Over the last few months there have been a number of releases of the various software products we support, and as we approach the end of the financial year many users will want to make sure that their financial software is current. 

For the various accounting products we work with this is not essential but it is highly recommended: a number of products have some really good new features available.

If you are running a desktop payroll solution upgrading is essential: tax tables, reorting formats and other requirements relating to the ATO change from year to year, so you really should upgrade to the most recent release.

So which version do you need to be on?  For the products that Viridity supports we list the latest releases below.  If you are not on these you should upgrade as soon as possible (especially payroll users).  If you require any assistance please click here to contact Viridity

Accounting Products

MYOB	Version 19 (all products)
Attache	Attache Accounts 1.04
Triumph	Triumph 4.1 (build 19/05/2011)
Xero	Not applicable *

Payroll Products

MYOB	Version 19 (all products)
Attache	Attache Payroll 1.04
Paycycle	Not applicable

* For online products (Xero & Paycycle) you do not have to upgrade, these are done for you.  Keep an eye on this blog, we will be writing more indepth reviews of various of these products (and a number of others) over the coming months.

I recently came across an interesting blog post in the UK in relation to the new SageOne cloud computing application that seemed to be comparable to the situation in Australia. 

In the UK Sage is the dominant software provider in SME accounting and have been for many years.  They have been slow to release a cloud solution, and having done so have pitched it as an entry level product. 

If you swap “Sage” with “MYOB” and “UK” with “Australia” that paragraph still holds true.  The post referring to SageOne reads in part:

• Probably the most important thing is having the market leader finally come out with a proper Cloud accounting solution - this will help validate the topic with the mainstream accountant in business or in practice in a way none of we Cloud evangelists could ever manage.
• Sage are so frightened of disrupting their cash cows of Sage Instant, Sage 50 and associated training, support and partner network that they've positioned this product at the very bottom end of the market for micro businesses, with very little functionality
• They've missed a huge opportunity to do something innovative.  This is too little, too late.
•  They've ignored the online accounting topic for a decade.  Now they've finally validated the topic!

You can see the full version of this post here.

It seems to me that all of the above applies - pretty much word for word - to MYOB.  They are facing competition to their core business from Xero, Saasu and others, yet their response - in the form of LiveAccounts - is a long way off the pace.

For one explanation of why incumbents respond in this way you could do worse than take a look at a book called “The Master Switch” which tracks the rise (and in some cases) fall of various information businesses.  One of the central ideas of the book is the extent a company that dominates a sector will go to in an attempt to avoid “disruptive innovation” which threatens its own business. 

In most cases that sort of disruptive innovation carries with it enormous benefits for customers, but the incumbent just has too much to lose.  I continue to believe that the next few years are going to be very exciting times!  It will be interesting to see which accounting software providers prosper, and which do not.

So much confusion about what is and what is not a cloud application – in just the past week I have seen two email newsletters suggesting that just because a your data is in a different place to you and can be accessed remotely this makes it a cloud app.  It doesn’t, it just makes it an application you can access remotely! 

And yes, this is an important distinction – let me illustrate this with a couple of examples of what are not cloud applications, then I’ll explain why this is important (to you, the user).

If you take a copy of a desktop application – for example one of the Microsoft Office products or a desktop accounting package – and install it on a server, then provide remote access via remote desktop or terminal services this does not make it a cloud application – no more than if you put it on a server in your office and access it from the building next door (or invite someone else – such as your accountant) to log in from their office.   So when you see someone advertising “hosted MYOB AccountRight” as a “cloud accounting solution” it’s not, it can’t be because AccountRight is a desktop package (a really great one, but a desktop package all the same).  Ditto with Quickbooks online – it is a desktop package, even when you access it via the internet.  

Not sure why this matters?  Ok, let’s see what this all means.  Last week I listed a few of the features of cloud applications:

• There is no upfront cost for the software, just a monthly subscription which helps with cashflow.  
• You do not need to install a server or any other IT infrastructure, again a big saving in cost plus this is a much simpler solution for those small businesses without an in-house IT team.
• You are able to access your data from anywhere, which is a great solution for the small business owner who wants to log in from home, or for businesses that run virtual offices.
• The functionality offered by many of these applications for a small monthly cost rivals what you could get from desktop solutions costing 10s of thousands of dollars.
• The ability to invite other users in to your application can provide you high levels of on-demand support at a very low cost (for example from you bookkeeper or from your account).

To these I would add a couple more when highlighting what the impact is for the end user of a employing a cloud application as opposed to a hosted desktop application.

• You can access your data from any machine – from a PC, or a Mac, from an IPhone or IPad.
• Many online solutions are designed to allow access from other “add on” solutions, using an “API” (or Application Programmer Interface) – whilst this is also possible with desktop solutions, it is in practice harder to achieve economically.
• One special instance of this is direct bank feeds – in the case of most desktop accounting software getting data into your software is done either by manual keying, or at best by a download and import process.  With hosted solutions bank transactions feed in directly

So what does all this mean for the user?  Well let’s narrow this down slightly to talk about cloud accounting solutions, rather than the host of other cloud applications.  For the user having their accounts in the cloud (rather than on a hosted server) means:

• Not having to buy software
• Not having to pay for annual upgrades
• Not having to pay additional licence files because you need more users
• Not having to run Windows software on your Mac (so that you and your accountant can share the same file)
• Not having to pay to large sums to have other applications integrated into your accounting system – examples of the types of systems that can integrate to Xero include payroll, inventory management, workflow management, e-commerce and so on.
• Never having to key another bank transaction (this is my personal favourite)!

For the user of one of these applications some of these differences will be critical to how you use the software.  For example if you work on a Mac but your accountant works on a PC you will not both be able to access the same file at the same time.   By having a direct bank feed (rather than having to download a file once a week, or once a month) and then importing this your data is always up to date.  Suddenly you can start to get some information from your accounting system to help you run your business better – or retain your financial advisor to provide this information for you, knowing it will be timely and accurate!

If you are interested in looking at a cloud based accounting solution MYOB have recently launched LiveAccounts, an entry level product, with a reduced range of functions at a lower price – perfect for the micro business.  Or for businesses that need slightly more from their software we recommend Xero.

Not sure which would be suitable for you?  Call us for a free appraisal.

 

MYOB has today announced the launch of its long awaited LiveAccounts, the company's offering in the rapidly expanding cloud accounting space.  With Saasu and Xero as established players in the online space in Australia, and MYOB dominant as a provider of desktop solutions to SMEs, the next few months is shaping up to be very interesting indeed.

MYOB have positioned LiveAccounts as a product designed for "sole traders and very small businesses . . . suitable for micro businesses, start ups and those who are still running their accounts manually".  Does this mean that MYOB are aiming to avoid going head to head with Saasu & Xero, who's products are aimed at businesses from micro through to medium?  Maybe . . . or maybe MYOB are avoiding going head to head with their own desktop solutions.

And the question you all want answered - how does LiveAccounts stack up against the solutions already available?  Certainly MYOB have launched with a competitive price - having floated $35 per month as recently as May, the go live price is just $25 per month, cheaper than the cheapest Xero product (priced at $29) and identical to Saasu's "Pro" product (Saasu also have a free product, although this is limited to just 20 transactions per month). 

But how about the range of functions?  Too early to give a considered opinion, but I can see a very busy weekend coming up for me reviewing and comparing these products!  So check this blog in a few days (or still better subscribe to our RSS feed), I will put up a side by side comparison of these 3 (and maybe some other) products.

As always, we would love to receive your comments on this post.

With the end of the financial year fast approaching you need to check that your financial software is up to date. 

With accounting software this is not essential but it is highly recommended - upgrading will help you take advantage of new features, provide compatability with new operating systems and ensure you get the best support. 

With payroll software it is a "must do" - the ATO introduced the concept of Reportable Employer Superannuation Contributions from the 1st of July 2009, you are legally obliged to show these amounts on payment summaries you give to your employees at the end of this financial year, and then from July 1 new income tax tables will come into effect (as they do every year).  So you must upgrade to the current releases.

So which version do you need to be on?  For the products that Viridity supports we list the latest releases below.  If you are not on these you should upgrade as soon as possible (especially payroll users).  If you require any assistance please click here to contact Viridity

Accounting Products

MYOB	Version 19 (all products)
Attache	Attache Accounts 1.01
Triumph	Triumph 4.1 (build 14/06/2010)
Xero	Not applicable *

Payroll Products

MYOB	Version 19 (all products)
Attache	Attache Payroll 1.01
Wage Easy	Release 5.1.2
Paycycle	Not applicable *

* For online products (Xero & Paycycle) you do not have to upgrade, these are done for you.