Some accounting firms are having trouble filing tax returns because of computer problems related to a new software release from MYOB Ltd. In recent weeks, MYOB has increased incoming call lines to reduce waiting times encountered by customers seeking help, and put out a service pack to update some features of its tax software. Some firms that have switched to a new tax product this year are having problems installing the software. The listed accounting software maker said that migration required a new database that meant the changeover was difficult for some customers.

It estimated no more than 100 of the 3500 accounting firms using the tax software were having problems filing returns. About 7000 firms use MYOB software designed specifically for accounting practices. About half of these run MYOB's Accountants Enterprise Tax 2006 package, released last month. Some customers MYOB inherited through a takeover three years ago have just switched over to AE Tax software this year.

Earlier this month, MYOB emailed customers, noting that some had had trouble getting through to the company's technical support. "We are finding many of the calls are because people have not read their release documentation fully. This is really important, because if every client calls to raise just one question, that means an extra 7000 calls to deal with," the email said. This message did not please customers such as Rhonda Elliott-Poulton from accounting and tax agent Carl Elliott & Co in the Sydney suburb of Bardwell Park. A row of manila folders running along one wall of Ms Elliott-Poulton's office shows how problems with the new software have created a backlog of delayed tax returns. Ms Elliott-Poulton pays MYOB hundreds of dollars every month for technical support and was frustrated that emailed inquiries and calls for help had gone unanswered. "At this time of year I can't afford problems like this," she said.

The move to the new package is the final stage in a three-year transition program MYOB began after it bought Solution 6 in 2003. Every year software companies race to update tax applications once changes are announced in the budget in May have passed into law. The issue of a service pack was standard procedure after a new software release, MYOB's managing director, Australia, Tim Reed, said. MYOB expected to have the 100 or so accounting firms experiencing problems with the tax package up and running within a week. For many clients, this would be the first time they had a tax product that used Microsoft SQL database. "When you change a product architecture it does affect the technical environment a client has in place," he said. "So ware are helping some clients to configure their environment so the product will run successfully."