MYOB is a computerized accounting program capable of providing instant reports for management. MYOB also allows direct emailing and faxing of accounting documents such as invoices and receipts directly from the program.
Examples of reports include:
- Aged debtors’ summary – a summary of customer accounts showing overdue amounts
- Trial balance, trading and profit and loss account and balance sheet
- Stock valuation
- Sales analysis
- Budget analysis and variance analysis
- GST/VAT returns
- Payroll analysis
A computerized accounting system is designed to be user friendly and simple to use. The main advantage is that with MYOB, each transaction need only be input in once, which is unlike a manual double entry system where two or three entries are required.
The computerized ledger system is also fully integrated. When a business transaction is input into the program, MYOB records the transaction in a number of required accounting records at the same time. |
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The main advantages of a computerized accounting system are:
- Speed – data entry into MYOB with its formatted screens and built-in databases of customers and supplier details and stock records can be carried out far more efficiently than via manual processing.
- Automatic document production – fast and accurate as invoices, credit notes, purchase orders, printing statements and payroll documents are all done automatically.
- Accuracy – there is less room for error as only one accounting entry is needed for each transaction rather than two (or three) for a manual system.
- Up-to-date information – the accounting records are automatically updated allowing account balances (e.g. customer accounts) to always be up-to-date.
- Availability of information – the data is instantly available and can be made available to different users in different locations at the same time.
- Management information – reports can be produced which will help management monitor and control the business, for example the aged debtors analysis will show which customer accounts are overdue, trial balance, trading and profit and loss account and balance sheet.
- GST/VAT return – the automatic creation of figures for the regular GST/VAT returns.
- Legibility – the onscreen and printed data will always be legible and avoids errors caused by poor legibility.
- Efficiency – better use is made of resources and time and cash flow should improve through better debt collection and inventory control.
- Cost savings – computerized accounting programs reduce time spent doing the accounts and also reduces audit expenses as records are neat, up-to-date and accurate.
- Reduce frustration – management can be on top of their accounts and thus reduce stress levels associated with what is not known.
- The ability to deal in multiple currencies easily – many computerized accounting packages now allow a business to trade in multiple currencies with ease. Problems associated with exchange rate changes are minimized.
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