MYOB launches SaaS for small business

MYOB has launched LiveAccounts, a software-as-a-service (SaaS) program targeted at small business owners.

The program is a simplified version of its entry-level accounting packages that is navigated through a five-option menu; invoices, expenses, banking, contacts and reports.

The software automatically classifies deposits and outgoings by expense or income account to reduce the time spent on reconciliation.

"You're basically getting a small ERP system for $35 a month," said Dominic O'Hanlon, MYOB's chief strategy officer.

The program was a first release and lacked the ability to export data such as account information and contacts. O'Hanlon said this would be addressed in the coming months. Contacts could only be entered manually rather than synced or gathered from an external source.

The vendor is hoping its customers will pay $420 a year for internet-based features, such as daily feeds from banks, utilities and government agencies and real-time updates to accountants.

MYOB's entry-level programs start at $199 and $399, with no ongoing fees.

O'Hanlon said that customers would pay by subscription if they found value in the extra features.

MYOB said the live feeds for bank accounts was one drawcard.

Instead of uploading a CSV file with the monthly bank statement, LiveAccounts can link to bank accounts and automatically update statements daily.

Another major feature lets accountants monitor a customer's LiveAccounts account in real time instead of receiving an MYOB file every quarter.

Accountants could then review how a customer's business was operating and offer on-the-spot advice on improving profitability.

"We are going to change the relationship [of SMB customers] with their accountants," said Tim Molloy, MYOB's general manager, online.

MYOB's recent road show around Australia and New Zealand was attended by 2000 accountants who responded positively to the SaaS model.

"Accountants don't want their customers doing things wrong and then the accountants having to fix it and mail it back," said O'Hanlon.

He added that the frequency of contact between a client and accountant rises significantly after moving from emailing static files to the SaaS model.

The vendor planned to open up the application programming interface towards the end of the year for companies to customise for specific industries.

The SaaS program is hosted by Macquarie Hosting. Molloy said the vendor went to tender for hosting and was "pleasantly surprised" that prices and SLAs in Australia were "world-class competitive".

The vendor claims its R&D budget, at $70 million over the next three years, was the largest of any independent software vendor in Australia.

It was conducting a "major architectural review" of its desktop software which would be rebranded as AccountRight and draw on the same internet services as the SaaS model.

Pricing for the "software and services" model had not been set but would likely be around $35 a month, said O'Hanlon.