have many issues with their software compatibility but they have taken necessary measures to safe guard their information at each location. Though adequate backup programs, servers, firewall and security systems the company information is well maintained. Their only problem is with software communications and compatibility. Although, the company may spend money to upgrade their systems, it can become cost affiant and less timely to process financial data.

They would be able to adhere to higher customer demands by employing additional workers to manufacture their products as well as have an accurate view of how the company in performing on a whole as well as at each locations. They will be able to cut cost and increase probability by upgrading their information system and data would be seamlessly transmitted to the corporate office. There is a great advantage for upgraded software and room for advancement if they were to integrate their technology systems to become compatibles with each other.

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