Published: April 2025
Choosing the right accounting software is one of the most critical decisions for Australian small and medium businesses. With Xero now commanding over 60% of the online accounting software market in Australia, while MYOB holds around 20-25%, the competition between these two platforms has never been more intense.
This comprehensive comparison will examine every aspect of both platforms, from basic functionality to advanced features, helping you make an informed decision that could save your business thousands of dollars and countless hours annually.
Both Xero and MYOB offer cloud-based solutions designed specifically for Australian businesses, but they take fundamentally different approaches to accounting software design, pricing, and user experience. Understanding these differences is crucial for selecting the platform that will best serve your business needs both now and as you grow.
The Australian accounting software landscape has undergone a dramatic transformation over the past decade. A decade ago, MYOB was dominant with over 80% market share, but Xero has experienced tremendous growth since launching in Australia in 2010.
Current Market Share:
Regarding online engagement, Xero captures a substantial 55.14% click share, followed by MYOB at 17.15%, demonstrating Xero's strong digital presence and user preference.
This market dominance isn't just about marketing – it reflects real user preferences based on functionality, ease of use, and business outcomes.
Starter Plan: $25/month
Standard Plan: $37/month
Premium Plan: $70/month
Ultimate Plan: $110/month
MYOB Business Lite: $27/month
MYOB Business: $57/month
MYOB Advanced: $69/month
MYOB Enterprise: $99/month
For Micro Businesses (1-5 employees):
For Small Businesses (5-20 employees):
For Medium Businesses (20+ employees):
Invoicing and Billing:
Bank Reconciliation:
Reporting and Analytics:
Inventory Management:
Xero Advantages:
MYOB Advantages:
Winner: Xero (superior user experience and learning curve)
Xero Integrations:
MYOB Integrations:
Winner: Xero (more extensive integration ecosystem)
Xero Mobile App:
MYOB Mobile App:
Winner: Xero (superior mobile experience)
Xero:
MYOB:
Winner: Tie (both excellent for Australian compliance)
Xero:
MYOB:
Winner: MYOB (more comprehensive payroll features)
Xero:
MYOB:
Winner: Xero (superior banking automation)
Available Support:
Support Quality:
Available Support:
Support Quality:
Winner: MYOB (phone support availability)
Security Features:
Data Protection:
Security Features:
Data Protection:
Winner: Tie (both offer excellent security)
Growth Features:
Limitations:
Growth Features:
Limitations:
Winner: Xero (better scalability options)
Business Profile:
Xero Implementation:
Results: Significant time savings and improved cash flow management in first year.
Business Profile:
MYOB Implementation:
Results: Better project management and inventory control leading to increased profitability.
Business Profile:
Xero Implementation:
Results: Reduced manual data entry by 85% and improved accuracy.
Xero Advantages:
MYOB Advantages:
Recommendation: Xero for online retail, MYOB for multi-location physical retail
Xero Advantages:
MYOB Advantages:
Recommendation: Xero for simplicity, MYOB for detailed project management
Xero Advantages:
MYOB Advantages:
Recommendation: MYOB for complex manufacturing, Xero for simple assembly
Business Characteristics:
Specific Situations:
Business Characteristics:
Specific Situations:
Xero Standard Plan (3-Year Analysis):
MYOB Business Plan (3-Year Analysis):
3-Year Savings with Xero: $820
Xero Benefits:
MYOB Benefits:
Average Payback Timeline:
Timeline: 1-2 weeksSteps:
Migration Support:
Timeline: 2-4 weeksSteps:
Migration Support:
Xero Innovation:
MYOB Innovation:
Xero is generally preferred by smaller businesses due to its ease of use and low cost of entry, while MYOB maintains strength in more complex business environments.
Xero's Growth Strategy:
MYOB's Growth Strategy:
The Problem: Selecting the cheapest option without considering feature requirements and long-term costs.
The Solution: Evaluate total cost of ownership including time savings, error reduction, and productivity gains.
The Problem: Not considering how the accounting software will connect with existing business systems.
The Solution: Map out all required integrations before making a decision.
The Problem: Assuming all team members will quickly adapt to new software.
The Solution: Factor in training time and costs for all users.
The Problem: Choosing software that meets current needs but can't scale with business growth.
The Solution: Consider where your business will be in 2-3 years and choose accordingly.
Recommendation: Xero Standard Plan ($37/month)
Reasons:
Recommendation: Depends on complexity
E-commerce: Xero (superior integrations)
Manufacturing: MYOB (better inventory management)
Professional Services: Xero (simplicity and efficiency)
Retail (multi-location): MYOB (comprehensive features)
After comprehensive analysis, Xero emerges as the superior choice for most Australian small and medium businesses. Here's why:
Market Leadership: Xero now has over 60% of the online accounting software market, reflecting real user preferences and satisfaction.
Cost Effectiveness: Xero offers better value across most business sizes, with significant cost savings particularly for small businesses.
User Experience: Xero's modern, intuitive interface reduces learning time and increases user adoption.
Integration Ecosystem: Xero offers a slight edge with automatic GST calculations and the ability to connect to over 1000 apps, providing unmatched flexibility.
Mobile Capabilities: Superior mobile experience enabling business management anywhere, anytime.
Automation Features: Advanced automation reduces manual work and improves accuracy.
Scalability: Excellent growth capabilities with features that scale with your business.
Australian Compliance: Full compliance with Australian tax and reporting requirements.
While MYOB remains a solid choice for businesses with complex inventory needs or those preferring traditional accounting approaches, Xero's combination of ease of use, comprehensive features, cost-effectiveness, and extensive integration capabilities makes it the clear winner for most Australian SMEs.
The numbers speak for themselves – Xero captures a substantial 55.14% click share, followed by MYOB at 17.15% – demonstrating strong market preference and user satisfaction.
For businesses ready to embrace modern, efficient accounting practices, Xero provides the perfect platform to streamline operations, reduce costs, and focus on what matters most: growing your business.
1. What are the main differences between Xero and MYOB?
Xero offers a modern, intuitive interface with strong automation, mobile functionality, and over 1000 app integrations. MYOB provides more comprehensive inventory and payroll features, phone support, and suits complex, multi-location businesses.
2. Which software is more popular in Australia?
Xero leads with over 60% market share and 55.14% click share, while MYOB holds 20-25% market share and 17.15% click share.
3. How do Xero and MYOB pricing compare?
Xero pricing ranges from $25 to $110/month across four plans. MYOB pricing ranges from $27 to $99/month across four tiers. Xero is generally more cost-effective for micro and small businesses, while MYOB offers savings for medium businesses with complex needs.
4. Which platform offers better invoicing and bank reconciliation?
Xero provides unlimited invoices (above Starter), automated bank feeds, and smart reconciliation. MYOB has similar invoicing but less automation in bank reconciliation. Xero generally wins on ease and automation.
5. How do Xero and MYOB handle inventory management?
MYOB excels in advanced inventory management with multi-location tracking and detailed reporting. Xero offers basic inventory tracking suited for simpler needs.
6. What about payroll and compliance features?
Both comply with Australian GST, BAS, and STP requirements. MYOB offers more comprehensive built-in payroll features and award interpretation. Xero payroll is an add-on with strong superannuation management.
7. Which software has better mobile apps?
Xero’s mobile app offers full invoicing, expense capture, bank reconciliation, and offline capabilities. MYOB’s app is more basic with limited reporting and requires internet connection.
8. How do integration capabilities compare?
Xero connects with over 1000 apps, including popular payment and e-commerce platforms, with an open API for custom solutions. MYOB offers 200+ integrations focused on industry-specific needs.
9. What support options are available?
MYOB offers phone support and local Australian expertise. Xero primarily provides online support, video tutorials, and community forums with no phone support on most plans.
10. Which software is better for growing businesses?
Xero scales well with unlimited users on higher plans, strong analytics, and project tracking. MYOB suits established businesses needing complex project and inventory management, multi-location operations, and comprehensive customization.
11. How long does implementation typically take?
Xero implementations usually take 1-2 weeks with free migration tools and online resources. MYOB implementations take 2-4 weeks and often include professional migration services and on-site training.
12. What industries suit each software best?
13. What are common mistakes to avoid when choosing accounting software?
Avoid choosing based solely on price, neglecting integration needs, underestimating training time, and failing to consider future business growth.
14. Which platform offers better value for money?
For most small to medium Australian businesses, Xero offers better overall value due to cost, ease of use, integrations, and automation. MYOB is better for complex business needs despite higher costs.
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