Assessment 3: MYOB Exercise

This report discusses the functions provided by MYOB software, issues with manual accounting systems, benefits of online accounting software, economic transactions at First National Real Estate using MYOB, and limitations of implementing MYOB.

Assessment 3: MYOB Exercise 1
ASSESSMENT 3: MYOB EXERCISE
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Assessment 3: MYOB Exercise 2
Assessment 3: MYOB Exercise
Introduction
MYOB is one of the online accounting software (Johnston 2003). It offers wide range of
solutions to businesses across New Zealand and Australia (Pulakanam & Suraweera 2010).
Basically, MYOB is considered as an easy and fast mean of managing ATO compliance
requirements and cash flow. In this sense, the report presents some of the functions provided
by the MYOB software. It also presents some issues associated with manual accounting and
later presents benefits related to online accounting software. The paper is wrapped with a
discussion of three specific economic transactions which would take place at First National
Real Estate by using MYOB and discussion of limitations it would face while implementing
the MYOB.
Specific Functions Provided By MYOB Software
MYOB offers a number of functions. First, MYOB software assists business owners in taking
care of the GST, reporting, payroll, invoices and expenses as well as saving time and
increasing productivity (R&G Technologies Blog 2014). It also helps them remain updated
with the compliance obligations. Further, MYOB software offers secure location in storing
expenses, present and past and all vital business information in completing payroll record
with only several clicks.
Problems Associated with Manual Accounting System
There are a number of issues associated with use of manual accounting systems. First, when
an accountant is completing a task manual, there is likelihood of committing some errors.
According to AccountsMan.Com (2012) it is very easy for accountants to transpose some
numbers or making seemingly minor mistakes through manual accounting which could have

Assessment 3: MYOB Exercise 3
some far-reaching consequences. Secondly, manual accounting systems place more pressures
on accountants for them to present accurate or correct information (Johnston 2003). This is
based on the fact that accountants are not always perfect however much one wishes to be.
Thus, with manual accounting systems, level of accuracy is dependent on the individual
accountants, which place requirements on the organization’s management to running some
training continuously for their accountants so as to keep them motivated and ensuring they
follow correct procedures (Thomason 2019). It could be easy for accountants to accidently
switch financial information and end up with some inconsistencies in the accounting entries
through manual accounting. Thirdly, manual accounting system is expensive and time
consuming. It takes more physical space and efforts in keeping track of accounting books, to
find the information and keeping these information secure (AccountsMan.Com 2012). Thus,
whenever a single mistake is made or corrections or changes are required, often manual
adjustments should be redone completely instead of just updating the accounting records.
This raises the questions on whether manual accounting systems should be done away with in
preparing accounting records in most firms, thus, giving rise to online or digital accounting
systems.
Benefits Associated with Online Accounting Software
As a business operator, one is probably all aware that various components of the business
need constant attention in facilitating overall smooth running of his or her business. One of
these chief concepts includes ensuring that the business bookkeeping and account techniques
are fully up to scratch (Thompson 2016). Unluckily, taking on bookkeeping and accounting
duties manually could be extremely time consuming and take significant portion of the
business owner effort, distracting his or her from other components of the firm, and limiting
efficiency and workflow. Moreover, hiring outbound accountant could accrue significant

Assessment 3: MYOB Exercise 4
expenses to the business which would be hectic to afford leaving online accounting software
as the sole tool that could take care of the business needs, permitting it manage its own
accounts without incurring huge expenses in finances (eFolio Accounts 2019). As such, there
are several benefits associated with online accounting software ranging from security to
intuitive user interface.
First, online accounting software is easy to use and is adapted to performing most of work for
a business (Johnston 2003). This is based on the notion that it is designed for business owners
that has no significant bookkeeping and accounting experience. This makes it quick and easy
for a business owner to maintain accounting data without mastering the software. Secondly,
online accounting software ensures absolute safety for the business accounting information,
making it relatively easy for the business to invoice the clients and check its financial
situation any moment (Thompson 2016). Similarly, online accounting software provides
universalised system for a business to store its financial information, hence, resulting in
relatively few mistakes and less time being spent in correcting the inaccuracies. Basically,
online accounting software offer or shows real-time insight (eFolio Accounts 2019). This is
due to the notion that online accounting software permits business owner take charge of
driver’s seat since it gives the owner auto-dated, and real-time financial information
regarding its financial status or health.
Economic Transactions That Would Take Place at First National Real Estate by Use of
MYOB
MYOB would be used by First National Real Estate to instantly create and tract the PAYG,
GST as well as BAS reports (Johnston 2003). This is based on the notion that the MYOB is
easy for setting up and all transactions under MYOB are automatically reconciled in case
they are linked with the bank account. Secondly, MYOB software would also be useful for

Assessment 3: MYOB Exercise 5
First National Real Estate in lodging Single Touch Payroll for its employees and taxable
payments as well as reports with ATO (Pecchiar 2012). The software is updated
automatically each time there is some take adjustments in keeping the business in step with
ATO. It would also be used by the firm in comparing and improving its performance by
creating targeted, clear budgets and in tracking loss and profits in real-time. Basically,
MYOB software offers secure location for the company in storing expenses and important
information which is essential in completing its payroll with just some clicks (Johnston
2003). This enable First National Real Estate employees to access the timesheets as well as
their payslips online or through their mobile phones.
Limitations or Risks That First National Real Estate May Face While Implementing
MYOB
By implementing MYOB, First National Real Estate might also experience some limitations.
The main concern for implementing MYOB software in First National Real Estate would be
data security (Crofts & Hunter 2007). This is based on the fact that MYOB is vulnerable to
fraud, hackers and threats. Thus, it has invested heavily in security design and architecture
making it difficult for some firms to afford the level of security required, including secure
approval process as well as access control.
Conclusion
In conclusion, MYOB offers cost-effective solutions for First National Real Estate. It helps
them streamline not only its accounting, but in developing strategic technique to future. Thus,
it gives First National Real Estate an opportunity in eliminating inefficiencies holding its
back from accomplishing its full potential.

Assessment 3: MYOB Exercise 6
REFERENCES
AccountsMan.Com 2012, Manual Accounting Systems - advantages, disadvantages and
overview of Manual accounts procedures: Viewed from,
http://www.accountsman.com/manual-accounting-systems.html (Accessed at 30th March
2019).
eFolio Accounts 2019, The benefits of online accounting software for small businesses:
Viewed from, https://www.efolioaccounts.com/the-benefits-of-online-accounting-software/
(Accessed at 30th March 2019).
Crofts, K & Hunter, C 2007, ‘Using onscreen-action-capture tutorials to enhance student
learning of MYOB software,’ In Proceedings of the Second Innovation in Accounting and
Corporate Governance Education Conference (Vol. 31).
Pecchiar, G 2012, ‘Upgrade to WMS, keep QuickBooks and MYOB’, MHD Supply Chain
Solutions, 42(1), 24.
Pulakanam, V & Suraweera, T 2010, ‘Implementing accounting software in small businesses
in New Zealand: An exploratory investigation’, Accountancy Business and the Public
Interest, 9(64), pp.98-124.
Johnston, RP 2003, ‘A strategy for finding the right accounting software’, Journal of
Accountancy, 196(3), p.39.