Most small business owners in Australia end up comparing the same two names when they look for accounting software. Xero and MYOB. Both are popular. Both help with GST and BAS. Most bookkeepers and accountants have used them for years.
The tricky part is that they feel quite different once you start using them. This guide covers price, how easy each one is to use, payroll, stock and who each one suits. It should help you pick the best accounting software for your small business without too much guesswork.
The Short Answer
- Xero is usually quicker to learn. It suits service businesses, online shops and teams that use lots of other apps.
- MYOB often suits businesses that hold stock, track costs for each job or have more complex pay rules.
- Both help you lodge BAS, pay staff and link to your bank.
- Neither is right for everyone. It depends on your size, your staff and how you work.
What Is Xero?
Xero is accounting software that runs online. It started in New Zealand and is now used by many Australian businesses. You log in from your browser or phone, so there is nothing to install.
Most people find it easy on the eye. The first screen shows your bank balance, unpaid invoices and bills all in one place. Your bank transactions flow in each day, and you match them to your invoices and bills. You can add as many users as you like, and it links up with lots of other apps, like payment and reporting tools.
What Is MYOB?
MYOB stands for “Mind Your Own Business.” It is an Australian company that has been around for decades, so plenty of accountants know it well. It has online plans, and an older version called AccountRight that some people still use on their computer.
MYOB is known for having more detail. Its higher plans have good tools for stock, job costs and payroll. The screens can feel busier than Xero’s, and it may take a bit longer to learn. It also has an Australian support team, which some owners like when they get stuck.
Xero vs MYOB at a Glance
| Feature | Xero | MYOB |
|---|---|---|
| Best for | Service businesses, startups, growing teams | Trades, retail, stock-heavy businesses |
| Ease of use | Simple, clean layout | More detail, takes longer to learn |
| Number of users | Unlimited on all plans | Varies by plan |
| Payroll | Included, with a limit on staff per plan | Extra fee per employee on lower plans |
| Stock tracking | Basic, with add-ons for more | Stronger on higher plans |
| Job costs | On some plans, or with add-ons | Built into higher plans |
| Other apps | Very large list | Smaller list |
| BAS and GST | Yes | Yes |
| Works offline on a computer | No | Yes, with AccountRight |
Xero Pricing vs MYOB Pricing
Both companies change their prices often and run deals for new customers. So check their websites before you buy. As a rough guide, Xero plans start in the mid $30s per month and go past $100 for the top plans. MYOB has a cheap plan for sole traders. Its main business plans cost about the same as Xero’s, and its top plans cost more. Prices are usually shown before GST.
The monthly price is not the full story, because payroll changes the cost. Xero includes payroll, but each plan has a limit on how many staff you can pay. MYOB often adds a small fee for each employee on its lower plans. With one or two staff, the gap is small. With ten or more, it can change which one is cheaper.
Ask these questions before you sign up:
- How many invoices and bills can I send each month?
- How many staff does my plan cover?
- Do extra users cost more?
- When does the special price end?
- Will I need any add-on apps, and what do they cost?
Ease of Use
Most owners are not accountants. They just want to send invoices, see who owes them money and get their BAS done on time. For that, Xero tends to feel easier. The wording is plain and there are lots of free guides. Many people feel comfortable within a couple of weeks.
MYOB has improved in recent years, but it still takes a bit more effort at the start. The upside is more control over things like stock and pay settings. If you already know MYOB, or your bookkeeper prefers it, switching may not be worth the hassle.
Payroll, BAS and Super
Both are made for Australian rules and share your details with the ATO. Here is how they compare day to day:
- BAS and GST: Both work out your numbers from your transactions. The result is only as good as the info you put in.
- Pay reporting: Both send your pay and super details to the ATO each time you run payroll.
- Payroll setup: Xero is simpler. MYOB gives more options, which helps if your staff have unusual pay rules.
- Super: From 1 July 2026, most employers need to pay super at the same time as wages, and within seven business days of payday. Both Xero and MYOB have updated for this. Check the ATO website for the full rules.
If payroll feels like a headache, our payroll service covers pay runs, super and payslips in Xero.
Stock and Job Costs
MYOB usually has the edge here. If you sell products or need to know what each job costs you, its higher plans have more built-in tools. You can see stock levels, track what you buy and check profit on each job. Trades and shops often lean this way, and it comes up a lot when we work with builders.
Xero can track stock too, and that is fine for a small list of products. For bigger stock lists, you would add another app. Some people like that flexibility. Others do not want extra subscriptions to manage.
Bank Links and Other Apps
Both link to the big Australian banks, so your transactions show up each day. Both let you set simple rules, so repeat items like rent or fuel sort themselves. Over a year, that saves a lot of time.
Xero works with more apps. Payment tools, online shops and expense apps often link to Xero first. MYOB works with many apps too, just fewer. Write down the tools you already use and check they link up before you commit.
Who Should Choose Xero?
- You run a service business, agency or online shop
- You want simple screens that are quick to learn
- Several people need to see the books
- You use lots of other apps
- Your bookkeeper or accountant works in Xero
Who Should Choose MYOB?
- You hold stock or need job costs in detail
- Your staff have complex pay rules
- You already use MYOB and it works well
- You like a more traditional accounting layout
- You want a version that runs on your computer
Switching From One to the Other
Many businesses switch as they grow. It can be done, but it needs a plan. You have to move your account list, opening balances, customers, suppliers and pay history. The start of a new quarter or financial year is the cleanest time. Mistakes made in the move often show up months later in your BAS.
A bookkeeper who has done this before can check that your reports match the old ones. It also helps to tidy your records first, because messy books make any move harder. Some owners try to handle the move themselves, but the cost of DIY bookkeeping versus hiring a bookkeeper is worth thinking about, especially with payroll involved. If you go the professional route, it also pays to know how to choose a bookkeeper who is comfortable in both systems.
So, Xero or MYOB? Here Is How We See It
Try both free trials. Add a few real invoices, link your bank and open the reports. Pick the one you can find your way around without help. If your software is hard to use, your books fall behind, and that costs more than any monthly fee.
For most of the small businesses we see, Xero is the easier fit. It is also the software we use every day at our Dandenong office. MYOB is a solid choice if you carry stock, track job costs or already know it well. If you are still stuck after the trials, a short chat with a bookkeeper can save you months of trouble.
Need a Hand Choosing or Setting Up?
If you run a small business in Melbourne or anywhere in Australia and want a second opinion, we are happy to talk it through. Our team at Elite Plus Bookkeeping can help with Xero setup, bookkeeping and payroll.
Book a free consultation or call us on 1300 744 733.
Frequently Asked Questions
Is Xero or MYOB better for a small business?
Which is cheaper, Xero or MYOB?
Can I lodge BAS in Xero and MYOB?
Can I switch between MYOB and Xero?
Do I still need a bookkeeper if I use accounting software?
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