The right technology foundation should bring together all areas of your business, help you better connect with your customers, and deliver the modern agility needed to adapt to changing market conditions and future business growth. Without the right system in place, many smaller Australian companies find that they’re simply not equipped to meet the rapidly changing needs of their business.
When businesses start to feel the pressure of inadequate technology, many turn to cloud Enterprise Resource Planning (ERP) solutions to support them through the next step of their business evolution journey. But how do you choose the right ERP solution that best fits your business growth plans when there are so many contenders?
In this article we compare how NetSuite stacks up against MYOB Advanced, so you have the tools to analyse for yourself how these two software offerings can help meet your organisation’s objectives.
NetSuite vs MYOB Advanced
What is NetSuite?
NetSuite is a long established cloud ERP system offering a suite of cloud-based applications. It’s currently used by 24,000 fast-growing businesses across the world to run key back-office operations, financial business processes, HR, professional services automation and omnichannel commerce. NetSuite has a three-tier licensing structure:
- Limited – a great starter edition for single legal entity businesses with fewer than 50 employees.
- Mid-Market – for growing businesses looking for high levels of customisation, consolidated financial reports and multiple currencies.
- Enterprise – all the bells and whistles of a world-class ERP solution suited for businesses with more than 1000 users.
What is MYOB Advanced?
MYOB Advanced is a relatively new cloud-based ERP system modified for Australian SMEs. At its core, MYOB Advanced brings together financials, project accounting, inventory management, customer management, reporting, payroll and business intelligence. It also has a three-tier licensing structure:
- Standard – for small businesses who have outgrown their traditional accounting software.
- Plus – a more customisable edition suitable for larger businesses with more complex processes.
- Enterprise – for enterprises needing an adaptable, full-featured ERP.
Because each platform comes with three tiers and many options within each one, it is difficult to do a straight apples to apples comparison. Instead, the table below focuses on the high level differences between the companies and overall solutions.
| NetSuite | MYOB Advanced | |
| Features |
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|
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eCommerce Functionality |
Choose from SuiteCommerce Standard or SuiteCommerce Advanced and integrate with a range of eCommerce apps | eCommerce is not native but can be integrated |
| Security |
|
|
| Customisation and integrations | Limitless options for integrations and customisations. NetSuite Connectors allow you to connect NetSuite with hundreds of apps - no coding required. | EDI & API business integration and data connectivity options available to pair MYOB Advanced with popular business platforms. |
| Software subscription | Subscription based with price protection | Subscription-based |
For a more detailed look at the platform differences check out:
Gaining confidence in vendor sustainability
When evaluating an ERP solution, it’s also useful to consider factors beyond functionality. Vendor experience, for example, is a critical part of the decision-making process. Understanding the origins and business journey of a provider can give you a good idea of what to expect in the future, giving you confidence that you are partnering with a reliable technology vendor who will support your business as you grow.
Founded in 1998, NetSuite was cloud-native from birth, cementing its place in history as the first company dedicated to delivering business applications over the internet. Acquired by Oracle in 2016 for $9.3 billion, NetSuite has since grown to support more than 24,000 customers worldwide.
Traditionally focussed on entry-level accounting and tax products, MYOB launched their ERP solution, MYOB Advanced, in early 2015, following a minority stake purchase of Acumatica in 2014. MYOB Advanced is a modified version of the Acumatica ERP system – but targeted for Australian and New Zealand business conditions. Acumatica currently has fewer than 400 employees globally and has yet to reach a profitable status. Meanwhile, the past few years have been tumultuous for MYOB. Most notably, the 2019 departure of CEO Tim Reed, who saw the company twice sold to private equity firms, including most recent acquisition by private equity giant KKR, as well as listing on and delisting from the Australian Stock Exchange (ASX).
It will take time for MYOB to find its feet and grow its product suite. In the meantime, many Australian and New Zealand business leaders are preferring to invest their ERP dollars in a trusted technology leader like NetSuite and its steady commitment to continuously developing a truly integrated suite.
Now let’s get into some of the technical nitty gritty, because this is where the two platforms really differ.
Subledger complexity and reporting
MYOB Advanced
MYOB Advanced relies on subledgers designed to accommodate specifically designated transaction types such as Accounts Payable (AP), Accounts Receivable (AR), Projects, and Inventory. Each subledger pulls certain transaction types but leaves others out, creating significant reporting challenges and leading to discrepancies in the General Ledger (GL). For example, information in your AR subledger will not be linked to your project subledger, causing traceability issues and requiring additional effort to reconcile numbers.
For MYOB Advanced customers, the reliance on subledgers can create several operational inefficiencies:
Fragmented data
Each subledger in MYOB Advanced is designed to handle specific transaction types such as Accounts Payable (AP), Accounts Receivable (AR), Projects, and Inventory. This segregation means that the data relevant to one area, like AR, isn't inherently linked to data in another area, such as Projects. This fragmentation can lead to significant reporting challenges, as the information needed for comprehensive analysis is spread across different subledgers.
Increased reconciliation efforts
Due to the separation of data within each subledger, discrepancies in the General Ledger (GL) may occur. For example, information in the AR subledger may not be aligned with the project subledger, causing traceability issues. Customers will need to spend additional time and effort reconciling these numbers to ensure accuracy in financial reporting, which can be both time-consuming and error prone.
Reporting challenges
The inherent separation of data sources within MYOB Advanced subledgers makes generating accurate and comprehensive reports difficult. Customers may have to create multiple reports and manually integrate data from various subledgers to get a complete picture of their business operations. This process can be highly inefficient, leading to delays in decision-making.
NetSuite cloud ERP
In contrast, NetSuite’s unified database inherently links all transactions, providing full traceability to the originating transactions and simplifying the reconciliation process.
Unified database
NetSuite’s architecture links all transactions inherently, ensuring that data from different areas (like AR and Projects) is interconnected. This unified approach provides full traceability to the originating transactions, simplifying the reconciliation process and reducing the risk of discrepancies in the GL.
Simplified reconciliation
With NetSuite, the need for extensive reconciliation efforts is minimised because the data is consistent and traceable across the entire system. This consistency helps ensure that financial reports are accurate and reliable, saving customers time and reducing the potential for errors.
Efficient reporting
NetSuite’s unified database allows for more efficient and comprehensive reporting. Customers can generate detailed and accurate reports without the need for manual data integration from multiple subledgers.
Batch processing vs. real-time data
MYOB Advanced
MYOB Advanced employs a batch processing model where detailed data is stored at the subledger level, with summaries pushed to the GL through scheduled batch processes. Drilling down typically involves reviewing journal entries in the GL, then delving into the subledger for further details such as customer, vendor, or project data. During the batch close process, users need to shut down new entries to avoid “ghost” transactions, adding to the complexity and time required for month-end closures.
NetSuite
NetSuite, on the other hand, does not rely on subledgers or batch processing. All transactions are saved in real-time and hit the GL in full detail, making reporting and built-in analytics more powerful and efficient. This real-time processing ensures that data is never siloed, and users can quickly access comprehensive information through global search and saved search capabilities.
Consolidation capabilities
MYOB Advanced
MYOB Advanced supports a two-level hierarchy, meaning grandparent-to-grandchild consolidations are not native. To work around this limitation, one path forward is to set up and run each entity on their own tenant and each tenant as vendors to one another. This requires running cross-company transactions across tenants, which, isn’t an easy process. Tenants in MYOB Advanced are entirely separate databases with no crossover, a design decision made during the development of their architecture. While MYOB Advanced supports a consolidation "process" across tenants, this is only designed to consolidate period-level financials on a single set of reports, not in real-time. Additionally, guidance from MYOB Advanced VP of Product Management suggests writing customer-specific import and export scenarios in each tenant to automate the process using windows macros. As of May 2024, improved intercompany capabilities are not on MYOB Advanced current roadmap.
So, what does this limited consolidation mean for MYOB Advanced customers?
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Operational inefficiencies due to increased time and effort required for financial consolidations, leading to delays in financial reporting and decision-making
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Higher costs arise from the need for additional technical resources and custom solutions, coupled with increased administrative overhead
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Data inaccuracy becomes a risk with manual processes, making it challenging to maintain accurate and up-to-date financial data
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Limited scalability hampers the efficient management of complex organisational structures and business growth
NetSuite cloud ERP
NetSuite supports complex multi-level organisational structures, including grandparent-to-grandchild consolidations, natively within the system. This ensures that businesses with intricate structures can manage their financials efficiently without cumbersome workarounds.
The platform also offers extensive customisation options, allowing businesses to tailor the system to their specific needs without relying heavily on third-party IT development. This includes the ability to add custom general ledger lines, create custom transaction types, and define custom general ledger segments.
Its unique global search and saved search capabilities further provides a 360-degree view of customer information, consolidating all linked data into a single view, allowing users to quickly access all relevant information without navigating multiple screens.
At a glance: Why is NetSuite better than MYOB Advanced?
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Enhanced efficiency: Real-time financial consolidation and unified data model reduce the time and effort required for reconciliation and reporting, allowing customers to focus on strategic initiatives.
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Improved accuracy: By eliminating manual processes and data fragmentation, NetSuite ensures accurate and up-to-date financial data, which is crucial for informed decision-making.
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Greater flexibility: Extensive customisation options allow businesses to tailor the system to their specific needs without heavy reliance on third-party IT support.
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Comprehensive visibility: Global search and built-in analytics provide a complete view of customer and business information in a single interface, improving customer service and operational insights.
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Scalability: Supports complex multi-level organisational structures and international operations, making it easier for businesses to grow and expand without system limitations or the need to completely overhaul the system.
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Cost savings: Reduces the need for additional technical resources and custom solutions, lowering overall administrative and operational costs.
The challenge of upgrading from MYOB to MYOB Advanced
MYOB often advises MYOB Business to upgrade to MYOB Advanced as they grow. While this makes sense on paper, transitioning from MYOB to MYOB Advanced is not just a lift-and-shift upgrade. It’s a full implementation requiring a complete reconfiguration of your system architecture, data migration, and staff re-training. Given the comprehensive nature of this overhaul and the significant investment of time and resources, this presents an ideal opportunity to consider other ERP solutions, such as NetSuite, which may offer more robust features and better long-term scalability for your business.
Customer success story
More ANZ businesses choosing NetSuite over MYOB Business
At Annexa, we have also partnered with customers who have opted for NetSuite after their entry-level MYOB accounting system - MYOB Business - was no longer able to keep up. Astoria Paper made the switch when they realised their inventory control was in jeopardy. True Protein’s need for more operational visibility and integration flexibility didn’t mesh with MYOB’s limitations. NetSuite was also the right move for YWCA and Gateway Packaging, who were both wasting time re-entering and reconciling data across multiple systems - including MYOB - and needed a solution that would simplify their software landscape.
Or quickly learn about Annexa customers who have switched from MYOB to NetSuite.
Are you considering NetSuite as your next big move?
Technology for technology’s sake is useless to any results-focused business. This is why selecting the right platform and shaping your ERP solution to your exact needs is so critical for driving meaningful progress. If you are currently weighing up your options, contact us todayfor a free consultation diving deeper into the NetSuite ecosystem so you can better understand your ERP options.
Explore further:
Annexa is a leading NetSuite partner with extensive experience designing and implementing comprehensive and customised business systems, including payroll solutions, financial management, warehouse management and ecommerce solutions.
Sources: NetSuite Australia and NetSuite vs MYOB Advanced
