MYOB is considering paying compensation to accountants who have had to deal with what some have described as "flaky" software, but the company does not expect extra costs from what it has called a "very painful upgrade" to have a material impact on its operations this year.

Last week, MYOB restated its forecasts for the 2006 calendar year after releasing an interim result in line with forecasts. The company expected to increase revenues 13 per cent to $181.9 million. MYOB's accountants division is expected to lift revenues by at least 5 per cent.

MYOB chief executive Craig Winkler said there was still a "handful" of customers having difficulties with new tax reporting software that MYOB shipped at the end of June. "We have invested resources to make sure those customers are back in business and running as smoothly as possible, so there have been some costs," he said. "But we don't expect these to affect the business." The company would work with each client to ensure "they are satisfied with the position they are in".

Mr Winkler would not confirm that MYOB was considering offering some firms compensation to make up for lost productivity and harm done to client relations. But at least one customer has been told by MYOB to prepare a claim for compensation. The customer, who spoke on conditions of anonymity, said items to be considered included overtime for technical staff and loss of productivity for other staff. "What is more difficult to quantify is the damage done to the business when we have to stop client appointments midway due to software issues," the customer said.

MYOB has released various service packs to address some of the problems but some are still outstanding. Another customer, Rhonda Elliott-Poulton from accountant and tax agent Carl Elliott & Co in the Sydney suburb of Bardwell Park, said her firm was still unable to import data from client accounts into a tax return. "The problem now is that for many of the issues we are finding ways to get around and improvise to get the result needed, which is not satisfactory, but at least we are getting some work out," Ms Elliott-Poulton said.

Other customers who have vented frustration on the Whirlpool bulletin board (whirlpool.net.au) have indicated they were considering switching from MYOB to another product. One contributor said the MYOB software "is beginning to rank high in my software hall of shame. I doubt we will renew with them next year."

In a company statement issued last week, Mr Winkler said: "We know of a few customer departures, which is always disappointing, but on the other hand we've actually gained clients during this period as well."

Last month the Australian Taxation Office said it would consider granting deferrals to agents who had experienced software difficulties.