Accounting information system - Essay Example

n cases where they have accepted to donate, the organization simply collects the cheque or cash from the donors and issues an acknowledgement for receipt of the funds. Some of the donors are government agencies, corporate sector, trust and foundations. Additionally, the organization gets its finances from program fees and consultation fees. Therefore, the revenue cycle has limited actors and the processes are simple and few as well. For instance the process of obtaining revenue is through donations and fees charged for consultations and program fees.

There are no products or services to be sold in exchange for money. Therefore processes such as order processing, billing, invoicing and deliveries are not there. The revenue cycle is initiated by developing a set of programs and projects that can be funded by the donors. The organization writes a proposal to the donors who will in turn give a feedback on whether they will support the proposal or not. The following are some of the processes inherent in the revenue cycle: i) Request Proposal: This is done by the projects and program development department.

The proposal for the various projects and programs is developed and submitted to the various donors. The donors will go through the proposals and determine whether they will support the project or not. Proposal development is an intensive process that requires a team of experts. The final proposal is submitted by a projects coordinator who is in charge of all project activities in the organization. ii) Approval of program Proposal: Once the donors receive the proposal, they will scrutinize the contents of the program proposed and decide whether to fund it or not.

They will then approve the program and pledge their support for the organization. The program proposal always has the estimated budget, the duration of the program and the expected start and end date. It also has additional details that include the financial and technical proposal. It must have the