Companies have to bring efficiency in their processes to reduce the cost of operation and making profits. One of the ways of making processes efficient is by using computerized technology that reduces the working time of a process and reduces number of faults in the system. This gives a control on the workflow which can be managed according to the need of the hour. In order to improve the financial systems, companies use the concept of Accounting and Reporting. The sub categories of these heads are Receivables and Payables Management. Comparison between SAP and MYOB Software: Which is better?
There are a number of digital accounting systems available today to manage the business operations. Some of the common ones are Oracle, Microsoft, SAP and MYOB. These systems help in aligning the activities in various functions and connect all the functions within the organization. These enterprise solution systems manage the data from all the departments, updates the data in all the interlinked departments even if one of them changes and provides an easy way to manage the issues of the Accounting Function. This article deals with a comparison between SAP and MYOB functions with respect to Accounting.
MYOB – ACCOUNTINGRIGHT PREMIER
Following are the features of MYOB for which it is famous:
The name of the accounting solution provided by MYOB is called MYOB AccountingRight Premier. The main feature of MYOB is its well developed accounting software. MYOB’s software can perform various important functions in less time and more efficiently.
It has made the processes of inventory management, and billing easier, thus reducing wastage and cost. The software also helps in keeping a track of the cash flows and thus monitoring the profits and losses. Also the software can be accessed by people in different functional departments within an organization and various others in the foreign locations as well. Thus, this accounting solution of MYOB is one of its best software and is used widely by various organizations. Another extended feature of the multi user application is that more than one person can work on the same application simultaneously. This helps in solving trivial queries instantaneously that might arise while working on the software and also decreases the time of processing. This software also has a feature where the data about billing amount and various other financial transactions can be seen in various different currencies. Thus, this software is apt for carrying out activities on a global level.
Another major function that is well managed by the AccountRight Premier is Payroll management. The software performs various functions like developing reports on Retirement and Cover Ups. It also calculates and keeps the entries of bonuses, reimbursements, arrears, leaves, etc updated. The software prepares consolidated monthly and quarterly reports which can be accessed at any point of time. Companies face lot of losses if their inventory is not well managed. In fact inventory management cost forms a major part of the cost structure of a company. AccountRight Premier helps in managing inventory in a more efficient way and thus reduces the losses due to the same. The software captures the data entry as soon as some inventory is moved out or brought inside a company and thus tracks the availability and amount of inventory in the stock in a real time basis. This also helps in calculating the lead time of the delivery to any customer, possible stock out situations and the doling out time of the product. Analysis of the above features helps the management to take precautionary steps thereby increasing the efficiency of the processes and reducing the cost of operations. The software also has made the processes easier as it is compatible with Microsoft Outlook. Thus all the important mails and data gets directly stored on the computer itself. This helps in managing the supplier and clients information, getting invoices and generating orders in a more comprehensive manner. Also it acts like a backup becomes very useful in case the online server of the company crashes.
The major benefits of MYOB software are:
- The software updates the data in a real time basis and thus generates comprehensive data reports
- The software gets easily synchronized with the accounting applications and thus helps in making data entry changes in these applications directly with the changing data
- The software is known for calculating the right figures and thus is very trustworthy
- The software is easy to use with latest graphic user interface
- The software also gives the same results under different conditions and thus is consistent in performance
- The software also calculates and gives probable sales figures and helps in forecasting demand by analyzing the past patterns. Thus it helps in giving useful business insights, monitoring which important strategic decisions can be taken by the top management of the company.
This business solution can be taken both individually as well as a part of the package through membership. Extra services that come under the umbrella of membership are providing technical support services whenever required and free updating of software. The cost that the customer has to pay for this software solution package is $1849.
SAP ERP FINANCIALS
Many of the features of SAP are very similar to that of MYOB. Some of the common features of SAP with MYOB are that it can be used by more than one person at a time. Secondly, the system is also available in more than one language and thus is good from a global perspective. Thirdly, the system is gain available in multiple currencies and thus transactions carried by a company’s foreign branch can be well analyzed and tracked even by the home branch. The various other features that support Financial Management are:
- General Ledger: follows all the legal procedures of GAAP and IFRS and thus is very trustworthy. This feature also helps by supporting different ways of Accounting and Reporting
- Accounts Receivable: maintains the entries of the sales and billing. This further when integrated with the Supply Chain Management improves the delivery time and helps in inventory management, thus reducing cost of operation.
- Accounts Payable: maintains the records of all the payments that the company receives. This helps in Liquidity Management by synchronizing the activities of SAP with the Financial Services.
Though most of the features of SAP are very similar to that of MYOB, there are some other features too those differentiates its services and give it leverage over MYOB. Some of these features are better control over the processes and the following of the legal processes.
SAP integrates all the functions of an organization and after analyzing them assists in designing the goals and targets of a company. The system also helps to track, control and monitor the cost, which further increases the profit of an organization. The top management can thus plan out different strategies for future and also prepare themselves for any future disasters. Further the SAP offers digital ways of recording the sales figures which simultaneously updates the data in other functions too. The system also synchronizes the fund collected from customers and lists downs the pending amount, thus helping in cash management. Since all these activities can be carried out globally, thus this system can collaborate the cash management activities in various branch offices of international companies.
SAP gives a consolidated reports on finance and accounting, which can be traced easily any time and thus the business can be carried out more proactively. Since all the process in various functional departments can be interlinked, various risk factors and probability of disasters can also be calculated through it. Thus, SAP leads to new, better and well managed processes that are integrated with all the departments leading to efficient use of resources, efficiency in processes and increased profits. Along with these major offerings, SAP also provides supplementary services that act as a support to these main offerings. The additional benefit here is that the customer can choose the type and the number of support services that he would require based on platform of services supported by his organization. Some of the common supplementary services are SAP Service Marketplace extranet, SAP Notes service and SAP Solution Manager.
The major benefit of SAP is that it integrates all the processes along all the functional departments and thus improves the flow of information. Since the flow of information improves, it leads to better decision making at different levels, which saves on resources and increases the efficiency of the processes. All this reduces the cost of operations and when carried out over an extended periods leads to continuous and sustainable development. The major advantages of SAP are because it has a very reliable and well working hardware and software application platform. The system uses Enterprise Service Oriented Architecture and SAP In–Memory Computing which are one of the most developed technologies today. These technologies have made work easier, reduced the number of errors and given a platform to the companies that are not easy to copy. Moreover these platforms are easily compatible with the existing ones in a company and thus find high volume applicability. Moreover the SAP application platforms are very secure and keep the information of a company from getting hacked easily.
The system requirements of SAP are same as that of MYOB.
The price of SAP to the end customer comes down to $6000-$7000.
SAP and AIS Cycles
The AIS system utilizes the SAP reports and a tool comes for auditing and verifying the data in the SAP system. Thus SAP integrates all the auditing practices which lead to better decisions and improved auditing systems. Along with compiled auditing reports it leads to efficient utilization of the resources since the external and internal resources get commonly used. Moreover it reduces the processing time and reduces the complexity of managing ample amount of data present.
The SAP and MYOB may have a lot of similar performing functions, but SAP definitely is more beneficial and efficient as it provides more and useful services as compared to MYOB. SAP leads to better flow of information within the integrated departments, leading to efficient utilization of resources and thus increased profits.
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