Which online accounting software is best for your small business – Xero or MYOB?
Our accounting team put together this quick Xero vs MYOB comparison to help you decide which one is best for your small business.
In general, no matter which you choose between Xero and MYOB, you should be pleasantly surprised. Online accounting software has evolved so much in recent years… easier to use, more automated, less time-consuming, easier to share information with your accountant, never worry about upgrades or backups… pretty much everything has improved.
A quote from one of our staff:
I simply can’t believe how much small business accounting software has improved in the past three years. The latest online software, such as Xero, is easier, more reliable and faster than anything before.”
Have a look at our table, and please don’t hesitate to talk to our team for more personalised help.
(This table was prepared by two qualified bookkeepers plus three qualified accountants who agreed on the points below. The table reflects a summary of their personal opinions and experience. Software preference is personal, but we think both Xero and MYOB are quite good overall.)
Compare Xero and MYOB Essentials
Green text shows the “winning” software per-category, based on personal opinions of accountants and bookkeepers in our review team. (some categories are tied.)
Details |
MYOB Essentials |
Xero |
Setup & access |
100% online, using computer, tablet or mobile. | 100% online, using computer, tablet or mobile. |
Updates |
All updates happen automatically. | All updates happen automatically. |
Backups |
Constant online backup & security. | Constant online backup & security. |
Multiple User Access |
Yes. | Yes. |
Ease of use |
Good. | Excellent. Works fast. |
Speed of reporting |
Reporting can take a little longer in MYOB; reports run one at a time. | Reports are fast. Can run multiple reports at once in browser tabs. |
Quotes |
MYOB offers a quotation system. | Xero offers a quotation system and quotes accepted by clients convert automatically into active jobs. |
Invoices |
Send invoices from MYOB. | Send invoices via Xero, using nice templates with your logo & details. You can see when invoices are opened by the client! |
Receive payments |
Clients can use multiple online payment methods incl. PayPal. Can connect to an online store. | Clients can use multiple online payment methods incl. PayPal. Can connect to an online store. |
Receipting payments |
A payment from a customer can be quickly applied against a lot of invoices at once, or applied to the oldest to the newest. | Use the bank reconciliation screen or do quick batch payments; use keyword search then apply payment to various invoices. |
Payroll |
Includes payroll for one person only.More staff requires a paid add-on or a different version of MYOB. | Payroll included. Payslips, summaries, super, etc. |
Employee Logins |
Only as a paid add-on. | Staff access their private employee portal. Staff can download payment summaries, pay slips and lodge leave requests. |
Client Cards |
Purchases can’t be processed against a Customer Card, and sales can’t be processed against Supplier Cards | A single contact can represent both suppliers and customers. |
Fixed Assets |
Only as an add-on. | In-built Fixed Asset Register with plenty of options. |
Follow up debts |
Yes. | Yes, with nice templates, branded to match your business. |
International Currency |
Not available on most versions without a paid add-on. | Yes, Xero offers multi-currency with rates calculated at the current date. |
Expense Claims |
Not available. | Handles expense claims separately. Does a good job in accounting for expense claims. |
Cost |
MANY versions, plans and add-ons.MYOB Essentials starts at $29/month. AccountRight standard is $43/Month, or $70/Month for AccountRight with payroll.
Some people feel MYOB has too many confusing versions, add-ons and fees. |
Simple pricing. Starts at $25. The $50 plan is suitable for users with up to 5 staff. Includes payroll. Add 5 more staff plus auto superannuation for just $10. |
Learning about the software |
Online help. | Online help, online videos, Xero TV, good summaries. |
Tax Agent
