Question

Enumerate and discuss the advantages of Excel vs. MYOB with regards to the company's internal control system.

Answer 1

Advantages of MYOB over Excel

-- Easy to prepare GST and tax returns: When the data coding is taken care of (which is simple and quick) it becomes very easier to prepare the information for the tax return or GST each year. It handles the mathematical backend thus ensures an accurate reporting than excel.

-- Simple to send quotes: The quotes can be prepared in the presence of the customers and directly emailed to them. Thus allows discussing the price on the spot with the customer to help overcome any issues. With Excel a business has to design their own procedure, which may or may not be optimal.

-- Easy to send invoices: The invoices can be prepared immediately after the completion of each job instead of sending invoices out once a week. Thus improves the accounts receivable because the customers can pay their invoices sooner. In Excel, a business has to create a separate system for receiving, sending, and resolving payments.

-- Easy Bank reconciliation: The bank can be feed online to automate bank reconciliation; however in excel it need to be done manually.

-- Automated reminders on overdue invoices: MYOB can be set-up to generate automatic reminders on email to customers who might have forgotten to pay the bill “accidently”. With Excel a business have to do it manually and complex formula are applied which may or may not be optimal.

-- Simple Payroll: With the usage of payroll function it can dramatically save time and will assist on tax withholding & superannuation requirements. In Excel, the report needs to be generated by hand.

-- Eliminate data entry (almost): If income and expenses are set-up in a manner and linked that it to be drawn from or paid into the business bank account it will nearly eliminate data entry

-- Increases chance of survivor: MYOB provides a proper review of financial information thus is more likely to rapidly reduce the costs and/or change their pricing when things aren’t in favor.