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.