Xero vs MYOB Comparison 2026
Which one suits a business like yours? A plain-English guide for Australian businesses.
Which Accounting Software is Right for Your Business?
Short answer: if you sell services, want software that's easy to learn, or buy and sell in other currencies, Xero usually suits better and costs less to start. If you hold a lot of stock, run more involved payroll or want lots of reports built in, MYOB is often the stronger fit. We don't sell either product, so this guide just sets out the prices, the differences and the kinds of business each one suits.
Which One Suits You?
- Choose Xero if you sell services, want software that's easy to learn, or buy and sell in other currencies. It costs less to start and connects to more apps.
- Choose MYOB if you hold a lot of stock, run more involved payroll or want lots of reports built in.
- By industry: construction, trades and professional services usually suit Xero (plus apps); manufacturing usually suits MYOB for its stock management and job costing.
- More than 50 staff? MYOB handles complicated structures better, but also look at a larger system such as NetSuite or SAP.
Cost Comparison
Prices as at May 2026. Xero is cheaper on the entry plan; MYOB is slightly cheaper on the top plan.
Starter / Essentials
Xero:$25/month
MYOB:$35/month
$120/year with Xero
Standard / Growing
Xero:$50/month
MYOB:$55/month
$60/year with Xero
Premium / Plus
Xero:$70/month
MYOB:$65/month
$60/year with MYOB
Detailed Feature Comparison
| Feature | Xero | MYOB | Winner | Explanation |
|---|---|---|---|---|
| Monthly Cost | $25-$70/month | $35-$65/month | Xero | Xero is cheaper on the entry plan; MYOB is slightly cheaper on the top plan |
| Bank Feeds | 200+ Australian banks & institutions | 100+ banks (fewer covered) | Xero | Connects to more banks, and feeds are more reliable |
| Ease of Use | Modern, simple screens built for online use | Online, but busier and more complicated screens | Xero | Much easier to learn and use every day |
| Phone App | Phone apps do most of the job | Phone app does less | Xero | Run more of the business from your phone |
| Add-on Apps | 1,000+ apps that connect to it | 200+ apps that connect to it | Xero | About five times as many apps you can plug in to automate work |
| Payroll | Simple payroll with STP (Single Touch Payroll) reporting | More advanced payroll features | MYOB | More payroll features built in |
| Stock Management | Basic stock tracking | More advanced stock features | MYOB | Better if your stock is complicated |
| Reporting | 80+ standard reports + custom | 160+ reports you can customise | MYOB | More reports built in |
| GST & Compliance | Works out GST automatically; STP | Thorough compliance features | Tie | Both handle Australian tax requirements well |
| Multi-currency | Full support for other currencies | Limited support for other currencies | Xero | Better if you buy or sell overseas |
| Customer Support | 24/7 support + community | Phone support (business hours) | Xero | Help is available at more hours, in more ways |
| Learning Curve | Easy - quick to pick up | Harder - more training needed | Xero | Staff get up to speed much faster |
Xero Pros & Cons
Xero Advantages
- Cheaper entry-level plan
- Modern screens that are easy to follow
- Excellent bank feed coverage
- Connects to a large number of add-on apps
- Phone app does most of what the full version does
- Faster to set up and get started
- Better for small to medium businesses
- 24/7 support
- Built as online software from the start
- Good project tracking
Xero Limitations
- Basic stock management
- Basic payroll compared to MYOB
- Fewer built-in report templates
- Less suited to complex manufacturing
- Limited job costing
- Fewer ways to customise it
MYOB Pros & Cons
MYOB Advantages
- Thorough payroll and HR features
- More advanced stock management
- Lots of reports built in (160+ reports)
- Better for complicated business structures
- Good job costing and project tracking
- More ways to customise it
- Long established in Australia
- Better for larger businesses with complex needs
- More advanced budgeting and forecasting
- Thorough compliance features
MYOB Limitations
- Higher monthly cost
- Takes longer to learn
- Busier screens and a less capable phone app
- Connects to fewer banks
- Fewer add-on apps
- More complicated to set up
- Support only in business hours
- Feels dated next to Xero
Which is Best for Your Business Type?
Small Business (1-10 employees)
Recommended: Xero
Why: Good value, easy to use, quick to set up. Suits start-ups and sole traders.
Key needs: Basic invoicing, bank reconciliation and simple reports are enough
Medium Business (10-50 employees)
Recommended: Xero or MYOB
Why: Depends how complex your business is. Xero for service businesses, MYOB for businesses that hold a lot of stock.
Key needs: Think about how complicated your payroll and stock are
Large Business (50+ employees)
Recommended: MYOB or a larger system
Why: MYOB is better for complicated structures, but bigger, more complex businesses should also look at NetSuite or SAP.
Key needs: Detailed reporting, complex payroll and running several companies matter most
Retail & E-commerce
Recommended: Depends on Your Stock
Why: Xero plus apps for simple retail, MYOB for complicated stock.
Key needs: Links to your checkout (POS), stock tracking and margin reports matter
Construction & Trades
Recommended: Xero + Apps
Why: Xero Projects handles job costing well, and it connects to trade-specific apps.
Key needs: Job costing, progress billing and quoting are essential
Professional Services
Recommended: Xero
Why: Time billing, project tracking and client communication work better in Xero and its add-on apps.
Key needs: Time tracking, profit per project and client portals are useful
Recommendations by Industry
Retail
Xero (small-medium), MYOB (lots of stock)
How complicated your stock is decides it
Construction
Xero + Apps
Better project tracking and more apps to connect
Professional Services
Xero
Better time tracking and profit per project
Manufacturing
MYOB
Better stock management and job costing
Hospitality
Xero + POS Integration
More add-on apps for hospitality
Healthcare
Either
Both handle practice management well with the right add-ons
Sole Trader?
This comparison is written for businesses with staff, stock or several bank accounts. If it's just you, the decision is simpler. We cover MYOB Solo, Xero Starter and MYOB Essentials side by side in a separate guide.
MYOB vs Xero for Sole TradersWhat Switching Involves
From MYOB to Xero
Difficulty: Medium
Timeline: Depends on how much history you bring across
What to plan for:
- Bringing across past data (up to 7 years)
- Tidying up the chart of accounts
- Setting up and reconciling bank feeds
- Training staff and helping them adjust
- Setting up and testing connected apps
From Xero to MYOB
Difficulty: Medium-High
Timeline: Depends on how much history you bring across
What to plan for:
- More complicated chart of accounts set-up
- Payroll move needs careful timing
- Setting up the more advanced features
- Longer staff training
- Rebuilding custom reports
Already decided to switch? See how we handle MYOB to Xero data conversion (including checking your balances match on day one) or our wider accounting data migration service. Every migration is scoped and given a fixed quote after a free initial chat.
Related Comparisons & Resources
Frequently Asked Questions
For most small businesses under 20 employees, Xero is the better choice. It is easier to use, connects to more add-on apps (1,000+), and starts cheaper ($25/mo vs $35/mo). MYOB may suit businesses that need built-in payroll for a larger team or more detailed stock management.
Xero starts at $25/month (Starter), $50/month (Standard), and $70/month (Premium). MYOB starts at $35/month (Essentials), $55/month (Growing), and $65/month (Plus). For payroll, Xero charges $13/month plus $4.50/employee. MYOB includes basic payroll in higher plans. Both offer discounts for the first few months.
Yes. Your MYOB data (chart of accounts, contacts, unpaid invoices) is exported and brought into Xero. Time and cost depend on how many years of history you bring across, how many company files are involved, payroll, and how many other systems connect to it. We scope every move and give a fixed quote and timeline after a free initial chat. We suggest switching at the start of a BAS quarter or financial year, so your opening balances come from a clean, checked set of figures (trial balance).
Xero is generally better for construction because it connects to more project tools, such as Procore, Buildxact and Fergus. Its API (the way other software plugs into it) and large app marketplace make it easier to link construction software for job costing, progress billing and subcontractor management. MYOB can work for builders who need tighter tracking of materials in stock.
Both have good bank feeds with all major Australian banks, including CBA, Westpac, NAB and ANZ. Xero has a slight edge: bank feeds set themselves up automatically for most Australian banks, the rules for matching transactions go further, and matching is faster. Xero connects to 200+ banks and financial institutions; MYOB to roughly 100+.
Xero is much better at multi-currency. Foreign-currency invoices, payments and bank accounts, with exchange rates updated automatically, are standard on the Standard and Premium plans. MYOB's multi-currency features are limited and need exchange rates typed in by hand. If you do any business overseas, Xero is the clear choice.
Xero Expenses (on the Standard and Premium plans) lets staff photograph receipts, picks the details off the receipt automatically, and sends claims for approval. MYOB has basic expense claims, but its phone app is clunkier. If staff submit expenses regularly, Xero is the smoother option.
For manufacturing, MYOB has the edge: MYOB Plus has better stock management, bill of materials tracking (the list of parts that go into each product) and production costing built in. Small manufacturers with simpler needs often prefer Xero paired with manufacturing apps like Unleashed or Katana for stock and production. If your products have complex parts lists and several production stages, MYOB is stronger out of the box.
Both can handle retail, but how well they connect to your other systems matters more than the accounting software itself. Xero connects with 100+ POS (point-of-sale, or checkout) systems, including Square, Shopify POS, Vend and Lightspeed. MYOB also connects to the major POS systems but has fewer built-in connections. For retail across several shops or online, Xero’s app marketplace usually gives you more automation, with stock levels updated as sales happen.
Xero is generally better for tradies (electricians, plumbers, builders, landscapers). It connects to tradie job apps like Tradify, Simpro and ServiceM8 for job management, quoting and invoicing. Its phone app is excellent for invoicing and capturing expenses on site. Xero Projects also handles job costing well, so you can see the profit on each job. MYOB can work, but it takes longer to learn and has fewer tradie apps that connect to it.
Xero has much better online-store connections. For Shopify, apps like A2X and Synder send sales, stock and customer details into Xero as they happen. For WooCommerce, Xero connects through apps like WooCommerce Xero Integration and Amaka. MYOB has a basic Shopify connection, but fewer options and a less reliable sync. If you run an online store, Xero is the clear winner for automation and accurate figures.
Most Australian accountants now prefer Xero, particularly newer practices and firms that work mainly online. Xero is widely used by Australian small businesses, and Xero Practice Manager is common in accounting firms. MYOB still has strong support among traditional accountants, especially those working with established businesses on older MYOB products. Ask your accountant which they use most. Most are comfortable with both.
Not for the same company. You would be entering everything twice, with reconciliation headaches and a real risk of BAS and tax errors. Some businesses do use different software for different companies (for example, MYOB for the main trading company with complex stock, and Xero for a simpler service company in the group). If you are thinking of running both, it is almost always better to move fully to one, or to use one larger business management system (ERP) that handles several companies.
Xero is much easier to learn. The screens are simple to follow, it uses plain language rather than accounting jargon, and most people pick it up quickly. MYOB takes longer to learn and set up, so allow more time for training. If you have no accounting background, or want staff to handle basic tasks like invoicing and expenses themselves, Xero is the better choice.
For most project-based businesses, Xero reports better through Xero Projects (on the Premium plan). You can track time, costs and profit per project, with visual dashboards. It connects well with time-tracking apps like Harvest and Deputy. MYOB has job tracking and project reports, but they are harder to use and it is harder to see up-to-date profit per project. For construction, professional services and creative agencies, Xero Projects is easier to use and makes it clearer which jobs are making money.
Need Help Choosing or Migrating?
Whether you are still deciding or have already decided to switch, we can help, from picking the right plan to moving your data across and checking every balance matches.