IMPLEMENTATION OF A COMPUTERISED PAYROLL SYSTEM
ABSTRACT
Over the decade there has been a surge of interest in implementation of a computerize payroll system. Over the years development have mainly centered on the manual techniques and method of payroll system, exploration and understanding of advanced type systems.
This talk will focus in the computerized or automated method of payroll system called
concept. We consider the problem of how to express concepts in a precise way that is simple enough to be usable by manual operators of payroll in an organization or company. In doing so, we expose a few weaknesses and techniques of the manual method of payroll system, and suggest the computerized system of payroll with précised complete specification and recommendation.
INTRODUCTION According to the advance oxford learners dictionary; payroll can be defined as a list of staff employed by a company or organization showing the amount of money to be paid to each of them.
Payroll System: This is a system which processes the salary or wages of workers either manually or automated. A payroll system should be able to generate pay slips or vouchers showing detailed
information about the workers basic salary or wages gross salary, net salary, allowances and deduction officially approved.
Gallo (1989) said that the early approach to payroll automation was the use of manual system of processing accounting data that would call for handwritten, journal, ledgers and financial statement. However, the use of office machines desk calculation and multi-copy forms has become standard practice in Nigeria today.
LIMITATION OF THE EXISTING SYSTEM
The manual payroll processing is one of the most time-consuming clerical functions in any organization. In this case it may be difficult to complete payroll preparation and generates useful report concerning labor cost, production efficiency.
Some of the problems have been identified with the manually operating systems includes:-
I. Time spent in calculating and recalculating of
the allowance and deduction to ensure error free salaries for workers.
II. Errors associated with salary figures caused by occasional mistakes in the calculated.
III.Time and energy spent in the production and duplicating copies of the vouchers.
IV. Wastage of human resources.V. Over staffing.VI. High cost of production.VII.Improper record keeping.VIII.Delay in presenting report.
ADVANTAGES OF A COMPUTERISED PAYROLL SYSTEM
I. To provide a quick necessary method
of delivery and management decision making.
II. To speed up the staff salary preparation for quick delivery and management decision making
III.The computerized payroll system allows for a lot of flexibility in terms of calculation, validation, correction and updating record.
IV. It creates room for easy backing up of employee’s or organization financial record online.
V. It reduces data redundancy.VI. It enables easy correction and
updating.
DISADVANTAGES OF A COMPUTERISED PAYROLL SYSTEM
I. It has a high cost of implementation; in other words it is expensive.
II. It requires a payroll or a computer specialist to operate.
III.It has a high cost of maintenance; for there will be a regular updating of record or the payroll application itself.
IV. Lose of self competence; many people including the manual payroll operators have.
v. lose self competence in their profession, since all they could do have been taking over by the computer.
vi. Any damage to the computer system leads to total lost of data.
SUMMARY
This paper have given us a view of what the manual system of operation has been like by stating its limitations and problems encounter with use of the system.However, this paper has appraised the use of computerized payroll system by stating the benefits of the system.The computerized payroll system is found to simplify the process through a more flexible approach which enhances computational speed, accuracy and considerable reduction in
human effort. It has been observed that the need for the computer processing payroll system is obvious for its speed, accuracy and reliability among other factors.