Xero and MYOB are the two accounting systems most Australian small businesses end up choosing between. Both are Australian-relevant, both handle GST, BAS and Single Touch Payroll, and both will do the job if you keep them up to date. The differences are in how they work, what's built in, and how easily your accountant and other apps connect to them.
We're a Xero-first firm. Our books are kept daily in Xero for most clients, so we have a preference, and we'll say so. We also support MYOB clients, and for some businesses MYOB is the better fit. This guide sets out the honest differences, when to stay, when to switch, and what switching actually involves.
Is Xero better than MYOB?
For most small businesses starting from scratch, yes, Xero is the better default. Not because MYOB is bad, but because of three practical things:
- It's cloud-only. Everyone works in the same live file: you, your bookkeeper, your accountant. There's no file to back up, send, or lock.
- It has a very large ecosystem of add-on apps for payments, inventory, job management, receipts, point of sale and reporting.
- It's what most accountants and bookkeepers use daily, so help is easier to find and work is often faster, which can lower what you pay for accounting.
MYOB is the better choice in some situations, which we cover below. The right answer depends on your business, not on which brand is more popular.
How do Xero and MYOB compare?
This comparison reflects each vendor's Australian plans as listed on their own websites when we checked on 18 October 2026. Plans and inclusions change, so confirm on the vendor's site before you buy. We've deliberately left out prices for that reason.
| Xero | MYOB | |
|---|---|---|
| How it runs | Cloud only, in a browser and mobile app | Two families: web-based MYOB Business (Lite and Pro) and AccountRight (Plus and Premier), which also has a Windows desktop option. A separate mobile-only Solo product for sole traders |
| Offline / desktop file | No | No longer for new work: MYOB ended offline file support in AccountRight PC Edition from 17 June 2026 (check MYOB for your version) |
| Bank feeds | Yes | Yes |
| GST, BAS and Single Touch Payroll | Yes | Yes |
| Payroll | Included in the higher plans, with a set number of people per plan | A paid add-on on Lite and Pro; included in AccountRight Plus and Premier. A payroll-only product also exists |
| Inventory | Basic tracked inventory built in; most stock-heavy businesses add an inventory app | Order management on Lite and Pro; fuller inventory with stocktakes in AccountRight, and multiple locations in Premier |
| Job and project tracking | Projects in the higher plans | Job tracking in MYOB Business; time billing and job budgets in AccountRight |
| Multi-currency | In the plans we checked (Comprehensive and the Ultimate tiers) | AccountRight Premier only |
| Cash flow forecasting | Built-in short-term forecasts in higher plans | Limited; usually done in a separate tool |
| Add-on apps | Very large app marketplace | A smaller app marketplace |
| Accountant access | Accountant connects directly to the live file | Accountant connects to the online file; desktop files need syncing or sending |
Where Xero is stronger
- Collaboration. One live file. Your accountant can fix a coding issue while you're on the phone.
- Add-ons. If your business needs a point-of-sale system, an e-commerce connection, a job management app or a receipts app, there's usually a well-supported Xero integration.
- Bank reconciliation workflow. Fast, with rules that learn your regular transactions.
- Reporting and forecasting. Short-term cash flow views are built into the higher plans, and most reporting tools connect to Xero first.
Where MYOB is stronger
- Offline access is going away. MYOB ended offline file support in AccountRight PC Edition from 17 June 2026, so both products now assume you're online. If your internet is unreliable, plan for that whichever you choose.
- Built-in inventory and jobs. AccountRight's stock control, stocktakes and job budgeting can save you buying a separate inventory or job costing app.
- Familiarity. If you or your bookkeeper have used MYOB for years and the file is clean, that's a real advantage. Retraining has a cost.
- Payroll included in AccountRight Plus and Premier, rather than sold as an add-on (check the current employee inclusions on MYOB's site).
Is Xero or MYOB easier to use?
For a business owner who isn't a bookkeeper, most people find Xero quicker to learn. The day-to-day screens are simple, bank reconciliation is a matter of matching suggested transactions, and the mobile app handles invoicing, receipts and approvals well. MYOB's web plans have become much closer to Xero in feel. AccountRight is more traditional, with more menus and options, which suits experienced bookkeepers and businesses that use its inventory and job features.
Honestly, "easy" matters less than "set up properly". A well-built file in either system, with a sensible chart of accounts, bank rules and tracking for the things you want to measure, is easy to use. A badly built one is painful in both. If you're starting out, spend an hour with your accountant on the setup before you enter a single transaction.
Three questions settle it for most owners:
- Who will do the bookkeeping? If it's you, try both free trials for a week with real transactions. If it's a bookkeeper, use what they're fastest in.
- What else must it connect to? List your point of sale, online store, payment platform and job app, and check each one's integration with both.
- What does your accountant use? Working in the same system as your accountant saves time on both sides, every month.
Xero vs MYOB for payroll
Both lodge Single Touch Payroll with the ATO, handle leave, and pay super. The difference is mostly in packaging: Xero includes payroll in its higher plans with a cap on the number of people, while MYOB includes it in AccountRight and sells it as an add-on on its web plans.
What matters more than the software is getting the setup right: correct awards and pay rates, leave accruals, and super. From 1 July 2026, under Payday Super, employers must pay super each payday, and contributions must reach the employee's fund within 7 business days of payday. Whichever system you use, check it's set up to pay super with every pay run, not quarterly. Our guide to Payday Super explains the new rules, and our payroll and Payday Super service can run it for you.
Watch out: Software calculates what you tell it to. If the award classification or pay rate is wrong in the file, every pay run will be wrong too. Payroll software doesn't make you award compliant.
Xero vs MYOB for different businesses
| If your business is... | Our usual view |
|---|---|
| A sole trader or new business with simple invoicing | Either works. Choose the one your accountant uses, so you don't convert later |
| Growing, with plans to hire or add a company or trust | Xero, for collaboration and add-ons |
| Online retail or e-commerce | Xero, mainly for the integrations with online stores and payment platforms. See our page for e-commerce businesses |
| A trade or construction business with jobs and progress claims | Either, usually with a job management app. Xero has more job app integrations; AccountRight has more built in. See our construction bookkeeping article |
| Stock-heavy wholesale or manufacturing | AccountRight's built-in inventory can be enough. Larger operations usually need a dedicated inventory system with either |
| A farm or remote business with patchy internet | AccountRight, for the desktop option |
| Already on MYOB, file clean, team trained, no pain points | Stay. Switching for its own sake costs money |
| Already on MYOB with a messy file, version problems or poor bank feeds | Worth considering a move. A clean start often fixes more than the software |
When is MYOB perfectly fine?
More often than people expect. If all of these are true, we'd usually tell you to stay on MYOB:
- Your file is reconciled and up to date.
- Your BAS and payroll run smoothly from it.
- Your bookkeeper knows it well.
- You don't need an add-on that only works properly with Xero.
- Your accountant can access the file without fuss.
Switching software won't fix poor bookkeeping habits. If the problem is that nobody reconciles the bank account, it will follow you into Xero. Fix the habit first, or have someone take it over. Our Xero bookkeeping service does exactly that for Xero clients.
How do you move from MYOB to Xero?
If you've decided to switch, plan it like a small project. Done well, it takes a few weeks of elapsed time and a few hours of your time.
Step by step
- Pick a conversion date. The start of a BAS quarter is good. The start of a financial year (1 July) is cleanest, especially for payroll.
- Tidy MYOB first. Reconcile every bank account to the conversion date. Clear old unpaid invoices and bills that aren't really owed. Review the chart of accounts.
- Decide what history comes across. Usually opening balances, the chart of accounts, contacts, and open invoices and bills. Some conversion tools can bring detailed transaction history; decide whether you really need it.
- Set up Xero properly. Chart of accounts, GST settings, tracking categories, invoice templates, bank feeds, and rules for regular transactions.
- Move payroll carefully. Set up employees, pay items, leave balances and super funds. If you convert mid-year, carry each employee's year-to-date figures across so your Single Touch Payroll reporting stays correct.
- Run both in parallel briefly if you're nervous, for one pay run or one month, then compare.
- Check the first BAS out of Xero against your expectations before you lodge.
- Keep MYOB accessible for your records. The ATO generally requires business records to be kept for five years.
What usually goes wrong
| Problem | How to avoid it |
|---|---|
| Opening balances don't match the last MYOB balance sheet | Reconcile in MYOB first, and convert at a clean period end |
| Duplicate invoices or bills | Only bring across genuinely open items |
| Payroll year-to-date figures missing | Convert on 1 July, or enter year-to-date balances before the first pay run |
| Leave balances wrong | Export leave balances per employee and check them line by line |
| GST codes mapped incorrectly | Review the tax code on every account before the first BAS |
| Bank feeds take time to connect | Request feeds early, and import statements to cover the gap |
Our MYOB to Xero conversion and Xero setup service handles all of this, including the payroll move.
What about the cost of switching?
There are three costs to weigh:
- The subscription difference, which depends on the plans you'd compare. Check both vendors' current pricing pages, because plans and prices change.
- The conversion itself, whether you do it, a conversion service does it, or your accountant does it.
- Your time, learning a new system and changing habits.
Against that, weigh what you'd save: less time on bookkeeping, fewer add-on subscriptions or spreadsheets, faster work from your accountant, and fewer errors. If the saving isn't clear, don't switch. Our guide on how much an accountant costs explains how the state of your file affects your fees.
Mistakes we see with Xero and MYOB
- Switching to fix a bookkeeping problem that's really a habit problem.
- Converting mid-year without payroll year-to-date figures, then fixing Single Touch Payroll reports afterwards.
- Bringing across years of messy history instead of a clean opening position.
- Buying the cheapest plan then adding payroll, projects and apps that a higher plan would have included.
- Never setting up bank rules, so every coffee is coded by hand.
- Using the software's default chart of accounts without tailoring it, so reports don't tell you anything.
- Treating "the software lodged it" as "it's right". BAS figures are only as good as the coding behind them.
How BPAG works with Xero and MYOB
Most of our clients are on Xero, and we keep their books updated daily: reconciling, categorising, processing and paying bills, and reviewing cash flow. We also support clients on MYOB.
Our Xero and MYOB support agent gives step-by-step fixes for software problems and drafts a client email with the steps, which your accountant checks before it's sent. Our BAS pre-lodgement check agent looks for GST coding and label errors before your BAS goes in, whichever software it comes from. Agents draft; a qualified accountant reviews and signs off.
If you want the numbers to do more than satisfy the ATO, look at our accounting and bookkeeping service and our guide to building a cash flow forecast.
Frequently asked questions
Is Xero or MYOB cheaper?
It depends on the plan you need, and both companies change their prices and plan contents regularly. Compare the plan that includes what you'll actually use, such as payroll for your number of staff, inventory or multi-currency, rather than the entry-level price. Check both vendors' current pricing pages on the day you decide, and remember the subscription is deductible for your business.
Which is better for a sole trader, Xero or MYOB?
For a sole trader with simple invoicing and expenses, both have entry-level options that work, and the choice matters less than keeping it up to date. If you're likely to grow, hire or add a company later, starting on the platform your accountant uses saves a conversion down the track. Very simple sole traders under the GST threshold may not need either.
Can my accountant work with MYOB?
Most accountants can, and we support MYOB clients. Xero tends to be faster for the accountant to work in, because of its bank feeds, add-on ecosystem and the way practices connect to client files. That speed often shows up in what you pay.
Will I lose my history if I move from MYOB to Xero?
Not if it's done properly. Your MYOB file stays as your record of past years, and you keep it for at least five years for the ATO. Into Xero you typically bring opening balances, your chart of accounts, contacts, and open invoices and bills. Some conversion services can bring more detailed history if you need it.
What about QuickBooks or Reckon?
Both are used in Australia and can do the job. QuickBooks Online is a cloud product similar in approach to Xero. Reckon has desktop and cloud options and suits some very small businesses on a budget. We work mostly in Xero, but the advice in this guide applies: pick what fits your business and what your accountant can work in efficiently.
Official sources
General information only, current as at 18 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.