Accounting Cycle Description Essay

1482 Words Sep 15th, 2010 6 Pages
The five accounting cycles in an organization are: The revenue cycle, expenditure cycle, financing cycle, fixed assets cycle, and the conversion cycle. The revenue cycle is the set of activities in a business bringing about the exchange of goods or services with customers or consumers for cash, such as sales orders, accounts receivables, cash receipts (Hall, 2004), and cost of goods sold. The expenditure cycle is an external exchange of information between vendors and the company. The expenditure cycle takes information from the revenue cycle, production cycle, and other cycles (Romney & Steinbart, 2006). The expenditure cycle includes inventory, accounts payable, payroll, and cash payments. The conversion cycle is very important to …show more content…
Accounting information systems are essential, especially when keeping accountability of sales orders, accounts receivables, and cash receipts. Intuit is a large company that provides services to organizations in which the revenue cycle is not only easy to track for the company itself but also for the organizations clients. Chicago press released an update on how medical bills can be viewed online by clients and clients can also make payments into their own account. This is a good accounting information system as it avoids employees of the company to process manually information as intuit registers it and does the job. Chicago and Mountain View says “Designed to work together, the physician’s office views, tracks and posts the payments online through their Intuit Patient Payments interface, while their patients view and pay bills with Quicken Health Bill Pay. Because billing clerks now see the same view of the bill that the patient sees, it is easy to answer patient questions.”(, 2009, p. 1). Such services can be applied or integrated to the revenue cycle as it accelerates processing of revenues and is reliable. The same information viewed by the company is available to the clients and transactions are made with the blink of an eye. The best part of integrating such accounting information system into a company’s revenue cycle is that information can be viewed around the whole world, as it is an online supported company.

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