Martin Robledo __________________________________ 10000 Mont. Cir., El Paso, TX 79936
(915) 593-0000
February 25, 2009 Carlos Ramirez CPA Epicenter CPA El Paso, TX 79902 Dear Mr. Ramirez: In my review and analysis of our employee’s time spent on each individual client that took place January 20, 2009, I found out that one of the main reasons for client time inflation is that tasks are performed several times. The employees don’t spend much time on personal matters as explained in our company’s policies but rather strictly abide to the policies. Besides taking their time for lunch and occasional breaks the employees are not at fault for each task taking long to complete. For example on a client that was reviewed, that the firm handles their payroll, I noticed the lengthy procedure for this task. The process involves many similar steps done by our employees. These are the steps; when an employee receives the time sheets from the client they begin a process to compute the time for each of our client’s employee. This procedure is done manually as well as having to compute their Gross pay with the Social Security and Medicare deductions. Once this process is completed then the employee writes the figures computed on a manual payroll summary sheet. Up to this point the total time spent on a client of 10-15 employees is around 1 hour and a half. After the payroll summary is complete then the employee inputs the hours into the accounting system software which computes Gross, Social Security, Medicare and Federal Withholding amounts automatically. If for any reason any of the deductions are not what our employee has computed manually, they are instructed to correct the amount the system gives them. Not only are they having to override the system amount which is current according to IRS tables and updates but are taking an extra amount of time having to do this. Now with the information on the system which only takes around half an hour the employee is to print some payroll reports to again compare to the manual calculations he/she has done. Please note that once the information is entered in the system and each entry is checked one by one the printing or reports to compare again might take somewhere from 10-15 minutes. After the reports are printed our employee has to prepare an electronic deposit schedule manually; this schedule is provided by the system after the payroll process is completed. My recommendation is that since we have very competitive accounting software we should use it to its maximum capacity. This will allow the employees to finish their tasks much faster and more accurate without having to spend time with manual procedures. I believe that our client would be pleased with the smaller cost and our employees would have a better attitude towards performing their tasks. In order for the firm to continue to offer better service to our clients we need to move forward and be more competitive.
Along with my analysis of the firm I have researched several accounting firms that offer similar services as our firm does. The results are that 4 out of 5 are doing much of their processes electronically. This might be something to consider on the next corporate meeting, it would be a good idea to set goals that might lead us to become paperless. With this research it leads me to think that if the firm does not take this seriously there could be a chance that the firm might not be able to compete with other firms and become obsolete. I look forward to your response on this analysis and any help I might be able to offer.
Sincerely,
Martin Robledo Analysis Clerk