Financial System
Business systems in the world today must incorporate some sort of financial system in order to manage the finances of the company, if they do not any such system, expenses would not get taken care of, employees would not be getting paid, and the business itself would fall apart or go under just like companies such as Enron. The Financial Business System is the accounting and managing of finances realm for the businesses of today. Along with the financial business system there are some sub-systems that fall under the same umbrella as accounting, those are: payroll, general ledger, fixed assets, accounts payable, and accounts receivable. We will be going over each subsystem, defining what they are, giving some examples and relating them to the financial business system as a whole.
The first item that will be covered will be the subsystem of payroll. For those that might not have a clear definition of what payroll is, Webster's (2008) dictionary defines payroll as “an employer's list of those entitled to pay and of the amounts due to each.” Payroll is either done by someone in the accounting department of the business or it is done electronically via business payroll software. Some examples of these programs are ZPAY, Unitime, and Automatic Data Processing (ADP). The way some companies structure their payroll are also different, some businesses have their employees set to be paid by the hour, so the person doing the payroll or the payroll software would have to calculate the hours per day, the amount of days during the week that the employees work. Other companies have the employees set to make a set salary, with this method, how many hours someone works are unimportant because their employer has ...