Advantages Of MYOB Accounting Software For Core 7 Fitness

Difficulties faced by Core 7 Fitness before implementing MYOB

Discuss about the Accounting Foundation for Professionals Company.

The issue that has been presented in the question is that Core 7 Fitness had been making use of the manual accounting system for the purpose of recording the financial transactions. However, the management of the store has been considering the substitution of the manual accounting system with the implementation of an accounting software as the business has been facing growth in sales and the management has been administering five businesses at once. Moreover, the inefficiency and the occurrence of errors that may take place while using the manual system has initiated the management to take the decision of changing the accounting software.

This paper aims to find out the particular advantages that the business of Core 7 Fitness will reap for the implementation of the accounting software of MYOB in the organization.

The difficulties faced by the business before the implementation of MYOB

The benefits perceived by the business after the implementation of MYOB Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper

1.      Time Consuming – the particular process of manual accounting is a time consuming process. This means that the accountant of the company will have to essentially check the journals before recording the financial transaction in the accounting statements. Moreover, the manual copying of the information may result in further delaying of the accounting process (Mayasari 2015). 2.      Subjected to Error – the occurrence of errors is a frequent event in the financial statements of the company, which make use of the manual accounting methods. This is precisely due to the fact that the manual accounting systems do not make use of the internal checks and balances. Moreover, the accountant responsible for preparing the financial statements take much time for the identification of errors in the accounting statements as it is carried out manually (Curtis 2015). 3.      Security Breach – the issue in regards to the breach of security is a potential threat for the company Core 7 Fitness as it makes use of the manual accounting software. The companies utilizing the manual accounting process will not be able to restrict its employees from checking or reviewing the data that is sensitive in nature. Moreover, the use of manual accounting procedure makes the financial information of the company exposed to embezzlement and fraud (Aduamoah 2017). 4.      Availability of a few numbers of copies – the different copies of the similar accounting statements may be required for the various departmental proceedings in the organization. Facilitation of this particular requirement will require a huge amount of time on the part of the accountant and may be prone to errors (Amirul 2017). 5.      Duplication of data entry – the duplication of the entry of the financial data is another major issue, which might be a potential threat of the manual accounting system (Amirul 2017).

1.      All time access – the implementation of MYOB has been beneficial for Core 7 Fitness. The first benefit is that the utilization of the particular accounting software has enabled the business owner and the clients to access the particulars of business from anywhere at any time. MYOB has been found to be highly acceptable by the companies for the fact that the work can be accessed from any location followed by remote working capability (Mayasari 2015). 2.      Greater input speed – the manual accounting systems result in painfully slow accounting proceedings. Moreover, the manual accounting systems involve multiple entries of the same information. The utilization of the accounting software results in the synchronizing of financial information and reduction in the time consuming processes by the credit notes that are automated in nature, purchase orders and other related processes. The utilization of the MYOB also helps the company to predict the events like the cash flow problems or time periods featured by growth (Curtis 2015). 3.      Greater accuracy – the accuracy of the financial data is crucial for the effective financial management of the organization. This means that the companies that make use of the manual accounting systems are exposed to the occurrence of human errors. The usage of accounting software like MYOB facilitates the automation of the manual processes, which further reduces the chance for human error. The accounting software is built in with the controls that help in the detection of the duplicate entries and the redundancy of the errors. Moreover, the accounting software of MYOB is continuously updated automatically so that the employees of the organization utilizing this particular software gets to work on the latest version of the software. The utilization of MYOB has also helped the firm to properly reflect the financial position of the company further enabling the company to achieve financial stability and security(Aduamoah 2017). 4.      Reduction in the costs – The utilization of MYOB has resulted in the reduction of the essential costs in relation to the operational and financial expenditure. Furthermore, in exchange for the payment of the monthly fees the company gets to enjoy the benefits of continuous maintenance, backups and updates. Moreover, the issues faced by the company in relation to the failure of the server and other technical issues are no longer be the responsibility of the company but the team handling the accounting software (Amirul 2017).

The above table depicts the advantages that have been faced by business post the implementation of the accounting software MYOB in the organization.

The economic transactions that essentially take place at a small business concern are as follows:

• Investments that are carried out by the owners of the business – the particular investments that are carried out by the owners of the business houses for initiating further expansion of business or for starting the business is one of the common economic transactions that take place in business.
• Purchase of the assets with the help of cash – the purchases that have been carried forward with the help of the cash is also a common economic transaction that takes place in a small business concern
• Exchange of assets with liability – the assets that have been essentially exchanged with a liability is another economic transaction that takes place in a small business concern. It must be noted here that the assets might be purchased on credit by agreeing to pay for the incurred liability on a later date.
• Liability payment by the business concern – the liability that has been incurred by the business concern and is agreed to be paid at a later date is another common economic transaction that takes place in a small business concern
• Revenue – the revenue that is incurred by the firm is also mandatorily recorded thus is a common economic transaction
• Collection of accounts receivables – the collection of the payments that have been forwarded on the basis of credit refers to the amount of accounts receivables. This is a common economic transaction
• Expenses – the expenses are the crucial economic transactions that take place in every business concern irrespective of the size of the business concern

The benefits of using a software accounting tool are various. The major advantages can be listed down as follows:

• Increased speed of work – an accounting software facilitates the increased speed of work. This means that the utilization of the accounting software will ensure the financial transactions are carried out in an accurate and better way (Dunbar, Laing and Wynder 2016).
• Accurate transactions – the utilization of the accounting software makes the financial statements of the company less prone to human errors and issues like duplication of the entries and redundancy (Dunbar, Laing and Wynder 2016).
• Security of the crucial business information – the utilization of the accounting software ensures the security of the crucial business information and prevents tampering of the information by the employees and other staff of the organization. Moreover, a particular accounting software like MYOB prevents the occurrence of frauds and embezzlements (Dunbar, Laing and Wynder 2016).

The problems faced by Core 7 Fitness for the utilization of the manual accounting systems are that the company has been facing a slower speed of accounting proceedings, the management of the different businesses make the recording of the financial transactions more prone to human errors. Moreover, the particular requirement to make the business transactions secure and ensure the privacy of the client information was a difficult proposition in regards to the utilization of the manual accounting system. These are the problems that are precisely faced by the firms while making use of the manual accounting system.

The three specific economic transactions are as follows:

• The accounts payable transactions
• The accounts receivables transactions
• The purchase of the fitness equipments

The utilization of MYOB would help in the accurate calculation and the proceedings of the accounts payable transactions. The accounts receivables transactions can be easily identified with the help of MYOB as to how much payment is still due. MYOB will also facilitate the accurate recording of the economic transaction in regards to the purchase of the fitness equipments and the amount of gain or loss that the company incurs in case of such a transaction.

The limitations of MYOB that Core & Fitness would face can be listed down as follows:

• MYOB being an online tool is exposed to the risk of hackers or frauds (Fordham and Hamilton 2017)
• The use of this particular accounting software is a complex regime and the employees of the firm need proper training for utilization of the same (Fordham and Hamilton 2017)
• MYOB can prove to be expensive for Core 7 Fitness (Fordham and Hamilton 2017)

References

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Amirul, S.M., Mail, R., Bakar, M.A. and Ripain, N., 2017. Information Technology Knowledge and Skills for Accounting Graduates: An Insight from Public Accounting Firms. Indian Journal of Science and Technology, 10(12).

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Choong, C.M., 2016. Goods and Services (GST) Accounting System for Malaysian Retailing Company (Doctoral dissertation, UTAR).

Curtis, V., 2015. MYOB Software for Dummies-Australia. John Wiley & Sons.

Dunbar, K., Laing, G. and Wynder, M., 2016. A content analysis of accounting job advertisements: Skill requirements for graduates. The E-Journal of Business Education & Scholarship of Teaching, 10(1), p.58.

Fordham, D.R. and Hamilton, C.W., 2017. Accounting Information Technology in Small Businesses: An Inquiry. Journal of Information Systems.

Mayasari, M., 2015. The Influence of Personal Characteristics, Interaction:(Computer/Individual), Computer Self-efficacy, Personal Innovativeness in Information Technology to Computer Anxiety in use of Mind your Own Business Accounting Software. International Journal of Economics and Financial Issues, 5(1S).

Tan, L.M. and Laswad, F., 2016. Professional skills required of accountants: What do Australian and New Zealand job advertisements tell us?.

Yaftian, A., Mirshekary, S. and Mihret, D.G., 2017. Learning commercial computerised accounting programmes: Perceptions and motivations. Accounting Research Journal, 30(3), pp.312-332.