Ryman Healthcare: Analysis of MYOB Software for Accounting Purposes

This report examines the implementation of MYOB accounting software for Ryman Healthcare (RH), a vertically integrated company with complex accounting needs. It details how MYOB addresses RH's challenges, including consolidating multiple supply ledgers, managing job costing, automating invoicing, and streamlining payroll through STP. The report contrasts MYOB with manual accounting systems, highlighting the inefficiencies and limitations of the latter. It emphasizes the benefits of online accounting software (OAS) like MYOB, such as automated double-entry, accessibility via mobile apps, and automated tax compliance. The report also defines accounting processes within RH's operations, focusing on transactions with suppliers, payroll, and clients. Finally, it discusses potential risks associated with OAS implementation, including technical issues, data security concerns, compliance challenges, and cost considerations. The report concludes that while MYOB offers significant advantages, RH must carefully assess these risks before fully transitioning to the software.

1. 1. Outline the specific functions provided by MYOB software.
MYOB software has provided Ryman Healthcare (RH) with many important features to suit
the specific accounting and reporting needs. The key reason RH chose MYOB was for its
integration of job costing. MYOB has consolidated multiple supply ledgers into one and has
created a unified Job ledger that are linked across the companies.
RH is vertically integrated, which means it must deal with 30 companies, each posing their
own unique accounting challenge. The company had to previously consolidate multiple
supply ledgers manually, which was time consuming and expensive. MYOB with its
AccountRight feature provides customised invoicing solutions like automating the invoicing,
GST cashflow tracking, and invoicing in local and foreign currencies.
MYOB offers the ability to track and assign costs and expenses to individual projects/jobs,
this helps RH to accurately identify its cost centres and determine profitability. MYOB offers
multiple inventory management tools like tracking stock levels, back orders, to set automated
alert for low stock levels. It also facilitates in verifying counted and physical stock levels
across multiple warehouses.
Through STP (Single touch Payroll) RH can manage their payroll for their over 4000
employees. STP provides functionalities like automatic computation of tax, leave and
superannuation. Irrespective of the number of employees, the time required to do payroll
remains the same with STP. The MYOB team app enables RH to track the clock on and off
hours of the employees.
MYOB Greentree IQ is an ERP software that manages every aspect of the business and
provides vital information about the business via various dashboards like cash flow tracking
dashboard. It also provides trend analysis, real time view of cash flows, and other business
health indicators.

Put the greentree stuff first and then explain each aspect of greentree separately.
2.2. Discuss the problems of using a manual accounting system.
A manual accounting system is a way of maintaining business financial transactions with a
written ledger. Computers and software are not used as a part of manual accounting software.
Manual accounting systems can be attractive to new and small businesses as they are easy
and simple to maintain, but it poses many problems like
1. Knowledge of double entry system is essential to maintain a proper set of accounts.
Double entry accounting in a manual setting is a laborious and lengthy process.
2. As the business scales up, the accounting process becomes more complex posing its
own challenges.
3. Every financial report like the trial balance, statement of profit or loss etc must be
prepared manually by looking at every ledger. In the case of RH, 10 different supply
ledgers had to be consolidated manually.
4. As the business grows the accounting process becomes more expensive, complicated
and time consuming. Any report required by the management must be prepared
manually by a knowledgeable person, this requires the employment of expensive
labour in clerical tasks rather than managerial tasks.
5. Critical financial data may not be easily accessible as it may span across multiple
physical ledgers, unlike in a software package like MYOB where with a click of a
button visual charts and dashboards can be generated in an instant.
6. Manual accounting systems are plagued with many other issues like accuracy, data
security and access, potential loss of physical copies. As the debit and credit entries

are manually made, there is a high risk of error. The books can be accessed by
anyone, leading to misplacing of records and subsequent loss of data.
3.
1. Online accounting software (OAS) packages like MYOB and Xero offer an affordable
option for businesses to maintain a computerized financial record, that are stored in
the cloud with multiple on-site and off-site backups.
2. The knowledge of double entry system required is minimum as the software
automatically creates the second entry, thus avoid clerical errors.(Shpak 2019)
3. The online software package can be modified to suit the specific needs of the client
like RH that is involved in construction and healthcare.
4. Financial data can be accessed from anywhere using secure mobile apps, expense bills
can be added by taking a picture of the invoice, this makes tracking and auditing
expenses easy.
5. Financial reports, analytical reports and a 360 degree view of the financial position
can be obtained with a few clicks. (Fully Integrated Software System | Greentree ERP
| MYOB n.d.)
6. Through
employee profiles, time and performance can be tracked for individual employees and
payroll can be handled with just a few clicks.
7. OAS packages offer automated tax law compliance like STP mandated by the ATO.
Also, with OAS GST cashflows and other tax compliance can be automated saving
money and time.(Single Touch Payroll (STP) Get Your Business Ready | MYOB n.d.)

4.
“Accounting is the process of identifying, measuring, recording and communicating the
economic actions and events of a business operation.” (Kolitz 2014). Economic transactions
are transactions where goods and services are exchanged for money or moneys worth. RH
mainly deals in the following three areas where economic transactions happen:
i. Transactions with Suppliers.
RH deals with many suppliers for its construction business as well as the operation of
the retirement villages across the countries. MYOB helps RH consolidate their
numerous supply ledgers. MYOB keeps track of inventories, ordering and back
orders, and payment due dates this helps RH keep track of costs and allocate it
properly.
ii. Payroll.
RH has over 4000 employees, MYOB Team app allows employees to clock on and
off, thus keeping track of the time they worked automatically. MYOB automatically
calculates the tax, leave and superannuation. MYOB keeps up with the expansion of
RH (MYOB 2020) and manages the payroll in the same amount of time irrespective
of the team size.
iii. Transactions with the clients.
MYOB Greentree™ ERP offers a resourceful client management and invoicing
systems. It integrates the financial and distribution suites. Only one system is required
through the life of the customer as it stores their contact and business information and
shares the key knowledge and resource across the departments. With MYOB Invoice
app, automated invoices are generated and sent to the customers along with reminders
and ability to track the invoices from opened to paid.

5.
RH may benefit tremendously from switching over from MAS to OAS like MYOB, but it has
to consider the following risks while implementation of OAS:
1. Technical Issues.
Although the data stored on the servers of MYOB can be accessed from anywhere and
anytime, computers are not 100% reliable, thus can malfunction. Despite maintaining
high standards, they can run in to technical issues, RH should evaluate the risks and
prepare accordingly.(Apostu et al. 2013)
2. Data security.
Although MYOB has a proven track record of data security, but RH must understand
that they are handing over sensitive financial data to a third-party service provider,
and this exposes them to risk of data leaks.(Oleksandra Pogribna 2011)
3. Compliance and Legal issues.
As MYOB purports to do most of the compliance like keeping track of GST,
superannuation and other requirements by the ATO, MYOB may fail to update the
amendments in the tax code, and the overreliance on the software may result RH
having trouble with the ATO. (Mihalache D. Arsenie-Samoil 2011)
4. Cost
In the beginning the cost of OAS may appear a lot cheaper in comparison to a
traditional CAS that is installed and run in-house. RH needs to look closely at the
pricing plans and details of the functionality offered. (Apostu et al. 2013)
References
 Apostu, A et al. 2013, ‘Study on advantages and disadvantages of Cloud Computing –

the advantages of Telemetry Applications in the Cloud 2 Cloud Computing – actual
context 3 Evolution is shown by new achievements - Distributed Computing versus
Grid Computing disadvantages of Clo’, Recent advances in applied computer science
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 Fully Integrated Software System | Greentree ERP | MYOB n.d., viewed 7 April 2021,
<https://www.myob.com/au/enterprise/software-systems/greentree-erp>.
 Kolitz, D 2014, Financial accounting.
 Mihalache D. Arsenie-Samoil 2011, ‘Cloud Accounting’, Ovidius University Annals,
Economic Sciences, vol. 1, no. 2, pp. 782–87.
 MYOB 2020, Rayman Healthcare, www.myob.com/au,
<https://www.myob.com/au/enterprise/case-studies/ryman-healthcare>.
 Oleksandra Pogribna, ON 2011, ‘45. Advantages and Disadvantages of a
Computerized Accounting System for Small Businesses Oleksandra Pogribna, Olga
Nikitenko’, , p. 4911.
 Shpak, S 2019, Advantages & Disadvantages of Manual Accounting Systems, Small
Business, pp. 1–8, viewed 6 April 2021,
<https://smallbusiness.chron.com/advantages-disadvantages-manual-accounting-
systems-23862.html>.
 Single Touch Payroll (STP) Get Your Business Ready | MYOB n.d., viewed 7 April
2021, <https://www.myob.com/au/single-touch-payroll>.
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