Question

Expansion Aviation has installed a new payroll module for its existing accounting system that integrates with the general ledger application. The new payroll application is more complex than the old system, but its reporting function provides more details. For example, the new application calculates leave, pension, payroll tax, and workers' compensation expenses, as well as the corresponding accounting accruals. There was very little time available to implement the new system, so the old application ceased operation on December 31, 2019, and the new application went live on January 1, 2016. There was no time to run the two systems in parallel and there was limited staff training and testing of the new application.

Required

What concerns would you have about the payroll application's integration with the general ledger application? Note: Include 4 concerns in your answer.

Answer 1

Answer: New payroll application's integration will definitely cause an issue because it is not easy to implement any new change in the organization. The trouble is caused always and the whole organization gets manipulated or difficult to handle. Here we can also say that since the new system is not implemented completely so clearly we cannot get completely rid of the old application system.

The 4 major concerns which the organization may face could be:

1. The first major problem will be the lack of understanding by the employees in the organization and many new people will not be prepared with the proper knowledge of the work.
2. Data integrity could be a new issue because the systems are not completely approved of security issues.
3. A company might face a lack of support from the vendor.
4. There is one other major issue and that is the issue of productivity. A software might show a threat of ROI of the new software in the organization.