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MYOB (Accounting software package)
According to Kavanagh and Drennan, (2008) MYOB is an accounting software developed by company named MYOB (mind your own business). MYOB is an Australian multinational corporation which gives accounting, tax and other services to medium and small businesses. MYOB accounting software package is the best value for money software. It is suitable for small business and it comes with complete sales and purchasing modules, inventory modules and accounting modules. MYOB is powerful accounting software, yet it is easy-to-use software for business and appropriate for any type of business. This accounting software will help the company to measure purchases and process sales, payable and GST and track receivable. It provides the facility of email quotes and invoices. With the powerful inventory management system of MYOB software, the organization should exactly know that how many stock on order and devoted. Breen.et.al., (2004) stated that organizations use MYOB accounting software to manage their expenditures and cash receipts, inventories and goods, to manage their stock and to produce accounting reports for financial reporting purpose and for management. Santos and Intuit Inc., 2009) said that MYOB accounting software has the following functions which helps to manage the business of the organizations.
- Banking (bank reconciliation, bank register, official receipt and payment vouchers)
- Accounts (budgets and accounts charts)
- Purchases and payables (enter bills and purchase orders, pay supplier bills, analyze payables and print PO)
- Sales and receivables (receive payment, pint statement, print invoice, enter sales quotes, analyze receivables)
- Inventory (track quality and cost of items which sell and buy by company)
- Job management (maintain budget, project details, expenses and incomes)
- Card file management (Maintain supplier, employee and customer details)
- To-Do list (immediate access to essential tasks)
Dyt and Halabi, (2007) concluded that MYOB is not just software of accounting; it is an integrated solution for inventory and business management. By using this software organization will obtain real time data at any time. MYOB system does not need the user to have any type of accounting experience to utilize the system. According to Chayeb and Best, (2005), the system takes care of the double-entry accounting entries for the user. It will place the transactions to the relevant accounts and it will produce the balance sheet, trail balance and automatically the statement of income for the user or company. It is a best cloud accounting software for many small businesses and it is cost effectual and easy to use.
History of MYOB
MYOB (mind your own business) is an Australian multinational corporation. The company provides retail, payroll, accounting software and web hosting for medium and small businesses and it is mainly well known in New Zealand and Australia. The MYOB name was first utilized on a small business accounting software product which is originally developed by Christopher Lee and the group at Teleware, Inc. in year 1980 in United States. In year 1996 Data-Teach software and Australian re-publisher acquired the intellectual property rights to the software and given equity to Christopher Lee. In year 1999 the organization changed its name to MYOB limited. Business after getting changed name got the company listed on the Australian Stock Exchange (ASX) on 9 July 1999. MYOB initially developed its accounting packages considering the business environment in Australia and New Zealand. Baharum.et.al., (2009) stated that MYOB launched a new package of online services in May 2008 which also includes email hosting, web hosting and domain registration. During year 2008 organization started its operations in UK, USA, Asia and Ireland as to expand its business in new regions. The achievement provides a majority stake to Bain Capital in MYOB along with management who will carry on being shareholders in the organization.
Development and adoption of MYOB
According to Tinker and Feknous, (2003) MYOB is the most common and popular accounting software in Australia. Since year 1993 owners of business across Asia have relied on MYOB business management and accounting software. MYOB has developed by Christopher Lee and it is adopted by Data-Tech Software and Australian republisher. MYOB was established in Australia in the year of 1991 and it was in one of the first businesses to identify the unique requirements of medium to small sized enterprises and provide them with powerful, affordable and accessible system of business management. A number of essential operational increments took place in year 2001. Efforts of development are continued in year 2002. In March 2003, MYOB agreed to obtain NZA Gold Ltd., a software enterprise serving midsized and small businesses New Zealand and Australia. Pecchiar, (2012) said that the contract constructed on existing leadership position of MYOB’s in both countries in the type of accounting practice software. The development of company is continued in every year, in 2007 MYOB assumed complete ownership of business in Australia. Today, MYOB is the leading provider of business system to medium and small size business in Australia and New Zealand, carrying solutions of business to over one million accounting firms and businesses in the Asia-Pacific region. During 21 years of firm development, the user-centric vision of the organization stays the same in present days as the day its organizers began their quest to empower business holders with services and products to create business life simpler and more remunerating.
The current market size of MYOB
MYOB’s currently listing on the ASX and adds a battle among Xero and MYOB. The battle now should be measured in capitalization of market as the revenue development of MYOB’s is favored by the organization. About 40% of MYOB’s shares are selling in the initial public offering (IPO) at $3.65 a share (Breen.et.al., 2003). Product of MYOB are used by over 1,000,000 business owners and accounting practices in New Zealand and Australia. MYOB’s $833.1 million listing in May 2015 was the largest technology organization listing ever on ASX. It making a huge business as it has extremely defensive earnings. Many customers remain with them for a long period and they have returning incomes in the high 90’s. MYOB accounts for 67% of the back office software market in Australia. It is reliable software which supports more than 10,000 accounting practices and over 500,000 businesses worldwide (Suraweera.et.al., 2006). MYOB uses its knowledge, scale and expertise to help the organization s to build them better businesses.
MYOB leaders in the market
Accounting software MYOB has recorded dual digit revenue development for the half year to the end of June and is expecting continued growth of sales for its mobile and cloud solutions. In Australia, MYOB is the leader in cloud accounting for SMEs. In the first half of the financial year, they continued to exploit on this powerful base with fast adoption from existing and new clients, with 63% of new users in June selecting cloud products and over 86,000 paying subscriber utilizing these solutions (Pecchiar, 2012). Along with the fast development of the cloud solutions, they are continued to make a leading position in SME accounting software. The ASX revealed of $140 million for the six months, up 21% on the corresponding period from last year, whereas profits are jumped by 29% to 70 million dollars. Strong performance of MYOB is claiming its market leadership.
Baharum.et.al., (2009) showed that the system of cloud based accounting is paving the way for better efficiency in the organization. Instead of high maintenance IT infrastructure, purchasing expensive, organizations access their accounting software through internet for a monthly charge. This permits the organization to devolve it annoys and concentrate on their operational and financial resources on their middle business. 12% of small businesses in Australia have made up the leap to cloud computing software. All those organizations have a clear benefit over those still mudding by reams of paperwork. It gives the employees the capability to work on organizational content from anywhere by using any tool. Cloud usage give a serious competitive advantage, the power gives the liberty to work at any time and anywhere with the partners, customers and suppliers (Dyt and Halabi, 2007). All these benefits are provided as a competitive advantage to the organization that makes use of MYOB accounting software.
Challenges encountered by customer in MYOB
A main concern for cloud accounting system like MYOB is security of data, with 46% of survey of Software Advice’s respondents stating that security is the top concern. This is because online content may be vulnerable to hackers, fraud and another risk. MYOB invests a lot in security architecture and design and in applying best practices of industry (Chayeb and Best, 2005). Not many organizations could afford this stage of security, involving secure client access controls and appreciation processes. Furthermore, MYOB is not novice-friendly. An organization’s workforce must be prepared on the software to evade continuing of employees with ineffective manual processes. Many organizations are not able to take benefit from cloud computing because they get used to the limitations of the old answers. Therefore, it is serious to arrange for employee training (Pecchiar, 2012). MAYOB provides complimentary webinars for its essential clients. All of these problems are considered in MAYOB accounting software which reduces its business in the market of New Zealand and Australia.
Books and Journals
Baharum, Z., Ngadiman, M.S. and Haron, H., 2009, May. Critical factors to ensure the successful of OS-ERP implementation based on technical requirement point of view. In Modelling & Simulation, 2009. AMS'09. Third Asia International Conference on (pp. 419-424). IEEE.
Breen, J., Sciulli, N. and Calvert, C., 2003, September. The Use of Computerised Accounting Systems in Small Business. In 16th Annual Conference of Small Enterprise Association of Australia and New Zealand(pp. 1-12).
Breen, J., Sciulli, N. and Calvert, C., 2004. The role of the external accountant in small firms. Small Enterprise Research, 12(1), pp.5-14.
Chayeb, L. and Best, P.J., 2005. The accounting information systems curriculum: compliance with IFAC requirements.
Dyt, R. and Halabi, A.K., 2007. Empirical evidence examining the accounting information systems and accounting reports of small and micro business in Australia. Small Enterprise Research, 15(2), pp.1-9.
Kavanagh, M.H. and Drennan, L., 2008. What skills and attributes does an accounting graduate need? Evidence from student perceptions and employer expectations. Accounting & Finance, 48(2), pp.279-300.
Pecchiar, G., 2012. Upgrade to WMS, keep QuickBooks and MYOB.
Santos, T.A., Intuit Inc., 2009. Technique for identifying and collecting record-keeping information. U.S. Patent 7,558,777.
Suraweera, T., Pulakanam, V. and Guler, O., 2006, December. Managing the implementation of IT projects in SMEs: An exploratory investigation. InDigital Information Management, 2006 1st International Conference on (pp. 381-388). IEEE.
Tinker, T. and Feknous, B., 2003. The politics of the new courseware: resisting the real subsumption of asynchronous educational technology.International Journal of Accounting Information Systems, 4(2), pp.141-164.