MYOB vs Xero: Which Is Better For Aussie SMBs In 2025?

Australian business owners are spoiled for choice when deciding between accounting software packages.

But savvy business owners will likely choose one of two industry titans: Xero and MYOB.

Both feature prominently in my roundup of the best accounting software in Australia, with MYOB clinching the #1 spot.

Their popularity means you won’t have trouble finding a bookkeeper or accountant familiar with the software.

But which is the best pick for a growing business with bold plans for the future? I took a closer look at their plans aimed at SMBs:

MYOB vs Xero: At A Glance.

Honestly, MYOB and Xero are neck-and-neck across core features like invoicing, managing expenses, and standard reporting.

Both platforms give you the ability to:

But MYOB is better out-of-the-box for some industries and situations:

Having said that, Xero’s offering is strong, and it’s typically viewed as the more integration-friendly platform.

You get access to a huge library of 1,000+ third-party apps. Everything from CRMs, credit card payments, and direct debit management is on the menu.

So, while Xero’s inventory management features are weaker than MYOB’s, you can easily link a purpose-built inventory app like Cin7 (inventory management with a built-in POS & EDI).

But the focus on integrations can also be a pain point, because:

Xero’s support is also less accessible and responsive than I’d expect from such a large player.

Its online support is available 24/7, and the advice you get is generally solid, but waiting for a response can be frustrating.

MYOB’s support includes online resources/chat and a phone number that’s manned Mon-Fri during business hours.

And you’ll spend even less time on hold if you opt for the highest tiers, which come with priority support and tailored 30-minute ‘ask an expert’ sessions that you can even invite your bookkeeper along to.

1. Ease Of Use.

It’s fair to say, user-friendliness isn’t a major drawback of either software.

As you’d expect, both feature intuitive dashboards that put essential cashflow data at your fingertips and alert you to outstanding invoices.

I find Xero’s terminology more confusing and its navigation somewhat labyrinthian.

Too many clicks to find things makes managing your books more of a chore than it should be. MYOB’s menus and interfaces felt cleaner and more logical.

And its ‘Xero Accounting for business’ native mobile app is intuitive and gives you access to all the basics you’ll need on the go.

You can check your balances and P&L, send invoices, reconcile bank transactions, and track receipts and expenses.

On the other hand, MYOB offers multiple native apps for different purposes, and they’re somewhat buggy and restricted.

Its app for capturing receipt info on-the-go is handy, but two of its other apps (for invoicing/payments and time tracking for employees) have user ratings below 2 stars.

A downside if you need advanced features: MYOB’s highest plans – AccountRight Plus and Premier – require downloading software to your desktop, in addition to an online account.

It’s not a deal breaker, but does add complexity.

That could limit your flexibility once your business has expanded to the point where you’re trading internationally or have complicated supply chains.

Data can be presented differently via desktop too, which might take some getting used to.

Moreover, AccountRight only runs on desktops with a Windows operating system.

Mac users will need to either switch to PC, use a tool like Boot Camp, or use a virtual machine.

The latter is easy enough to install and use, but does create another layer of onboarding and training complexity in your business. And added cost.

2. Invoicing And Payments.

Xero and MYOB both do a decent job of streamlining invoicing, so you can issue professional, branded invoices.

You can also automatically remind people to pay on time. Both platforms let you customise how many reminders are sent, how often and what the emails say.

But the devil is in the details.

People complain about Xero’s invoicing experience being less intuitive, and slower to load, resulting in slower workflows.

And more restrictive too, like a limit on the number of line items that can be added.

Personally, I found quoting and invoicing through Xero very similar to MYOB. And it has some nifty features like:

Here’s what stood out about MYOB’s invoicing:

Annoyingly, neither platform lets you easily ask for a deposit payment, or break the invoice total into multiple progress payments.

You can simply ask for, and record partial payments – which adjusts the amount outstanding on an invoice.

You’ll be able to add your bank details to any invoice you send if you mainly accept direct deposits, but enabling online payments is a simple process on both platforms. 

In addition to debit/credit cards, digital wallets and PayPal (which Xero enables), MYOB also makes it easy to offer BPAY and automatically include a QR code on invoices that are exported as a PDF or printed – so people can scan and pay online. 

However, if you’re regularly meeting customers face-to-face, you might appreciate that Xero’s native mobile app supports Tap to Pay for in-person payments by card or digital wallet.

3. Payroll & Inventory Management.

To be clear, neither MYOB nor Xero offers advanced stock control features.

But for less complex operations that want to be able to do a simple stocktake and reordering on the regular, MYOB ekes out the win compared to Xero.

In Xero, you can add item/product details to pre-fill invoices, and track basic transaction details for up to 4,000 items.

For instance, you can specify the unit of measure for an item, and indicate how many items are included in one unit sold, e.g., perhaps you always sell a particular product as a set of three.

It’s a more flexible option for growing businesses that don’t want to step up to a full-featured inventory app or add-on.

You’ll get access to single-touch payroll (STP) with both Xero and MYOB, so you can comply with the Australian Tax Office’s (ATO) phase 2 reporting requirements.

But MYOB is clearly better value and more scalable, if growing your headcount or contractor network is important in your business.

(Related: 7 Best Crypto Exchanges In Australia).

Xero did a rejig of its plans in 2024 and cut payroll from its lowest plans. The backlash from customers was swift and severe.

On Xero’s $75/m Grow plan, you can currently pay two people and process automated super payments. MYOB’s comparable Lite plan also limits pay runs to two people.

Whereas if you step up to MYOB’s mid-tier ‘Pro’ plan you can pay extra ($2/month per person) to process pay for an unlimited number of employees.

The simplifies life and saves you money assuming your accounting needs don’t become more complex as you add team members.

Of course, Xero lets you upgrade your plan, complete the pay run, and then downgrade again after 30 days – but that’s a hassle.

It makes life difficult if you ever face edge cases where you only need to process a larger pay run temporarily, such as:

If you opt for MYOB’s AccountRight Plus plan, you can process payroll for an unlimited number of people, at no extra cost.

You’ll pay an extra $2 per employee above 100 people, and the maximum number of people you can pay is 200.

If you’re a growing SMB with that’s regularly processing pay for over 200 people each month, that means you’ll need to switch a payroll add-on.

4. Reporting & Tax Management.

No matter which platform you choose, you’ll be equipped to track GST, lodge your BAS, and stay on good terms with the tax man.

Day-to-day insights into cashflow, P&L, and general ledger come as standard, and both Xero and MYOB help you create a budgets and do financial forecasting. 

Its advanced analytics are included in both its Comprehensive and Ultimate plans, which give you AI-powered predictions around cash flow and other business variables.

That’s valuable for more confident decision-making.

5. Price.

Based on the platform’s regular pricing, the MYOB Business Lite plan is more than 50% cheaper than the comparable offer from Xero — the Grow plan.

At the higher end, you’ll pay $20/m less for Xero’s Ultimate 10 plan than MYOB’s AccountRight Plus.

But if you need to process payroll for more than 10 people, the price difference is negated – because you’d be forced to upgrade to the pricier Ultimate 20 plan on Xero ($12 more per month than AccountRight Plus).

And in fact, AccountRight Plus works out $210 cheaper than Xero’s Ultimate 10 if you pay annually – because MYOB discounts its plan if you pay for 12 months upfront.

MYOB’s most expensive plan, AccountRight Premier, is $195/m for comprehensive features including payroll for a large staff base.

Xero’s top plan, Ultimate 100, is 39% more expensive, without the same payroll advantages.

Xero vs MYOB: My Verdict.

Both MYOB and Xero are easy to get up and running with. You can connect bank accounts and start recording transactions without reading a manual.

But both have a reasonably steep learning curve if you want to become proficient with the platforms’ full functionality.

If you plan to pad out Xero with several add-ons, you’ll be adding to the said learning curve.

And you’ll need to train on more tools.

And you’ll need to keep a close eye on your spend – the bloat can be real.

MYOB is the better all-in-one offer.

Its user interface is friendlier, and it makes a strong case for growing with your business as you scale, given its unlimited payroll and inventory tracking in the top tiers.

I’m not convinced the expense is justified unless you’re unwilling to compromise on specific use cases or features where Xero outperforms MYOB.

Jody