MYOB vs Xero: Accounting software comparison
Gone are days of hefty ledgers and complex spreadsheets. Today, every company needs a top-of-the-line cloud-based accounting software to keep its records and to manage its finances. The question that remains is – what’s the best online accounting software for your business? In Australia, Xero and MYOB are the two most widely used accounting packages and, in this article, we do a point by point comparison of the two to help Australian businesses compare the leading cloud- based accounting software programs.
Accessibility and Usability
Xero is available for both Mac and PC. It’s easy to install, and it has a slick and intuitive interface. MYOB Essentials is available on both Mac and PC, while MYOB AccountRight is only available on PC. This means that many advanced features on MYOB cannot be used on Mac, and that is inconvenient for businesses that prefer the Apple ecosystem. Because of that, Xero is better than MYOB in terms of accessibility and usability.
All Xero subscription packages include basic inventory management and tracking features. Xero also offers integration with third-party software for users who need to manage complex inventories. MYOB Essentials comes with basic inventory tracking, while the AccountRight version includes both tracking and management features. Both Xero and MYOB are good when it comes to inventory management, but Xero has an edge because of its third-party software integration.
Both Xero and MYOB have customizable invoice templates. You can create and send invoices directly from both, and you can track your invoices to see if the recipients have received or opened them. Advanced customization features are unavailable on MYOB Essentials, but they available on MYOB AccountRight. Both software options are good for creating and sending out and tracking invoices, but the customization options on Xero are slightly better.
The Starter and Standard plans for Xero only produce payroll for one person, so you have to pay for the Premium Plan if you want to get payroll for more people. The Starter and Plus plans for MYOB Essentials provide payroll for one person, while the Premier plan allows you to create an unlimited number of payrolls. As for the MYOB AccountRight version, you get unlimited payroll with both the Plus and Premier plans. MYOB is better than Xero when it comes to payroll because Xero doesn’t offer unlimited payroll with any of its plans.
Compatibility with mobile devices
Both Xero and MYOB have Android and iPhone apps. The Xero app is highly responsive and it has a friendly user interface, while the MYOB app is a bit slow and bulky. Xero wins when it comes to compatibility with mobile devices.
MYOB offers phone support every day between 9 am and 5 pm (including over the weekend). Xero doesn’t have phone support, so this is an area where MYOB wins, there’s nothing like getting phone support when you need it. Both MYOB and Xero have online document guides, training videos, and community forums that provide answers to most questions that users have. Xero has better online support because it has a huge following on social media, which means lots of people share useful information about the software online. MYOB has different tiers of plans, which makes it harder for users to find accurate information about their specific package on online forums.
Both Xero and MYOB Essentials have portals where employees can log in, view their payslips, enter timesheets, or even make leave requests. MYOB AccountRight only offers employee logins as an add-on feature at an extra cost. Xero is better than MYOB because it offers employee portals as a standard feature across all of its plans.
End of financial year data rollover
The data recorded on Xero is continuous, so you don’t have to close it or roll it over at the end of the financial year. MYOB Essentials data is also continuous. However, if you use MYOB AccountRight, you have to execute rollover functions for both accounting and payroll at the end of each financial year. If you don’t roll over the data for a given year, it would be impossible to create financial reports for the subsequent year on MYOB AccountRight. Xero is better than MYOB because the data rollover process for MYOB AccountRight is burdensome.
Both Xero and MYOB offer monthly subscriptions. Xero monthly fees are $25 for the Starter plan, $50 for the Standard plan, and $60 for the Premium plan. Users have to pay more for add-ons such as payroll for large staff. MYOB subscription plans are tiered into two groups. MYOB Essentials fees are $25 for the Starter plan, $40 for the Plus plan, and $50 for the Premier plan (which includes unlimited payroll). MYOB AccountRight fees are $61 for the Starter plan, $92 for the Plus plan, and $121 for the Premier plan. In terms of pricing, Xero is slightly better than MYOB because its price plan is straightforward. The tiered pricing system used by MYOB is a bit confusing; users are presented with too many options, which can be confusing.
In the end, both Xero and MYOB are excellent software packages and the one that’s best for you will depend on your business and its specific needs. However, if we are forced to nominate a winner overall, Xero is probably a shade better than MYOB. The main advantages of Xero include; simpler plans that are slightly cheaper, its wider range of compatibility with third party software, full compatibility with Apple PC’s, its great user interface, and the fact that it’s already the most widely used cloud accounting software in Australia – which indicates that it’s trusted by many accounting experts. MYOB has the edge in payroll with its unlimited payroll features and it also has the advantage of a genuine online phone support system.