MYOB ESSENTIALS REPORT

MYOB Essentials offers a large amount of Cloud Software processes but the purpose of the report
will be limited to the following 5 processes: Business & GST Details, Create a Bill, Create an Invoice,
Reconcile Bank Accounts, and End of Financial Year tasks.

The Business & GST Details contain essential details such as business name, address, and financial
year settings. When you access the business details settings, you should enter your ABN (Australian
Business Number) and can add any other details available such as the website for your business. For
the business currently, we are not dealing with GST so we can select no and move on. But, in the
future when we have to get registered for GST, it will cause no problems as we can go back into the
GST settings at any time and select yes. It will require you to enter that the business is following the
accrual basis, how often your business reports and lodges Business Activity Statements. All these
details are then saved and used by relevant accounts and reports.

The Create a Bill service makes it easy to keep track of supplier bills resulting in good cash flow
management and ensures records are kept up to date. A bill is received from suppliers when you
purchase goods and/or services from them, you then are also given a payment date. The service is
useful as it helps distinguish expenses since not every expense is considered a bill. A bill is made up
of three key components and this can easily explained using Ocean Grove Wineries as an example.
WHO : the name of your supplier (Ocean Grove Wineries), address, contact number, email , ABN.
WHEN : date the supplier issued the bill (30 th May) and payment terms (2 % discount for settlement
within 10 days and full settlement within 60 days)
WHAT : Inventory is bought and a description should be provided in order to settle any disputes
regarding the goods/services.

MYOB facilitates this service by using Optical Character Recognition; which will autofill your financial
information from the document it scans. You can also link the bill to past transactions as an internal
control measure; it displays past purchases with the date it was recorded, when it is due, how much
it is and whether or not the bill has been paid yet. This makes it very easy to keep up to date with all
your payments.

An invoice is issued when a sale is made and it is very useful to have instant access to these
documents as sometimes it’s a legal requirement and tax obligation to document details for your
records and your customers have the right to request the invoice. The structure of an invoice is
essentially identical to a bill, except ‘supplier details’ is swapped with ‘customer details’ and an extra
‘method of payment’ component. MYOB facilitates issuing an invoice by providing a hyperlink for
payment and allows for easy tracking.

Reconciling Bank Accounts consists of comparing internal records with bank records making sure all
transactions account for one another and this makes sure all your records are up to date and
accurate. Using MYOB, you can set up Bank Feeds so that it automatically imports your bank and
credit card transactions into the accounting software directly and securely from your bank. You can
then use the Reconciling Bank Accounts Service which cross-checks internal and bank records and
only displays unaccounted transactions. A bank reconciliation report is also produced as evidence for
records being up-to-date and accurate. It stores all the bank reconciliation reports in one spot to
facilitate access.
End of Year Financial Tasks consist of cross-checking records for errors and requires large amounts of
time. MYOB uses bank feeds to accelerate the cross-checking process by automatically matching
payments to invoices and bills and only requires you to match transactions to the correct accounts
when there is more than one possible account the transaction can be linked to. MYOB also allows
the comparison of financial reports between budgeted and actual performance and allows reports to
be broken down (quarterly, yearly). Every figure in the financial reports can be broken down to view
transactions that occurred to make up that specific amount. Reports can easily be shared to
interested parties and serves as valuable information on the health of the business to assist with
future decision making processes. MYOB also assists accountants to perform end of year duties by
providing access to all business records and can lock your data to prevent fraud.

References
Academy.myob.com. 2021. Catalogue. [online] Available at:
<https://academy.myob.com/totara/catalog/index.php?
catalog_cat_panel=659&orderbykey=text&itemstyle=narrow> [Accessed 10 May 2021].

Mysuccess.myob.com. 2021. MySuccess. [online] Available at: <https://mysuccess.myob.com/s/stuff-

for-students> [Accessed 10 May 2021].