Riordan’s Finance & Accounting
Riordan Manufacturing has three operating locations Georgia, Michigan, and California plus a joint venture in Hangzhou, China. Basically, the operating entities each have their own Finance & Accounting Systems and they provide input that is consolidated at Corporate San Jose.
Riordan’s F & A system supports several parts of their operation that includes general ledger, accounts payable, accounts receivable, order entry, procurement, sales and purchasing history, invoicing and shipping, and payroll. The information contained within the subsystems of the F & A systems has to be updated and sent to corporate daily.
Riordan is currently manually inputting important information that is sent to the San Jose location. Consolidation of the close of the General Ledger and the Income Statement and Balance Sheet is tedious and extended 15-20 days after month end. Auditing is also costly and ...view middle of the document...
Riordan’s F & A system is not communicating with the Georgia and Michigan systems. In order for the systems to function in a smoother manner and talk to one another, it will take upgrading the hardware and software. Because the systems are not connected, the basic network design needs to be redesigned to support plans for future growth.
The China location is comprised with the latest technology and the Michigan and Georgia location need to mirror this technology. Also the network configurations should be standardized. The F & A system at the China location is tied directly into the Corporate location. The systems at the China location are tied into the Corporate location via satellite. Once the necessary hardware and software is updated at the Georgia and Michigan location to match the China location the F & A operations would be more efficient and less time consuming. The system that is in place is causing manual inputs into the system. The manual process can cause incorrect information to be inputted into the system and the accounting system to be off.
The new and improved system would allow all information to be automatically updated and uploaded to the San Jose location. The close and consolidation of the general ledger system will be immediately updated and sent to the corporate location. Auditing will also become easier with the F & A system communicating with the manufacturing and quality assurance systems. The new system will also have a notification tool for any new rules and regulations for any reporting requirements for the government.
Riordan will be able to stay competitive and updated with the new changes to the system. Riordan’s improved network will also provide faster and more reliable communication with the other locations which in turns benefits employee access as well as increased customer access providing more high speed and reliable access to the Riordan’s website as well as high quality.
University of Phoenix. (2005, 2006). Riordan Manufacturing, Inc. [Multimedia]. Retrieved from University of Phoenix, BSA310