Professional Documents
Culture Documents
1. Revenue Cycle
2. Expenditure Cycle
3. Production Cycle
The Human Resource (HR) management and payroll cycle is responsible for
acquiring the services of employees, managing employees, paying wages,
determining benefits, and securing replacement for those employees who resigned.
This process has impact on the financial statements as the salaries, over-time pay,
and other benefits are considered as expenses. The HR process usually starts with:
(1) Identifying employee recruitment by selecting from pool of applicants and
employee induction; (2) Calculating payroll liabilities and disbursements; (3)
Handling employee performances; and lastly (4) Assessing reasons for employee
termination and managing employee transitions.
The General ledger and financial reporting cycle summarizes, adjusts and
reports on data from the four mentioned process. It produces management reports,
which are used within the organization, and a general purpose financial statements,
which are distributed externally. This process usually begins with: (1) Preparation of
budget by first determining budget values and recording budget details; (2)
Updating the general ledger by extracting and validating data and posting the
transactions; (3) Preparing and posting adjustments; (4) Producing management
and financial statement reports.
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Source:
CONSIDINE, B., PARKES, A., OLESEN, K., BLOUNT, Y., and SPEER, D. 2012.
Accounting Information Systems Understanding Business Processes 4 th Ed.
John Wiley & Sons Australia, Ltd.