Problems in revenue Cycle of Bistro | Clothing Line.

Revenue Cycle of Bistro / Clothing Line
By:
Raihan Shidqi Raditiya
Student ID: 1910533024
1. Introduction
Technology and innovation have become the core of development economics. The speed of
technological development continues to accelerate so that stakeholders need to consider
emerging technologies for proactive planning. As technology becomes very popular in
different applications, many studies predict the future of information technology that may
have solutions to improve quality and efficiency to meet business expectations.
The company has developed a strategy that can sustain its business. A company’s business
strategy is strongly influenced by the way the company develops its business model.
Identifying, tracking, and conceptualizing ideas about technology emergence has become an
important issue for companies to be able to compete. The activities of a trading company start
from sales, inventory, and purchases to other activities that support the company's business
itself.
According to Hall (2011), whether it is a for-profit organization or a non-profit organization,
economic enterprises generate revenue through business processes that constitute the revenue
cycle. In its simplest form, the income cycle is when buyers and sellers directly exchange
finished goods or services for cash in a transaction. Profitability will have an impact on the
statement of financial position. Loss of sales may cause initial problems, such as operational
activities that may have ceased. The solution to stagnant business activities is to provide the
company with an integrated accounting information system.
According to Romney (2018), companies use information technology to achieve
organizational control goals. Accountants and systems developers help management achieve
their control objectives by designing effective control systems that take a proactive approach
to eliminate system threats and that detect, correct, and recover from threats when they occur;
and making it easier to build controls into a system at the initial design stage than to add them
after the fact.
Problems that occur related to the company’s activities namely company is still using the
manual system which causes revenue cycle error in a recording sales transaction, the
customers have an unlimited amount of loan credit, and there are no further services to the
customer.
An accounting Information system is expected to fulfil collected and stored data about
organizational activities, resources, and personnel, to fulfil transformation data into
information so management can plan, execute, control, and evaluate activities, resources, and
personnel, and also to provide adequate controls to safeguard the organization’s assets and
data (Romney, 2018).

2 Problems on Current Running System
According to Romney (2018), some problem that is found in the revenue cycles of Bistro or
Clothing Line, company does not have an integrated database system to keep customers data
online, paperwork such as order form, pre-order form, delivery order and return form from
every transaction are still manual because the company does not have any storage to keep
those files online, customers does not have limit on their loan credit, company is lack of
internal control which cause a problem on their revenue cycle because of their staff’s mistake
on inputting data manually and also cause miscommunication between the sales staff and the
logistic staff related to the goods stock.
3. Troubleshooting
Creating web-based integrated system and offering accounting information system on
revenue cycle without manually recording, calculating, and recapping archive. The system is
designed to calculate the total sales of every customer, automatically count the in and out of
goods stock department. So that the staff will get easily doing their job and the company
performance will get better for the future along with the director and stakeholders making the
right decision (Amanah, 2016).
Designing a system that can store customer databases and create a sales website to reach
customers and a wider market and with a website can help in knowing the criteria of
customers to meet customer satisfaction (Capgemini, 2017). Design a back-end information
system that can be used by employees to assist in entering data, managing data, integrating
data, to storing data. The company must provide a credit limit that matches the specified
criteria. The company should analyze the customer's condition to find out if there are still
outstanding receivables and to determine credit limits to customers. Company must provide
credit limit to the customers that matches the specified customer criteria by analyzing the
customer’s history to find out if there are still credit that must be paid by the customer.
Creating a system design that can be integrated and computerized within the company so as
to minimize errors by humans. And has a database of goods that can be accessed by internal
companies.
4. Recommendation & Suggestion
It all starts with a customer buying something from the company's main page on the internet.
The customer will log in to the home page if they have previously registered. If a client has
never enrolled before, they must do so by including personal information. After successfully
logging in, the customer can select between cash and credit as a payment form.
If a client wishes to pay with credit, they must first report to the company to have their details
assessed by the finance and accounting department. The manager would also collect the
findings of the financial and accounting department's review to make an immediate judgment
about whether the client should pay credit or not. The sales department can change the
customer's payment method if the customer follows the credit-worthy requirements. After
that, customers can make purchases on the website which will later be included on the cart.
Then, customers can check out if they want to process the payment.