Skip to content
MJE Business Services

Xero vs MYOB for Small Business: Which Suits You?

Last reviewed: 2026-06-16Bookkeeping & Payroll

Xero vs MYOB for Small Business: Which Suits You?

In short: both Xero and MYOB handle everything an Australian small business needs - invoicing, bank reconciliation, GST and BAS, and Single Touch Payroll. Xero suits those who want a modern interface and a big app marketplace, with payroll in every plan; MYOB is often cheaper at entry level and strong for inventory and job costing on its AccountRight tiers, though payroll is a per-employee add-on on its lighter plans. We work with both - and if your business is simple, you may not need either. The right pick comes down to your business, not the badge.

If you are starting or running a small business around Mortdale and the St George area, one of the first practical decisions is which accounting software to use. Two names come up again and again: Xero and MYOB. Both are well-established, both handle the day-to-day, and both keep you compliant with the ATO. So how do you choose - and do you even need software at all?

This is an educational comparison to help you think it through. We work with both Xero and MYOB for businesses across Mortdale, Hurstville, Oatley and the St George area, so we are happy to set you up on whichever suits you - and to help you switch if you are on the wrong one.

Features - what they have in common

Both Xero and MYOB cover the essentials Australian businesses need:

  • Invoicing and quotes - create, send and track
  • Bank feeds - automatic daily feeds from Australian bank accounts so transactions flow in
  • Bank reconciliation - match transactions to keep your books accurate
  • GST tracking and BAS - both prepare your BAS and support lodgement to the ATO
  • Payroll with STP - both support Single Touch Payroll (STP Phase 2) reporting and super
  • Reporting - profit and loss, balance sheet, and cashflow views

In other words, neither will leave you unable to meet your tax obligations. The decision comes down to the details.

Indicative pricing

Pricing changes often, so treat the figures below as indicative only - always check the vendor's website for current pricing. Both vendors structure plans by features and by how many employees you can pay, and both adjusted prices around mid-2026.

  • Xero (AU) runs four plans with payroll built into every plan (no per-employee charge up to the plan's limit, then a small per-head cost above it). Indicative entry pricing sits in the mid-to-high $30s per month (the entry plan moved to roughly $37 from July 2026), rising through higher tiers aimed at growing teams (the top plan is around the $140s).
  • MYOB Business (AU) also runs four plans - the lighter Lite and Pro tiers, plus the larger AccountRight Plus and Premier products. Entry pricing is lower than Xero's at the bottom end (around the mid-$20s per month), but on Lite and Pro payroll is a per-employee add-on, while the AccountRight plans include unlimited payroll and add stronger inventory and job costing.

The headline monthly price is only half the story. If you have several employees, check whether payroll is included or charged per head - that can change the real cost more than the base price. As a rough guide, MYOB tends to be cheaper for sole traders and very small teams, the two are similar through the mid range, and at larger employee numbers the maths can swing back towards MYOB's AccountRight unless you specifically want Xero's ecosystem.

Ease of use and feel

This is genuinely subjective, and it is where many owners form a preference:

  • Xero is often described as clean and modern, with a large ecosystem of connected apps. Many newer businesses and advisors gravitate to it.
  • MYOB has a long history in Australia and a loyal base, particularly among businesses needing the advanced AccountRight features for inventory and job tracking.

If you have a bookkeeper or accountant, ask what they work in day to day - shared familiarity makes support faster and cheaper. Whichever you choose, our year-end bookkeeping guide shows how to keep the file clean, and our quarterly BAS due dates guide covers the lodgement cycle either platform will help you meet.

When each tends to suit

There is no universal winner, but as rough guidance:

  • Xero often suits newer businesses, service businesses, and owners who want a modern interface and a big app marketplace.
  • MYOB often suits businesses already on MYOB, those who want the depth of AccountRight (such as advanced inventory or job costing), or owners who prefer its long-standing Australian support.

For most small businesses either will serve you well, and the bigger wins come from setting it up properly and keeping it tidy - not from the badge on the login screen.

Don't want to keep books at all? You may not have to

Here is something many owners are not told: you don't always need to run your own bookkeeping software. For many smaller businesses - especially sole traders and very small operations on a cash basis, where income and expenses are simply money in and money out of the bank - we can prepare everything directly from your bank statements. That means we handle the bookkeeping, the BAS and the tax return, without you logging into Xero or MYOB at all. You hand us read-only access to your bank feed (or just your statements) and we take it from there, so you can focus on running your business while we look after the numbers - no subscription, no monthly reconciling.

To be honest about the trade-off: this suits simpler, cash-basis businesses with a manageable number of transactions. If you carry inventory, run on an accruals basis, have a larger team, or want live invoicing and cashflow numbers, you will be better served by Xero or MYOB set up well - and we are happy to do that too. Software just is not the only option, and for many smaller businesses it is not the necessary one.

If that sounds like you, our bookkeeping and payroll service can take the whole lot off your plate, or you can get in touch for a quick chat about whether it fits.

How we can help

We are comfortable in both Xero and MYOB. If you are just starting out, our business advisory service includes getting your accounting file set up correctly from day one. If you want your books, BAS and payroll handled, our bookkeeping and payroll service keeps everything compliant and current - on whichever platform you choose, or none at all.

FAQ

Which one does MJE recommend? We work with both and will recommend the one that fits your business, team size and the way you like to work - rather than pushing a single product. The best fit is the one you will actually keep up to date.

Can I switch from one to the other later? Yes, businesses move between platforms regularly. There is a migration process to bring history across, best planned around your BAS and payroll cycle. We can help you switch with minimal disruption.

Do both handle Single Touch Payroll and BAS? Yes. Both Xero and MYOB support STP reporting and GST/BAS preparation for Australian businesses. Confirm the specific plan you choose includes the payroll capacity you need.

Do I have to use accounting software? Not necessarily. If you are a smaller business on a cash basis, we can often prepare your bookkeeping, BAS and tax return straight from your bank statements - no Xero or MYOB subscription required. It is the simplest option for simpler businesses. More complex businesses (inventory, accruals, larger teams, live invoicing) usually still benefit from software, and we are happy to set that up. Get in touch and we will tell you honestly which path fits.

Not sure which to pick?

Choosing software is one of those decisions that feels small but shapes your admin for years - and sometimes the right answer is no software at all. For a quick, no-pressure chat about which suits your business, call (02) 9580 1167 or book a callback.

Written by the team at MJE Business Services, a registered tax agent (No. 26313222) serving the St George area since 2000.

This is general information, not personal advice. Tax rules and dates change - please check your situation with us or at ato.gov.au.

Sources (vendor)

Have a question about your situation?

We would rather give you a straight answer than have you guess. Book a callback and we will help.

Book a callback(02) 9580 1167