Question

explain HRMs and payroll cycle, report systems and GL cycle, and the production cycle

Answer 1

HMRS and Payroll Cycle - A Human Resources Management System(HMRS)  is a software application that combines many human resource functions, including benefits like administration, payroll, recruiting and training, and performance analysis and review into one package.

A business must have a payroll process in place to ensure employees receive correct pay on time.Payroll cycle refers to the length of time between payrolls.

For example, if an employer processes payroll every week, each week is considered a new payroll cycle.

The payroll cycle may include processes for :

1)recording time and attendance and converting that data into payroll calculations and disbursements.

2) related internal controls over the eligibility of employees, accuracy of amounts paid, appropriate segregation of duties, and safeguarding over cash and checks held.

Report Systems and GL cycle - Report systems can be applied to a wide range of applications that are used for collecting, storing, analysing and providing access to data in order to help the decision makers in business make better and informed business decisions.

It offers quick transformation of raw data into a super decision making tool commonly referred to as an intelligent business report. The information is emerged by the system and provides companies with everything they need to report to management, fellow employees, consultants, suppliers and customers.

The key to succeed in today’s highly competitive market is making sure you are staying ahead of the competition. A Business Reporting System helps businesses and system users summarize a  set of data to get valuable information.

The GL cycle is a series of steps starting with recording business transactions and leading up to the preparation of financial statements.

This cycle starts with a business event. Bookkeepers analyze the transaction and record it in the general journal with a journal entry. The debits and credits from the journal are then posted to the general ledger where an unadjusted trial balance can be prepared.

After accountants and management analyze the balances on the unadjusted trial balance, they can then make end of period adjustments like depreciation expense and expense accruals. These adjusted journal entries are posted to the trial balance turning it into an adjusted trial balance.

Now that all the end of the year adjustments are made and the adjusted trial balance matches the subsidiary accounts, financial statements can be prepared. After financial statements are published and released to the public, the company can close its books for the period. Closing entries are made and posted to the post closing trial balance.

At the start of the next accounting period, occasionally reversing journal entries are made to cancel out the accrual entries made in the previous period. After the reversing entries are posted, the accounting cycle starts all over again with the occurrence of a new business transaction.

Production Cycle- A period during which inventories are being turned by the company into finished goods is called production cycle.The production cycle is different for different industries and business segments. For example, the production cycle for the windows manufacturing enterprise would be much shorter, than for the automobile manufacturers.

For the company the decrease of the production cycle is desirable. Such dynamics means that the company is decreasing the amount of time needed for turning its average inventories into finished goods. Short operation cycle allows to decrease the share of fixed expenses in each dollar of manufactured goods and provided services.