Scenario and Recommended Information System
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Journal #2Scenario and Recommended Information SystemThe firm is responsible for managing the payroll for about 40 clients, each client has a varied amount of employees. Presently the payroll is done using Microsoft excel for the larger clients and a paper based system for the smaller clients.  Most of the relevant forms like NIS and BIR are also on a paper based system. These systems have proved to have a lot of shortcomings as they are not very reliable, there is a lot of room for human error. There have been many occasions where errors and miscalculations were made, seeing that Microsoft Excel isn’t a dedicated accounting tool, it does not provide the relevant features to accomplish a proper and efficient payroll system. The clients and management need Payroll to be precise as they do not want to have discrepancies in payments to their employees and to the government. I suggest an actual Payroll software be implemented in the firm to assure a more precise and efficient Payroll system. Some examples being Gusto, One Pay and Xero which all offer similar features.Expected System BenefitsErrors in the payroll system can be a task to deal with. One of the main advantages of using a payroll software is that it lessens the chances of these costly mistakes occurring. Payroll can be a very tedious and time consuming part of the job, however using a payroll software means that a lot of time can be saved and employees can focus on other things. Using a payroll software is not a complicated task as any good quality payroll software is made specifically for those who have little to no experience with handling payroll. This means you can give the payroll task to employees who have little experience, therefore removing the need to hire a professional or having training done. This will also lower cost for the firm.
By making the change from a paper based system to a more efficient payroll software system the firm will save a good amounts of money and allow these funds to be invested elsewhere in the business. The higher the number of employees a client has, so too will the paperwork that needs to be done. The bigger the quantity, the higher the risk of human error. One of the great benefits of using a payroll software is that these errors are almost nonexistent, thanks to the automation of the entire process. reports that are generated by payroll software are very accurate. This means that the firm and the clients can rely on the statements that are generated by the payroll software.Anticipated Challenges to ImplementationThere are just a few shortcomings of payroll software, which include the upfront expense of purchasing and upgrading the systems from time to time. A large amount of information Is collected with each payroll cycle; most payroll software programs are designed to keep up. However, the information needs to be continuously archived, this process needs to be done by an employee. In a busy firm, setting aside this time in a workday can be a bit of a hassle. Payroll software like any other IT software can have potential negative points like data loss caused by hardware malfunction Cyber-security issues.