Project Report on “The execution of accounting standards and policies in BPO Department of Data Path Ltd”

Abstract

The first segment of this report gives a brief introduction about the background, objective, motivation, scope and limitations of this thesis paper etc. This chapter introduces viewers to the core theme of this report, i.e., my four-month internship experience at Data-Path Ltd., a third-party administrator for American 401(K) plans. The main objective of this report is to compare and contrast the business process outsourcing (BPO) sector in Bangladesh and the United States. My motivation for this report is to explore the US retirement plan system and its various contribution options. The scope of this thesis paper, which is discussed in this chapter, is focused on the outsourcing department at Data-Path Ltd., with limitations including a lack of information about employee contributions and employer-provided proportions. This chapter also includes definitions of key terms, such as Allocated Compensation and Highly Compensated Employees (HCEs). The second chapter of this report provides a comprehensive literature review focusing on Data-Path Ltd.'s implementation of accounting standards and policies within its BPO department. Key highlights include an overview of Data-Path Ltd. and the US Retirement Plan Industry, the company's commitment to adhering to Generally Accepted Accounting Principles (GAAP), challenges faced in implementing accounting standards, steps taken to address these challenges, ethical considerations, research gaps, and the promising future of accounting in the BPO industry. Chapter three outlines the methodology employed in the research study focused on implementing accounting standards and policies within Data-Path Ltd.'s BPO department. Key elements covered include the framework used to design the research, methodologies implemented to collect data, approaches to data analysis, ethical contemplations and tactics for alleviating constraints. The fourth portion of this report, i.e.: Chapter IV, provides an overview of Data-Path Ltd, a private company in Dhaka, Bangladesh, that specializes in retirement plan administration services in the US. The company is affiliated with July Business Services (JBS), the parent company based in Waco, Texas, and has a mission to provide effective client assistance by utilizing the latest available technologies with a focus on transformation and innovation. Data-Path has experienced continuous growth since its start with only five employees in 2008 and has over 350 highly skilled employees. The company offers a wide range of services to both JBS and other USA clients, including creating compliant retirement plans, automated recordkeeping services, and payroll services. The SWOT analysis of the company indicates a strong culture and attractive pay and holidays as strengths, dependency on July and data safety as weaknesses, business development and technological advancement as opportunities, and competition as a threat. In the fifth segment of this paper, I reflect about my overall internship tenure at Data Path Ltd. Chapter V emphasizes on my job responsibilities during my internship period at Data Path Ltd. in the BPO department, where I was appointed to work for one of the department's most critical clients, Associated Pension Clients Inc. (APCI). As an BPO intern, my tasks included preparing plan proposals, restatements of plan documents review, Datair generated new plan creation, FAR statement preparation, payroll preparation, census checking, eligibility checking, calculations of match, profit sharing, vesting percentage, ADP/ACP testing, coverage testing, top heavy calculation, and top-heavy report generation. This chapter also reflected the things I have learned throughout this internship experience including technical skills, analytical skills, and skills enhancement, and personal development. I also discussed about my interactions with my reporting supervisor and co-workers, all of whom were friendly and supportive. I ended this chapter by discussing about some difficulties and challenges I faced at work, such as workload management and communication issues. Chapter VI is beyond a shadow of a doubt the most vital portion of this thesis paper as it directly reflects on the title of this report, i.e., "The execution of accounting standards (BAS, BFRS) and policies (Companies Act, SRO's) in the BPO Department of Data Path Ltd." This chapter discusses how Data-Path Ltd. efficiently manages its accounting needs using SAGE 100 and RELIUS software. SAGE 100 streamlines financial and operational processes with modules covering accounting, production, distribution, HR, project management, and CRM. Advantages include adaptability, security, and scalability, though challenges like invoice batching and setup complexity exist. RELIUS offers trusted solutions for retirement and health benefit plan management, with flexible document creation and administration. However, its cost can be a drawback. Data-Path's daily activity involves various tasks for maintaining retirement plan accounts, such as updating costs, settling transactions, and monitoring cash. Reconciliation processes ensure accuracy and consistency in financial records. Regular reviews uncover discrepancies and operational inefficiencies, aiding in risk mitigation. Monitoring stock positions and loan activity complements cash balance tracking. Addressing operational deficiencies minimizes financial risks, ensuring smooth retirement plan operations. These functions are crucial in ensuring accurate and timely accounting records. Another pivotal portion of this thesis paper is Chapter VII. This chapter underscores the importance of proper accounting procedures for effective recordkeeping in the Retirement Benefit Plan (RBP) department. Key areas of focus include:  Plan Document: Describing the foundational aspects of retirement plans, such as contribution types, eligibility criteria, and entry dates.  Census Checking: Highlighting the critical role of verifying data provided by employers to ensure accuracy before proceeding with complex accounting processes.  Contribution Reconciliation: Outlining the central accounting procedure for RPF, aiming to identify account receivables, account payables, and various financial components.  Loan Reconciliation: Addressing loans and repayments within retirement provident plans.  Asset Reconciliation: Summarizing the creation of a balance sheet to capture balances of different accounts. Accurate accounting is essential, as it ensures a comprehensive understanding of retirement plans, supports data recording, and contributes to efficient business operations. Proper checks and reconciliations are essential for maintaining financial integrity. Chapter VIII, the penultimate chapter of this report, provides a comprehensive set of recommendations for Data-Path Ltd. to enhance their accounting practices and procedures for managing retirement benefit plans. These recommendations cover various aspects, including streamlining accounting software usage by customizing, integrating, and ensuring regular updates. Addressing software disadvantages, such as batch invoice payment and general ledger setup, is advised. The report also suggests optimizing the usage of RELIUS software through cost evaluation. To enhance accounting procedures, automation, error handling, and real-time monitoring are recommended. Data verification, reporting, and communication improvements are proposed, along with establishing internal controls, encouraging employee training, and developing a risk mitigation strategy. Regular performance evaluations are encouraged to ensure long-term success and participant satisfaction. These recommendations aim to improve efficiency, accuracy, and overall management of retirement benefit plans at Data-Path Ltd. I finally concluded the report with Chapter IX, where I share key insights and draw conclusions regarding Data-Path Ltd. By the end of Chapter IX, I put some bibliographical information of some external sources, that helped me garner vital information and further enhance this academic internship thesis paper, in APA format. Also, in the appendix section that follows the reference section, I attached an internship completion certificate which the prestigious BPO organization, i.e., Data-Path Ltd., awarded me after 4 months of training and learning.