Assessment: MYOB Exercise
John and Jane's Electrical Company Overview
John and Jane and have been running a small electrical business - John and Jane's Electrical - in Wollongong for the past 8 years. Recently, demand for electrical supplies and fittings has soared, and John and Jane decided to open the store in 3 alternative locations.
Problems at John and Jane's Electrical Company John and Jane have been using a manual accounting system, where they keep track of the financial records, including stock, tax, payroll, accounts receivable and payable etc. with a written ledger of transactions. However, with the growth in sales, complexity of managing 4 businesses, and the inefficiency and errors involved in using a manual system the owners need a change.
You are required to consider a solution for John and Jane's Electrical Company: MYOB is a leading provider of business management solutions for small to medium size organisations in areas including accounting, payroll, job management and financial reporting. By reviewing the various case studies discussed on the MYOB website as a guide, you are required to write a report to the owners on the benefits of converting to the online accounting software tool MYOB. This report should address the following information:
1. Outline the economic transactions that would take place at a small business.
2. Outline the benefits of using an online accounting software tool.
3. Outline the problems Jane and John face by using a manual accounting system.
4. With reference to three (3) specific economic transactions that would take place at John and Jane's Electrical Company, detail how MYOB would be used and useful.
5. Outline any limitations or risks that John and Jane's Electrical Company may face in the implementation of MYOB.
Report Specifics:
Your report will begin with a 'before' and 'after' summary table that lists the difficulties and inefficiencies before the implementation of MYOB and the perceived benefits after. You will then provide a response to the five (5) points listed above. The report must include an assessment cover page.