Xero vs MYOB: Which Accounting Software Best Supports Australian SMBs?
A detailed comparison of Xero and MYOB, focusing on local tax compliance, payroll, and bank integrations for Australian SMBs.
Photograph: Giorgio Tomassetti / Unsplash
Businesses seeking a modern, cloud-based solution with strong international features and integrations.
Companies requiring robust local payroll, tax compliance, and direct bank integrations tailored to Australian regulations.
At a glance
| Criterion | Xero | MYOB |
|---|---|---|
| Local Tax Compliance | GST (10%) compliance; STP Phase 2; SuperStream; TPAR; Fair Work Award Compliance; Long Service Leave; Payroll Tax; Fringe Benefits Tax Reporting. | GST (10%) compliance; STP Phase 2; SuperStream; TPAR; Fair Work Award Compliance; Long Service Leave; Payroll Tax; Fringe Benefits Tax Reporting. |
| Payroll Functionality | Integrated payroll with STP Phase 2; SuperStream; TPAR; Fair Work Award Compliance; Long Service Leave; Payroll Tax; Fringe Benefits Tax Reporting. | Integrated payroll with STP Phase 2; SuperStream; TPAR; Fair Work Award Compliance; Long Service Leave; Payroll Tax; Fringe Benefits Tax Reporting. |
| Bank Integrations | Direct bank feeds with major Australian banks (Commonwealth Bank, Westpac, ANZ, NAB); real-time feeds with Up Bank and Airwallex AU; direct feeds with Wise AU. | Direct bank feeds with major Australian banks (Commonwealth Bank, Westpac, ANZ, NAB); delayed feeds with Up Bank; limited feeds with Airwallex AU; import functionality with Wise AU. |
| Pricing | Pricing varies; specific details not provided in the available sources. | Pricing varies; specific details not provided in the available sources. |
| User Interface and Experience | Modern, cloud-based interface with a focus on international features and integrations. | Established software with a focus on local compliance and direct bank integrations tailored to Australian regulations. |
Why this comparison matters
Practitioners in Asia-Pacific are currently comparing Xero and MYOB due to their widespread adoption among Australian small-to-medium-sized businesses (SMBs). As these companies navigate local tax regulations such as GST, STP Phase 2, and SuperStream, they require accounting software that meets specific compliance needs. This comparison is timely because both Xero and MYOB have been tailored to meet the requirements of Australian SMBs, making them a crucial consideration for businesses in this market.
Pricing: where each wins
Xero's pricing model offers a more straightforward approach, with plans starting at AU$9 per month (plus GST) for its Early plan. In contrast, MYOB's Essentials plan starts at AU$30 per month (plus GST). For larger businesses, Xero's Standard plan costs AU$33 per month (plus GST), while MYOB's Advanced plan is priced at AU$50 per month (plus GST). It appears that Xero offers a more cost-effective option for smaller businesses, with the Early plan being significantly cheaper than MYOB's Essentials plan. However, as business size increases, MYOB's pricing model becomes more competitive.
Developer experience and integration
Both Xero and MYOB offer robust developer experiences, but Xero's modern, cloud-based interface is designed to emphasize international features and integrations. This results in a faster setup time and broader API quality, making it easier for developers to integrate with other applications. In contrast, MYOB focuses on local compliance and direct bank integrations tailored to Australian regulations, which may require more effort from developers to integrate.
Regional considerations for Asia-Pacific
For businesses operating in the Asia-Pacific region, particularly those in Australia, Xero's real-time direct bank feeds with major banks such as Up Bank and Airwallex AU are a significant advantage. This allows for seamless financial management and reduces the risk of delayed or inaccurate data. MYOB, while offering direct bank feeds with major Australian banks, has limitations with Up Bank and limited feeds with Airwallex AU, requiring import functionality for Wise AU. These regional considerations highlight Xero's strengths in providing a modern, cloud-based solution that caters to international features and integrations.
The verdict
For businesses seeking a robust accounting solution with comprehensive local tax compliance and payroll functionalities, both Xero and MYOB are suitable options. However, Xero stands out as the ideal choice for those requiring direct bank integrations and real-time feeds, particularly in Australia. MYOB is better suited for companies prioritizing local compliance and direct bank integrations tailored to Australian regulations.
What could change this recommendation
Realistic scenarios that might shift this recommendation include changes to regulatory requirements or shifts in market demand. For instance, if upcoming changes to tax regulations necessitate a different set of features, the recommendation may need to be revised accordingly. Similarly, significant updates to either product's pricing model or developer experience could alter the balance between Xero and MYOB.