Monday, November 26, 2007

One Step Forward in Technology, A Giant Leap Backwards in Functionality

When software developers went to a GUI (Graphic User Interface) design for their financial accounting systems, everyone was excited.  Both young MBA’s and Geeks had demanded GUI for screen navigation.  A click here, a double click there, and all would be right with the world.

Of course, these geniuses never checked with the people that actually USE the system.  Suddenly, it took longer to add employees, pay invoices, and post receipts.  Why?  Because clerks have to move to the next field by using the Mouse or by hitting the Tab key.  Using the Mouse requires removing your hand from the keyboard and the Tab key is inconvenient when entering numeric data on the 10-key pad.  Both methods cause a pause in entry, slowing the clerk down, and opening the door for data entry errors.  Then you have the “Keyboard Commands” to alleviate using the mouse.  Anyone remember WordStar?  Yipes!

Sorry to sound like the Ancient Mariner.  I’m not proposing that we go back to “cell-based” terminals.  But, maybe some of the old methods are still the best for large amounts of data.  Developers don’t know everything.  Talk to the users before making product changes!

Monday, November 19, 2007

Thanks to the Special People!

It’s the season to be thankful for many things, not the least of which are those who work so hard in your office.  I’m talking about the A/P clerks, the Payroll department, those in A/R, and Human Resources that are still working while the office parties are in full swing.  Let’s not forget the I.T. staff, as well.  They’re still manning the support lines.  Holidays may be the only time that I.T. can shut down systems, so they can install new hardware and software.

As usual, management overlooks these people.  After all, they’re not at the company party and don’t have the opportunity to run around with a lampshade on their head to be noticed.  If they are missed, some middle executive will make a snide remark about them being “anti-social” or “not a team player.” This pinhead doesn’t realize that the Payroll clerk is generating this jerk’s bonus check, and the I.T. department is installing the new PC that he/she has demanded.

To all those that go unnoticed at this time of year – A SINCERE THANKS!

Friday, November 16, 2007

You Got the Time?

You should be aware the shortcomings of many payroll systems when it comes to interfacing with Time & Attendance (T&A) systems.  The real questions are, “Do you need a T&A system?  What should you look for?”

This determination should be more than how many employees you have.  Consider the following:

• How difficult is it to determine regular hours, versus overtime and double time hours?  How many errors are made converting time to hours worked? 

• Do you have complicated union rules regarding hours? 

• Is accrued vacation time dependent upon hours worked? 

• Do you have remote locations?  Do you need to track each location separately?  Are your supervisors responsible for employees at multiple locations?

• Do you need project management accounting?

• Do your employees work different jobs at different pay rates?

• Does your payroll department have adequate time to process payroll, or is their hair-on-fire every pay period?

• Do you need to control access to certain areas of your buildings and offices?  Do you know that some T&A solutions offer this feature?

The good news is that the cost of T&A systems is coming down.  Time collection devices are getting cheaper and have more features (wireless, portable, easier configuration) than ever before.

Time spent on implementing a T&A system (providing you pick the right one) will be time well spent.  I would choose a T&A supplier that also has the time collection devices that you need.  Less finger pointing!

Before looking at or selecting a T&A system make sure that you have ALL of your policies and procedures regarding employee time keeping, organized and in WRITING.  This will ensure you select the right system and make installation easier and more cost effective. 

Decide on an employee identification system.  Don’t mix types.  Make sure it’s compatible with the time collection devices.  You’d be surprised how many times this step is overlooked.

Be certain that your payroll software supplier is kept in the loop and that they sign-off on this project BEFORE you commit to the T&A system, because they may have to provide an interface.

It will be up to you to push all parties to make this work, but it saves time and reduces errors!

Monday, November 12, 2007

How Did We Get So Messed UP?

It’s Simple.  The wrong people could be choosing your new financial system!  I have seen companies using a good financial package that met their needs, and a “New” Manager demands a change in financial systems.  It doesn’t matter that this new system doesn’t work as well as the existing system or doesn’t even come close to meeting the needs of the business.  Mix this with Upper Management that is totally inept in choosing software, and you have a disaster in the making.

The objections of the Controller and the I.T. department are totally ignored.  Logic and knowledge have nothing to do with this new decision.  No research is performed on the doability of the new software; or, if research is performed, findings are totally ignored.

How does this happen?  You start off with a Board of Directors that are all “Yes-Men” who want to hang on to their fat bonuses.  The CEO and/or President, who can’t even spell “G/L,” make the decision based on one or more of the following:

• How cute is the salesperson?  Or, they a best friend?

• How closely is management related to the “New” Manager?

• How good does the “New” Manager looks if he or she has an attitude of “I know what I’m talking about!”

• What “gifts” the proposed software company is offering.

• Their belief that the new software company is a safe bet because they are a big name company.  (How many big companies from 10 years ago are still around?  Besides these big companies buy and sell applications and each other every day.)

• Finally, which way is the wind blowing? 

The resulting situations that can occur from such scenarios are too numerous to cover in this rant, but here are some possibilities to ponder:

• Payroll insurance premium notifications to insurance companies may no longer be generated.

• The same could hold true for 401K’s and other benefits that require communication with outside providers.

• Interfaces to and from time keeping systems could fail.

• Possible loss of ability to have direct deposits or positive pay programs with your bank.

• Incomplete 1099 reporting could occur due to lack of withholding capability.

• May require entire new check designs resulting in a lengthy process with bank approvals before check processing can begin.

• Reports may not provide the information management needs to conduct business without costly custom reporting.

• Possible lack of garnishment capabilities in the payroll system.

• Possible inadequate reporting to federal and state authorities for your type of business.

• The list goes on and on . . .

What are your choices?  Well, you can grin and bear it, and maybe in 2 to 4 years someone will realize the mistake and fire the “New” Manager along with his or her cronies.  Maybe it’s time to polish off the resume and look for another job.  Believe it or not, there are well run companies out there!