You may just be starting your journey in selecting an ERP system for your business. We have set out a list of frequently asked questions which may assist you in the decision making process. Our FAQs are organised according to the following categories:
- Getting Started
- Cloud Accounting
- Accounting Software Packages
- MYOB Advanced
If you have any further questions that have not been addressed, please contact us on 1300 857 464 or e-mail firstname.lastname@example.org – we would love to hear from you!
Getting Started: General Queries
Who is Kilimanjaro Consulting?
Who are some ERP solution providers?
What are the features of a robust ERP system software package?
I have an e-commerce site that I wish to integrate with my accounting software. Is there accounting software for ecommerce available?
Many popular accounting packages already have integration into e-commerce websites. While these might not have all of the features of a custom built site, the integration already exists so this generally tends to be a lower cost solution. If integration does not yet exist for the accounting software you have selected, be aware that integration is an expensive exercise.
What is the difference between using a system that is based in Australia/New Zealand versus one that is internationally-based?
With web-based ERP systems, it is important to know which country it is hosted in. Systems hosted in other countries may be subject to legislation which impacts on your privacy. For example; systems hosted in the United States may be subject to the Patriot Act. If your company has to comply with local legislation, make sure that offshore hosting is allowed. MYOB Advanced is hosted in Australia by Amazon Web Services.
There are a few definitions I don’t understand! Can you clarify what some of these mean?
- SaaS – Software as a service
Software as a service means that instead of purchasing your software, you simply rent it as you use it. This may be a monthly or annual subscription fee. You never own the software, and when you stop paying, the service is stopped
- FIFO – First In first out
FIFO is an accounting term which relates to how your inventory is costed. Your system will attach a cost price to each item when it is sold in order to calculate your profit margin. This cost price may vary depending on when you bought the goods. With FIFO, the system assumes that the goods you purchased first at purchase price $X are sold first.
- LIFO – Last in First Out
LIFO is no longer commonly used in Australia. Your system will attach a cost price to each item when it is sold in order to calculate your profit margin. This cost price may vary depending on when you bought the goods. With LIFO, the system assumes that the goods you purchased last at purchase price $X are sold first.
- Cloud ERP
Cloud ERP refers to your server or cloud service being hosted somewhere other than in your own server room. Cloud ERP software allows users access to a server in a different location that may be private or in a public data centre. More information about cloud accounting is covered below or you may be interested in reading Kilimanjaro’s Plain English Guide to the Cloud.
What does cloud computing actually mean?
What is Software as a Service (SaaS)?
What is accounting for SaaS?
Some software as a service accounting systems are actually hybrids. This means that the software itself is installed on your own computer, but the data is stored in the cloud. You are usually able to download a copy of your data if you need to work locally. An example of this is MYOB AccountRight Live.
Accounting Software Packages
What are accounting software applications?
What is integrated accounting software?
What is accounting software for midsize business?
- More staff
- Number of branches
- Increased transaction volumes
- Remote operations
- New products and services
These factors impact on a company’s systems, processes and organisation.
Midsize businesses in Australia are typically defined as businesses with between 20-200 employees. Measured in terms of revenue, a company would be categorised as midsized once it exceeds approximately $6million in turnover. The requirements of midsize businesses differ from small business requirements. As a business grows, it will tend to run out of steam with their accounting solution. Accounting software for midsize business will be an ERP system that will usually take a company from this size to a turnover of about $400million. Beyond this, requirements again change as segregation of duties and responsibility become more common. At this point, most companies will look to more complex ERP systems, such as SAP, JD Edwards, Microsoft Dynamics AX or Oracle.
How does an accounting software solution differ from an accounting software system?
Does online accounting software include payroll accounting software?
MYOB offers a number of payroll solutions. Depending on your business requirements, a simple payroll solution such as MYOB AccountRight Live may be adequate. If your payroll requirements are more complex, or if you require an HR component, then MYOB Employer Services or MYOB Advanced People may be more suitable. Both of these systems can operate as stand-alone payroll and HR systems which can be integrated into your online accounting software. If integration is not possible, manually entering the General Ledger journals is all that is required.
What is cost accounting?
Cost accounting software enables a company to not only record, but also to allocate costs to its various operations. Cost accounting can be done at the unit level so that margins on particular items can be calculated. Cost accounting may include the costs of services (for example, labour) as well as the cost of goods that are components in manufacturing that item. Overhead costs are generally treated separately, but cost accounting systems will also allow you to allocate fixed (overhead) costs to activities or divisions.
Job costing is a refinement of cost accounting. Job costing enables you to track costs on a particular job or project. The revenue associated with that project is then compared to the costs to arrive at a profit per job or project.
What is the difference between MYOB Advanced and MYOB EXO?
What is the relationship between MYOB Advanced and Acumatica?
Which accounting software packages are not competitors of MYOB Advanced?
MYOB Advanced is designed for larger, more complex businesses. By their nature, businesses requirements change as they grow. While a small business does not require separation of responsibility, in a larger business this becomes essential. Smaller businesses are less rigid in terms of accounting standards, for example a small business system may allow you to delete an incorrect invoice and rekey it. In a larger business, this would not be acceptable as an audit trail is required for every transaction. The process would therefore be to generate a credit note for the incorrect invoice and create a new invoice. This process would be far too clunky and onerous for a small business however is essential in a larger business.
Accounting software packages such as Xero, Sassoo, QuickBooks, MYOB Essentials, MYOB AccountRight, Attache, Jiwa, Sybiz, Arrow, Tensia are generally not considered to be competitors of MYOB Advanced.
Mid sized business accounting software includes MYOB Advanced, Netsuite, Microsoft Dynamics and Epicor. MYOB EXO, SAP Business 1 and Pronto can often fulfil the needs of larger businesses but are not SaaS (software as a service).
How do I go about getting an accounting software demo?
What is the difference between CRM and ERP software?
CRM (Customer Relationship Management) provides a tool to record interactions with your customers and to assist you in scheduling future contact with those customers. A CRM system is usually deployed as a component of a marketing strategy. For example, if you decide that you want to contact all existing clients three months after their last interaction with you, your CRM system will alert you as to when this is due. As another example, you may wish to have a marketing campaign targeting certain types of businesses. You would acquire a list of these prospects and upload them to your CRM system.
You would then program your system to execute a series of steps:
- E-mail the prospects with an introductory letter
- Record their responses
- Send out a reminder to those that have not responded
- Schedule a phone call with those that have responded
- Flag prospects that are interested in your product
- Allocate these to sales people on a geographic basis
- Create a report to show how many leads were generated by this campaign
- Create a report to show how many sales were concluded as a result of this campaign
- Create a report to compare the cost of the campaign with the number of sales generated so you can see cost per sale
An ERP system (Enterprise Resource Planning) captures and records information across the organisation. This is usually financial and non-financial information. This information is processed to provide management with meaningful data that is essential for decision making. The company’s processes are also embedded in the ERP system. This guides employees in how various functions are performed within the organisation.
ERP systems are usually found in larger companies who have moved toward standard operating procedures. The ERP software solution spans the entire company from the initial set up of a customer/supplier through to delivery and invoicing of the goods or services provided. The system is configured to suit the processes that have evolved in your own organisation, however in companies with immature processes, the implementation of an ERP system is often the catalyst for changing to best practice.