Choosing accounting software feels like a bigger decision than it should be. You're committing time to set it up, migrating financial history, and training yourself on a new system. Getting it wrong is expensive in both money and frustration.
What to look for in Australian accounting software
The ATO's requirements shape everything here. You need software that handles GST correctly, generates BAS reports automatically, and connects to the ATO for lodgement. Single Touch Payroll is mandatory for all employers — any software you choose must support it. Bank feeds are the other non-negotiable. Good software connects directly to your Australian bank and imports transactions automatically every day.
Xero — best for most small businesses
Xero has become the dominant accounting platform in Australia for good reason. It was built with Australian compliance in mind, the interface is genuinely easy to use, and bank feeds connect to every major Australian bank. The ecosystem is the other big advantage — Xero connects with over 1,000 business apps including Deputy for rostering and Square for point of sale. Pricing starts at $35/month for Starter, $65/month for Standard.
MYOB — best for inventory and larger teams
MYOB has been in Australian accounting longer than Xero and retains strong market share, particularly among businesses with complex inventory needs or more than 10 staff. MYOB Business starts from $27/month and includes BAS lodgement, bank feeds and STP. If your accountant specifically recommends MYOB, there's often a practical reason — they work in it daily and can support you more efficiently.
Head-to-head comparison
| Feature | Xero | MYOB |
|---|---|---|
| Starting price | $35/month | $27/month |
| BAS lodgement | ✓ Built in | ✓ Built in |
| Single Touch Payroll | ✓ All plans | ✓ All plans |
| Ease of use | Very easy | Moderate |
| Inventory | Basic | Strong |
| App integrations | 1,000+ apps | 300+ apps |
| Free trial | 30 days | 30 days |
Our honest take
If you're starting fresh and your business is service-based, retail, hospitality or trades — start with Xero. If you're in manufacturing, have significant stock to manage, or your accountant is a MYOB specialist — MYOB is a perfectly solid choice. Both offer 30-day free trials. Try the one you're leaning toward before committing.