MYOB Online Accounting Software Implementation for Small Business

This report analyzes the implementation of MYOB online accounting software for John and Jane Electrical Company, a small electrical business currently using a manual accounting system. The report begins by outlining the economic transactions common to small businesses, such as purchase and sales, payroll, tax payments, revenue and expenses, investments, and banking. It then details the benefits of using online accounting software, including speedy processes, enhanced safety and security, increased efficiency, cost-effectiveness, and an easy-to-use interface. The report further identifies the problems faced by John and Jane in their manual system, such as inadequate accounting knowledge, human errors, heavy paperwork, time-consuming processes, and cumbersome accounting procedures. It then explores how MYOB features, including invoicing, payroll management, and bank feeds, can address these issues and improve business operations. The report also acknowledges the limitations and risks associated with MYOB implementation, such as data security risks and the potential for user unfamiliarity. The conclusion reinforces the advantages of adopting online accounting software for small businesses, emphasizing the importance of focusing on core business activities and mitigating the inefficiencies of manual accounting.

Running Head: Implementation of MYOB
ONLINE ACCOUNTING
SOFTWARE: MYOB

Implementation of MYOB 1
Table of Contents
Introduction...........................................................................................................................................2
ANSWER 1: Economic transactions at small business levels..................................................................3
ANSWER 2: Benefits of using an online accounting software tool.........................................................4
ANSWER 3: Problems faced by Jane and John in manual accounting system........................................5
ANSWER 4: Use of MYOB features in John and Jane’s business............................................................5
ANSWER 5: Limitations and risks involved in MYOB implementations..................................................6
Conclusion.............................................................................................................................................6
References.............................................................................................................................................7

Implementation of MYOB 2
Introduction
John and Jane are engaged in the electrical business since last 8 years. They are running the
business in the name of John and Jane Electrical Company. The business is being conducted
at the small level and hence the business managers are following the manual system of
accounting. All the accounting related operations were performed manually by the
management. The major accounting functions were ranging from the maintenance of track
records of all the financial data relating to inventory, payrolls, accounts payables and
receivables, taxation function etc. The management persons were writing the ledgers of
accounting transactions on their own. As the manual system of accounting system is followed
there involves a heavy paper work requiring ample of time and efforts to manage and retain
all the important data records on paper. Further, it is difficult for the owners to deal with each
and every business complexity as it demands requisite accounting knowledge and expertise.
Moreover, the manual system of accounting of John and Jane’s electrical company is facing
severe inefficiencies as a result of manual intervention causing high errors and mistakes in
carrying out accounting operations.
With the increased level of demand for electrical supplies and the decision of opening up few
more stores at alternative location, the owners of the electrical company have realised the
importance of automated accounting systems. As the business is conducted at a small level an
appropriate accounting software is required to be selected. MYOB is one of the leading
accounting and other business management solutions providing software meant for small to
middle sized firms. The implementation of such software will enable the business managers
to focus on their core business functions as the non-core functions like accounting and related
activities will conveniently be handled by using the features of MYOB in real time. The
concentration on demand and sales management will contribute to higher revenue generation
of the electrical company. Moreover, the implementation of such software will also prevent
the inefficiencies of the accounting system as the chances of errors on part of humans will be
minimised. The documentation requirement of the critical accounting and financial data of
company will also be reduced as the data will be kept saved and backed up on online
platform.

Implementation of MYOB 3
ANSWER 1: Economic transactions at small business
levels
 Purchase and Sales transactions
For businesses at every level whether small, medium or large, purchases and sales are the
most basic functions. To run any business the entrepreneurs requires the requisition of raw
materials and the other necessary assets for the business. Hence, purchase transactions occurs
most commonly in every business organisation. Further, business exists to deliver some
outputs in the market. Therefore sales forms the necessary part of it. The purchase and the
sales transaction are those economic transaction in every business which occurs regularly.
These transactions are thus required to be properly accounted for (Halabi, Barrett & Dyt,
2010).
 Payroll function transactions:
Human resources plays the vital role in the business success. The wages and salaries paid to
each and every personnel involved in the business and hence payroll transactions are also
commonly identified economic transactions.
 Tax payment transactions
Even the small businesses exists to earn some profits and hence it has to pay off a certain
portion of its earnings to the tax regulators of the economy. Tax related transactions occurs
when taxes are paid to the fiscal bodies. Tax accounting is done to determine the amount of
taxes to be paid to the government.
 Revenue & Expenses transactions:
In order to operate a business the owners have to spend certain amounts of money to meet
out its daily requirements like payment of utilities rent payments and it also earns incomes
from various sources hence transactions relating to payments of expenses and receipt of
certain incomes can occur frequently in any small business.
 Investment relating transactions:
Even small businesses saves a certain portion of their earnings from the operations and hence
invests their saving in some income generating sources and therefore investments can be also
be the part of economic transactions.

Implementation of MYOB 4
 Banking transactions:
A business at small level needs to raise funds from banks and other finance providers
therefore loan transactions are common part of small business economic transactions.
ANSWER 2: Benefits of using an online accounting
software tool
 Speedy accounting processes: As online accounting programs are based on automated
functioning, the accounting operations are handled with speed using online software.
As machines works more quickly than the manual systems the processing of
accounting data occurs in the minimum possible time (Sam, 2012).
 Safety and Security: The information any business plays vital role in its success. As
book keeping function in any organisation is the basic aspect of business
management. Accounting software provides the safety and back up features to
safeguard the critical information of the business. The information kept on online
mode can be prevented from the risk of data damage (Pulakanam & Suraweera,
2010).
 Efficiency: The accounting operation requires significant portion owner’s time and
efforts, accounting software helps the business in managing the accounting functions
with more accuracy and proper management of accounting data. As data processed
electronically is less subjected to the arithmetic or logical errors (Salehi, Rostami &
Mogadam, 2010).
 Cost: In small businesses it is difficult for the managers to hire an expert person to
handle its accounting operations for every year as they have low budgets, investing in
the accounting software helps the firm to receive its benefits for a long time with one
time investment. Accounting software are designed and developed in such ways that
the owners of the business would not need to hire an expert to handle its accounting
functions (Everaert, Sarens & Rommel, 2010).
 Easy user interface: Online accounting software are developed and designed for the
people who do not possess requisite knowledge about the accounting functions. These
software possess the basic accounting features that are vital for every small or
medium business and are easy to understand and use with proper technical support.

Implementation of MYOB 5
ANSWER 3: Problems faced by Jane and John in manual
accounting system
 Inadequate accounting knowledge: It may not be possible for the owners of electrical
company to possess all the requisite skills and knowledge to handle accounting
operations and to keep themselves updated with all the accounting related regulatory
changes. Also, the managers might be finding it difficult to manage all the business
operations simultaneously.
 Human errors: while working with manual system it is not possible for the owners of
the business to avoid each and every error on arithmetic or logical grounds as they
lack expertise in accounting functions. Owners are not the machines which can
provide the accuracy in every function it perform.
 Heavy Paper Work: In manual accounting the accounts are majorly handled on the
papers and hence require proper documentation of all the paper. Also, the hard copy
of records is vulnerable to risk of loss due to various disasters.
 Time consuming: Accounting involves series of operations to be carried out to record
a data for the purpose of financial reporting. There are large number of sales
transactions that takes place in the business of John and Jane therefore it takes
enormous amount of time to record all the transactions.
 Cumbersome accounting processes: The accounting processes can be complex enough
at times and hence difficult to be handled by single or two persons.
ANSWER 4: Use of MYOB features in John and Jane’s
business
 Invoicing feature: MYOB is designed for the small and medium sized businesses and
provides the key feature of invoicing of bills to the customers to whom the sales are
made by the firm. As MYOB provides the feature which automatically generates the
sales invoices to the customers as soon as sales data is entered in the software
program it will help the electrical company to manage its sales functions properly
(Curtis, 2015).
 Payroll management: The payroll feature will help the John and Jane’s business in
managing the staff members of the organisation so that they can be paid off for their
services on time. This feature will keep the relevant record of all the employees of
business (Sutherland, 2011).

Implementation of MYOB 6
 Bank feeds: This feature will enable the owners of the business to stay updated with
all the bank related transactions that occurs on daily basis such as the receipts and
withdrawals that are made directly to the bank account of the business (Curtis, 2012).
ANSWER 5: Limitations and risks involved in MYOB
implementations
 Data Security Risks: Information kept on online platform is more prone to cyber-
crimes like hacking and data leakage. The data that is processed by the accounting
software may be quite sensitive for the business thus will make the business suffer
severe repercussions if it is leaked out. The information loss can affect the company’s
performance adversely and it may also lead the company face serious governmental
actions (Gourdie, 2011) (Wongsim & Gao, 2010).
 Unfriendly for new users: The employees working with old system may find it
difficult to cope up with new online accounting software. To work on it one must
require proper knowledge about software functionalities. Enough of training needs to
be given to the concerned workforce in the company and training the personnel may
cost high to the company (Urquía, 2011).
Conclusion:
From the research about the importance of MYOB in the small businesses, it can be well
concluded that the implementation of online accounting software can allow the business to
reach at the next level if properly used by enabling the owners to focus on the core business
activities. Whereas, the use of manual system of accounting will lead the business to face
several inefficiencies in the accounting functions due to the involvement of human error
element. Hence, the owners of electrical company must go for the option of using the
accounting software for their business.

Implementation of MYOB 7
References
Curtis, V., 2012. Making the Most of MYOB AccountRight. Woodslane Press.
Curtis, V., 2015. MYOB Software for Dummies-Australia. John Wiley & Sons.
Everaert, P., Sarens, G. and Rommel, J., 2010. Using Transaction Cost Economics to explain
outsourcing of accounting. Small Business Economics, 35(1), pp.93-112.
Gourdie, J., 2011. MYOB as an Accounting Information System: Is it time for a 501
curriculum refocus?
Halabi, A.K., Barrett, R. and Dyt, R., 2010. Understanding financial information used to
assess small firm performance: An Australian qualitative study. Qualitative Research in
Accounting & Management, 7(2), pp.163-179.
Pulakanam, V. and Suraweera, T., 2010. Implementing accounting software in small business
in New Zealand: an exploratory investigation. Accountancy Business and the Public
Interest, 9(64), pp.98-124.
Salehi, M., Rostami, V. and Mogadam, A., 2010. Usefulness of accounting information
system in emerging economy: Empirical evidence of Iran. International Journal of
Economics and Finance, 2(2), p.186.
Sam, M., Fazli, M., Hoshino, Y. and Tahir, M.N.H., 2012. The adoption of computerized
accounting system in small medium enterprises in Melaka, Malaysia.
Sutherland, E., 2011. Computer Accounting: A Systematic Approach: Using MYOB Business
Management Software: Version 19. Pearson Australia.
Syafrudin, V., 2012. An empirical study of Accounting software Acceptance among
Bengkulu City students. Asian journal of Accounting and governance, 3, pp.99-112.
Urquía Grande, E., Pérez Estébanez, R. and Muñoz Colomina, C., 2011. The impact of
Accounting Information Systems (AIS) on performance measures: empirical evidence in
Spanish SMEs.
Wongsim, M. and Gao, J., 2010, August. Data quality issues in accounting information
systems adoption-theory building. In Networked Computing and Advanced Information
Management (NCM), 2010 Sixth International Conference on (pp. 224-230). IEEE.

Implementation of MYOB 8