Xero vs MYOB: the quick comparison for small business
Start with the work that actually needs doing, then match the platform.
- BAS, GST and ATO: Both handle BAS prep, PAYG and GST well. Make sure tax codes are mapped correctly from day one.
- Payroll and STP 2: Both support STP 2, super and leave. Check award interpretation, timesheets/rostering and approvals if you have staff complexity.
- Inventory and jobs/projects: MYOB offers strong built‑in inventory and job tracking; Xero often pairs with add‑ons or Xero Projects for job costing.
- Bank feeds and payments: Xero is widely praised for feeds and reconciliation; MYOB has improved significantly and supports streamlined payments as well.
- Integrations: Xero’s app marketplace is broader; MYOB integrates well with major AU tools and POS/eCommerce platforms.
- Reporting: Both do core reporting. If you need granular job or stock reporting out‑of‑the‑box, MYOB can edge ahead; deep analytics often use external apps on either platform.
Which suits your type of small business?
- Sole traders and consultants: Xero is often preferred for simplicity, quotes/invoices, bank feeds and mobile use. MYOB also works well if you plan to grow into jobs or inventory.
- Trades and construction: Both work. If you need detailed job tracking and progress claims out‑of‑the‑box, MYOB can be a fit. Xero plus a trade/field‑service app is also strong.
- Retail and hospitality: Choose by your POS. Xero integrates broadly with modern POS and eCommerce. MYOB integrates well with major AU POS and offers robust inventory.
- Professional services: Xero with Projects or a time/billing app is popular. MYOB jobs and reporting can also deliver the control you need.
- Product businesses with stock: MYOB’s built‑in stock and costing are strong. Xero plus a dedicated inventory app suits businesses needing advanced multi‑location inventory.
If you’re migrating from spreadsheets or legacy desktop software, plan the change at a month‑end to simplify reconciliations.
Australian compliance to keep in view
- STP Phase 2: Confirm payroll categories, pay items, super settings and reporting deadlines.
- BAS and GST: Map GST codes correctly on all items, bank rules and integrations to avoid BAS adjustments later.
- eInvoicing and ATO reporting: Enable where relevant and test your process end‑to‑end.
- Industry reporting: Construction TPAR, retail POS, hospitality tips, inventory costing—make sure your platform or add‑ons cover these.
Need help with compliance setup or checks? See BAS agent services and payroll services, or ask for a setup review.
What to compare before you commit
Scope
List what you need covered now: BAS, payroll, super, inventory, jobs/projects, quotes/invoices, budgets, multi‑currency, POS/eCommerce. Make sure the platform plus any add‑ons cover each item properly.
Software fit
Check your POS, time tracking, eCommerce, payments, and reporting tools. Xero’s marketplace is larger; MYOB integrates tightly with many AU‑first tools and offers deeper built‑ins.
Turnaround and communication
Confirm who reconciles bank feeds, who runs payroll, approval steps, and response times around BAS, payroll cut‑offs and EOFY.
Commercial fit
Compare subscription tiers, expected add‑ons, advisor fees and training. Look at total cost of ownership rather than headline price alone.
Migration and setup: doing it safely
- Prepare your data: Reconcile bank accounts, fix tax codes, clean contacts and chart of accounts.
- Pick a cut‑over date: Usually month‑end. Export opening balances and outstanding AR/AP cleanly.
- Payroll first: Map pay items for STP 2, confirm super funds, test leave balances and employee details.
- Add‑ons: Connect POS, eCommerce, time tracking and inventory; test a full quote‑to‑cash and procure‑to‑pay cycle.
- Post‑go‑live: Run parallel checks for the first BAS and first payroll cycle to catch issues early.
Prefer a guided migration? Book a setup and migration plan or review new business accountant if you are starting fresh.
Costs and total cost of ownership
Both Xero and MYOB use tiered subscriptions. Focus on what each tier unlocks (payroll capacity, multicurrency, projects, advanced inventory), then add the realistic cost of any add‑ons, payments, and advisor time. The best value is the setup that reduces errors, speeds up BAS and payroll, and gives you reliable reporting each month.
Best next steps
Write down your must‑haves (e.g. STP 2 payroll with timesheets and awards, stock with landed costs, POS sync, job profitability reports). Shortlist Xero or MYOB based on that list, not on brand familiarity alone. Then decide whether you want compliance‑only support or ongoing advisory input.
Use these pages to move forward:
Frequently asked questions
Which is better for small business in Australia: Xero or MYOB?
Both are strong. If you want excellent bank feeds, simple day‑to‑day use and lots of app choices, Xero is often preferred. If you want deeper built‑in inventory and job tracking or like desktop+cloud options, MYOB can be the better fit. Match the choice to payroll (STP 2), inventory and reporting needs first.
What should I check before deciding?
Confirm your BAS and GST setup, STP 2 payroll needs, inventory/jobs complexity, POS/eCommerce integrations, and reporting requirements. Then compare subscription tiers and likely add‑ons so you understand total cost.
When should I get professional advice?
Get help when the choice affects compliance, payroll awards, inventory valuation, job costing, cash flow forecasting, or when you plan a migration and want clean data and a safe cut‑over.
Can you help me choose and set it up?
Yes. Use the form below to request a short fit check. We’ll recommend Xero or MYOB, outline costs, and map a setup or migration plan aligned to your business.