divisional accounting using myob filecomparison of options available to do divisional accounting...
TRANSCRIPT
DivisionalAccountingusingMYOB
ComparisonofOptionsavailableUsingMYOBalone&MYOBwithBI4Cloud
Preparedby:JenniferKellyCABI4Cloudwww.BI4Cloud.comMarch2016
ComparisonofOptionsavailabletodoDivisionalAccountingwithMYOBandBI4Cloud
Businessescomeinallshapesandsizes,astheygrowtheyoftenbecomemorecomplex.AccountingforasingleofficeatonelocationusingMYOBisverystraightforward,howeverassoonasanotherbranchorofficeopensitisimportanttobeabletoreportontheprofitabilityofnotjustthetotalbusinessbutalsobybranch.EvenbusinessesoperatingintheonephysicallocationcangrowtohaveseparateDivisionsorCostcentresthatneedtobetrackedandreportedonseparately.MYOBAccountRightcanbeusedoutoftheboxtodosomeDivisionalaccounting(beitBranches,statesorcostcentres),howevertherearelimitations.Investingalittletimeupfronttounderstandthedifferentoptionsavailableandmatchingthemtoyourspecificrequirementswillsavetimeandeffortdownthetrack.Thequestionsyoushouldconsiderare:
1. SplitTransactions–HowoftenwillIneedtosplitindividualtransactions(invoices)byDivision?
2. Budgets–DoIwanttobudgetbyDivisionandifsobymonthorjustannually?3. Structure–Howcomplexismydivisionalstructure?4. DataEntryEffort–Howmucheffortisrequiredfordataentry,upfrontsettingup
versusongoing?5. MultipleMYOBfiles–DoIhavemultipleMYOBfiles?6. Reporting–HowmucheffortisrequiredtoproduceregularP&Lreportsand
Actual/Budgetvariancereports?
Onceyouhaveconsideredtheabovequestions,usethefollowingComparisonTabletohelpidentifythebestwaytouseMYOBoracombinationofMYOBandBI4CloudtohandleyourDivisionalaccountingneeds.
ComparisonofOptionsavailabletodoDivisionalAccountingwithMYOBandBI4Cloud
MYOB MYOB MYOB&BI4Cloud MYOB&BI4CloudUsing Categories Jobs Jobs GLAccounts&GLCustomLists
ActualsbyDivision ü ü ü üActualsCombinedDivisions ü ü ü ü
Budgets&VariancebyDivision û *Partial ü ü
Budgets&VarianceCombinedDivisions ü *Partial ü ü
Pivot–DivisionsasColumns û û ü ü
ConsolidateMYOBFiles û û ü ü
DataEntryrequired ApplyCategoryoncetoeverytransaction
ApplyJobtoeverylineofeveryTransaction
ApplyJobtoeverylineofeveryTransaction
SetupGLaccountforeachIncome&ExpA/c&Division-OnceAllocateeachGLAccounttoGLCustomListLabels–Once
EffortRequired Ongoing–CorrectlyapplytheDivision(Category)toeveryTransaction
Ongoing–CorrectlyapplytheDivision(Job)toeveryLineofeveryTransaction
Ongoing–CorrectlyapplytheDivision(Job)toeveryLineofeveryTransaction
Upfront-ShorttimetosetupGLA/csandallocateDivisionLabelsOngoing–Noextraeffort,allocateeachlineofeachtransactiontothecorrectGLA/c(NoJob&NoCategoryallocationrequired
Bestforbusinesseswith:
2to3distinctDivisionsNoBudgets
SmallnumberofDivisionsincHierarchyofJobHeaders&SubJobsAnnualBudgetonly(Job)
MultipleDivisionsincludingHierarchyofJobHeaders&SubJobsMonthlyBudgetsbyDivision(Jobs)
2to~10DivisionsFlatStructuree.g.StatesMonthlyBudgetsbyDivisionNotusingItemSales(oruseuniqueItemsforeachDivision)
Why Simple CansplitTransbyDivisionMorecomplexDivisionStructurehoweverreportsarelimitedacrossDivisions
CanPivotwithDivisionsasColumnsActvBud&VariancebyDivisionMorecomplexDivisionStructureKeepsGLStructureSimple
CanPivotwithDivisionsasColumnsActvBud&VariancebyDivisionAllowsJobstobeusedforProjectsthatcanbeindependentofDivisionsItemsSalescanonlygotoafixedGLa/c
*Partial–MYOBJobBudgetsarealumpsumforthewholeoftheJobandcannotbebrokendownbyMonthorYear.
ComparisonofOptionsavailabletodoDivisionalAccountingwithMYOBandBI4Cloud
1. MYOB–UsingCategoriesProsSimplewithlessdataentrythanJobsClicktoseeMYOBHelponusingCategories.
ConsToosimpleCan’tsplitonetransactionacrossdivisionse.g.InsurancebillcoverstwodivisionssoyouneedtoenterintoMYOBas2separatetransactions.Can’tstoreorreportBudgetsbyCategoryonlyforthewholecompany.ReportingfromMYOBislimited.
RecommendedforVerysimpleDivisionalsplitwithnoBudgets.
ComparisonofOptionsavailabletodoDivisionalAccountingwithMYOBandBI4Cloud
2. MYOB-UsingJobsProsCanbeassimpleorcomplexasyoulike.UsingJobHeaderscancreateaHierarchyofDivisions.ForexampleNSWasaJobHeadertheneachBranch,Sydney,Newcastle,WollongongasaJobthatfeedsuptotheNSWstate.ClicktoseeMYOBHelponusingJobs.ConsMoredataentrythanCategoriesaseverylineofeverytransactionmustbeallocatedtoaJob.Can’tstoreorreportMonthlyBudgetsbyJobonlyforthewholeyear.ReportingfromMYOBisJobbyJoborJobHeaderbyJobHeaderseparately.DifficulttoseetheWholecompanybrokendownintoDivisionsRecommendedforSmallnumberofDivisionssplitwithnoneedformonthlyBudgets.
ComparisonofOptionsavailabletodoDivisionalAccountingwithMYOBandBI4Cloud
3. MYOBwithBusinessIntelligence(BI4Coud)–UsingJobsProsCanbeassimpleorcomplexasyoulike.UsingJobHeaderscancreateaHierarchyofDivisions.Forexample,NSWasaJobHeadertheneachBranch,Sydney,Newcastle,WollongongasaJobthatfeedsuptotheNSWstate.UsingBI4Coud,BudgetmonthlybyJobbyGLaccountandreportActualvBudget&variancesbyDivision.UsingBI4CloudReportbyJoborJobHeaderincludingaWholecompanyP&LbrokendownintoDivisionsasColumns.ClicktoseeBI4CloudHelponsettingupMonthlyJobbudgetsandreporting.ConsMoredataentrythanCategoriesaseverylineofeverytransactionmustbeallocatedtoaJob.RecommendedforLargernumberofDivisionswithneedformonthlyBudgets.
ComparisonofOptionsavailabletodoDivisionalAccountingwithMYOBandBI4Cloud
4. MYOBwithBusinessIntelligence(BI4Cloud)–UsingGLAccountsandGLCustomListsonly
ProsSimplesetuptoassigneachGLaccounttoaDivision(usingGLCustomLists)onceonlyonaoneforonebasis.UsingBI4CloudReportbyGLaccountandreportmonthlyActualvBudget&variancesbyDivision.UsingBI4CloudReportbyDivisionincludingaWholecompanyP&LbrokendownintoDivisionsasColumns.
ConsCan’tusewithItemsalesunlesseachDivisionhasdifferentItemssetupforeachdivisionasItemsalesfortheoneitemallgotoafixedGLaccount(usercan’tedittoallocatesomesalestoDivn1andsometoDivn2).ResultsinalargerlistofGLaccounts(oneforeachRevenueorexpenseforeachDivision).RecommendedforFlatstructureofsmallnumberofDivisionse.g.StatesorDepartmentswithaneedformonthlyBudgets.WhereJobsarealreadybeingusedforProjectssonotavailabletouseforDivisionstoo.