ACCY901 Accounting Foundations For Professionals

Introduction

MYOB is a multinational corporation located in Australia that has main objective to provide the tax, accounting and other services like payroll services etc. The full form of MYOB is Mind Your Own Business. MYOB provides services of online accounting software known as Accounting Right that has built up qualities to solve all the accounting and tax related problems of the business. In this report the case study of Compass Group of companies has been evaluated in detail to report on the specific functions provided by the MYOB software together with problems and benefits associated with it. Along with this issues were discussed that are faced by the business through use of manual accounting system.

Discussion on the specific functions provided by the MYOB

Myob is the typical online accounting software that solves accounting and tax process small and medium sized entities through provided best in class in class software with various specific functions. Some of these functions are as under:

• Process of payroll transactions in most easy way: Through use of MYOB it is very easy to process the most complex transactions related to payrolls in most easy way. There is option to process the payroll transactions of many employees at single point of time.
• Chart of Accounts: It provides the list of all the accounts in one roof that allow creating, deleting and modifying accounts as per the convenience of the users. This chart can be used by the management to aggregate all the financial information into the entity financial statement.
• Supports tax compliance and reporting: Myob is developed in such a way that all the tax requirements are integrated at ne place and one has not to worry about the tax compliance of the accounting process. It also helps in making the tax reports (MYOB Accounting, 2017).
• Option to create multiple companies: Through use of Myob one can develop or create more than one company at a given point of time. It means if any company has multiple units that use different accounting procedure to report and different name of business that it is very beneficial function for such users of this software.
• Billing Function: It is most unique function in Myob of editing the invoice or bill as per the requirement of users. Hence users can change the format of invoice or bill to suite their business logo and requirement (MYOB Features, 2016).

Problem faced while using the manual accounting system

• Growth in business difficult to handle: The most important issues that are faced are business organization while dependent upon the manual accounting system is that it is not possible to handle the large volume of transaction and it prone to clerical errors. Thus, it can be said that manual accounting system does not support the growth in business.
• Disparate system: The manual accounting system does to allow to exchange data and information with other processes or systems which is very important issue for any business accounting system as it is essential that accounting system must take in information from everywhere within the business and process them to produce the valuable report.
• Difficult to integrate the data from multiple locations: As all the information processed in manual accounting system has to be integrated at one place to prepare the consolidated statements but it is not possible to solve this task easily as it takes more time and also requires 100% precision while integrating the records.
• Does not support the ever changing needs of compliances: Compliance needs by government has to be followed by the entities while making the accounting report but these needs get changed by the time. In manual accounting system it is not possible to integrate such compliances very easily (CPA Australia, 2015)

Benefits of using the online accounting software

Following are some of the benefits of using the online accounting software:

• Cloud oriented Software: It is most unique feature of Myob accounting software that is helps in storing and operating the software from everywhere and anywhere. Thus it allows storing the data online and reviewing it from anywhere.
• Multi location and centralized data: As data is stored in clouds database, one can access it from anywhere that helps in operating the software at multiple location at given point of time. All the data is stored centralized that helps to create modify and extract the required data. It also reduces the duplicity of data entered in the system.

Three economic transactions that take place Compass Group and role of Myob

• Payroll Transactions: Through use of Myob PayGlobal Compass Group has able to improve and make centralized location to process all the payroll transactions that helps to reduce the cost
• Access to HR records: Through use of central information repository function of Myob, one can easily access to all the HR/Payroll data easily from anywhere and everywhere
• No need to maintain the timesheets: There is no requirement to maintain the timesheet of employees as Myob provide self service function that allows employees to record its timesheet by himself (Cases Study: Compass Group, 2018)

Limitations faced by the Compass Group while implementing the Myob in their business

• Training of employees: There is need to train the employees to process their timesheet properly as per the requirement of Myob PayGlobal
• One time cost: There is one time huge investment in cost of Myob PayGlobal that organization has to bear initial in order to make it implement properly within the organization
• Integration of old records: There is requirement to integrate the old records of payroll transaction in Myob Payroll but it is very difficult task as it requires manual processing (Cases Study: Compass Group, 2018)

Conclusion

Myob PayGlobal has helped the Compass Group in solving their business problem in most effective way. All the issues were identified and integrated at one place to solve the issue so that Myob PayGlobal can be implemented effectively.

References

Cases Study: Compass Group. 2018. [Online]. Available at: https://www.myob.com/au/enterprise/case-studies/compass-food-beverage [Accessed on: 2 October, 2018].

CPA Australia. 2015. Is MYOB Essentials the right choice for your business? [Online]. Available at: https://www.intheblack.com/articles/2015/06/12/is-myob-essentials-the-right-choice-for-your-business [Accessed on: 2 October, 2018].

MYOB Accounting. 2017. [Online]. Available at: https://www.userbasicsoftware.com/myob/ [Accessed on: 2 October, 2018].

MYOB Features. 2016. [Online]. Available at: https://www.zrilo.com/myob-features [Accessed on: 2 October, 2018].