MYOB Accounting is Australia’s leading accounting software and has been since the late 1980s. The reason for this is simple – MYOB is simply one of the best options available on the market, providing all of the critical features required by accountants and bookkeepers to complete the most common tasks with ease and speed.
This article takes a look at both sides of using MYOB – we’ll examine why we love it so much as well as what some of its shortcomings might be for some users – but first, let’s go over some basics that will help you understand what exactly MYOB is and how it works:
What is MYOB?
MYOB works through the use of a payroll system, which means that for those who run their businesses and need to set up employees and pay them accordingly, this is the program for you.
In addition, it integrates seamlessly with other accounting programs such as Xero and Reckon Accounts, meaning that users can customize how it works according to what suits their needs – whether they’re an accountant using it to help clients or someone who wants to stay on top of their books.
MYOB allows small business owners to track income, expenses, creditors, debtors, purchases, inventory, jobs, time billing jobs, etc. All through a straightforward interface that makes it easy to manage everything simultaneously. Even better, there are mobile apps that allow you to perform tasks such as invoicing and account management anywhere, at any time.
How Does MYOB Work?
MYOB works by having the user input all transactions and other pieces of information into a central file – this can either be done manually or through integration with third-party programs such as point-of-sale, Quickbooks, and others – which then allows customers to create charts of accounts that show different revenue sources as well as expenses.
Each transaction is assigned a category and a code, which means users can see exactly where their money has been going at all times, letting them make adjustments wherever necessary.
This helps users save money on taxes because they’ll know exactly what breaks apply to them whenever they prepare their returns for whichever period it may be. They can even work with their accountant to make sure everything is properly laid out.
MYOB allows you to choose from a range of accounts when recording your transactions. The categories include assets, liabilities, equity, income, and expenses. You can also create customized reports for specific purposes such as stock or debtors.
Values & units
In MYOB, you can maintain ‘account balances’ in dollars ($) or cents (¢). With the latter, you only need to enter one figure into each field regardless of what currency that figure is in. In addition, if you have an account with a balance of zero at any time, it will not appear on your reports, so there’s no chance of being caught out at tax time because a zero appears where a four would be expected! You can also display figures in any currency you choose and set up conversion rates so that all your figures still add up.
Audit Trail & Security
This allows you to define what activities different users can carry out on the system, such as adding transactions or viewing reports. This feature can be applied to either individual accounts or entire companies. You can also restrict which modules each person can access (e.g., just Sales, just Purchases). Plus, you can control how many times users need to enter their passwords when performing specific tasks. Finally, a handy feature in MYOB is the ability to set up ‘time locks’ for particular functions, meaning a user cannot bypass these rules if they are trying to cheat or steal from your business.
This requires a username and password and is activated if you choose the ‘password protect’ function in MYOB software. The information is encrypted, so an unauthorized person can’t hack into it. It also prevents any data degradation, such as missing or incorrect data entry, because your most recent transactions will always be accessible no matter how long they were entered.
MYOB gives users access to their accounts using most devices, including desktop and laptop computers, smartphones, and tablets (iOS and Android). You can also import bank transactions directly into your system via online banking services that use the IIF standard (more than 40 do), as well as the ability to transfer your data to or from another MYOB software program using an external disk or flash drive.
Reporting & Analysis
MYOB offers detailed reports that give you access to both general and specific information on your finances. The system also provides different types of graphs showing up-to-date figures for easy comparison and comprehensive breakdowns of transactions by type (e.g., sales, purchases). It can even tell you if there are any inconsistencies between payments received and invoices raised.
How is MYOB better than Xero?
MYOB and Xero are both top-rated options for businesses of all sizes and budgets. They’re both easy to learn how to use, and each has a variety of advantages over the other depending on what kind of business it is that you run or help run. So while we think either option will work well for you, here are some things about each program that might influence your decision:
XERO Has More Flexibility
This is because there are so many add-ons available for Xero that allow users to customize the system according to their own needs. For example, if you want to track stock at a store or have multiple locations, you can do both with Xero. However, those features aren’t available with MYOB, which is why it might be a better choice for those who want to keep things simple and don’t need the extras.
MYOB Is Cheaper
You will have to pay a monthly fee if you opt for an online system such as MYOB rather than going through the more expensive option of having your accountant buy the software on your behalf – but either way, once you’ve purchased the program your ongoing expenses are less for MYOB even though it costs quite a bit more initially. This means that you’ll save money in the long run by choosing MYOB over Xero.
MYOB Has Better Integration
This is another reason why you should go with MYOB over Xero – the fact that it integrates seamlessly with several third-party programs means that you won’t have to go out of your way to change or update anything if, let’s say your payroll service provider changes. With Xero, on the other hand, you’d need to make sure everything works together without any hiccups.
So Which One Is Better?
We honestly don’t think this is worth asking because both programs are fantastic and do what they set out to do well. Ultimately it comes down more to personal preference than anything else – which system would be more accessible for you to learn how to use? Which one feels more intuitive to you? If you’re unsure, it might be worth asking your accountant which solution they recommend and why.
How is MYOB better than Quickbooks?
While both MYOB and Quickbooks are great options for those who want to keep track of income and expenses, there are some things about Quickbooks that might make it a better choice than MYOB depending on what kind of business you run:
Quickbooks Offers More Customization
If you’re the type of person who likes to be able to tweak everything to fit your needs as closely as possible, then Quickbooks will probably be the better option for you. There’s more flexibility in setting up your chart of accounts or record transactions; however, you see fit with this program than MYOB, which tends to have more limitations. It also integrates well with many third-party programs, so if you’re someone who already uses HR software, payroll software, or any other types of tools, you’ll have more options with Quickbooks.
MYOB Is Cheaper in the Short Term
This is because MYOB costs less upfront than Quickbooks does. While you will have to pay a monthly fee for either program once they are bought, the initial purchase price of MYOB is much cheaper even though they charge similar prices per month based on how many transactions you make per year. However, if you need your books done quickly for tax purposes by someone else or want all the bells and whistles that are available with Quickbooks, then it may be worth paying more upfront since it won’t cost you any extra money in the long run.
So Which One Is Better?
Once again, it doesn’t matter which program you choose at the end of the day. As long as you go with a reputable accounting program with good reviews online, both MYOB and Quickbooks are great options. The only question is whether or not you need more flexibility when it comes to customize your chart of accounts or want something cheaper at the outset than monthly fees.
MYOB SBR Capabilities
This is great for bookkeepers who need to keep track of all their entries. Using this feature is simple since you can write a journal entry once and reverse it if necessary. So, if you previously made an incorrect calculation, there would be no need to create a new entry in your books because changing a journal already entered into MYOB will do the trick. You can also view previous reversed transactions at any time to see what figures were originally recorded under each transaction type (e.g., sales receipts, purchases invoices). Plus, you can combine several reversals into one transaction or split one turnaround across multiple transactions if needed.
If you use bank feeds from your bank or payments made directly to or from your bank account (cash transactions) and want a comprehensive reconciliation report at the end of each month, MYOB will do this for you and give you an accurate picture of how much money is in your account. You can even set up reminders so that every time a transaction comes through, it tells you right away whether it’s been added to or subtracted from your reconciliation balance.
If you have bills such as credit card accounts, utilities, insurance premiums, and other regular expenses to pay, you can link these up with payees in MYOB software and set up automatic payment rules, so you don’t need to worry about forgetting when due dates are. This feature lets you apply discounts and coupons according to conditions (e.g., spend over $500 in one transaction to receive 10% off). You can even make recurring payments for expenses like rent or utility bills if you need to.
If you want to create an estimate in MYOB software, this function will let you take notes from a previous successful transaction and apply them to any future sales quotes, so your customers know exactly what they’ll get from you at a set price for example, without having to contact you every time they have a new order. Plus, it helps reduce errors made when manually filling out sales forms or writing down quotes by hand.
Edna Training College’s Cert IV in Bookkeeping online course includes access to MYOB (student software) so that you can learn and play around with the software to familiarise yourself with its features and functions.