Choosing between Xero and MYOB is one of the most common decisions Australian small businesses face when selecting accounting software. Both platforms are well-established, support Australian tax requirements, and are widely used across the country.
This comparison breaks down Xero vs MYOB to help Australian business owners understand the key differences, strengths, and which option may be better suited to their needs.
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Overview: Xero vs MYOB
Both Xero and MYOB are designed to support Australian businesses, including GST and BAS reporting. However, they differ in approach, interface, and feature emphasis.
At a high level:
- Xero is known for its modern cloud-based experience and integrations
- MYOB is known for its long-standing Australian presence and strong payroll features
Ease of Use
Xero
Xero is widely regarded as user-friendly, particularly for business owners without an accounting background.
- Clean, modern interface
- Easy navigation for invoicing and bank reconciliation
- Strong mobile app experience
Many first-time business owners find Xero easier to learn and manage day-to-day.
MYOB
MYOB offers a more traditional interface, particularly in its desktop-based products.
- Powerful features, but can feel more complex
- Some learning curve for non-accountants
- Cloud versions are improving usability
MYOB may appeal to businesses already familiar with its ecosystem.
GST, BAS, and Australian Compliance
Both platforms support Australian tax requirements, including:
- GST tracking
- BAS reporting
- ATO-compliant tax codes
Xero integrates seamlessly with Australian banks and BAS reporting workflows.
MYOB has deep roots in Australian accounting and offers strong compliance support, particularly for payroll-heavy businesses.
Payroll Features
Payroll can be a deciding factor for many businesses.
Xero Payroll
- Available as an add-on
- Supports Single Touch Payroll (STP)
- Suitable for small to medium teams
MYOB Payroll
- Strong payroll capabilities built into many plans
- Supports STP and Australian award wages
- Often preferred by businesses with more complex payroll needs
Verdict:
MYOB generally has the edge for businesses with larger or more complex payroll requirements.
Integrations and Ecosystem
Xero
- Large app marketplace
- Strong integrations with CRMs, ecommerce platforms, and automation tools
- Popular with tech-forward businesses
MYOB
- Smaller integration ecosystem
- Integrates well with Australian payroll and accounting tools
If integrations and automation are important, Xero often offers more flexibility.
Pricing Comparison
Both Xero and MYOB use subscription-based pricing, with plans varying based on features such as payroll, invoicing, and inventory.
Key considerations when comparing pricing:
- Payroll add-ons
- Number of users
- Inventory requirements
- Long-term scalability
Pricing changes over time, so it’s important to compare current plans directly before committing.
Which Is Better for Your Business?
Choose Xero if:
- You want a modern, cloud-first accounting platform
- Ease of use is a top priority
- You rely on third-party integrations
- You work closely with an accountant who prefers Xero
Choose MYOB if:
- Payroll is a major part of your business
- You prefer Australian-developed software
- You want strong built-in payroll and compliance features
- You’re transitioning from older MYOB systems
Final Verdict: Xero vs MYOB
Both Xero and MYOB are excellent accounting software options for Australian small businesses. The better choice depends on your business structure, payroll needs, and preferred way of working.
Xero tends to suit businesses looking for simplicity and flexibility, while MYOB often appeals to businesses with more complex payroll or long-standing familiarity with the platform.
Business Tools Australia aims to provide balanced, practical comparisons to help Australian businesses choose software that fits their needs.