MYOB: Functions, Problems, Benefits, and Limitations

This report explores the specific functions of MYOB software, the problems of manual software, the benefits of online software tools, and the limitations involved in the MYOB implementation. It focuses on the case of First National Real Estate.

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Foundation of professional accounting

MYOB
Executive summary
With the aid of this report, MYOB is studied in the light of First National Real Estate. The
report initiates with an introduction followed by the specific function performed by MYOB.
It then sheds light on the problem of manual system together with benefits of accounting
software tool. The application of MYOB in First National Real Estate is discussed together
with risks in the implementation.
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Contents
Introduction...........................................................................................................................................4
1. Specific function of MYOB software..............................................................................................4
2. Problem of manual software.........................................................................................................4
3. Benefits of online software tool....................................................................................................5
4. Economic transactions at First National Real Estate......................................................................6
5. Limitations involved in the MYOB implementation.......................................................................6
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9
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Introduction
Mind Your Own Business or MYOB business software is generally a computerized package
of accounting that can assist in professional handling of business data to the users. The
package must be adopted by every user so that they can attain the maximum benefit out of the
same. The function of MYOB is also of crucial importance as management information is
vital in planning for future actions.
1. Specific function of MYOB software
The specific functions that are offered by the MYOB software are as follows. Firstly, it plays
a key role in maximum cutting of costs in the sense that it can offer accurate and up-to date
accessibility to financial data. In other words, it means that the accounting and audit costs
will be minimal in comparison to a complicated manual system that will incur higher costs to
the users. Secondly, MYOB software assists in faster inputs in comparison to a manual
complicated accounting software (Brien & Marakas, 2009). Therefore, since the facility of
rapid inputs is prevalent in this software, there will not be additional consumption of time.
Moreover, many manual systems necessitate multiple entries for one single transaction that
complicates the entire process, thereby creating obstacles for the users. The third function
that is offered by MYOB software is that it can play a key role in offering rapid access to
management information, thereby simplifying the work of users. In relation to this, it must be
noted that the current situation of business finance is immensely important for the users to
make relevant decisions for a better future. Nevertheless, with the help of a MYOB software,
users can generate invoices and reports in an easier manner so that the same can be extracted
and accessed whenever required (Brien & Marakas, 2009).
2. Problem of manual software
The problems of utilizing a manual accounting system are as follows. Firstly, errors and flaws
are more frequent in such systems that can result into grave scenarios for the entire company.
Such general flaws are transposing of figures or amounts, entering of data into inappropriate
accounts, backward recording of data, etc. Nonetheless, while these errors or flaws can also
be witnessed in modernized systems of accounting, yet they also pursue internal balances and
checks that is absent in manual accounting systems. As a result, the accountants will have to
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expend additional hours in order to research these errors and rectify the entries (MYOB,
2019). The second problem of using a manual accounting system is that accounting
procedures that utilize ledgers and journals necessitate copious amount of time to finish the
tasks and as a result, accountants will have to locate such journals and accounts in the system
before recording the entries, thereby making it very time consuming for them. Furthermore,
reviewing details and checking the account balances will also become complicated for the
accountants as they may need to monitor several kinds of documents so that the information
demanded by executives can be located effectively. Besides, copying such details is also a
complicated task for them (Predisco, 2016). The third problem is that there is an absence of
adequate security in a manual accounting system and companies might not be capable of
preventing any employees from reviewing sensitive information in the journals or paper
ledgers. Furthermore, files that are stored or copied on a computer can also be misused by
any person as there is an absence of proper security in the accounting system (Machpherson,
2018). Therefore, this can grant the employees an opportunity to abuse various financial
information.
3. Benefits of online software tool
The benefits of utilizing an online tool of accounting software are as follows. In simple
words, it means that business performance can be easily monitored through such online
accounting tool at the click of a button. The second benefit is that online software tools like
Crunch offers an easy-to-use software for chasing and sending invoices, automatically
computing tax liabilities, monitoring the financial performance of company, entering of
expenses, etc. Nevertheless, these details can be so efficiently presented that the accounting
figures cannot become jumbled and topsy-turvy and the accountant can easily draw meaning
information out of the same (Weistroffer et. al, 2016). The last benefit of online software tool
is that these tools come with an efficient blend of time-saving and user-friendly technology
that is supported by human assistance and on-tap accounting advice as well (MYOB
Products, 2016). Furthermore, every client who utilizes such software tool also attains their
own client managers who are delegated the responsibility of ensuring that the accounts are
running on a smooth basis and their prevalence is guaranteed so that all the queries and issues
of clients can be resolved as soon as possible. Besides, for technical and other complicated
issues in online accounting software tools, there are experts who are readily available for the
customers so that they do not encounter any major problem or difficulty (Weber, 2016).
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4. Economic transactions at First National Real Estate
The economic transactions that will take place at First National Real Estate are :
 The payment made to the brokers who are involved
 Sales, purchase and other banking needs associated with the business
 Logistics of tracing properties and multiple listing services
MYOB is framed in a manner that helps in the accounting process of real estate. It offers
various services such as sales, purchase, and banking. The payroll can be processed with the
help of MYOB. When the data is present online, it helps in the access of data. Various
records can be maintained adhering to the policies and plans. Further MYOB helps in
recording of sales and transactions of rents (MYOB, 2019). Moreover, the expenses are
classified in a proper manner that helps in the proper maintenance of records.
5. Limitations involved in the MYOB implementation
The risks or limitations that First National Real Estate may encounter while implementing the
Mind Your Own Business software are as follows. The first risk is that desktop softwares are
primarily faster than the online software tools especially in relation to entry of data. Besides,
accountants and bookkeepers generally have a complain that they cannot operate as fast when
the medium of accounting is chosen as online (MYOB, 2016). Nevertheless, even though this
is more likely to be of a non-serious nature through passage of time but modern
enhancements in browser technologies and enhancements in the internet speed are already
terminating the gaps with desktop softwares (MYOB, 2016). Besides, there are developers
who believe that such difference will become negligible with due course of time. The second
risk that can be faced by First National Real Estate is the risk of less data control wherein the
issue initiates from data storage. In other words, old business owners can be more terrified of
losing control of accounting information and on the other hand, accountants have been more
trustworthy when it comes to accounting files. Nevertheless, software organizations generally
store information in data centres that are prevalent in other countries and attract distinct
intellectual property laws as well. The last risk is that MYOB softwares can be too expensive
for the company because such online software tools are sold under a distinct model and
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instead of purchasing the same, these are generally rented on a monthly basis (Cats, 2016).
Therefore, this can rapidly end up costing additional expenses.
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Conclusion
MYOB software also allows easier filing of GST returns to the users. In other words, such
software can allow automatic generation of figures that can assist users in various tasks. It is
imperative that for contractors, freelancers, and small owners of businesses, accounting is a
very mysterious zone as attaining most accurate and updated information of company
accounts is extremely difficult in nature. Nevertheless, instead of demanding from the
accountants to gather and put all the requisite data that demands extra cost, an online tool of
accounting can be used to see all these data in real time basis that will save extra costs as well
as lead to smooth function
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References
Brien, J & Marakas, G 2009, Management Information Systems, McGraw-Hill.
Weber, M 2016, Manual Accounting Versus Computerized Accounting, viewed 30/03/2019,
https://www.experience.com/alumnus/article?
channel_id=accounting&source_page=breaking_in&article_id=article_1173385201144
Weistroffer, H.R, Smith, C.H and Narula, SC 2010, Multiple criteria decision support
software, Springer: Oxford University Press.
Machpherson, S. 2018, The latest in online accounting software in Australia, viewed
30/03/2019, https://www.intheblack.com/articles/2018/12/01/latest-online-accounting-
software-australia
Cats 2016, MYOB Training, viewed 30/03/2019, http://www.caats.com.au/myob-training-pi-
10.html
MYOB 2016, MYOB accounting system, viewed 30/03/2019,
http://www.myobaccountingsystem.com/
MYOB 2019, MYOB problem, viewed 30/03/2019,
https://www.myob.com/au/enterprise/case-studies/first-national
MYOB Products 2016, Case studies, viewed 30/03/2019,
https://www.myob.com/au/enterprise/case-studies#?filterBy=Industry&filterByTag=All
Predisco 2016, Learning MYOB, viewed 30/03/2019,
https://www.perdisco.com/au/myoblearning/software/default.aspx
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