Xero and MYOB both handle invoicing, bank reconciliation, GST, BAS, and Single Touch Payroll in line with Australian standards, so neither is universally better. What differs is where each one is strongest, and which of those strengths matter to your business. This guide sets out the practical differences so you can decide.
What is Xero?
Xero is cloud-based accounting software, founded in New Zealand in 2006 and now one of the most widely used platforms in Australia. It runs entirely in your browser, so there is no software to install and no company file to pass around. For a fuller explanation of how it works day-to-day, see our guide to what Xero is and how it works.
What is MYOB?
MYOB is a long-established Australian accounting software company, with roots going back well before cloud accounting existed. It offers cloud products alongside more traditional desktop-based options, which is one of the more meaningful differences between the two. Its payroll capability, in particular, reflects decades of experience dealing with Australian awards and entitlements.
What Xero and MYOB both do well
It is worth being clear about how much overlap there is, because much comparison content overstates the differences. Both platforms will:
- Create and send invoices, and track what is paid and overdue
- Import bank transactions automatically and support reconciliation
- Track GST and prepare your Business Activity Statement
- Run payroll, calculate PAYG and superannuation, and report to the ATO through Single Touch Payroll
- Produce profit and loss, balance sheet and cash flow reports
- Connect to third-party apps for point of sale, time tracking and e-commerce
If your requirements are the standard set above, both will do the job. The decision then comes down to fit, not capability.
Where MYOB tends to be stronger
Complex payroll. If you deal with multiple modern awards, shift loadings, allowances or complicated entitlement rules, MYOB’s payroll depth is genuinely valuable. Businesses in hospitality, healthcare, construction and retail with large rostered workforces often find it handles edge cases more comfortably.
Inventory management. MYOB has stronger built-in inventory capability. If you carry significant stock and want that managed inside your accounting system rather than through an add-on, that is a real advantage.
A desktop option. Some businesses prefer to, or are required to, keep their accounting data on their own machines or servers. MYOB still supports that model where Xero does not.
Where Xero tends to be stronger
Simplicity for non-accountants. Xero’s interface was designed for business owners rather than trained bookkeepers. Most beginners find the reconciliation screen in particular quicker to understand, which matters if you or your admin staff are doing the books yourselves.
Shared access. Every Xero plan includes unlimited users. Your bookkeeper, your accountant and your office manager can all work in the same file without additional licence costs. For businesses that lean on external advisers, this removes a common friction point.
No versions or files to manage. Because Xero is cloud-only, there is no software to update, no company file to back up, and no risk of someone working in an out-of-date copy. Businesses moving off desktop systems often cite this as the biggest day-to-day change.
Comparison at a glance
| Feature | Xero | MYOB |
|---|---|---|
| Delivery | Cloud only | Cloud and desktop options |
| Users included | Unlimited on all plans | Varies by plan |
| GST and BAS | Yes | Yes |
| Single Touch Payroll | Yes | Yes |
| Payroll | Strong for standard payroll | Strong for complex, award-based payroll |
| Inventory | Basic, extended via apps | Strong built-in capability |
| Interface | Simple and modern | Feature-dense, more on screen |
| Connected apps | Large ecosystem | Solid ecosystem |
| Australian heritage | Founded in NZ, 2006 | Long-established Australian company |
| Tends to suit | Businesses wanting simplicity and shared access | Businesses with complex payroll or inventory |
What about pricing?
Both use tiered monthly subscriptions at broadly comparable prices, and both regularly offer introductory discounts. The cheapest plan is rarely the right comparison, because entry-level tiers on both platforms limit invoice volumes or exclude payroll. Compare the plan that actually covers your invoice numbers and employee count, and factor in whether you will need to pay for additional users.
Pricing note: both providers periodically change plans and prices. Check the current Australian pricing on each provider’s official site before committing.
Which is easier to learn?
Most beginners find Xero slightly easier at the start, largely because its interface shows less at once. MYOB puts more on screen, which experienced bookkeepers often prefer, but newcomers may find it busier. The gap narrows quickly. On both platforms, the genuinely difficult parts are the same: bank reconciliation once you hit part-payments, refunds, and inter-account transfers, and payroll setup, where an early mistake quietly compounds across every pay run.
Thinking of switching from MYOB to Xero?
Switching is common, and both platforms offer conversion tools and partner services to move your data. Two practical points are worth knowing. First, historical data often transfers only partially, so most businesses switch at the start of a financial year to keep reporting clean. Second, your bookkeeping knowledge carries over completely; what changes is layout and workflow, not the underlying accounting.
Plan for a short overlap period, have your bookkeeper verify opening balances after migration, and do not attempt it in the middle of a BAS quarter if you can avoid it.
So which should you choose?
A simple way to decide:
- Ask your accountant or bookkeeper first. Their preference is the single most practical factor, because the system they work in fastest directly affects your fees and turnaround times.
- If you have complex award-based payroll or significant inventory, look closely at MYOB.
- If you want a simpler interface, multiple people in the file, and no software to maintain, look closely at Xero.
- If neither of those applies strongly, either will serve you well. Trial both, since each offers a free trial, and pick the one your team finds easier to navigate.
Learn either platform properly
Whichever you choose, the return comes from using it well. Most of the frustration people report with accounting software stems from reconciliation habits and payroll setup rather than the software itself.
We run instructor-led Xero training courses and MYOB training courses in Sydney, Melbourne and Online Live across Australia, in small classes with a course manual to keep and free email support afterwards.
Frequently asked questions
Xero and MYOB are accounting software platforms used by Australian businesses to manage invoicing, bank reconciliation, payroll, GST and reporting. Xero is cloud-based and was founded in New Zealand in 2006. MYOB is an Australian company with decades of local history and offers both cloud and desktop products.
Neither is universally better. Both handle invoicing, bank reconciliation, GST, BAS, and payroll in accordance with Australian standards. Xero is often preferred for its interface and reconciliation workflow, while MYOB is preferred for its payroll depth and long Australian heritage. The better choice depends on your accountant’s preference, your industry add-ons, and which interface your team finds easier.
The main difference is design philosophy. Xero was built cloud-first with a simpler interface and includes unlimited users on every plan. MYOB grew from Australian desktop software and offers both cloud and desktop options, with particularly strong payroll and inventory features. Both now cover the same core accounting tasks.
Most beginners find Xero slightly easier because of its cleaner, more modern interface. MYOB has more features visible on screen, which experienced bookkeepers value, but newcomers may find it busier. In practice, the learning curve for both is similar once you reach bank reconciliation and payroll setup, which are the genuinely tricky parts.
Both use tiered monthly subscriptions at broadly comparable prices, and both frequently run introductory discounts. The cheapest plan is rarely the deciding factor, because entry-level tiers on both platforms limit invoices or exclude payroll. Compare the plan that actually covers your invoice volume and employee count.
MYOB is often favoured for complex payroll, reflecting its long history with Australian awards and entitlements. Xero’s payroll is capable and well integrated for most small businesses. If you have many employees, complicated award interpretation or shift-based rostering, MYOB is worth a closer look. For straightforward payroll, either works well.
Yes. Both Xero and MYOB report to the ATO through Single Touch Payroll, which is mandatory for Australian employers. Both also calculate PAYG withholding and superannuation as part of each pay run. STP compliance is not a reason to choose one over the other.
Yes. Both track GST on transactions as you go and prepare your Business Activity Statement from within the software, and both can lodge directly with the ATO. The practical difference is workflow and how your bookkeeper prefers to review the figures, not compliance capability.
Yes. Both platforms offer conversion tools and partner services to migrate your data, and switching is common. Historical data may transfer only partially, so most businesses move at the start of a financial year to keep reporting clean. Plan for a short overlap period and have your bookkeeper verify opening balances.
Both are widely supported by Australian accountants and bookkeepers, and most practices work with both. Xero has strong adoption among newer practices and cloud-focused bookkeepers, while MYOB retains a large established base. Ask your accountant which they work in the fastest, because their preference genuinely affects your fees and turnaround time.
For sole traders and small businesses with simple needs, both are more than capable, and the decision usually comes down to interface preference and cost. Xero’s unlimited users across all plans suit businesses that want their bookkeeper and accountant in the file. Start with a free trial of each before deciding.
Not strictly, but training pays for itself quickly. Both platforms are suitable for basic invoicing, yet bank reconciliation and payroll setup are where costly mistakes often occur and quietly compound. A structured course means clean books, accurate BAS and far fewer corrections later. We run instructor-led Xero and MYOB courses across Australia.
