This is the question Australian small business owners search for more than almost any other accounting topic. Both are good products. Both handle Australian compliance well. The difference is in the details — and which details matter depends on your business.
Pricing
| Plan | Xero | MYOB |
|---|---|---|
| Entry level | Starter — $35/mo | Business Lite — $27/mo |
| Mid tier | Standard — $65/mo | Business — $55/mo |
| Full features | Premium — $85/mo | AccountRight — $111/mo |
| Free trial | 30 days | 30 days |
Ease of use — Xero wins clearly
Xero was designed as a cloud-first, modern interface. Business owners with no accounting background pick it up relatively quickly. The dashboard is clean, bank feeds are easy to reconcile, and invoicing is straightforward. MYOB has improved substantially in recent years but carries some legacy complexity. Most users find it takes longer to feel comfortable.
Australian compliance — both handle it well
Both handle GST tracking, BAS generation and lodgement, Single Touch Payroll and superannuation calculations. This is not a differentiator — both do the job properly.
App integrations — Xero by a significant margin
Xero integrates with over 1,000 third-party business apps. MYOB connects with around 300. For most small businesses this doesn't matter — but if you use tools like Deputy, Shopify, ServiceM8 or Lightspeed, check whether they integrate with your preferred platform. Xero's ecosystem is significantly broader.
Inventory — MYOB has the edge
For businesses with significant physical stock — wholesale, retail with multiple locations, manufacturing — MYOB's inventory management is more robust. Xero handles basic inventory adequately but complex needs often require a third-party add-on.
Our genuine recommendation
Start a free trial of Xero. If it works for your needs, you likely don't need to look further. If you find you need something Xero doesn't handle well — particularly around inventory — then trial MYOB. Both have 30-day free trials with no credit card required. Use them.