Accounting information system is a system of collecting, storing and processing financial and accounting data which is used by decision makers. This system is a computer based method which helps a business organisation to track every activity of an entity. Main aim of this project report is to build an understanding about the process of enterprise resource planning. ERP is a business process management software which helps in managing and automating various operations of an organisation. In this project report, an organisation is selected named as DRB-Hicom which uses Ramco Payroll ERP software. Introduction about the company along with discussion of this software is mentioned in this project report. Role of accountant in existing software is also discussed in this report in order to make recommendations for software improvement in payroll processing system (Groot and Selto, 2013).
Introduction of the company
“DRB-HICOM” HICOM was incorporated on 11 march 1990 under The Companies Enactment act 1897 as New Serendah Rubber company Ltd. Later, it changed its name again in 1933, to HICOM holdings Berhad. it was incorporated in 1980 as the Heavy Industries Corporation of Malaysia Berhad(HICOM) and The Diversified Resources Berhad(DRB) was incorporated in 1990 as Peerless Assets Sdn Bhd. It was changed to DRB and listed in Malaysia in 1991.
Although in 1996 both companies merged to form the biggest clustered in Malaysia and DRB-HICOM listed in main board of KLSE. Now its permanent address is Level1, Wisma DRB-HICOM U1/8, section U1, 40150, Shah Alam, Selangor, Malaysia. This is Malaysia's leading company, engaged in the business of Automotive manufacturing, assembling and distributing to industries and its involvement in passenger car and four wheel drive vehicle market segment etc. Also it has National Truck project and National Motorcycle project. It assembles cars in Malaysia for Tata motors, Honda, Isuzu, Mercedes Benz and Volkswagen.
This company after its merger up becomes the most financially sound company in Malaysia, as it maximises it's profit year on year the last year's profit is 12.06 billion RM(2017) and in year 2016 the profit was 11.50 billion so that is why it is leading financial company in Malaysia.
Explanation on payroll processing system software
Ramco HCM is a complete cloud HR software which helps to cover all HR needs from hiring to firing. Ramco HCM is a payroll processing system which helps HR and accountant to control and monitor all the activities of an organisation. Ramco HCM is considered as one of the best software and is used by DRB Hicom. This software enables an organisation to effectively conduct core HR activities such as talent management, recruitment, planning and analytics. DRB Hicom is using this software to analyse and interpret their human resource information. Four explanation of Ramco HCM is explained below:
Offerings by Ramco HCM:
Ramco HCM offers their clients a global platform for managing human resources and their payroll system which enables organisations like DRB Hicom to access their information from any part of the world. This software records all the wages, salaries, incentives, compensatory amount and bonuses on a cloud based system so that it can be easily accessible. Another offering by this software due to which DRB Hicom uses this is SMS based employee service which enables employees to raise queries about their salaries and other issues via SMS. Along with payroll feature, this system also helps business firms to maintain performance journal in which fine tunes talent assessment is conducted.
These offerings provide an explanation about why an organisation like DRB Hicom should use this software to maintain payroll of their employees and to monitor their perform.
Competitive advantage of Ramco HCM:
- Price - Price of this software is comparatively less than other systems which offers multiple types of functions.
- Demo – When comparing to other enterprise resource planning systems, Ramco HCM provides free demo of their software for few weeks in order to ensure satisfaction of their clients (Sunarni, 2013).
- Compatibility – Unlike other payroll software, this software is compatible all operating systems that is with Android, Windows and iOS.
- Storage – Another comparative advantage of Ramco HCM is its cloud unlimited storage. This software offers unlimited storage to their clients which is not provided by any other software of same price and customer reviews.
Significance of Ramco HCM:
- Ramco HCM is a payroll software which helps in recording salaries which is required to be paid to all employees which decreases conflicts between employee and employer about wages.
- Another significance of Ramco HCM is automation. This software allows an organisation like DRB Hicom to automatically credit salaries of employees.
- Ramco HCM helps business organisations to support integration of various business organisations such as finance and HR (Ball, 2013).
Features and customer reviews:
- Ramco HCM provide various features to their clients such as human resource management, their payroll management, employee performance management and deviation in performance management.
- Customer reviews of Ramco HCM is way better than other software.
From the above four explantation it has been ascertained that Ramco HCM is the best suitable software which should be used by organisations. This payroll system is used by DRB Ramco in order to ensure that employees are suitably managed and controlled by this business firm.
Role of accountant in existing software
Accountant is the key personnel which manages all the finance related issues of an organisation. Accountant manages payroll of all the employees working in business firm due to which functions of human resource manager is linked with functions of accountant. DRB limited is a manufacturing company which has several employees in order to effective distribute their salaries, this company uses Ramco payroll software. Accountant plays an important role in this software which is mentioned below:
- Maintenance of software – Every system or software requires to be updated and maintained frequently in order to ensure efficiency. Accountant of DRB Hicom, updates all the information of employees on this software in order to gear automation (Papaspyropoulos, 2012).
- Human hand of this software – Any machinery or software cannot not work without any human hand. Accountant plays a role of human hand to this software. All analysing and interpretation activities performed by this software, but the information which is analysed is recorded by accountant.
- Accountability – Software can not answer queries and issues of superiors due to which accountants are made answerable for all the activities performed by this software. Superiors such as supervisors and departmental managers held accountant as responsible person for any deviations in payroll system.
Ramco payroll is the fastest growing cloud enterprises software that help in the management of in the HCM, Logistic, assets management and ease the process of time and attendance and collection of MRO. Accountant are responsible to manage the software in a effective manner so that collected data will disclose the actual position of business. This information helps them ascertain the proper utilization of resources so, that result can be maximised and company will earn more revenue during an accounting year. This system help them in calculating the pay checks and tax obligation, maintain management reports in effective manner, develop self service features among other employees etc. (Scott, 2015).
So it is observed that at the time of implementation, accountant have the proper knowledge about the process of EPR module. As it is important for them so that they can provide better suggestion and revised the implementation of ERP system that further result in improvement of business operation. It is the responsibility of accountant to have a strong communication and coordination with subordinator working in different department and review the front data procedure for combining of information and further analysis (Vikhorev, 2013).
Recommendations for software improvement in payroll processing system
Some big organisations follows the principle that if they pay their employees on time then they have an efficient payroll process in workplace. No doubt that payroll processing is most difficult task for the every organisation. Difficulties in adjustments regarding the tax regulations, compliance and workers interest or benefit can ruin the accuracy and timing of companies payroll system as in case of DRB-HICOM of Malaysia. Accordance with the survey of Deloitte consulting, it was found that three challenges faced by the companies to face payroll processing and the problems are Manual processing, Accuracy and timing of inputs, Non-standard or complex processes , in short run these factors can be managed easily but6 in long run these factors can affect the overall performance of the organisation. There are some measures or recommendations to improve the Payroll process.
- Understanding Tax policies:A single miscalculated payroll can result in penalties. Therefore the payroll must be prepared according to the IRS payroll regulations and violation of any regulation leads to high penalties and companies would have to fix their errors while remitting any payments due to the IRS along with penalties. The payroll must be comply with the most recent recent tax laws and also comply with the IRS regulations. Not only this it is also essential to provide information about IRS regulations and laws to the employees of the organisation because their awareness is also essential thing.
- Perform ongoing Audit: Ongoing audits are essential thing, because if the workers of the organisations are complaining that their payroll are delayed or inaccurate then ongoing or regular audits are essential for the companies like DRB-HICOM. Payroll calculation must start from workflow analysis where the proper record of working durations and days where analysation can be made from start to end. The errors can only be occurs if the company uses the manual time card system for recording attendance but, mistakes occurs commonly in automated payroll systems too.
- Simple and Transparent payroll policy: It is essential to provide the adequate information about the payroll to the employees so that errors and mistakes regarding the payroll system can be minimise. Along with it is essential to provide the fair and clear policies regarding the issues of attendance, leave of absence and expense reimbursement. Payroll policies must include the informations like how payroll works, employees classifications, determination of salaries, rectification of payroll mistakes and information regarding the calculation of overtime and promotions etc. (Puolamäki, 2014).
- Involvement of Employees: It is essential to have a transparent policy and regulations implementation after the recruitment of an employee. Better communication channel with the employees important to avoid the problems of mistakes, confusion and misunderstandings regarding the term and policy and it is also essential for the em,employees to keep their proper record regarding the attendance, working hours, overtime etc the big manufacturing companies like DRB-HICOM must realise this demerits. so that if there is any mistake by payroll system, can be identify by the another personal fair record of employees. Also it is also essential to get meetings with employees in order to motivate them properly so, that they work with their full potential and help the organisation in achieving the desired organisational goals.
- Provide online access: It is helpful to provide the online access by using internet, to the personal portal of the employees but with the security that no one can access another person's portal. So it will helpful to get the performance knowledge online and clear the confusions regarding the working schedule. Online access provides full details regarding the past and present payments made by the organisation, this will helps in reducing the amount of time spent by payroll staff in dealing with payroll inquiries and ensures them focus on other important issues of the organisation. (RW Hiebl, 2013)
This report summarise that which system is used by the organisations to distribute salaries among its employees. Ramco Payroll ERP software is used most of the manufacturing companies to provide wages to the workers. In this report the software is discussed in detail and all the objective of the company to use the software are explained. The accountant of an organisation is liable to accountability activities in which all the recorded information is analysed and determined. Now a days this software is used by all accountants in order to get appropriate results. There are various errors in this system that are reduced by making modification or improvements in the software. It is very important for a company to record effective and accurate accounting information in the books of accounting and the software which is used for this purpose. If organisation is not able to record transparent information than it is not possible to assess the right and appropriate position and status of business. The accountants handle all the relevant data which is related to finance and make assumptions on the concept of accuracy. The business entities are using computer software to make the accounting process effective and accurate (Ball, 2014).
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From the above project report it has been analysed that accounting information system enables an organisation to record all their financial and accounting data using a software. Racom ERP software is used by DRB Hicom in order to monitor and control all the activities related to payroll system of employees. After discussing overview of company and explanation of ERP software it has been analysed that these software results in effective payroll system of an organisation. Accountant plays an important role in managing and controlling this software.