Computer Solutions in the greater brisbane area.
When to create a second MYOB file
While we are not MYOB consultants, because many of our clients know that Mathew has a great deal of experience with MYOB, we do get a few calls about it from all over Brisbane. One question we were faced with recently was to do with creating a second MYOB company file.
The client in question had just won a large contract, and this would represent a significant portion of their business going forward. They wanted to track this contract specifically, and ensure that it was producing profit.
When we talked to the client, we found that the business was still a single business entity; The new contract would be performed by the existing business, and no special arrangements were being made, beyond the need to track this segment of the business separately.
The client had proposed to create a whole new MYOB company file for this purpose. In this example, we suggested this was a bad idea; Because the new contract would be fulfilled within the scope of the existing business, creating another file would mean costly data integration later, in order to perform company wide reporting functions, such as completing the BAS. This would also pollute one set of data with the other, and in general, lead to a lot of headache!
In situations like this, there are plenty of ways to break things down within MYOB, so that you can see the separate business unit. This can be as simple as having different income and expense codes for each business segment, and in some versions of MYOB, you can also use Job Costing to product profit and loss reports for individual segments or jobs.
Where you are creating an entirely separate business to operate what is in reality a segment of your overall business, then a separate file is called for. Total separate in this case means that the new business entity will have it’s own ABN, bank account and be operated independently.
To learn more about getting the most out of MYOB, we don’t reccomend you do a MYOB Course, but rather look for a quality MYOB consultant who can advise you on the use of MYOB accounting software in your business.
