MYOB Exercise: Functions, Problems, Benefits, and Limitations

This article discusses the functions, problems, benefits, and limitations of MYOB software. It also covers economic transactions at Soul Origin and limitations in implementing MYOB.

Running Head: MYOB EXERCISE
MYOB EXERCISE
Name of the Student
Name of the University
Author Note

1MYOB EXERCISE
MYOB
The full form of MYOB is Mind your own business that is the Australian
multinational corporation, which helps in providing accounting, tax as well as other services
of business software to the small as well as medium business. In early 1980s, it was founded
by the developers’ team at Teleware, Inc who have developed accounting software (MYOB
2019). The limitations of the manual accounting system has resulted into the development of
the new software of accounting. Hence, under this assignment, discussion will be done on
functions of MYOB, limitations of using the manual accounting system, advantages of the
online accounting software tools, and economic transactions at Soul Origin as well as
limitations in the implementations of MYOB (Azih 2018).
MYOB Software Functions
MYOB helps the owners of the business for taking care of GST, reporting, payroll,
expenses and reporting, increases the productivity, saves time as well as stays up to date with
their obligations of compliance. The essentials of MYOB works online and it is the fastest as
well as easiest way for managing the cash flow and the requirements of ATO compliance.
MYOB is not just the software accounting rather it has the wider scope. It is the integrated
business as well as the inventory management solutions that are suitable for SME’s. This
software helps in maintaining history up to 7 years (Curtis 2015). Following are one of the
main functions of MYOB software:
The MYOB Payrolls helps in giving the power for processing even if there is high
level of complexity of the payrolls within the second.
In general ledger of the company, chart of accounts is the listing of all the accounts
used. Hence this chart is being used by these accounting software for aggregating the
information into the financial statements of entity.

2MYOB EXERCISE
These accounting software helps in developing the MS access database, which helps
in running customers, products, inventory and assets tracking databases.
It helps in the preparing the Profit and loss report, which helps in showing the income
as well as the total expenses in the specific period of time. Hence, the accounting
software helps in comping up with some of the strategies of cost cutting (Ware 2015).
Problems of using Manual Accounting System
The contemporary systems of accounting records the transactions that are relating to
the activity of the business for communicating the financial health of the company to their
stakeholders. However, availability of options of software for the accounting as well as
bookkeeping tasks has resulted into slowly vanishing of the manual system of accounting.
Following are some of the problems that are being faced by using manual accounting system:
In the manual system, double entry accounting is laborious, it is because every
transactions have to be recorded twice by hand (MYOB 2019).
In case of corrupted digital data, data can be protected with the help of effective
backups. However, physical books such as ledgers and journals are more for loss. In
case if there is any type of theft or fire, whole data will be lost.
Unlike various packages of commercial software, the Manual accounting system are
not optimized for using it easily, neither there is any expectation of support from the
client. The accountant for start-up has to maintain the manual accounting system
(Dimitriu and Matei 2015).
Benefits of using Online Accounting Software Tools
Following are the major befits of the online accounting software tools:
Accuracy and Time-Saving- Online accounting software enables for enjoying the
excellent experience for executing the task efficiently and quickly.

3MYOB EXERCISE
Incredible Accessibility- It is one of the greatest feature of online accounting
software for accessing anytime-anywhere, which ultimately helps in managing the
account any moment.
Convenient Filling of Tax- The online accounting software helps in organizing the
necessary invoices and receipts for income tax filling and tax compliance that makes
it smooth as well as convenient process (MYOB 2019).
Reduction of Cost- The online software accounting tools helps in completely
eliminating the requirement of hiring accountant or for additional time in order to
check invoices and books accuracy, which leads to reducing the cost.
Adequate Analysis and Timely Reports- The advanced online accounting tools in
today’s era are efficient for providing various kinds of the relevant reports that are
required by the different parties with minimum effort at any point of time.
Economic Transactions at Soul Origin
Following are the economic transactions, which would be taking place at Soul Origin
and the usefulness of MYOB are as follows:
MYOB would help in maintaining different accounts of the different stores that would
help in analyzing the growth rate of each store after comparing it with the
consolidated statements of the company.
It will be helpful in knowing about the capital expenditure and the respective return
on each and every stores.
MYOB will also help in maintaining as well as removing the haphazard of the payroll
of the employees of every stores of Soul Origin (Sampaio and Bernardino 2016).
Limitations in Implementations of MYOB

4MYOB EXERCISE
Following are some of the main limitations in the implementations of MYOB by Soul
Origin:
The major concern for the cloud accounting system such as MYOB is security of the
data. It is because the content of online may be vulnerable to the hacker, threats as
well as fraud. However, for implementing the best practices of industry, the
investment has to be done heavily in the design as well as security architecture.
Hence, it is not necessary that every organization would afford this level of
investment in the security (Humphrey and Beard 2014).
MYOB is not considered to be novice-friendly. The workforce of the organization has
to be trained on software for avoiding the employees that are continuing with the
inefficient manual processes. There are many companies who does not take the
advantages of the cloud automation, it is because they have got used to limitations of
old solution. Hence, it is very critical for arranging for the training of staff (Rahwani
2017).
Hence, it can be said that this accounting software helps the organizations for efficiently
managing the payroll, cash flows as well as day-to-day bookwork. The cloud accounting
system of MYOB helps dramatically in reducing the time that are wasted on the manual
processes that causes inaccuracies and bottlenecking. The organizations that uses MYOB,
ends upon by saving the great deal of money and time as there is no need for the upfront
expenditures of capital on the computing resources.

5MYOB EXERCISE
Reference
Azih, N., 2018. Electronic accounting: An imperative tool for quality assurance in accounting
education programme in the digital era. Nigerian Journal of Business Education (NIGJBED),
1(2), pp.90-98.
Curtis, V., 2015. MYOB Software for Dummies-Australia. John Wiley & Sons.
Dimitriu, O. and Matei, M., 2015. Cloud accounting: a new business model in a challenging
context. Procedia Economics and Finance, 32, pp.665-671.
Humphrey, R.L. and Beard, D.F., 2014. Faculty perceptions of online homework software in
accounting education. Journal of Accounting Education, 32(3), pp.238-258.
MYOB. (2019). Soul Origin | Enterprise Case Studies | MYOB. [online] Available at:
https://www.myob.com/au/enterprise/case-studies/soul-origin [Accessed 8 Jul. 2019].
Rahwani, N.R., 2017, December. PATCHING THE LIMITATIONS OF ACCURATE
ACCOUNTING 5.0 in RECORDING SALES ADVANCE TRANSACTIONS.
In Proceeding of National Conference on Asbis (Vol. 2, No. 1, pp. 308-314).
Sampaio, D. and Bernardino, J., 2016. Open source accounting software for
SMEs. International Journal of Business Information Systems, 23(3), pp.287-306.
Ware, E.O., 2015. Computerised accounting system an effective means of keeping
accounting records in Ghanaian banks: A case study of the Ga Rural Bank. International
Journal of Research, 111.