Automation and Using Information Technology

 Automation and Using Information Technology

By Dr. Lalit Kumar Setia

Information Technology is taking its place in every field of life and Financial Management to improve Governance at workspace requires to be reformed with the help of using Gadgets, Software, and the latest technological tools.

I planned and designed a module on “Information Technology in Effective Financial Management and Accounting” on the demand of various government departments and HAFED. It is worth mentioning here that the Drawing and Disbursing Officers in Government Government are supposed to follow Punjab Financial Rules strictly to avoid audit objections. In today’s age, it is a must to use information technology in communicating with e-mail, exploring sites or content online, social networking, writing articles and reports, using MS-Excel software, and designing app & web pages for building personal repo around the world. The Government officers are supposed to use information technology in routine official functions. The students of even matriculation are nowadays well versed with the use of information technology and to upgrade the skills of officers, it is a must to learn using IT tools in office and personal life. Financial management comprises budgeting for estimating revenues and expenditures and accounting for keeping records of financial transactions. It is a must to firstly understand the difference between expenses and expenditures. It is also must to know about Economic Order Quantity (EOQ), funding patterns including the use of Public-Private Partnership (PPP) and private partners as outsourcing. It is also explained in the class, the difference between outsourcing and PPP.

How it helps in improving Governance

With the change in the governance during the last decade, the head offices of government are framing Result-oriented Framework Document (RFD) to fix the accountability with maximum use of Standardized Operating Procedures (SoPs). The Human Resource Management System (HRMS) is being connected with salary to fix the account directly and Human Resource Accounting (HRA) will be the next step to provide performance-linked pay and ensure full exploitation of resources including human resources. The practical examples of using spreadsheets in estimating revenues, expenditures, and computing economic order quantities made the sessions more interesting. The first day of the course remained totally full of practical examples and exercises. The types of accounting including cash basis, accrual basis, single-entry book-keeping, and double-entry bookkeeping methods with the procedures to switching from manual to computerized accounting have also been discussed. The sessions on this topic improves the capacity of government officers to prepare the budget estimates using excel spreadsheets and a discussion on types of accounting and book-keeping made them competent to understand financial functions more effectively. I usually am invited to various esteemed organizations for delivering sessions on these issues.

Software for improving Management 

Today in the era of technology, automation is everywhere. The time-consuming complex processes are being replaced with automated software-based processes. The chances of manual errors were reduced significantly. It will not be surprising if the procurement through GeM becomes automated in near future on the basis of the level of inventory set as a minimum reserve in the storeroom of a Government office. How to design software to support the management, in Haryana, the modules are prepared and implemented in an amazing way to enhance the efficiencies. A course is designed to inculcate the same skills in Officers/officials so that the time and efforts can be saved and the resources are fully utilized. The departments which are not using software and modules; are suffering from inefficiencies. 

During the Covid-19 times, most of the organizations decided to work from home, and innovative ways were incorporated to perform the organizational activities. The software not only streamlines the organizational processes but also makes the employees realize more job satisfaction from their efforts. The employees also learn to manage time more effectively and the use of virtual meetings, virtual training, and software-based outcomes can easily measure their real-time performance. 

It's time to be well managed and utilize the resources more effectively. How to do it, require skills which I inculcate usually in my classes. A new course designed for the Officers / Officials of the Government of Haryana:

Course on Digitalization of Service Records (HRMS) and Records Management

Haryana State Training Policy, 2020 is committed to equipping all functionaries of Government with adequate knowledge and skills, bringing about positive attitudinal changes, and building capacities to enhance performance. 

The main objective of the above course is to build and enhance the capacities of officers to digitalize the service records as per the latest guidelines of the Haryana Government on implementing Human Resource Management System (HRMS) and also to maintain the records properly with weeding out old records as per rules of Government.

What needs to be computerized in Office?

The Accounting, Invoicing and tax compliance-related procedures are already computerized in most of the offices relating to Boards and Corporations of Government. The public sector undertakings (PSUs) are facing competition from the private sector players, need to automate the functions for improving efficiency to a great extent. I have designed courses especially to sharpen the skills in the following areas:

a. Use of Technology to automate compliance of financial rules in managing expenses: 

It is possible to use Google forms for ensuring a proper system of approvals in each office and for automate purchase orders, prepare invoices, make reimbursement of expenses easily, and also for posting entries or booking expenditures. 

b. Reconciliation of accounts to trace embezzlements

Tracking expenses is easy but when the number of expenses every day increases to a significant level, it becomes difficult to trace and track any file or case relating to an expense. The cloud-based solutions can easily be used for automatic reconciliation of accounts and giving the red signals to the exceptions for consideration of the executives. 

c. Business Applications in Government Offices

The Government has adopted a Double Entry System in most of the departments working under the direct control of the Government. The double entry system is also used in business organizations of the private sector. Whatever business applications with automation are used in the private sector, the same business applications can be adopted in Government offices. For example, the private organizations use Customer Relationship Management (CRM), the government organization may design and use Citizen Relationship Management (CRM) with rating each citizen of the state or country. 

How to design software for Government organizations:

The National Informatics Centre is the primary organization for designing specific software in Government offices. Four things should be taken care of while giving directions to the NIC for designing a specific software i.e. Estimated Expenditure or Budget Availability, No leakage of privacy or security of confidential information, the feature of the software to scale it up for large level applications, and information is stored either on systems of NIC or on clouds. 

It is fact that the use of automation software increases the efficiency in functions but everything cannot be computer-based. 

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. 

This article is written by Dr. Lalit Kumar Setia; a renowned author and trainer. He completed his Doctorate in Commerce from Kurukshetra University Kurukshetra and MBA in Information Technology from GJU, Hisar. He also wrote two books, 15 research papers, and organized more than 200 Training Courses during his working period since 2006 in Haryana Institute of Public Administration, Gurugram. The article was firstly published on 8th July 2017, and last updated on 14th October 2021. The writer can be contacted on lalitkumarsetia@gmail.com 

Read more content:

https://drlalitsetia.blogspot.com/2021/10/about-crypto-currencies-bitcoin.html (About the Cryptocurrencies)  

https://drlalitsetia.blogspot.com/2021/09/pension-under-employees-provident-fund.html (Determining pension of a person retiring from EPF) 

Money Management

Money Management

By Dr. Lalit Kumar Setia 

"All our dreams can come true, if we have the courage to pursue them".  -- Walt Disney.

Everyone tries to manage his money with the help of investments, making fruitful expenditures, and exploring new sources of money. The superintendents in government department use the tool of budgeting to control the expenditures. The tool of budgeting expenditures leads to great quantum of savings and helpsin keeping control over wasteful expenditures. The people prefer to put money in Fixed Deposits, Recurring Deposits as these investment tools have lower risk than Debt-oriented funds. But in case of slowdown, the central banks start reducing the interest rates on Fixed Deposits and Recurring Deposits which the interest & return on Debt-oriented funds remain the same. How one should plan to invest in Debt funds?
What should someone do to manage money either coming through salaries or business incomes; requires art of budgeting. Let’s understand the tips and steps to generate more incomes and contain expenditures:

1.   Notice the sources of Incomes: 

One should build a book or write on paper regularly, the sources of income or money; from where he or she is getting money. A list of all sources should be noted down first and then try to explore how to increase the cash flow from such sources. One should try to build friendships, associations with individuals & corporate to increase the cash flows in life. After noting down each income and inflow of cash, one can build a sheet showing money in his or her hand in each coming month of the year. One can also plan new sources of earning money like through Google Adsense, through building more skills, understanding and using crypto-currencies etc.  

2.   Notice the applications of money or expenditures: 

Second step is to control the expenditures and it is possible by estimating the expenditures in advance. It should be tried to write down each expense in diary and then make a list of expenditures normally being done in life. The unfruitful or waste expenditures should be avoided by controlling the bad habits. The estimates of expenditures in each next month of the year should be noted down separately on a sheet showing the expected cash outflows. The expenditures may be divided into various categories like permanent monthly expenditures, occasional expenditures, and wasteful or unnecessary expenditures etc.

3.   Compare incomes and expenditures of each month: 

After pointing out incomes of each coming month in first step and expenditures of each coming month in second step; it is easy to compare the figures and chalk out expected surplus and deficits of each coming month of the year. The figures will tell the minimum surplus amount of each month. Suppose, a person is getting income of Rs. 60000 per month and his expenditures are nearly Rs. 30000 to 40000 per month; then he will become sure that he will have at least savings of Rs. 20000 per month. Similarly, each individual can compare the figures of incomes and expenditures and compute the minimum and maximum amount of expected savings in each month. There may be months in which it is expected to have more expenditures than incomes. For such months, he has to make provisions of savings in advance to avoid the situation of cash crisis.

4.   Planning investments or fruitful spending: 

After having comparative statement of incomes and expenditures, the surplus money can easily be managed either to set-off the months of deficit or to make investments for long-term. There are usually two options of investments in banks, post-offices, or other financial institutions i.e. Fixed Deposits or Recurring Deposits. The minimum savings of per month can be invested either in Fixed Deposit of long-term or Recurring Deposits as per the interest being offered. While deciding the option, one should also consider the tax-ability of the investments so that the take home salary can be increased. Like in India, the investments in Public Provident Fund (PPF) offers tax deduction and the interest is also offered reasonable. 

5.   Be Stick to Expenditures and control unfruitful expenses: 

After having everything in hand, one should become completely stick to control the unfruitful or waste expenditures. It depends upon the will power and everyone should try to restrict such expenditures to create more wealth in life. The expenditures on basic needs, should be made in smart way by getting benefits of sale, offers, and schemes being offered by the vendors; but keeping in mind the planned expenditures.

6.   Plan Entertainment and Joyful Activities: 

In case, there are surplus monies in each month and already enough savings are available; then one should plan to spend holidays, visit places of pilgrims or entertainment in hotels with family, and spend time in joyful activities. The surplus months can be planned to have such tours and travels in life and advance booking of tickets can further cut the expected expenditure on tour. One can take the membership of hotels and restaurants for long-term benefits being offered by them. 

7.   Use of Debit and Credit Cards: 

Everyone should avoid use of credit card, because it can lead to be extravagant and higher rate of interest is charged by the banks on credit cash used through the credit card. However, one should use debit card which gives facility to use own deposited money without imposing much charges. But the use of debit card should also be done is smart way. Keeping debit card in pocket and spending without any purpose is a bad habit and one should avoid it. Only fruitful and essential expenditures should be made wisely. If there are offers, sales, one should buy in bulk but not so much stock that cannot be used even in long-term. In order to curb such expenditures, one should invest expected surplus money in the first week of the month and then from remaining money in hand; make the estimated expenditures carefully.

8.   Plan long term expenditures out of matured amounts of Investments:

The investments are made for a specific purpose, the surplus amount deposited in Fixed Deposits or Recurring Deposits whenever matured should be spend only for further investments or long-term fruitful expenditures like marriage, starting new business, purchasing plots or vehicles as per the requirement.

9. Decision of investment in Fixed Deposits or Debt-oriented Funds:

In case of slowdown in the economy, when most of the central banks start to reduce the rate of interest on Fixed Deposits, people prefer to invest in debt-oriented funds. The investors also consider the fixed income securities such as Government securities (like Provident Fund investments), treasury bills, and corporate bonds etc. In Debt oriented funds, nominal charges are imposed for making investment i.e. Entry charges on each transaction. In Fixed Deposits, the return on investment is certain and can easily be computed but in case of Debt-oriented funds, either dividends are provided or profits are maintained by the corporate which led to appreciation in Net Asset Value (NAV) on which basis the value of Debt-oriented funds enhanced. 
One benefit of Debt-oriented funds in India, is that the income tax act provides exemption on tax if the sale proceeds of such investments are invested in a new residential house property subject to satisfaction of stipulated conditions.

Conclusion:

It is must to plan wisely to have bright future and get relaxed in long-term. One should further plan the old-age expenditures and retirement planning to stay healthy with sufficient money in his hands. It is fact that one person can easily gain more opportunities for earning money after getting more skills in his hand. The YouTube channels can be used for self education, online classes, and more. 

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. 

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