New Copy of Cloud Based Account Based PDF

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New Copy of Cloud Based Account Based on Written Assignment on ACCT1101 Financial Accounting...

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Adopting Cloud based Online Accounting Software

MYOB Essentials is a cloud based online accounting software which allows small businesses and sole traders to assist in sorting out their financial records and business transactions with their banks and clients. MYOB Essentials’ user-friendly interface along with its step-by-step guides provides invaluable information that even beginners in financial accounting would be able to quickly understand. The software also has easy access to learning materials to learn the 5 business Cloud based Software processes which include Business & GST Details, Create a Bill, Create an Invoice, Reconcile Bank Accounts and End of Financial Year tasks. The MYOB Essentials Accounting ("MySuccess", 2020) package is most efficient recording option out of the accounting plans for Mr. James Ponsford as it encompasses all 5 processes necessary for the business to run and that Payroll is not needed due to there not being a separate list of individual employees present.

MYOB Essentials’ software has 4 recording options which include Essentials Payroll, Essentials Starter, Essentials Accounting and Essentials Accounting + Payroll. All recording options include automatic tax updates, bank feeds reconciled bank accounts and payroll included in their plans; however, the Essential Accounting plan offers the best variant due to its inclusion of business and GST reports, unlimited bills, and invoices within the plan. The Business and GST Details process sets up in how the entity wants to record the financial year, business details and GST reporting and accounting basis (cash or accrual), which allows your BAS statements to be due on the following dates based on the reporting frequency ("MYOB Academy", 2020).

Bills are created when a client/entity buys goods and services from a supplier. More likely than not, these will be paid later and receipts for those that have already being paid for. By recording the bills into the software, it helps in tracking your business expenses and meet the GST obligations. It also helps with cash flow and avoiding any late charges ("MYOB Academy", 2020). It also allows it for record keeping being easier and that the accountant can see it if need be. Recording the supplier bills ensures that the records will be up to date as well.

Invoices are records in which when a sale is made, it makes a document to assess the goods or services the supplier has sold to the customer. Customers can also request an invoice for their records as well. Invoices can keep track of the entity’s income and meet the GST obligations. Invoices are only recorded if either the entity or the customer needs a detailed record of the sale or keeping track of customer payments for those paying later. If the customer chooses to pay through their invoice online, the payment details are automatically entered into the software ("MYOB Academy", 2020).

Reconciling bank accounts is about comparing the entity’s internal records with the entity’s external records to ensure that they are in sync, therefore allowing the bank records to match with the entity’s records. This translates to say that anything that occurs in the bank statement and credit card must also have an identical transaction in the MYOB accounting software. Bank feeds allows the entity to automatically import your bank and credit card transactions into your accounting software, securely and directly into the bank. This causes the process of reconciliation to be easier cause the entity’s already checking and comparing the bank data.

End of financial year tasks involve the use of up-to-date reports to illustrate the balance sheet, trial balance and the profit and loss summary. An advantage of the MYOB Essentials Accounting plan is that you can send amounts such as total and total expenses from your profit and loss summary account to Excel to where you can add new formulas to adjust those values to your liking or save the report as a PDF ("MySuccess", 2020). This transfer can be used to file it away or send it towards the accountant, allowing for better insight into the health of the entity. Online accounting also invites working together with the accountant and the entity, which helps in reviewing books online. Furthermore, it gives the accountant the ability to close off the books through year-end adjustments.

MYOB Essentials hosts a variety of flexible plans that suite most entity’s needs, which allows an efficient online working environment with their accountants. MYOB Essentials’ user-friendly interface allows both customer and accountant/entity to communicate effectively without unnecessary clutter and creates an ease of flow of information between the two. Out of the various accounting plans MYOB Essentials promotes, MYOB Essentials Accounting is the best suited for Mr. James Ponsford as it encompasses the 5 business cloud based software processes within that plan and the plan also has step-by-step guides and videos in teaching and learning the 5 processes as well.

References: 1) MYOB Academy. Academy.myob.com. (2020). Retrieved 6 May 2021, from https://academy.myob.com/. In-text citation ("MYOB Academy", 2020) 2) MySuccess. Mysuccess.myob.com. (2020). Retrieved 6 May 2021, from https://mysuccess.myob.com/s/stuff-for-students. In-text Citation ("MySuccess", 2020)...