Which Accounting Software is Right for Your Business?
Choosing between Xero and MYOB is one of the most important technology decisions for Australian businesses. Both are established accounting platforms, but they serve different business needs and priorities.
Quick Summary: Xero excels in ease of use, cost-effectiveness, and modern features, making it ideal for small to medium businesses. MYOB offers advanced functionality and comprehensive features better suited for complex business structures.
Cost Comparison
Xero consistently offers better value with savings of $240-$960 per year
Starter/Basic
Growing/Standard
Established/Advanced
Detailed Feature Comparison
| Feature | Xero | MYOB | Winner | Explanation |
|---|---|---|---|---|
| Monthly Cost | $25-$70/month | $45-$150/month | Xero | Xero offers more cost-effective pricing across all plans |
| Bank Feeds | 200+ Australian banks & institutions | 100+ banks (limited coverage) | Xero | Better bank connectivity and more reliable feeds |
| User Interface | Modern, intuitive cloud-native design | Desktop-focused, complex interface | Xero | Significantly easier to learn and use daily |
| Mobile Access | Full-featured mobile apps | Limited mobile functionality | Xero | Complete mobile access for on-the-go business management |
| Third-party Integrations | 1,000+ apps and integrations | 200+ integrations available | Xero | 5x more integration options for business automation |
| Payroll | Simple payroll with STP compliance | Advanced payroll features | MYOB | More comprehensive payroll functionality |
| Inventory Management | Basic inventory tracking | Advanced inventory features | MYOB | Better for complex inventory requirements |
| Reporting | 80+ standard reports + custom | 160+ reports with customisation | MYOB | More extensive reporting capabilities |
| GST & Compliance | Automatic GST calculation & STP | Comprehensive compliance features | Tie | Both excellent for Australian tax compliance |
| Multi-currency | Full multi-currency support | Limited multi-currency features | Xero | Better for international business operations |
| Customer Support | 24/7 support + community | Phone support (business hours) | Xero | Better availability and support options |
| Learning Curve | Easy - 1-2 weeks to master | Steep - 4-6 weeks training needed | Xero | Much faster staff adoption and training |
Xero Pros & Cons
Xero Advantages
- Significantly lower monthly costs (40-60% savings)
- Modern, intuitive user interface
- Excellent bank feed connectivity
- Strong third-party integration ecosystem
- Mobile-first design with full app functionality
- Faster setup and onboarding
- Better for small to medium businesses
- 24/7 support availability
- Cloud-native from the ground up
- Strong project management features
Xero Limitations
- Limited advanced inventory management
- Basic payroll compared to MYOB
- Fewer built-in reporting templates
- Less suitable for complex manufacturing
- Limited job costing capabilities
- Fewer customisation options
MYOB Pros & Cons
MYOB Advantages
- Comprehensive payroll and HR features
- Advanced inventory management
- Extensive reporting capabilities (160+ reports)
- Better for complex business structures
- Strong job costing and project tracking
- More customisation options
- Established presence in Australia
- Better for larger businesses with complex needs
- Advanced budgeting and forecasting
- Comprehensive compliance features
MYOB Limitations
- Higher monthly subscription costs
- Steeper learning curve
- Desktop-focused design (less mobile-friendly)
- Limited bank feed connectivity
- Fewer third-party integrations
- More complex setup process
- Support limited to business hours
- Interface feels dated compared to Xero
Which is Best for Your Business Type?
Small Business (1-10 employees)
Key needs: Basic invoicing, bank reconciliation, simple reporting sufficient
Medium Business (10-50 employees)
Key needs: Consider payroll complexity and inventory requirements
Large Business (50+ employees)
Key needs: Advanced reporting, complex payroll, multi-entity support critical
Retail & E-commerce
Key needs: POS integration, inventory tracking, margin analysis important
Construction & Trades
Key needs: Job costing, progress billing, quote management essential
Professional Services
Key needs: Time tracking, project profitability, client portals valuable
Industry-Specific Recommendations
Retail
Inventory complexity determines choice
Construction
Better project management and integration options
Professional Services
Superior time tracking and project profitability
Manufacturing
Better inventory management and job costing
Hospitality
Better app ecosystem for hospitality needs
Healthcare
Both handle practice management well with appropriate add-ons
Migration Considerations
From MYOB to Xero
Key Considerations:
- Historical data migration (up to 7 years)
- Chart of accounts restructuring
- Bank feed setup and reconciliation
- Staff training and change management
- Integration setup and testing
From Xero to MYOB
Key Considerations:
- More complex chart of accounts setup
- Payroll migration requires careful timing
- Advanced feature configuration
- Extended staff training period
- Custom report recreation
Need Help Choosing or Migrating?
Our certified consultants have helped 500+ Australian businesses choose and implement the right accounting software. Get expert advice tailored to your specific business needs.