AIS-1 Essay Example | Topics and Well Written Essays - 500 words

AIS-1 - Essay Example eeping in view the requirements of the business operations the treasure evaluates need for procurement of funds and investment of surplus in profitable ventures. He/she drafts policies and procedures for account collections and offering credit to customer and signs notes of indebtedness as approved by higher management. Finally he/she prepares financial reports for management and advises them on investments and loans (Kerr & King, 1984). The controller’s functions include accounting, reporting and control. The accounting function involves preparation and maintenance of accounting records related to each business transaction. Controller directs and coordinates financial planning and budget management functions based on each forecasts submitted by each department’s manager. He/she identifies any variations in operating results against budget by carrying out analytical review of company’s procedures and outcomes and manages the preparation of annual and interim reports of the company. The controller is primarily involved in planning and policy making committees and work as legislative liaison to handle company’s financial issues. The company’s tax issues, payroll and internal audit activities are also governed. Other activities may include preparation of budgets and financial statements. Finally he/she overseas financial management of the company’s foreign operations and assist them to improve (Bragg, 2002). Transaction processing cycle begins with a transaction. A transaction is an agreement between buyer and seller to exchanges goods or services for payment. Transaction processing cycle therefore relates to repetitive flow of the activities of an ongoing enterprise. There are three major transaction cycles which include (1) Revenue Cycle which relates to sales, shipping, receivables, and collections arising from company’s activities (2) Buying Cycle which relates to purchases, payables, and payments of company’s activities and (3) Production