Tuesday, May 6, 2008

MYOB Result (How Beautifull....)

Hi....., it is my pleasure to adding this blog & share again with you guys... Lets start from the phase of "KNOWING EACH OTHER" between you & MYOB.
We start with "KNOWING THE UNKNOWN". I'll start from the output of this MYOB system with the accounting procedure approach (I know most of you are "allergic" to the word "accounting" but don't worry I'll give you "HYPOALLERGENIC ACCOUNTING" one and you'll start to like it instead) . Lets check it out !!!!

The main objective of this MYOB system is to generate the the reports and provide AN UPDATE & ACCURATE INFORMATION. Certainly there are 3 main reports that what the company usually use to take a decision out of more than 200 type of reports, there are:


- BALANCE SHEET REPORT; You'll get information about how much is your:

1) Assets (like; cash, account receivable or debtor, inventory, land building, machine, vehicle etc.)

2) Liabilities (loans, bank loans, trade creditor etc.)

3) Equities/Capital (is your own money which is you put in your company)



AND ALWAYS REMEMBER!!!


" ASSETS = LIABILITIES + EQUITIES"



This is what we call ACCOUNTING EQUATION (and you'll goes like... What the Hell is that !!??? Start feel itchy, sniffing, breathing problem?) No You Don't!! Remember I give you the "HYPOALLERGENIC ACCOUNTING" read this:


Says you just win a lottery and got money of U$ 5,000,000.00 (that makes your ex wife or husband regret for her or his entire life and certainly you'll not take her or him back since you'll be able to get a better one, two or three or more) and you want to start your own business with buying one big rundown steel factory (building) for a book value U$ 4,000,000.00 plus you need to buy some new machinery cost U$ 2,000,000.00 since you only have money of U$ 5,000,000.00 (we call it EQUITY OR CAPITAL) you need to borrow some money at least U$ 1,000,000.00 to covering your defisit (we call this LIABILITIES) so the figure will be like this:


YOUR MONEY (EQUITY/CAPITAL) U$ 5,000,000.00
BORROW MONEY (LIABILITIES) U$ 1,000,000.00
TOTAL EQUITY + LIABILITIES U$ 6,000,000.00


FACTORY/BUILDING (ASSET) U$ 4,000,000.00
MACHINERY (ASSET) U$ 2,000,000.00
TOTAL ASSETS U$ 6,0000,000.00


SO WE CAN SAY THAT YOU HAVE FACTORY & MACHINERY WITH THE VALUE OF U$ 6,000,000.00 FROM YOUR OWN MONEY WITH THE AMOUNT OF U$ 5,000,000.00 PLUS YOU BORROWED SOME MONEY WITH THE AMOUNT OF U$ 1,000,000.00.


" ASSETS = LIABILITIES + EQUITIES"


Below is how MYOB can shows the Balance Sheet report:








MYOB also provide & can display a respective graphic (see below):




THIS REPORT WILL BE DISPLAY ON REAL TIME AS SOON AS YOU ENTERED THE TRANSACTION, ISN'T BEAUTIFUL!!!

WE WILL CONTINUE WITH OTHER MAIN REPORT IN THE NEXT POST.







No comments: