“Should I use Xero or MYOB?” I get this question constantly. Usually from business owners who’ve been on MYOB for years and are wondering if the grass is greener.

Here’s my honest assessment based on conversations with accountants and business owners across regional Victoria.

The Quick Summary

Xero is more modern, better designed, and has a stronger ecosystem of add-on tools. Most accountants under 45 prefer it.

MYOB has deeper functionality for complex Australian businesses and better phone support. Many established accountants and bookkeepers know it inside out.

Neither is objectively “better.” It depends on your business and your accountant.

Xero’s Strengths

User Experience

Xero is simply nicer to use. The interface is cleaner, navigation is more intuitive, and common tasks require fewer clicks.

For business owners who want to handle their own bookkeeping, this matters. You’ll spend less time frustrated and more time actually doing the work.

Bank Feeds and Reconciliation

Xero’s bank feed integration is excellent. Transactions come through quickly, the matching suggestions are smart, and reconciliation is fast.

This is where I hear the most praise from switched users: “Bank reconciliation that used to take me an hour now takes 15 minutes.”

App Ecosystem

Xero’s marketplace has hundreds of add-on apps. Inventory management, project tracking, time billing, payroll enhancements—there’s an app for almost anything.

This extensibility means you can often find solutions without changing your core accounting platform.

Invoicing

Xero’s invoicing is clean and professional. Online payment options are easy to enable. Customers can pay directly from invoice emails.

Accountant Preference

The majority of younger accountants prefer working in Xero. If your accountant recommends Xero, listen to them—they’re the ones who’ll support you.

MYOB’s Strengths

Payroll for Australian Businesses

MYOB’s payroll is more comprehensive. For businesses with complex employment arrangements—multiple awards, allowances, complex leave entitlements—MYOB handles the edge cases better.

Xero’s payroll has improved dramatically but still trips on some Australian-specific complexity.

Inventory Management

If you run a business with significant inventory—retail, wholesale, manufacturing—MYOB’s built-in inventory features are more sophisticated.

Xero can handle basic inventory, but serious stock management usually requires add-on apps.

Established Accountant Relationships

Many experienced accountants and bookkeepers have decades of MYOB expertise. If your accountant is a MYOB specialist, switching to Xero might mean finding a new accountant or accepting less skilled support.

Phone Support

MYOB has better phone support. You can actually call someone and get help.

Xero’s support is primarily online. Fine for some issues, frustrating for complex problems.

Offline Capability

MYOB’s desktop version works offline. For businesses in areas with unreliable internet, this matters.

Xero is entirely cloud-based. No internet means no accounting.

Price Comparison

Both have similar pricing tiers:

Xero: $29-78/month depending on features MYOB: $30-70/month depending on features

Payroll is additional on both platforms. Add-on apps can add significant cost with Xero.

Neither is dramatically cheaper. Make the decision on fit, not price.

Switching Considerations

Thinking about switching from one to the other? Consider:

The disruption cost. Converting data, learning new software, updating processes—it’s real work.

Your accountant’s preference. Don’t switch without their input. You need their expertise.

Your staff’s capability. Can they adapt to new software?

Timing. End of financial year is terrible for switches. Plan for a quiet period.

From MYOB to Xero

This is the more common switch direction. Xero has conversion tools, and many accountants have done this migration dozens of times.

Budget 2-4 weeks for the transition, longer if you have complex historical data you want to migrate.

From Xero to MYOB

Less common but sometimes makes sense—usually when businesses have outgrown Xero’s inventory or payroll capabilities.

Conversion tools exist but the process is generally more manual.

What I Recommend

For new businesses with straightforward needs: Xero. The user experience advantage is significant, and most accountants can support you.

For established businesses on MYOB with no compelling reason to switch: Stay put. Switching costs rarely justify moving from a working system.

For businesses with complex payroll or inventory: Evaluate both carefully. MYOB might handle your specific requirements better.

For businesses with unreliable internet: MYOB desktop gives you offline capability that Xero can’t match.

The Most Important Factor

Honestly? Use what your accountant recommends and supports.

A great accountant on their preferred platform will serve you better than struggling with software your accountant doesn’t know well.

Ask your accountant. If they strongly prefer one platform, go with that. The relationship with your accountant matters more than the software features.

Business Victoria offers resources on digital tools for small business, including guides on choosing accounting software. SmartCompany also publishes regular comparisons of business software options.