Xero vs MYOB: Comparison and review for business

myob vs xero

Xero and MYOB are two of the most used cloud-based accounting systems for small and medium enterprises (SMEs) in Australia and New Zealand. Selecting the right platform you work in can have a rather profound influence on the enhancement of your business. This post aims to identify major characteristics of Xero and MYOB, their prices, strengths, and weaknesses to assist you in choosing which of the two software is better for your business.


Xero is entirely web-based and is for any commercial enterprise that wants easy-to-navigate software. Some of the functions include invoicing, expense claims, bank reconciliation, generating financial reports, and others.

MYOB on the other hand has an option of both desktop-based and cloud-based accounting solutions. The desktop accounting software is more useful for the business organization which needs more sophisticated features for its accounting needs. There is another online-based cloud solution, which is MYOB AccountRight Live, which also provides basic accounting tools, similar to Xero.

Ease of Use

Another aspect that defines Xero is its efficiency: it is easy to find your way around the platform. The dashboard is designed in a simple and friendly manner, especially for people in the organization who are not so conversant with accounting matters as they can easily work on invoices, and bank reconciliations and get the reports. Because of this, Xero is well-loved by small businesses that often do not have the luxury to hire dedicated accounting personnel.

The MYOB desktop solution is complex and most suitable for professional bookkeepers or those who are very familiar with the software. However, like Xero, MYOB AccountRight Live is another cloud-based software that has more straightforward menus and better-structured accounting tasks for workers with non-accounting backgrounds. In total, Xero is ranked higher when it comes to the usability of the tool, however, the MYOB cloud solution can also be a good choice for small business owners.

Features and Functionality

Xero offers complete core accounting features for small businesses including:

- Managing and accepting online invoice payments
- Bank reconciliation
- Expense claims
- Financial reporting
- These include the fixed assets of an organization and how depreciation is accounted for.
- Payroll (In this sub-process, payroll is done through integration with third parties such as ADP or Paychex)

However, certain features such as managing inventory, stock and manufacturing are not supported. To this end, businesses with more advanced needs might prefer the desktop solution or AccountRight Live.

MYOB AccountRight Live also offers strong core accounting processes with a additional features over Xero like:

- Inventory and assembly items are perfect examples which show that the created model is efficient in managing inventory.
- More advanced reporting

For manufacturing, payroll, job costing, quoting and many more the desktop MYOB Essentials or AccountRight package offers even more features than the basic online package. Smaller to medium-sized companies may be more likely to benefit from the advanced capabilities.

Third-Party Integrations

Another key feature that Xero and MYOB share is that both software support numerous third parties that increase their usability. Some of the typical connections are payment gateways such as PayPal, payment processors like Stripe, bank feed, point-of-sale systems, and eCommerce platforms.

Xero has developed a rich app lineup of over 800 that can be customized based on the unique operations of the business and 800+ are more than MYOB platforms. Thus, for businesses focusing on customized solutions, Xero provides more long-term scalability for the businesses than the QBO.


Xero has many advantages including: The facility to access Xero anytime, anyplace from any device via the cloud. MYOB AccountRight Live on the other hand has an option for cloud access while the desktop versions can only be used on Windows computers and this hinders mobility.


For its services, Xero has four subscription levels with respective features, invoice limits and costs of $27 to $60 per month. Additional charges include payroll, inventory, and reports – additional reports charge additionally.

MYOB offers Essentials Plans where they charge according to the number of company files that can be accessed via the desktop and cloud with an added option for Accountants. The pricing of the services is on the flexible side with the most basic package starting from $15 and the premium package going up to $50 per month.

MYOB AccountRight Live’s pricing starts from $35 to $115 depending on the needs of the business in terms of invoicing, inventory and number of connected bank accounts.

Scalability is one of the most significant reasons that differentiate the pricing strategies. Xero can accommodate as many users as a business needs, it is beneficial in business expansion as the subscription allows for it in future. MYOB adjusts prices by the number of companies or inventory items per organisation.

In conclusion, it can be seen that Xero has a range of more favourable price tiers for micro businesses, while MYOB can become significantly cheaper if used more intensively.

Ease of Setup

Xero accounting software has a simple and quick setup, which means that other people in the organization apart from the accounting department can set it up. The new MYOB essentials or Live setup still requires some accounting know-how or at the very least some help from third parties for businesses who may not fully understand back-end financial workings. The MYOB desktop solution is the most complicated software when it comes to setup and may need an accountant or bookkeeper’s assistance.

Our recommendation? Xero is the easiest to use for DIY setup whereas MYOB offers solutions that can incorporate bookkeeping advice during integration.

Support Options

Xero is known for having fast customer support, the accessible means of contact are online chat, phone, online user guide, webinars, and in-product search abilities, to resolve problems on the spot. It plays a role in packages where the ‘support’ is incorporated.

MYOB client support includes account manager allocation, telephone and email support anytime, live chat, technical support via phone or online visit, handbooks and tutorials, and online seminars. But support response rating is however not considered as positive as Xero.

Roadmap and Product Development

Having a frequent release cycle, Innovation programs, and well-defined strategic directions readily enable Xero to enhance financial management capabilities and automation. Their network of developers for applications and a series of APIs surpass MYOB in terms of further innovation.

For instance, MYOB has less ambitious public planning statements compared to its counterparts. Another strength is that the desktop solution is relatively more developed and has more depth, especially in core accounting disciplines. From this hierarchy, it could perhaps be deduced that the development of cloud functionality is centred on AccountRight Live. However, the innovative speed and scale are not as high as that of disruptive competitors such as Xero.

Final Verdict

In conclusion, I recommend Xero with other options below as the most affordable, easy-to-use and cloud-based accounting software for small businesses able to grow. The large number of apps available means that Xero remains in touch with the latest features and functionality in the field of financial management. Sought-after solutions include efficient processes and automation that help expanding organizations avoid paperwork.

This is true if you have more demanding primary accounting requirements in terms of inventory, manufacturing and complex reporting. Large firms get superior value from add-on features within the MYOB services that offer low cost per unit especially when many quantities are bought. The desktop solution gives the most procedures and adaptability for companies with stable states instead of quickly changing finances.

It is hoped that this comprehensive guide on Xero and MYOB has helped in understanding which accounting software is best to suit the organisation’s financial processing requirements in the present as well as in the future. Please feel free to contact me if you require help locating more resources or if you need help with accounting in general.

Contact us here for accounting services now!