Key takeaways
- Neither product is better in every case. The right choice depends on your business, your bookkeeper and your accountant.
- Disclosure: ANH Accounting is a Xero partner. We have set out questions so you can test both products yourself.
- Check payroll, BAS and GST reporting, integrations, support and data export for the plan you would actually buy.
- Compare current pricing on each vendor's website, as plans change.
Is Xero or MYOB better for a small business?
Xero vs MYOB rarely has a single right answer. Both are established accounting platforms used by Australian businesses, and the better choice is the one that fits how your business operates and the people who work in your books. Neither is the winner for every business.
A disclosure before we go further: ANH Accounting is a Xero partner, so we have a commercial relationship with one of these vendors. This article therefore sets out the questions to ask, rather than a verdict, so you can test each product against your own needs.
What should you compare between Xero and MYOB?
Start with the work the software must do every week, then check each product against it, using a demonstration or trial rather than a feature list.
- Daily bookkeeping: bank feeds, bank rules, invoicing, bills and reconciliation speed.
- GST and BAS: how reports are produced and how easily your accountant or BAS agent can review them.
- Payroll: pay runs, leave, Single Touch Payroll reporting and super handling.
- Industry fit: job costing for trades, tracking for NDIS providers, inventory for retailers.
- Integrations: the apps you already use for quoting, payments or point of sale.
- People and support: who helps you when something breaks, and during which hours.
- Getting out: how easily you can export your data if you change platforms later.
Why does your accountant's software matter?
Working in the same platform as your accountant or bookkeeper removes hand-offs. Queries are answered inside the file, year-end adjustments are visible as they happen, and nobody retypes figures from a spreadsheet.
Illustrative example only: a small trades business with two employees has a bookkeeper who works in one product and an accountant who works in the other. Each quarter, files are exported and re-imported, and corrections are emailed back and forth. Aligning both people on one platform would likely save time and reduce errors more than any individual feature would. If their field-service app connects to only one of the two accounting products, that is a stronger reason again to choose accordingly.
What questions should you ask during a demonstration?
Bring real examples from your business, not generic scenarios. These questions tend to expose differences quickly:
- Can you show how my most common invoice type is created, sent and reconciled?
- How are bank rules set up, and who can edit them?
- What does a BAS review look like for my accountant?
- How does payroll handle leave, super and year-end reporting for my staff?
- What happens to my data and my access if I cancel?
- Which of the apps I use already connect, and who supports that connection?
What are the common mistakes when choosing?
The first is choosing on price alone, without counting the time spent on corrections. The second is choosing on a friend's recommendation without checking that their business resembles yours. The third is skipping the conversation with your accountant until after a subscription is bought and a year of data has been entered.
Does payroll and super change the decision?
It can. From 1 July 2026, the ATO's Payday Super rules require employers to have super guarantee contributions received by employees' super funds within 7 business days after paying wages. If you employ staff, ask each vendor how its payroll handles this, and what you would need to do on your side.
The 2026-27 Federal Budget also announced that, from 1 July 2027, small and medium businesses would be able to vary PAYG instalments using ATO-approved calculations built into business software. This is an announced measure, not confirmed law, so treat it as a question to put to each vendor, not as a reason to choose one.
What does it cost, and how do you compare pricing?
We have deliberately not quoted prices here, because both vendors revise their plans and add-ons. Compare the current plan you would actually need, including payroll, extra users and any apps, on each vendor's own website. Then add the cost of your bookkeeper's or accountant's time, which often matters more than the subscription.
Is it hard to switch from one to the other?
It is manageable with planning. A move generally involves opening balances, transaction history, payroll year-to-date figures, bank feeds and user access. The main risk is a messy cut-off date. Many businesses choose the start of a quarter or financial year so BAS and payroll reporting stay clean. Ask your accountant to plan the conversion and check the first reconciliation afterwards.
Would a free 30-minute session help?
If you are choosing between the two, or considering a move, we can walk through your requirements and tell you plainly where Xero may not suit you. ANH Accounting is a Sydney advisory firm and a Registered Tax Agent (26258346). You are welcome to book a free 30-minute session, with no obligation.
Frequently asked questions
Is Xero better than MYOB?
Neither is better for every business, so the right choice depends on your needs, your payroll requirements and the software your bookkeeper and accountant work in.
Which is cheaper, Xero or MYOB?
It depends on the plan and add-ons you need, so compare current pricing directly on each vendor's website because plans change.
Can I switch from MYOB to Xero, or the reverse?
Yes, data can generally be moved, but the switch needs a planned cut-off date and a check of balances and payroll history afterwards.
Do both handle GST and BAS?
Both are designed for Australian GST and BAS reporting, but confirm the specific plan you would buy includes what you need.
Does ANH Accounting recommend Xero?
We work in Xero as a Xero partner, so we may be biased, and we encourage you to test both products against your own checklist.
General information only, last reviewed October 2026. It is not personal advice. Tax law changes, so confirm your circumstances with a registered tax agent or on ato.gov.au.