Accounting System of a Firm - Essay Example

Accounting System of a Firm The application of a systems development project plan is a challenging task. A number of factors must first be consideredbefore an actual system design is applied. The experts that will work on the process, the procedures that must be undertaken as well as the resources that will support these processes must be present so as to ensure project success. Certain step must then be followed in planning a systems development project plan. Typically, this procedure starts with the identification of the problems as well as the objective for conducting the project. Along with the identification of the capability of the organization to support the project, designing the system to be applied is then created. In order to ensure the efficacy of the designed system, this will undergo a series of tests and evaluation procedures. After which, the system is then installed. The process however does not stop here as the system will have to be monitored continuously. Furthermore, the employees who will be using the new system must be trained properly. The process involved in a systems development project plan is indeed an essential tool that enables project developers and managers to ensure the efficacy of the system employed. The systematize process provides significant controls that helps in people and task management. Following a specific project plan also allows the project staff to identify potential problems that could arise. Thus, this organized procedure helps the staff to prepare alternatives and solutions that could address these possible problems. In order to comprehend the process of implementing a systems development project plan, a case of a small accounting firm will be taken as an example. With the expert help of an IT consulting firm and a sixty thousand dollar budget, the firm intends to have a system that will integrate its main operations including administrative functions and report production. In this case example, the objectives of the project, the role of the project manager and the problems that could occur during the different phases of the project plan will be identified. The small accounting firm aims to implement a systems development project. With this main goal, the firm intends to achieve the following objectives: To design and apply an integrated system that will allow it to perform administrative functions and produce essential accounting reports To develop a specific step-by-step procedure for the project's application To implement an effective system development project within a limited budget To have the system installed in eight weeks time Though these established objectives will help in directing the project team, certain constraints could hinder their achievement. Time and budget for instance are significant constraints for this project. Within eight weeks, the integrated system must be installed in the firm. Unlike bigger corporations, smaller firms have fewer resources to support long term project plans. Thus, the project team must work rapidly so as to meet the deadline and avoid financial shortage. These factors in turn add more pressure to the project staff. Putting the project team into much pressure can cause the members to prioritize time over quality, which can significantly affect the efficiency of the project. When the main objective of the project team is to finish the project on time, the long term success of the project may be negatively affected. Quality is also an important factor for a successful project. However, working under time pressure while maintaining work quality can be difficult and can burnout and stress among the participants (Gobeli, Gray & Larson, 1991). Time is indeed a major constraint in project management, especially when the firm expects to see the project results within an unrealistic time span (Baumgartner, 1979). Unrealistic work schedules can not only cause stress among the staff but can also affect their motivation to finish the project. Handling people is also a major constraint in this project. The lack of ability among the members of the work teams for instance, is a constraint that could affect project results. If the project team lacks the needed planning and designing skills, the firm will not be able to obtain the most effective system. In addition, the close-mindedness of the members towards possible project problems can lead to project failure as well. Projects for systems development always have certain problems that need proper alternatives and solutions. This in turn emphasizes the need for the project team to assess all angles of the plan in order to identify project errors and minimize further problems. So as to overcome this constraint, the staff should make a checklist of all project requirements as well as the errors related to it (Cleland & King, 1975). Financial Analysis As mentioned in the task context section, the accounting firm is need of an integrated system that will help it perform its administrative functions and produce accounting reports more effectively. The project however is constrained in terms of budget and time. Within 8 weeks, the IT consulting firm must have developed the project plan and installed the new integrated system. All of these activities must be done within the $60,000 budget of the firm. Considering that the accounting firm is a small one, the company does not have that many resources that can support development plans that take a long time to accomplish. The company will have to pay for the project staff, support the equipment that will be installed as well as fund for its installation and testing procedures. The small accounting firm does not have sufficient finances to support all these project phases if the project plan will take more than 2 months. Thus, the project staff must work under limited time and budget. In order to achieve the objectives of the small accounting firm, a project plan will be developed. This task plan is based on the Systems Development Life Cycle (SDLC) model, which is typically used to guide the different phases of systems development. This model typically starts with the identification of the problem. Once the problem has been identified, the capability of the firm to solve this problem will be determined through a feasibility study. This step is then followed by the designing procedure of the new system, which will eventually be installed or implemented for the firm to use. In order to ensure the success of the project, the new system should be monitored as well. In order to optimize the functions of the SLDC model, a number of factors and requirements must be considered. The development of a new system does not stop from the creation, designing and implementation phases. Aside from the resources needed for systems development, the firm should fully support the integration of a new system into their conventional operation. Thus, support or training on how this new system is to be installed, used and maintained will have to be part of the entire development plan. Below is the developed plan for the accounting firm patterned after the SLDC model: The Plan. The small accounting firm intends to develop an integrated system that will allow ease in conducting administrative functions and report production. In order to enhance its existing computer units and systems, the company will have to increase the level of these systems in terms of storage capacity and programs installed. An integration software for accounting will be installed in the new units so as to enable the performance of the cited objectives. This software will allow efficient data sharing, security and organization, which is highly needed by the accounting firm. Moreover, this integrated software will promote ease in data entry. Below are the steps to be conducted to put this plan into action. Phase 1: System Designing and Budgeting The first phase of the project plan is the designing of the system. This level is initiated once the project manager and the employees of the firm had clearly identified the problem of the company as well as the objectives of the project. This stage will involve the expertise of the IT consulting firm employed by the company. The IT consultants will then be in charge of identifying which software will be used and how it will be applied in the company. In identifying the system design, the project developer should also consider the importance of time and the budget allotted. A time and budget checklist should be developed by the team in order to ensure that the system selected and designed works in coordination with the available resources. Below is a proposed time and budget list for the project: Phase Budget 1st mo. 2nd mo. System designing $30,000 1 2 3 4 1 2 3 4 - planning process - purchase of system resources (e.g. integrating software) - development of testing procedures Testing $12, 500 - application of the designed testing procedure - documentation Implementation $12, 500 - installation of the system - training of the users/operators Monitoring and Maintenance $5, 000 After 2 Wks. - regular assessment of the system Critique: In system designing it is important that the firm and the project staff communicate openly and willingly for the project. It is essential that both parties exchange ideas so as to avoid communication problems. In designing the system it is important to not to go beyond the available resources of the company. As much as possible, both parties should reach a consensus with regards to this matter. Moreover, considering that the resources given by the accounting firm is limited, the selection of the people who will work in the process should also be done properly. Though, the budget is relatively small, project quality should not be sacrificed. It is then important that the project team members are resourceful and practical. Phase 2: Testing After finishing the design of the integrated system, the design should then undergo testing procedures. Evaluating the project or the system is an important step before It is fully installed as this allows the team to see other problems in the system that could have been overlooked during the process. In order to ensure the success of the project, the project team should identify essential factors for evaluation. For this project, the team may include assessment factors such as usability, reliability, security and serviceability. During the designing phase, the project team should have already devised the steps on how the selected system design will be tested. Within these testing procedures, the team should have identified who will conduct the procedure and how will it be conducted (e.g. how will the evaluators determine if the system section tested had passed or not). In designing the testing procedure and in identifying the factors that will be assessed by the system, it is important that all aspects of the system are taken into account. Moreover, it is also imperative that all aspects tested had passed the test. The project team should not take any chances of installing a substandard system as doing so will only cause problems in the future. In addition, the team should also ensure that all testing procedures are properly documented. This will be useful if the firm intends to enhance the system in the future or if problems arise after its installation. Critique: Testing the system is a tedious process. Various procedures will have to be done before the designed system is installed. Furthermore, accuracy in evaluation is a significant element in this stage. A problem that has been overlooked during the testing procedure could lead to severe problems and wastes of both time and resources. In order to successfully perform this stage of the project, it is important that the project staff is cautious and meticulous at the same time. Phase 3: Implementation Once the new integrated system has passed the tests, it is then time to implement or install the system. During this stage, all the existing systems and units of the accounting firm will be upgraded so that these could recognize the integrated system that will be installed. Proper formatting is the main activity in this stage. After installing every part of the system in the firm, the team should then conduct the training of the system users and operators. At this time, the developers of the system should discuss to the firm's employees how the installed system works. It is important that the training procedure is comprehensive and uncomplicated. Moreover, it will help if the training is conducted not in a typical classroom-setting but more of a hands-on and practical training. Visual and verbal training can make the process easier and more understandable for the new users. In the training process, it is also important that the developers discuss the possible problems that the firm could encounter with the system as well as how this can be resolved. If there will be available alternatives for the users in case the system breaks down, this should be pointed as well. Critique: While skills are significant in the designing and testing stages, the implementation process requires the use of effective communication styles. In this stage, the mentors should ensure that the audience or the firm's employees fully understand the entire system operation. Aside form communication abilities, it is also important for the trainers to be creative enough to make the training process easy and enjoyable. During this stage, learning the system is not the only thing that matters. It is also important that the training will help in promoting the advantages of the system. This in turn will help developing user appreciation for the system. Phase 4: Monitoring and Maintenance The SDLC model should not stop from the installation of the system. It is also an important step to monitor its development regularly. Through continuous monitoring, system problems that could get worse in the future are resolved in advance. This stage is then significant in saving resources that could have been put to waste if monitoring is not done. For this stage, the project team could monitor the system every two weeks on its first 3 months of installation. On the fourth month, monitoring can then be done monthly. Close monitoring should be done on its initial operation so as to ensure that no system malfunctioning are encountered by the employees. Critique: Regularity is the important aspect involved in monitoring. The project team and the firm's employees should be aware when the monitoring procedures will be conducted so to prevent any work disruption. The monitoring team should be proactive in resolving the problems of the systems. Before problems arise, the monitoring team should detect efficiently possible problem origins and have them resolved immediately. This in turn can help in preventing even more severe and costly system damages. Conclusion Developing and designing a system for a firm is a challenging task. Not only does this activity involve the consideration of several factors, dealing with various groups of people can be equally challenging as well. The role of a project manager for instance, is multi-faceted. In order to ensure the success of the designed system, the project manager must have the necessary skills that will be used for the project's various activities and stages. Flexibility among project managers is then a key for them to handle systems development projects such as the one that will be done for the small accounting firm. While the process is indeed difficult, the project team member could use the SDLC model as a guide for effective project management. Through this model, all activities involved are done efficiently. Developing a plan for the project enables the staff and firm to see the overview of the entire project. Moreover, this developed plan helps in distributing the different tasks for the project among the members of the team. Smooth flow of activities is also ensured through the SDLC model. In conclusion, knowledge in IT systems is not the only important thing that is required in a project development. Certain non-technical skills and values are also essential in order to make a successful system for any firm. References Baumgartner, J. S. (1979). Systems Management. Washington, D.C.:The Bureau of National Affairs, Inc. www. questia.com Cleland, D.I. & King, W. R. (1975). Systems Analysis and Project Management. 2nd ed. New York: McGraw-Hill Book Co. http://links.jstor.org. Gobeli, D., Gray, C. & Larson, E. (1991). Application of Project Management by Small Businesses to Develop New Products and Services. Journal of Small Business Management, 29(2), 30+. www.cba.uc.edu/faculty/froehlcm/pubs/2007-fr-pom.pdf. Read More