Sunday, December 8, 2019
Accounting Software (MYOB) used in Australia
Question: Describe about the Report for Accounting Software (MYOB) used in Australia. Answer: Introduction Lin and Beck (2012) stated that the implementation of small business accounting (SBA) software has common among small as well as medium sized enterprises as it becomes technically reasonable. Ng, Harrison and Akroyd (2013) argued that implementing accounting software from many available software packages is vital for small industries. The issues are lack of exterior direction as well as support and the lack of accounting abilities are identified as the main issues faced by the small businesses in the process of executing SBA software. The exterior consultants are playing the major role in implementation of SBA software. This literature review on accounting software used in Australia summarizes the history of those software and its development and adoption areas. The current market size of the Australian software is summarized to identify the leaders within the market. The competitive advantage of the accounting software is discussed to identify the current gaps as well as challenges in the small business sectors. Finally, further recommendations are given to overcome the issues in those software packages. History of the Accounting Software used in Australia In the year 1886, the founding fathers of the accounting software discusses the future of the accounting profession. To achieve this vision, Certified Practicing Accountant of Australia was born (Myob.com.au 2015). The MYOB (Mind Your Own Business) is the software that is used in the small business accounting software product developed by Christopher Lee in the United States in the year 1980. The Australian business organizations are replaced their paper based work in the area of accounting into cloud based accounting system. Around 67 percent of the accounting business are moved their business into cloud (Myob.com.au 2016). In the year 2008, MYOB launched a new package of the online services as well as domain registration. Development and Adoption MYOB is the leader within cloud accounting for the SME in Australia. With a $40 million investment in the research and development, it is continued to expand their cloud offerings in order to meet with the SME. According to Myob.com.au (2014), MYOB introduces innovative mobile solutions such as MYOB PayDirect, it is the first for credit card payments on the Smartphone. MYOB launches first cloud ERP solution for the SME. MYOB advanced is the ERP solution planned for the mid to the large businesses (myob.com 2015). The features of this ERP solution is a browser interface which offers various functionality for the employees, clients as well as employers. With the implementation of the ERP solution, most of the organizations those are using MYOB gets a robust high speed of broadband network to provide accurate financial solutions. According to ABC News (2015), the experts at 4mation Technologies connect the website as well as customer web based software to the MYOB accounting software package. It is done so that the data are flowing instantly. The websites of e-commerce as well as booking system orders are imported into MUOB, product data as well as inventory records are synchronized between the website as well as MYOB (Myob.com.au 2013). The customer staff intranet systems and other back end office software are integrated with the accounting software package to update the details in payroll, update of timesheet as well as attendance records. This software package also developed the process of prepare tax and payments automatically. Current Market Size MYOB invested AU$29.3 million in the research and development and it increases in 2013. It invests AU$5 million in order to integrate BankLink products into the MYOB accountants office as well as accountants enterprises suites and accelerates their move towards online (Blog.rgtechnologies.com.au 2014). MYOB holds a market share of approximately 60-70% for the SME and 60-70% for the public accountants by revenues and sales. According to Myob.com.au (2013), MYOB seeks to rise to $833.3 million with an initial public offer. It becomes the biggest ASX technology float of 2015, the Melbourne-headquartered company values up to $2.69 billion. Even according to the chief executive of MYOB, the company has taken enormous strides within recent years under the ownership of Bain Capital. This accounting software makes significant investment in research and development in the business in order to innovate and drive leadership through the range of cloud accounting solutions (Myob.com.au 2015). Usi ng their cloud based products, the company, MYOB claims more than 116,000 paying subscribers in the year 2014. The accounting software package pushes into larger business and hence due to adoption of first cloud ERP product, they become attractive to the integrators. Identify the leaders in the market Armitage, Webb and Glynn (2016) stated that as the leading provider of the online business management solutions, MYOB becomes one of the leaders in the Australian accounting software. This software helps the businesses to provide online business management solutions for 1.2 million clients across Australia. The software package becomes a leader in the enterprise market by delivering ERP as well as human resource management software over 7000 clients. According to Myob.com.au (2016), MYOB is the strongest contender in the market of accounting software package. It is an established world leader within the ERP market. This accounting software package has strong network of trusted, local partners, third party developers as well as authorized partners in the market of Australia. This software package has offered local support as well as training to the workers. Competitive Advantage of the Accounting Software MYOB gains a competitive advantage in the Australian accounting software packages due to some of accounting features. It has greater speed of input. This software automates manual accounting processes, which waste time and money. Lin and Beck (2012) stated that the manual accounting system requires various entities of same information. Therefore, this software synchronizes the information and decreases the time consuming practices by automating credit notes, payroll and acquire orders (Ng, Harrison and Akroyd 2013). This software package has greater accuracy for effective financial management. It automates the manual processes and reduces the human errors. The most important competitive factor of MYOB is that it reduces both financial as well as operational expenditure (Curtis 2015). When the organization uses MYOB cloud solution, it eliminates the maintenance cost, updates and backups. Therefore, most of the organizations prefer to use this accounting software solution for their acc ounting operations. Identification of current gaps and challenges The major concern for the cloud accounting system such as MYOB is the safety of data. It is due to the reason that online content is susceptible to the hackers and threats. According to Macpherson (2012), MYOB invests in the security architecture as well as design, but most of the organizations are not affording the security level that MYOB offers. This software solution is not novice friendly. The workforce of the organization should be trained on the software to avoid inefficient manual processes. As most of the organizations are not taking advantage of cloud automation, then it is critical for staff training (Blog.rgtechnologies.com.au 2014). MYOB offers free webinars to the essential users. Suddenly, in the year 2012, MYOB faces a wide backlash as it released a bug-ridden upgrade that put the future of the platform at risk. That year the accountants partners are refused to recommend this software package as it becomes slow, contains of bug and breaks existing application integrat ions. Recommendations The following are the recommendations that are suggested to the users who are using the Australian accounting software (MYOB) for their financial and accounting purposes such as: MYOB should require investing in the architecture of data security as well as design. The accounting software package should require improving their online services so that the software becomes useful in the SME. MYOB should add various features to their accounting software version such that the international partners and users should also use it. MYOB should also undergo training to the users who are going to use it at the first time. Therefore, the software updates knowledge and skills with a current tools software package to help them in a preparation of payroll and tax. MYOB should require using strong authentication technique such that the data are kept secured and remove the bugs. It also improves their operational level and make it faster to operate. Conclusion It is concluded that MYOB is competing within the Australian accounting software package market. This software is not only used for the accounting purposes, but it is also useful to take managerial decisions in order to gain a competitive advantage. Among all the accounting software packages, MYOB is rated as a top with gaining a market share of 60-70%. The benefits of this software are that it gains cloud-computing solutions that give the employees ability to work on organisational content. This software package is accessed anywhere and anytime with greater speed of input, reduces costs as well as increases accuracy. Apart from the benefits, this software also faces challenges such as data security and it is not novice friendly. MYOB also offers office training by offering day courses as well as online seminars. It provides cost-effective solutions to the organizations in order to eliminate the manual processes and develops a strategic future for the company. References ABC News, 2015.MYOB shares rise on market debut. [online] ABC News. Available at: https://www.abc.net.au/news/2015-05-04/myob-shares-rise-on-market-debut/6442986 [Accessed 12 Aug. 2016]. Armitage, H.M., Webb, A. and Glynn, J., 2016. The Use of Management Accounting Techniques by Small and MediumÃ ¢Ã¢â ¬Ã Sized Enterprises: A Field Study of Canadian and Australian Practice.Accounting Perspectives,15(1), pp.31-69. Blog.rgtechnologies.com.au, 2014.MYOB: Benefits and Challenges for your Organisation. [online] Blog.rgtechnologies.com.au. Available at: https://blog.rgtechnologies.com.au/myob [Accessed 12 Aug. 2016]. Curtis, V., 2015.MYOB Software for Dummies-Australia. John Wiley Sons. Lin, Z. and Beck, M.B., 2012. Accounting for structural error and uncertainty in a model: An approach based on model parameters as stochastic processes.Environmental Modelling Software,27, pp.97-111. Macpherson, S., 2012.Backlash against MYOB. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/it-pro/business-it/backlash-against-myob-20120222-1tn1c.html [Accessed 12 Aug. 2016]. myob.com, 2015.Defining the challenges of a growing business. [online] www.myob.com. 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