Literature Review of Accounting Software: Myob

According to (Armitage et al. 2016), small business accounting software has been in use for small scale business enterprises. It has become technically reasonable for meeting the business requirements and programming. Accounting software has regular access among little and medium estimated projects. The accounting software system has turned out to be sensible and contend for actualizing bookkeeping and programming for many business accounting enterprises (Broida and Flora 2015). The issues of implementing the accounting software are absence of outside lead and insufficient addition support.

In this report, the advent of MYOB software in Australian continent for al scales of business enterprises is analyzed. The software package has much comparative superiority over its rivals. The report has highlighted these aspects and showed that the present business sector size of the Australian programming is compressed. It has helped in distinguishing the pioneers inside the business sector. The benefits of the bookkeeping programming have been talked about in this report. The analysis has helped to examine the addition challenges in the small scale business areas.

History of MYOB Accounting Software

MYOB had been formed in the year 1990 by Christopher lee. The CPA or certified practicing accountant organization of Australia has initiated the need of accounting software package for business operations (Myob.com.au 2013). MYOB stands for mind your own business and it is software used for managing the accounting activities of the business organizations. Almost 67% of the business organization had started using MYOB for their business accounting operations. In the year 2008, MYOB launched a new package for supporting online services.

MYOB Accounting Software: Development and Adoption

Development of Myob

MYOB is a pioneer among the cloud supporting accounting software packages of Australia. The growth of MYOB has been accelerated with an investment of $40 million for development of the accounting software and its features (Gebhart et al. 2013). The development has kept on growing with the introduction of their cloud service offerings. They have kept in mind the end goal to meet with the complete satisfaction of SME clients. As per (myob.com 2015), MYOB has presented remote and portable system for its clients. The information and storage of accounting database in MYOB has helped in its growth among the business organizations of Australia. For example, MYOB Pay Direct has feature of payment using the Smartphone and credit card payment system. MYOB has dispatched the first cloud ERP technology for benefiting its entire client SMEs (Broida and Flora 2015). MYOB has progressed in the ERP arrangement and made it possible for expansion of the medium scale business organizations.

 

Figure 1: MYOB development over the years

(Source: Broida and Flora 2015, pp.-44)

Adoption of Myob in Technological Frameworks

MYOB implemented the technological development for advancing it accounting software and improving its supports and features for its clients. The accounting software has developed the functions cloud system and better ways for payment system for improving the client’s satisfaction. 

Cloud system: MYOB has implemented cloud system for providing its users with ease of remote access (Gebhart et al. 2013). The users can access the information and data about the accounting system from any place and at any time. MYOB Essentials, MYOB Exo and MYOB Advanced are three versions of MYOB for providing accounting cloud system.

Better payment methods: MYOB bank link and MYOB Pay Global are very useful for easing the payment option for the clients. The payment option of the MYOB software support payment suing credit card and Smartphone application (Fossella and Kennedy 2014). It is user friendly for its customer and it has made payment process very easy.

Current Market Size of Myob

Year	Description of MYOB activities	Market share
2013	Investment of over 9 hundred thousand Australian dollars and market value rose to 7 million Australian dollars Integrated BankLink for enterprises suites of accountant	25-30% for the SME
2014	Investment of over 5 million Australian dollars and market values rose to 30 million Australian dollars MYOB occupied 116,000 users by the year end (Lam 2015)	60-70% for the SME Over 70 % for public revenue and sale accountants
2015	Advent of ASX technological float Market value of MYOB (Melbourne based headquarter) was up to 2.69 billion Australian dollars	Major market had been occupied by MYOB Almost 73% of all SME and 47% all over

Table1: Current market size of MYOB

(Source: Lin and Beck 2012, pp.-97)

Identification of the Leaders in Accounting Software Market

The grasp of the accounting software market has been shared by the three accounting software packages. They are Intuit QuickBooks, Xero, and MYOB (Lam 2015). These software and packages have been developed for managing all the accounting activities of various organizations. The small, medium and large scale business enterprises are using this software for making their system operations more effective. Xero is the leader for accounting market and it dominates for large scale enterprises in Australia. The Small and medium scale business organization opt for MYOB and Intuit QuickBooks for their accounting activities. Xero has 63% of the total market coverage. On the other hand, MYOB and Intuit QuickBooks cover 15% and 22 % respectively (QuickBooks and Premiere 2013). These values change for medium scale business enterprises with 25% and 43% market coverage by Intuit QuickBooks MYOB respectively.

Figure 2: Software Accounting `Leaders of Market

 (Source: (Svobodova and Cerna 2016, pp.-1170)    

Myob: Competitive Advantage from other Accounting Software

MYOB implemented the technological development for advancing it accounting software and improving its supports and features for its clients (Schorr et al. 2013). The accounting software has developed the functions cloud system and better ways for payment system for improving the client’s satisfaction. Due to these features of MYOB the accounting software has gained competitive edge over its rivals. The MYOB accounting software has implemented cloud based service for providing ease of remote access for it users. The data and information stored over the cloud based storage system of MYOB accounting software system provides the feature of remote access (Svobodova and Cerna 2016). The ease of payment system due to MYOB bank link has also helped in getting competitive edge over the competitors.

Challenges and Threats of Myob Implication

MYOB has to face threats from its competitors like Xero and Intuit. The rival accounting software package companies try to capture the market of MYOB by using market strategies (Quinn and Kristandl 2014). However, the SME market is shared by MYOB and Intuit in Australia. Xero has put focus on large scale business organizations. Hence, they do not face any trouble from them. The other smaller accounting software has started influencing medium scale organizations. Security is another problem faced by MYOB for implementation (Schorr et al. 2013). Being cloud based system for storage, MYOB accounting software has to face security issues. The data storage system of MYOB could be accessed from external and information could be leaked (Fossella and Kennedy 2014). The security of sensitive and private information is at stake due to storage over the MYOB software. Various cyber criminals and hackers could get into the system storage of MYOB accounting software and extract information from the database.

Recommendations

The MYOB accounting software has improved on a large scale with the addition of accounting features and technological advancements. However there is some room for improvement in MYOB. Following are some recommendations for improving the MYOB accounting software:

Strong Security architecture: MYOB should implement architecture for data security. The cloud based system storage must be implemented with authentication and authorization process. It would make sure that the information stored over the cloud network is protected from unauthorized entry.

Improving online service: The online service provided by MYOB must be improved for meeting the competition from the rival accounting software Intuit QuickBooks. The online services provided by MYOB can be improved for satisfying the customers.

Secure Payment system: the payment system of MYOB bank link and MYOB global can be improved by partnering with different payment platforms such as PayPal. It would make sure that the information of the payment is secured from any external influence.

Conclusion

It can be concluded from the report that, MYOB utilizes technological development for the bookkeeping and accounting software. The accounting software is helpful in taking administrative choices, keeping in mind the end goal and picking up an upper hand among rivals. Among all the accounting and bookkeeping software, MYOB is evaluated as a top with picking up a piece of the pie of 60-70% for small to medium scale business enterprises. The advantages of MYOB are that it picks up distributed computing arrangements that give the representatives capacity to take a shot at hierarchical substance. The accounting software confronts difficulties, for example, information security and it is not learner benevolent. MYOB gives savvy answers for the associations keeping in mind the end goal to take out the manual procedures and builds up a key future for the organization.

References

Armitage, H.M., Webb, A. and Glynn, J., 2016. The Use of Management Accounting Techniques by Small and Medium?Sized Enterprises: A Field Study of Canadian and Australian Practice. Accounting Perspectives, 15(1), pp.31-69.

Broida, M. and Flora, D., 2015. The status of computerized accounting software in small American businesses. Journal of Small Business Strategy,1(1), pp.44-51.

Fossella, G.C. and Kennedy, K.F., Kokopay, Inc., 2014. Electronic Payment System Operative with Existing Accounting Software and Existing Remote Deposit Capture and Mobile RDC Software. U.S. Patent Application 14/211,110.

Gebhart, B., Glines, S.M. and Foss Jr, S.H., Norse Corporation, 2013.Systems and methods for integrating accounting software and payment processing systems. U.S. Patent Application 13/803,868.

Lam, G., 2015. The Online Accounting Software Guide: An In-depth Analysis of Today's Leading Cloud Accounting Applications.

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.

Lyons, S.M., 2015. Using Accounting Software for Food Hubs: Processing Traceable Orders.

myob.com, 2015. Defining the challenges of a growing business. [online] www.myob.com. Available at: https://www.myob.com/content/dam/myob-website/docs/enterprise/industry-whitepapers/GROWING-BUSINESS-WHITEPAPER,3.pdf [Accessed 12 Aug. 2016].

Myob.com.au, 2013. News & Media Releases. [online] Myob.com.au. Available at: http://myob.com.au/myob/news-1258090872838?articleId=1257830989162 [Accessed 12 Aug. 2016].

Myob.com.au, 2015. What is MYOB? Mind Your Own Business | MYOB. [online] Myob.com.au. Available at: http://myob.com.au/myob-1258090781426 [Accessed 12 Aug. 2016].

QuickBooks, I. and Premiere, C., 2013. Accounting Software Supported: Accounting Software Version MISys Manufacturing Version. Sage, 6, pp.0-7.

Quinn, M. and Kristandl, G., 2014. Business information systems for accounting students. Pearson Education Ltd..

Schorr, M., Sylvester, M., Dopf, G., Henrich, D., Liebich, G., Conrad, M., Reccius, A., Klein, M., Hohendorf, M., Roesinger, A. and Soltek, R., 2013.Providing accounting software application as enterprise services. U.S. Patent 8,442,850.

Svobodova, L. and Cerna, M., 2016. Accounting, Economic and ERP Systems on the Czech Scene. Advanced Science Letters, 22(5-6), pp.1170-1174.

 

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