Answer question - Assignment Example

Yavapai Dentistry Clinic 2) Problems and limitations in the way the currently manages payroll The decentralized system of operation is not only cumbersome but also time consuming(wastage).The lack of a centralized system of management robs the clinic of the benefits associated with a centralized system that is efficient and positively impacts on the overall net-worth of business. Using technical equipments (computers) but lacking the necessary technical know-how and appropriate software’s to effectively run them impacts negatively on the day-to-day operations of the dentistry not to mention loosing important data because of power outage due to lack of a proper back-up system.5 ) Cost justification: Explanation of the need for an item of expenditure, supported by documentation to show that expected returns exceed expected costs.

Expected Costs: Sarah handles payroll functions, travelling to both offices once per week,70 miles round-trip to Sedona,190 miles round-trip to Prescott. Her SUV gets 17 mpg, the cost of gas on average is $ 3.40 per gallon. Expected cost per week therefore is: $ 3.40 multiplied by 17 mpg of her SUV= $57.8.Cost of trip weekly = (70 + 190 * $ 57.8)= $ 15028Annually = 15028 * 48 weeks = $ 721344.Sara’s replacement in the office will cost $ 30,000 annually plus reimbursement of $ 45 per mile of travel thus,45 *260 *48 =$ (561600 + 30,000) = $591600 annuallyCost of new computer =$ 6500 + $ 1000 =$ 7500 annuallyDay care cost = $ 1800 but with additional child = $ (1800 * 12 months) = $ 21600 annuallyAverage employee annual salary = $ 52,000Total expected costs = $( 721,344 + 591,600 + 7,500 + 21,600 + 52,000) = $ 1,394,044With DSS’ payroll solution package cost = $ (3000 * 12 months) = $ (36000 + $ 1394044) =1430044 thus, EXPECTED COST = $ 1,430,044Incase Sarah maintains her job, DSS will reduce her approximately 5 hours per payroll period, reducing her daycare cost to $ 200 monthly thus, (200 * 12) = $ 2400 annually to be subtracted from $ 1430044.

Therefore TOTAL EXPECTED COST WILL BE $ 1,427,644.ANNUAL REVENUE = $ 4,000,000 - $ 1,427,644 =$ 2,572,356.It will increase the time needed to run the clinic efficiently and provide a proper database that will enable Collins to keep track of the clinic’s financial transactions. This translates into an increase into the net-worth of his business.6) That Collins facilitate the implementation of the DSS payroll software immediately. In addition, for him to up-grade his knowledge of working with the software for effective management, and if need be, to retain his wife in her position due to her experience with managing payroll system which will prove useful.

Because she is technically savvy, it eliminates the need to have to incur cost in training a new employee.Collins being in agreement with the above recommendations, I asked him when to personally deliver the DSS payroll software to his clinic.