Chapter 1 1.

1 Introduction

The history of bookkeeping and accountancy is a long one and evidence of accountancy can be traced back to around 4000BC, but the history of actual bookkeeping isnt as long with records only dating back to the 1300s. It is thought the first person to develop an actual bookkeeping system was an Italian man called Fra Luca Pacioli, he was an acquaintance of Leonardo De Vinci. He was a great mathematician and developed the system during the boom of exports during the 13th century in Italy which became widely used by merchants wanting to keep track of their sales. It was in 1494 that he decided to write a book including some of his mathematical findings but the most interesting article was the development of a process very similar to that of double entry bookkeeping. It wasnt exactly the same process as we know and use today but it was the basics of what we use today, only now it is made a lot easier because we have specialised computer software that can organise the different ledgers and also do most of the maths for us. Now in this day and age it is mandatory that every business has a bookkeeper or accountant to keep track of their accounts and ledgers to ensure the account details are always up to date, this is also because they need to keep track of all sales made throughout the year as that affects how much tax they need to pay. There are different types of bookkeeping services including double entry bookkeeping, commercial bookkeeping, single entry bookkeeping and computerised.

Payroll accounting is a process that occurs in all businesses and focuses on the financial management of a companys payroll information. Accountants will record information relating to employee salaries, bonuses and commissions; accountants will also record and report the taxes

related to this information in the general ledger. Payroll clerks and managers are responsible for providing this information to accounting, along with maintaining the paperwork necessary to fulfil legal requirements for showing accurate employment records. Payroll accounting is often separate from the regular accounting office as the information is highly sensitive and not for view by multiple employees. The term 'payroll' includes each and every employee of a company who receives a regular wage or other compensation. Some employees may be paid a fixed salary while some are paid for hours worked or the number of items produced. All of these different payment methods are calculated by a payroll specialist and the appropriate pay checks are issued. Some companies often use objective measuring tools such as timecards or timesheets completed by supervisors to determine the total amount of payroll due each pay period. A manual payroll system means doing everything by hand, while a computerized one will enable its users to store unlimited data, keeping track of everything. While with a manual payroll system you'd have to keep track of all employees' time by hand, with payroll software you can automatically transfer all punches or swipes directly into the system, which will store them instantly. It can even separate regular work hours from overtime, and calculate the different remunerations according to set parameters. And if human error sneaks in even with the most organized manual payroll system, computerized payroll software will provide accurate calculations regardless of the amount of data stored.

Changes in technology bring significance and advancement in our lives. From an industrial society, the researcher is in transition to an information society. The process of deriving in this transition and advancement of man are the computer and the people who strive to work for these changes. This advancement of computer had been a great factor in our daily living. Nowadays,

computer plays a big role in many people live in the world we live in today. Making life easier and more convenient to the peoples to be a better one. New technologies provide great potential to improve services and efficiency, but the evidence base upon which governments depend must continue to be protected and preserved. For initiatives such as e-government and e-commerce to be successful, governments must have access to information that possesses certain crucial characteristics: the information must be available, accurate, relevant, complete, authoritative, authentic and secure. Some small businesses rely on user-friendly computer software to set up a simple payroll system complete with check printers and file storage while the large companies may assigns trained accountants to handle payroll issues as part of their overall duties. But many businesses without the means to maintain their own payroll systems choose to farm out this task to outside specialists. Since payroll records are based on objective criteria such as timecards and federal tax forms, outside accountants can perform all of the calculations, store all of the year-todate data and issue pay checks in a timely fashion. Employers simply need to update these payroll companies with changes in employee pay rates or deductions. Setting up an effective payroll system is not especially difficult for trained accountants, but it can be very time consuming.

The researchers always find ways to improve our daily activities and inventions that were already used. Computer has change the ways of the people to work, do business, solving problems, do research, making the way of communication easier, and the variety of choice that the people have to find in an entertainment. Its hard to imagine how the world would be if computers didnt exist. Computer has a tremendous impact on society and will continue to find ways to improve and better peoples live. Through this change the researcher will design a

proposed system for Guardian Angel Academy that would therefore answer the needs or the establishment in their method of giving the teachers salary. The purpose of this is to make their way of computing the payroll easier.

1.2

Background of the Study

Not so long ago, all payrolls used to be calculated manually, without any help from a computer. Professional accountants invested a lot of time and energy into keeping track of all employee data, files and information, calculating monthly salaries, hourly remunerations, bonuses, sick leaves, benefits, taxes, deductions and so on. And they did this all by keeping numerous files filled with track records for each and every person employed. Nowadays all establishment are becoming modernized, they use modern technologies to make their transaction fast, easy and accurate in order to avoid waste of time and for the sake of safety and security. It also helps human to solve and understand complex problem and analysis such as computational need of human. Many business organizations are already using payroll software to prepare the payroll of their employees. Aside from automating the preparation of the employee's salary, payroll software also automates the task of calculating taxes and deductions.

Our task was to develop a payroll system that would keep a record of employee data including the GSIS, Phil Health, PAG-IBIG, and taxes and also to be able to calculate the pay of the employees taking into consideration employee data. We have been able to achieve these tasks. The software we developed calculates the employee net pay from the deductions. The payslip can be printed out as a receipt. Most of the bugs that we found and those that the clients and beta users found have been corrected. Any new bugs found will also be corrected and the software

will be updated and released. Because we used object-oriented principles, modifying the software to fix bugs or add a new feature has been relatively easy.

In this research, since Guardian Angel Academy is using manual payroll, we intend to provide the school with a computerized payroll system that saves time and lowers the error ratio. They can enter payroll payment information quicker than with a manual system, and they can run payroll registers to double-check if the information is all correct before even printing the checks and this will detect if there are errors and can be adjusted beforehand. The program also allows the monthly payroll schedule to be calculated accurately. Therefore, payroll can be done with the guide of the program. The system is good in for its specialty in the fields of accounting. It is easy to use, effective and efficient in organizing and calculating the payroll.

1.3

Scope and Limitation of the Study

The Payroll System is in the supervision of an accounting officer served as the administrator for easy filing, updating and saving employee information. It is also used to compute their salary with the deductions, attendance pay slip and bonus for each employee. Only the administrator can use the system, and also the employee to view the list and their pay slip. The database is protected by a password that verifies if the user is authorized to use the program. The focus of the system is being able to hold all employees records such as the master list of the employees, adding new employee, editing employee information, attendance, bonuses, and pay slip. The system also keep track and shows the current and updating employee records using embedded pay slip and attendance.

The system has a log-in and log-out to avoid accidental modification of data. The only person who can modify and change the data inside the database is the accounting officer. The system generates reports such as employee list, add new employee, edit new employee, attendance, bonus, and pay slip. However, the system does not have other functions like decision report system.

The Payroll system would be designed to provide information about employees payroll in a minimum time. The system is contained with the employees data including employees name, age, contact number, address, deductions, bonuses, and the record of their salaries. The research will be held for three months. The documentation of the study will last for two months thus the program shall be made at the final month of the research. We started the study on the 5th day of June 2011 until 5th of August. We started to discuss the program that we are about to make on that day at the library. The research aims to develop the existing manual system of the school. Our objective is to make an automated system for Guardian Angel Academy giving them the minimal time of reckoning and locating their employees payroll and information. The systems access of files would be limited through password and username security to forefend unwanted access. Only the administrator will be able to access the payroll system. The proposed system does not include the privilege of creating a new user. Payroll system is only available offline. The teachers are not allowed to access the payroll system. To be able to find the details of the employee, the program requires the employee number to be input on the textbox then the following details will be revealed, thus the admin will be able to add, search, delete and add an employee. We will have a log out button for the security of the program.

1.4

Statement of the Problem

This study aims to improve the manual payroll system of the Guardian Angel Academy. 1. What is the implication of payroll system to Guardian Angel Academy? 2. How can the program help the schools payroll system? 3. Who could benefit the proposed payroll system? 4. When will it be available to use? 5. Why does the manual payroll system need to be improved?