Accounting Report: Analysis of MYOB Implementation at Core 7 Fitness

This report examines the implementation of MYOB accounting software at Core 7 Fitness, a small-scale business transitioning from manual to online accounting. It highlights the advantages of MYOB, such as reduced time consumption, minimized human error, and enhanced security, while also addressing the economic transactions of small businesses, including investments, asset acquisition, and revenue recording. The report further explores the benefits of using accounting software tools in general, such as time savings, error reduction, and improved information accessibility. It also identifies the difficulties Core 7 Fitness faced with manual accounting, including time inefficiency and security risks, and discusses the drawbacks of MYOB, such as online vulnerability, the need for staff training, and potential high costs. The report concludes by emphasizing the importance of proper training and careful consideration of business size when adopting MYOB or similar software.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author Note

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Table of Contents
Introduction......................................................................................................................................2
The summary table..........................................................................................................................2
Economic Transactions of the small-scale business........................................................................3
Advantages of using software tool to maintain accounts................................................................4
Difficulties faced by Core 7 Fitness in Manual Accounting Operation..........................................5
Drawbacks of MYOB......................................................................................................................5
References........................................................................................................................................7

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Introduction
The issue that has been identified in the question is that the business firm Core 7 Fitness
had been carrying out the financial transactions via a manual accounting system. The
management of the gym in the recent times had been considering substituting the manual
accounting system by the implementation of an online accounting software. This is particularly
due to the fact that the business has been facing growth in terms of sales. Moreover, the
management of the company has been reported to look after five businesses at once. This had
made it urgent for the required substitution of the accounting system to an online accounting
software. It must also be noted here that the utilization of a manual accounting system may be
prone to issues like human errors and issues of fraud. Therefore, these identified issues have
initiated the management to take the decision of implementing an accounting software in the
business unit. The particular accounting software that has been chosen for this particular study is
MYOB (Daru 2016).
This particular study aims to look into the advantages that have been perceived by Core 7
Fitness after the implementation of MYOB in the firm.
The summary table
The problem faced by Core 7 Fitness before the
implementation of MYOB
The advantages perceived by the company post the
implementation of MYOB
1. Consumption of excess time - The
proceedings of the financial
transactions of a business unit via
manual accounting system results in
the consumption of excess time. An
accountant working with the help of a
manual accounting system will have to
mandatorily check the journals and
ledgers before making an entry into the
financial statements, which will result
1. Access not restricted by time – The
implementation of MYOB has proven
to be very useful for the particular
business concern of Core 7 Fitness.
This is because the executives of the
business firm are now able to access the
particulars of business from anywhere
at any point of time. It must be noted
here that the particular accounting
software of MYOB facilitates the

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in the excess consumption of time (Ma
2015).
2. Human error – the utilization of a
manual accounting system makes the
financial statements prone to human
error. Moreover, the facility of internal
checks and balances is absent in case of
a manual accounting system which
make it more prone to human errors
(Ma 2015).
3. Breach of security – the use of manual
accounting system makes the financial
information exposed to the risk of
breach. Moreover, sensitive customer
data is exposed to the risk of fraud or
embezzlement (Ma 2015).
essential feature of remote working
capability (Sriyono 2017).
2. Quick execution of the financial
transactions – the utilization of the
online accounting system make the
process of financial proceedings quick
by synchronizing the financial
information and making the entire
process automated in nature (Sriyono
2017).
3. A higher degree of accuracy – the
implementation of MYOB has ensured
the accuracy in the financial
information that has been reflected in
the financial statements of the business
concern. Moreover, MYOB also
facilitates the security of the client as
well as crucial business information
(Sriyono 2017).
Economic Transactions of the small-scale business
In the small scale business certain economic transactions do certainly occur and are
mentioned below:
 Investments made by the business owners – Initially to start up the business and later for
any improvement or expansion of the business owner make investments.
 To acquire assets on cash – The purchase that are made on cash to acquire assets.
 To acquire assets against future liability – Sometimes the small business firms acquire
assets for the business on credit on a promise to meet the future liability.

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 The payments that are made to clear the Liability – The small business owners later pay
the liability that has been incurred.
 Revenue – Incurred revenues are mandatorily recorded by the business and hence are
economic transactions.
 Accounts Receivables – The payments due to be collected are considered as the credits is
referred as the accounts receivables of the business.
 Expenses – Irrespective of any size, some important expenses are made by any business
to carry out the operation of the concern.
Advantages of using software tool to maintain accounts
In the current period it is almost a common practice for any business concern to use some
software to maintain accounting records. Some important benefits are enumerated below:
 Records are maintained in lesser time – In comparison to the manual maintenance of
records, software take much lesser time to keep the accounting records. For instance in
software system the accounting and product descriptions are easily selected from the list
instead of writing them each time (Perrin and Pabst 2016).
 Chance of human error is curtailed - Further the chances of human errors are further
curtailed to keep more accurate accounting records. Duplication of accounting entries and
redundancy can be easily avoided by using accounting software. It means that the
business concerns by using software tool can maintain more accurate accounts in a better
way (Perrin and Pabst 2016).
 Accounting information can be easily transported – In keeping pace with the modern
business requirement the different staff operates from various locations. Software
provides ready information to all such users which is beyond any human capacity (Perrin
and Pabst 2016).
 The recorded accounting information is secured – By using any software tool for the
accounting purpose the business concern can easily achieve security. Manual records are
more prone to any kind of natural damage viz. water, fire, etc. Further in the manual
keeping of records improper and unauthorized alteration by any staff or employee can be

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made but in software by utilizing proper security password the tampering of accounting
information is easily prevented. In addition to this some software system for instance
MYOB do not allow any embezzlements or frauds (Madurapperuma 2015)
Difficulties faced by Core 7 Fitness in Manual Accounting Operation
The basic disadvantage of manual accounting process is that even any efficient
accountant takes a huge time to maintain accounting records. Further common human error
inhibits proper and accurate maintenance of accounts. Along with these limitations in the case of
manual keeping of accounting records the information is highly exposed to unauthorized
personnel. Privacy of the accounting information is more than difficult and at any time business
concern may face immense loss for improper outflow of any information.
The economic transactions of Core 7 Fitness
There three basic economic transactions are as follows:
 Accounts Payable – the accounts payable transactions are a common set of economic
transactions that take place in the firm. These transactions might be in regards to the
payments that are due on the part of the company
 Accounts Receivable – the accounts receivables transactions refers to the payments that
are due on the part of the customers visiting the gym
 The Purchase of various fitness equipments – the purchase of various fitness equipments
is another common economic transaction that might take place in the gym.
Drawbacks of MYOB
 As an online software MYOB is highly exposed to hackers and unknown frauds. This is
because MYOB being an online software is exposed to all kinds of virtual threats (Lew
2018)

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 The utilization of MYOB will require effective and detailed training for enabling the staff
of the business firm to acquire the benefits of the training. Without proper training of the
staff, the software cannot be implemented in the business unit (Lew 2018)
 If not matching with the requirements and size of the business, MYOB can be highly
expensive. This is because the continuous updates that are received by this particular
software makes it expensive to implement in case of a small-scale business (Lew 2018)
