Growth of Computing Technologies for Review of MYOB

Introduction

The continuous growth of computing technologies over the last few decades has made the computerization of different business operations necessary for almost every organization. A computerized financial accounting system or accounting software package can help business organizations to ensure efficiency and effectiveness in recording different business transactions (Bradshaw, Pulakanamand and Cragg 2015). Available accounting software packages are easy to use and provide a wide variety of complex operations. Few years ago business accounting software’s were not that much popular as they are not well structured as the contemporary packages. The reason behind this can be stated as lesser number of manufacturers of this accounting software packages (Yigitbasioglu, Mackenzie and Low 2013).

 In the Australian market there are several accounting software vendors are available.  In this literature review of accounting software’s different aspects of accounting software MYOB is discussed. In addition to this, history of MYOB, its development, adoption in the Australian market (Brown and Gilbert 2012). Moreover, the reasons behind its competitive advantage in the Australian market, challenges encountered by its users are also discussed in this review.

1. History of MYOB

Mind Your Own Business (MYOB) is mainly an Australian multinational company that provides accounting, retail and payroll software’s to the small and medium business (Van Akkeren, Buckby and MacKenzie 2012). Almost 1,000,000 business owners of Australia and New Zealand use MYOB to complete different accounting processes.  MYOB was mainly a small accounting software product developed by developed by Christopher Lee and his team at Teleware (Curtis 2012). The Teleware was a USA based software development company. In the year 2004, Solution 6 Holdings and MYOB limited merged together and started developing products and services related to accounting. Presently the company is operated under Tim Reed (CEO) and Richard Moore (CFO). Company is providing cloud based accounting software solution so that an organization does not have to worry about the hardware and software installations to use the accounting system at the organization (Yigitbasioglu, Mackenzie and Low 2013). 

2. Development and adoption of MYOB

Previously MYOB is only available as a software solution package.  Now it is possible to have all the functionality of MYOB through its cloud application (Curtis 2012).  It helped in adoption of this software package to the small and medium business organizations.As the modern day tech savvy accountant’s needs faster and cheaper accounting system, therefore this new cloud based application is ideal for them to handle and record the business transactions.

3. Current market size of MYOB

 According to different surveys it is seen that there is an increase of 10% in its growth and has a total revenue of $328 million in the Australian and New Zealand market. The nearest competitor of MYOB is Xero accounting systems in the Australian market (Brown and Gilbert 2012). As MYOB accounting package provides much more functionality than traditional accounting software and its competitors like QuickBooks Online, Reckon, Xero. Moreover, beyond these functionalities it also provides more flexibility, power and customization to the user. Hence, day by day the number of organizations that pay for the service of MYOB is increasing (Van Akkeren, Buckby and MacKenzie 2012).

4. Reason behind its competitive advantage

Even though the there are several vendors that provides accounting software solutions but MYOB is the most popular accounting software solution in Australia. The reason behind its success is discussed below,

4.1Cloud based MYOB

In the present day cloud is the new hype. Today’s modern and tech savvy accountants are requesting for cheaper, smarter and faster accounting solutions.  Anticipating this need of modern accountants MYOB developed the cloud based solution which is much faster and cheaper than the software based solutions (Brown and Gilbert 2012). Most importantly, new cloud based solution provides access to the accounting data from anywhere and from any platform (android, PC, iPhone etc).

4.2Intuitive and simple user interface

MYOB is developed in such a manner that an individual who does not belong to accounting systems, even they can operate and maintain the accounting processes for an organization. The package is so lively and yet organized (Yigitbasioglu, Mackenzie and Low 2013).  It’s intuitive and user friendly interface makes it easy to use.   The dash board of the accounting software system gives a summarization of the recently recorded transactions

4.3Access to unlimited users for better collaboration

MYOB can accept multiple users (or even unlimited users) of any organization to use the system at the same time. This enhances the collaboration between team members of a particular organization.

4.4Gives numerous number of features

 MYOB accounting software package is enriched with numerous number of robust features. The accountants do not need to manually prepare and input the details of any bank transactions (Van Akkeren, Buckby and MacKenzie 2012).

MYOB also provides auto enter facility to enter transactional data as a part of its reconciliation process. Generally it can be stated that MYOB is very effective to carry out basic as well as complex accounting operations. This operation includes payroll processing, invoicing, creation of budgets (Brown and Gilbert 2012). Most importantly, all these features can be integrated with each other exceptionally.  It is flexible software solution that can produce 190 types of report.

4.5Greater accuracy of data

 For effective financial management, it is important to have accurate transactional data (Curtis 2012). MYOB syncs information from different documents and reduces time-consuming processes of copying the same data. More over it automates the process of recording the data related to payroll, credit notes, purchase orders etc. (Yigitbasioglu, Mackenzie and Low 2013).

As the business analysis is also dependent on the financial data, therefore having accurate business data also helps in better analysis of the performance of an organization in the market.

5. Current challenges encountered by MYOB users

In the present business scenario MYOB is providing cloud accounting system.  In these accounting systems the main concern is data security (Van Akkeren, Buckby and MacKenzie 2012). Since the data stored on the cloud is vulnerable to frauds, hackers and other threats. The hackers can intrude into the database of the organization and steal sensitive financial data of it. Even though MYOB is investing in its security architecture and implementing industries best practices but small and medium business can’t afford this level of security for its accounting data as well as systems (Curtis 2012). These practices include approval process and secure access control to database.

 Another challenge for this accounting software package is, it is not novice- friendly.  Therefore, organizations need to train their employees to efficiently use this software package. It is the only way to avoid inefficient manual process (Brown and Gilbert 2012). Too many business organizations are not using the cloud automation system provided by MYOB, to avoid the process of staff training. Even though, MYOB is providing free webinars to train the staffs of an organization so that they can adopt the cloud based automation.    

6. Recommendations

Even though MYOB is trying to provide security measure to its applications, but it’s important for the users as well as developers to improve the security as well as functionality of the accounting software package. In order to do this some of the following recommendations can be used.

6.1Protecting the computer’s with passwords

If adequate precautions are not taken then it is possible that unauthorized users can view and alter the financial data in the MYOB company file. Therefore it can be done by providing unique user account with passwords. This will help to ensure that only authorized users can have access to the MYOB company file.

6.2Installation of Firewall

Installation of a firewall helps to prevent intruders who can access the company’s financial data through the internet channel.

6.3Protecting MYOB Company files by using passwords

It is also possible that users can prevent the access of unauthorized people to the MYOB company file by using passwords for it. By using passwords for the MYOB file, accountants can add an extra layer of security to the financial data. 

Conclusion

MYOB is a user friendly accounting software package that can produce a wide variety of financial statements and reports. Here it is important to note that; implementation of an accounting package is not just about purchasing it, upgrading it or arranging the compatible hardware’s required to install it. Most of the accounting software solutions provide basic features like payable and receivable accounts, general ledger, billing and invoicing of the products. This is about determining at which extent the product meets the user’s particular needs and how well it works in the actual business environment. Again MYOB’s ability to integrate with other software solutions makes it an oblivious choice for the tech savvy accountants. Being cost effective and easy to implement, the accountants of the organizations tends to use the cloud based accounting systems. All these features help the small and medium business owners to choose this accounting solution package and use it in their different accounting processes.

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