Accounting Cycle Description - Essay Example

Running head: Accounting cycle Accounting cycle Accounting cycle Section “C” The accounting cycle isone of the most important parts of all financial activities it is also the base of the revenue cycle. The understanding of the revenue cycle process helps workforce and executives develop financial practices and allow them to make well-versed financial policies and decisions. There is a essential need of the proper integration of the revenue cycle form any division or part of business to the overall accounting cycle of the organization.

Integrating knowledge of the revenue cycle processes with the accounting information system throughout an organization can improve compensation, conformity with reporting necessities, reduce payer rebuffs, and reduce revisions by team members. The AIS or the accounting Information system used within the organization must be well equipped to understand the unique requirements of the revenue cycle which puts an overall effect on the generated revenues through production and etc.The maintenance of the revenue cycle is a complex procedure, because of which getting complete repayment of your cash is not possible with conventional techniques.

In order to collect 100% out of revenue cycle an organization must use an integrated accounting information system that effectively includes people, monetary processes, and technology. The benefits of integrated revenue cycle helps in maintaining internal controls (misappropriation etc.). Use of weak or disintegrated information system with in the organization can also be a cause of trouble in several ways. It could be a disrupting aspect in the revenue cycle that could affect the over all cash flow of the organization.

(Avisena, 2009)Section “D”Information systems are continually altering and developing as skill and technology persists to develop. There is various information systems used within an organization which helps it to run the daily business accurately. The various types include transaction processing systems (TPS) which is a system that gathers, accumulates, adapts and recovers the transactions of a project.Decision Support Systems (DSS) is a system that chains dealings and managerial decision-making actions.

A well-designed DSS is a software-based scheme projected to help decision makers accumulate helpful information from untreated data, individual knowledge, documents, and business representations to recognize and resolve problems and take decisions.Expert system is software that efforts to imitate the presentation of one or more human specialists, most frequently for a specific problem area, and is a traditional application. Other important system software includes Office automation systems (OAS) are configurations of networked computer hardware and software.

The most important information system is the management information system (MIS) which is a division of the overall domestic controls of a business covering the submission of workforce, documents, expertise, and events by accountants and help them in solving business problems such as estimating a product, service or a policy. MIS is different from usual systems in a way that they are used to study other information systems and apply them functional activities with in the business.The use of these information systems can now be integrated into the everyday work of an association, saving both time and capital.

The information systems explained above are interrelated and some information systems like Expert Systems, MIS and office automation systems can be used as a subset of DSS. However, to achieve the best integration of the revenue cycle with the organization one must either use a unique system specially designed for the organization or use a combination of the above mentioned to make the best possible use of them (Betts, 2007).ReferencesAvisena. (2009). Collect more on demand revenue cycle managemnt.

Retrieved June 2009, from www.avesina.com: http://www.avisena.com/collectmore/Betts, G. (2007). Five Types of Information Systems. Retrieved June 2009, from www.bett computers.com: http://www.bettscomputers.com/fivetypesofinformationsystems.htm