...regional office of Electronic Accounting Systems Inc. as a payroll processor. While at Electronic Accounting Systems Inc., Mr. Golisano developed his idea of providing payroll services for businesses with 100 or fewer employees. After EAS twice turned down the idea, Golisano left in 1971 to start Paymaster-the future Paychex. It took him four years to break even and five years to 300 clients. During that period, Golisano and Paychex lived on dedication and help from friends and family and borrowing from credit cards to make ends meet. Headquartered in Rochester, New York Paychex is a leading provider of payroll, human resource, benefits outsourcing services for small businesses. Most of Paychex’ clients average a number of 17 employees. They hope to expand to more medium size companies and eventually larger companies. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, and check signing. They have more than 100 office locations across the United States and four offices in Germany. The company staffs more than 12,000 employees who serve approximately 572,000 clients, making it the second-largest payroll accounting firm in the US after Automatic Data Processing. The company’s main goal is to make outsourcing easy and affordable for small business owners. The services they offer are as follows: • administrative services for business • 401(k) plan recordkeeping • health...
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...Chapter 18 Audit of the Payroll and Personnel Cycle ← Review Questions 18-1 General ledger accounts that are likely to be affected by the payroll and personnel cycle in most audits include the following: Cash Direct labor Inventory Salary expense Construction in progress Commission expense Wages payable Payroll tax expense Payroll taxes withheld Accrued payroll taxes 18-2 In companies where payroll is a significant portion of inventory, as in manufacturing and construction companies, the improper account classification of payroll can significantly affect asset valuation for accounts such as work in process, finished goods, and construction in process. For example, if the salaries of administrative personnel are incorrectly charged to indirect manufacturing overhead, the overhead charged to inventory on the balance sheet can be overstated. Similarly, if the indirect labor cost of individual employees is charged to specific jobs or processes, the valuation of inventory is affected if labor is improperly classified. When some jobs are billed on a cost plus basis, revenue and the valuation of inventory are both affected by improperly classifying labor to jobs. 18-3 Five tests of controls that can be performed for the payroll and personnel cycle are: 1. Examine time card for indication of approval to ensure that payroll payments are properly authorized. The purpose of this test is to determine that recorded payroll payments are for work actually...
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...Service Description 1. Corporate Finance & Financial Management: Historical performance; Time value of money: compounding, discounting, present values and future values, annuities and perpetuities, etc.; Interest rates and bond valuation; Dividends and stock valuation and dividend policy; Capital budgeting: NPV, IRR, payback period, profitability index, etc.; Risk, return and security market line: beta estimation, CAPM; Cost of capital, financial leverage, capital structure, etc; Cash and liquidity, credit and inventory management; International corporate finance; Risk management and financial engineering; Options and option valuation; Mergers and acquisitions 2. Accounting for Financial Statements: Preparation of income statement, balance sheet and statement of cash flows: Accounting for specialized items: Property, Plant & Equipment, bad debts; provisions; financial instruments; leases; employee benefits; income taxes; revenues,; foreign currency transactions etc.;Accounting for mergers and consolidations; IFRS vs GAAP; Financial statement analysis 3. Cost and Management Accounting: Cost concepts; Job-order costing vs process costing;ABC Costing; Marginal costing vs absorption costing: CVP analysis; Relevant costs: special order, make or buy decisions; ROA, residual income and economic value added; Standard costing and variance analysis; EOQ and linear programming 4. Quantitative Methods and Business Mathematics: Algebra and logarithm; Series and...
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...Risk Analysis for Outsourcing Decisions Linda Duvall CMGT/442 Mr. Thomas Maricle February 23, 2011 Abstract The purpose of this paper is to identify the possible risks to an organization in each of the following outsourcing situations: a) the use of an external service provider for your data storage; b) the use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking; c) the use of a vendor to support your desktop computers; and d) the use of a vendor to provide network support. The paper will include a risk mitigation strategy for each situation. Risk Analysis for Outsourcing Decisions “Outsourcing”, as defined by Wikipedia, the free encyclopedia, is the contracting out of a business function to an external provider. In this sense, two organizations enter into a contractual agreement involving an exchange of services and payments. Paul Strassmann, in his paper “The Squandered Computer” would prefer the term “out-tasking” because one organization is utilizating the specialization of another organization. According to “Microsoft Business for Small and Mid-Size Companies”, small business owners are outsourcing a range of services, from Human Relations to finance and accounting to customer services. Small businesses can now tap outside facilitators for a much greater range of services. As an example, entrepreneurs with strong sales often assume a full-time...
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...To evaluate the financial health and expected growth of Automatic Data Processing Inc., there are a few ratio analyses that can be looked at. The return on assets ratio analysis is a good indicator to see how profitable ADP Inc. is doing relative to its assets. Below is a line graph referring to the past five years of ADP’s ROA. In 2010, one can see that it started off well, but then started to decline until 2011. This occurred because there was a decline in employment as well as an increase in failed businesses (IBISWorld). After 2011 it’s percentage started to increase, as ADP better managed its assets to gain more earnings. The next ratio analysis to evaluate financial health is long-term debt to equity. Finding the long-term debt to equity ratio is important as it indicates the leverage of the firm. If the ratio is high than it is more risky which implies that there are more liabilities and less equity. As shown below, in a five-year span, the long-term debt to equity line graph looks the opposite of the one above. From 2010 to 2011 there is an increase in the ratio, which as mentioned before, there was an increase in failed businesses, causing the long-term debt to equity ratio to rise and become more risky. Fortunately, the risk decreased as ADP increased their clientele and client retention. The last ratio analysis is equally as important as the last two, as it is shows how much revenue ADP Inc. has made. The total asset turnover line graph also shows a trend of the past...
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...Kudler Fine Foods Systems Review Laura Facino BSA/502 June 9, 2013 Nancy Mingus Introduction Kudler fine foods employees approximately 140 employees across three stores including administration staff (Apollo Group, 2010). The current human resources (HR) and payroll systems are under review to increase productivity, security of information, and employee access. A fully computerized, integrated system between the three stores will enable the current HR and payroll personnel to track better and store employee information, streamline timekeeping, track training, control manager access, and allow employees access to benefits and other information. Brenda Wagner, the current HR Director will monitor and control access to the various modules. Current Human Resources/Payroll Systems Kudler fine Foods is outsourcing payroll through Intuit services as it integrates with the current Qouckbooks financial software. This payroll system is in-line with the current recommendation for the expanded POS system through Intuit. Changes or new employee payroll information is submitted to the accounting clerk who enters and verifies the information into the Intuit payroll system. The hard copies of tax forms are stored by the account clerk. Most of the human resources system is manual with forms stored in each individual store. Time keeping is also a manual process, including vacation and sick time requests, and tracked only by the store managers. Hiring is conducted by...
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...Executive Summary (Business Description) 2 Section 2: Code of Conduct 7 Section 3: Marketing Plan (Strategy and SWOT) 9 Section 4: Operations 14 Section 5: Finance 18 Section 6: Cash Flow Analysis 19 Section 7: Information Management 21 Section 8: Management Summary 24 References 28 Appendix 31 Section 1: Executive Summary (Business Description) CW’s Accounting and Bookkeeping Palace During the fall of 2014, I plan to open CW’s Accounting and Bookkeeping Palace. This company will mainly advertise to the small businesses within the surrounding area. During tax season CW’s will also do personal taxes. We will treat each customer as an individual. We will strive to grow with the ease of confidence and a great reputation. CW’s will be located on the North side of Jacksonville where there are only a few accounting firms. The business will try to establish a professional accounting/bookkeeping service that will reflect our quality performance and fill a wide range of business needs (Starting a booking business). As our company grows will expand to bring in more clients but to start off it will be for small businesses that either do not have an accountant or that is dissatisfied with the performance of their current accountant. Vision Statement Our vision statement is, “Drop off your books and leave the headaches to us.” Why should the managers have to worry about making sure that the taxes are done and paid on time, all journal entries are correct and every dollar...
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...Outsourcing refers to obtaining certain services or products from a third party company, essentially sourcing something like accounting services or manufacturing of a certain input to another company. While many think outsourcing refers to using a service provider in another (usually cheaper) country that is not necessarily the case. Outsourcing can be done to a company that is located anywhere, the location isnt important. The key reasons a business would choose to outsource are: Cost: Often some services or products can be obtained for a far lower price while obtaining the same level of quality. Even when the quality is not quite as good as could be done internally the cost savings are so significant that the trade-off is deemed acceptable by management. Services outsources often include internal business departments like finance or IT, where significant cost savings can be obtained. Specialization: Some business processes or products are very specialized and outsourcing to another provider provides access to higher quality. In manufacturing for example, every computer maker doesnt need to specialize in making micro-chips, they can outsource it and get a higher quality product than they could likely build themselves. Any business that has suppliers for inputs to their manufacturing process are essentially choosing to outsource part of their manufacturing process. Flexibility: For many companies outsourcing provides the benefit of only having to pay for precisely what...
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...the business. One such opportunity is the offshore outsourcing of finance and accounting services. The business process outsourcing (BPO) market has grown substantially over the last decade and is expected to continue to increase rapidly. Offshore financial institutions can also be used for illicit purposes such as money laundering and tax evasion. Many countries, territories and jurisdictions have offshore financial centers (OFCs). These include well-known centers like Switzerland, Bermuda and the Cayman Islands, and less-well-known centers like Mauritius, Dublin and Belize. The level of regulatory standards and transparency differs widely among OFCs. Supporters of OFCs argue that they improve the flow of capital and facilitate international business transactions. ‘Outsourcing’ is the management and / or daily execution of a business function by a third-party service provider. Firms have been encouraged to outsource non-critical areas of business in order to focus on core competences (Quinn et al, 1990). There are many different outsourcing models, including the outsourcing of activities to firms in foreign ‘host country’ locations, which is called ‘offshoring’, and is the focus of this report. Offshoring means located or based outside of one's national boundaries. The term offshore is used to describe foreign banks, corporations, investments and deposits. A company may legitimately move offshore for the purpose of tax avoidance or to enjoy relaxed regulations. In the...
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...Analysis matrix for an organization that is considering replacing it’s internal payroll system with a payroll outsourcing service. Include direct and indirect revenue enhancements and direct and indirect cost reductions. Cost savings - Smaller organizations using payroll outsourcing company reduce costs by removing the time consuming HR tasks that slow down production. To determine the cost effectiveness of outsourcing payroll, it is important to calculate the number of hours employees spend on payroll related activities and the exact amount being spent. Then compare it with plans offered by outsourcing companies. Increased productivity - Payroll management is an extremely time consuming activity. By using a payroll outsourcing company, the tedious burden of payroll management is removed and employees are able to concentrate on the things they are good at. Reliability – Outsourcing provides the same output speed and quality that is not dependent on holiday time and sick leave from your staff. Assess the risks associated with integrating a new payroll system and suggest what the project management team can do to minimize those risks. Payroll has been a payment of wages, salaries, advantages, allowances as well as other monies associated with the staff working in the public agency. Few agencies are contracting out payroll function, whereas the rest run its individual payroll. Newer payroll system needs to be integrated within the company with advent of the globalization...
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...Business Process Outsourcing (BPO) firms have been one of the largest job creators in India, redefining pay scales and the work environment for many young Indians. The sector witnessed a flurry of activity in 2004-05, with many multinational companies (MNCs) and Indian companies increasing operations and therefore their hiring numbers. A number of mergers and acquisitions within the sector also signified maturity and consolidation for the industry. The number of captive and third party service providers added up to about 400 companies in the Indian BPO sector. According to industry experts, an educated, young and English speaking population and the cheaper bandwidth were the key factors behind this growth. In addition to India, outsourcing companies were looking at Singapore, China, the Philippines, and Malaysia as outsourcing destinations. In the mid-2000s the Philippines emerged as a promising outsourcing destination for the western world. Indian companies too started establishing operations in the country. By 2008, companies such as Sitel, Genpact, and Citibank had already set up offices there, and were even shifting local talent from India to fill up senior and middle level management positions in the Philippines. In 2008, the BPO industry had been in India for about a decade. In these ten years, it had shown tremendous growth and was no longer limited to being an activity of global MNCs. Leading Indian information technology (FT) software and service organizations had...
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...Project Management Construct a Cost-Benefit Analysis matrix for an organization that is considering replacing its internal payroll system with a payroll outsourcing service. Include direct and indirect revenue enhancements and direct and indirect cost reductions. For an organization which is considering replacing its internal payroll system with a payroll outsourcing service, the direct revenue enhancements and cost reductions for a company which is into internal payroll system may include increase in productivity of the company’s employees since they can now focus on doing more productive things, and improve the profitability. For instance, this holds true for small businesses with employee strength of 10-20. Moreover, the other direct cost reduction could be avoiding IRS Penalties. According to the IRS, 40.00% of small businesses pay an average penalty of US$845.00 per year for late or incorrect filings and payments. Outsourcing of payroll may help the company to avoid the penalty notices. The other direct revenue enhancements could be reduction on transaction costs. The outsourcing company may enable the employees to claim Reimbursement statements and other things online. The indirect revenue enhancements could be building brand in the other countries. For instance, the outsourced company features its partner’s Logo Branding which enables the company to display the company name, and logo in all employee and client access pages. The other indirect cost reduction could be...
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...What is Outsourcing? Outsourcing refers to the way in which companies entrust the processes of their business functions to external vendors (Dinu, 2015). At times, an organization cannot handle all aspects of a business process internally while focusing on their core competencies. There are necessary functions that an organization would prefer to outsource. Once the function is outsourced to the service provider, they will take ownership and risk to manage the function as agreed upon by both parties. According to much of the literature and research on case studies, Figure 1 details the most commonly outsourced activities (Hoecht, & Trott, 2006). IT Outsourcing Legal Outsourcing Content Development Web Design and Maintenance Recruitment Logistics and Distribution Services Manufacturing Technical/Customer Service Human Resources Services Sales and Marketing Finance and Accounting Services Procurement Services Computer Programming Services Tax Compliance Training Administration Transportation of Products Benefits and Compensation Planning Payroll and Human Resource Functions Figure 1: The most commonly outsourced activities. Why Outsource? When an organization is considering outsourcing, they must weigh the efficiency of performing the activity internally versus the external vendor’s efficiency and evaluate the risk associated with the decision. The organization must consider both strategic and operational issues related to the decision to outsource. Greaver (1999)...
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...The organization I chose to study is the Customization Services (CS) group of my employer, Oracle Inc. Oracle Inc. is one of the world's largest providers of business outsourcing solutions. Leveraging more than 55 years of experience, Oracle offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. Oracle's easy-to-use solutions for employers provide superior value to companies of all types and sizes. Oracle is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the world. The CS group is responsible for all custom programming for Oracle’s hosted HRizon, Enterprise HR and PCPW clients throughout all phases of client’ business relationship with Oracle (i.e., Implementation, Post Go-Live and Upgrading & Patching). The CS group works closely with Hosting Services, National Service Centers and other Oracle teams to fulfill client’ custom programming business needs. 1 Today, Oracle employs more than 42,000 associates globally providing business solutions for more than 570,000 companies of all sizes – small, mid-market and enterprise. Oracle is one of the world's largest providers of business outsourcing solutions, with operations in many countries. The key to the company’s growth and stability is solid strategy. By focusing on top-notch customer service, financial reliability, and a low-margin, high-volume model, Oracle has been able to stay true to its...
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...ingredients of their success and capacity to give services. Payroll System is one of the fundamental needs of a company. Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Payroll plays a major role in a company for several reasons. From an accounting point of view, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and they are subject to laws and regulations (e.g. in the US payroll is subject to federal and state regulations). From an ethics in business viewpoint payroll is a critical department as employees are responsive to payroll errors and irregularities: good employee morale requires payroll to be paid timely and accurately. The primary mission of the payroll department is to ensure that all employees are paid accurately and timely with the correct withholdings and deductions, and to ensure the withholdings and deductions are remitted in a timely manner. This includes salary payments, tax withholdings, and deductions from a paycheck. Companies typically generate their payrolls on regular intervals, for the benefit of regular income to their employees. The regularity of the intervals, though, varies from company to company, and sometimes between job grades within a given company. Common payroll frequencies include: daily, weekly, bi-weekly...
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