Accounting Cycle Description Paper

Accounting Cycle Description Paper

Amanda Amore, Sandy Dalton, Betty Del Toro, Tinnecha Hanna

University of Phoenix

Acct/340

Companies, like Riordan, use accounting cycles which have many financial factors that play a role in the accounting of relevant data. Because Riordan does business with the government, automated systems may be required depending on the types of contracts. One of several accounting cycles used by Riordan is the Payroll and Personnel Accounting Cycle whose focus is the payment of salary to employees and other taxes etc to other entities. The principal steps in the payroll and personnel accounting cycle include: the hiring of employees; the calculation and control of authorized payroll rates, deductions etc.; timekeeping; payroll preparation; payroll payment; the payment of payroll taxes; and the filing of payroll tax returns. The source documents used in this cycle include personnel action forms; timesheets; payroll deduction authorization forms; and tax withholding forms. This paper identifies the five accounting and explains how Riordan Manufacturing uses the payroll and personnel accounting cycle. It highlights and comments on the numerous internal controls available for payroll functions and also explains how one would integrate this payroll cycle into an enterprise-wide accounting system. The paper then differentiates between the various types of information systems necessary for integration. Finally, the paper demonstrates the flow of accounting information through Riordan Manufacturing.

The five different accounting cycles that Riordian Manufacturing could use in their daily operations is the sales and collection cycle, the payroll and personnel cycle, the acquisition and payment cycle (purchasing), the capital acquisition and repayment cycle and lastly the production cycle. These cycles help Riordian track from beginning to end in all aspects of the business. The payroll and personnel cycle involves the employment and...