The authoritative article that has been identified is titled ‘Revenue
Cycle in Accounting Information Systems’ by Azhar Susanto, a well-
known semantic scholar from Bina Nusantara University, Jakarta
(Susanto, 2019). The income cycle, which is also known as revenue
cycle, is one of the most vital processes that takes place within an
organization. Some of the main goals of the revenue cycle as
identified by the author are recording sales orders in an accurate and
timely manner, checking the creditworthiness of the customer,
sending services and products as pw specified date, making invoicing
accurately, recording and classification of cash receipts in the proper
subsidiary of accounts receivable, securely handling the product until
it has been sent to the customers and securely handling cash until it
has been deposited in the bank. Each of the activities plays an
instrumental role in influencing the accuracy and effectiveness of the
revenue cycle of an organization (Susanto, 2019).
The accuracy of the revenue cycle mainly depends on three key
pillars, including sales order processing, the procedure to handle sales
returns and processes pertaining to accurate cash receipts. By
carrying out the revenue cycle, an organization is able to generate
three different reports, including control reports, special reports, and
registers. The control report mainly captures the changes, such as the
amount or the total number of transactions, etc., that take place
during the maintenance of the file. The special report is further
categorized into customer reports, sales analysis reports, a list of
remittances and the trial balance account. Every report gives a
glimpse into the transactions that have an impact on the revenue of a
business entity. The register mainly lists all transactions belonging to
a specific category that is processed during a particular period.
The chosen article is of high relevance in the context of the
Accounting Information System (AIS). The integration of digital
elements and innovative technology in the AIS can help a business
undertaking to capture accurate finance-related information in a
timely manner. In contemporary times, when most businesses have
diverse revenue sources and streams, the manual management of the
revenue cycle may be extremely challenging. It can even increase the
possibility of errors or omissions, which may give an incorrect picture
of the financial performance of a firm. However, by using an
Accounting Information System (AIS), there is an opportunity to
manage the revenue cycle in a streamlined and effective manner. AIS
can ensure that a business entity is able to handle varying business
activities and processes that influence revenue on a real-time basis.
Some of the main processes and practices relating to the revenue
cycle that can be simplified are acceptance of customer orders,
delivery of offerings to the customers, billing and accounts receivable
activities and cash billing. According to Susanto, while manual
processes can be challenging while handling the revenue cycle of a
business, the use of AIS creates an opportunity to automate vital
processes. The strategic use of AIS can help manage the revenue
cycle of a business and the overall firm performance (Esmeray, 2016).
The chosen article captures the relevance of AIS while managing
revenue cycle of a business.
References
Esmeray, A. (2016). The impact of accounting information systems
(AIS) on firm performance: empirical evidence in Turkish small and
medium sized enterprises. International Review of Management and
Marketing, 6(2), 233-236.
Morley, M. (2016, December 1). Clarity: The first principle of IFRS (part
1 of 4). TheGAAP.net. Retrieved December 21, 2022, from
https://thegaap.net/clarity-the-first-principle-of-international-
financial-reporting-standards-part-1-of-4/
Susanto, A. (2019). Revenue cycle in accounting information systems -
IJSTR. Retrieved December 21, 2022, from
https://www.ijstr.org/final-print/june2019/Revenue-Cycle-In-
Accounting-Information-Systems.pdf
Schultze, U. (2011). The SOX compliance journey at Trinity Industries.
Journal of Information Technology Teaching Cases, 1(2), 91-113.
