MYOB or Xero – Which is best accounting software in Australia

MYOB or Xero? Both of these accounting software have been capitalizing on the accounts of Australian businesses for quite some time now. They provide solutions to all the basic accounting requirements in Australia. But as anything, they have their faults and inconsistencies leading to a tussle between them for being better than each other. Such characteristics also leave gaps for other competitors in the market to enter the discussion. We’ll decipher all of this in the article and solve all the queries that might arise during the process.

Before we begin with the comparisons, Pros-Cons, and the other options available, let us look at the basics of accounting software so that we can understand the latter part better.

So, brace yourselves for this informative ride!

 

Qualities of accounting software

Accounting software provides a lot of help to a business. It is like an employee working 24×7 with zero error. It also helps with taxes, which is quite helpful for businesses in Australia, especially those that are new and lack accounting knowledge. Now, we will go through some characteristics of general accounting software that will help us better understand the MYOB or Xero debate.

 

• Cost-Efficiency: Employing numerous accountants may not always be a necessity for businesses. Accounting software can efficiently manage these tasks, instilling confidence in its reliability.

 

• Facilitating Business Growth: Accounting can be daunting for smaller and medium-sized enterprises with limited resources. By utilizing software for these tasks, you can free up additional resources to support your organization’s expansion.

 

• Comprehensive Analysis: Accounting software offers in-depth insights and reports on various aspects of your business, such as payroll, inventory management, and outstanding invoices.

 

• Managing International Transactions: If your company engages in international business transactions or plans to do so in the future, accounting software becomes indispensable for maintaining accurate records.

 

• Tax Support: Managing tax obligations can be challenging, but it’s crucial for the legal operation of your company. Accounting software ensures that your tax-related responsibilities are handled accurately.

 

• Enhanced Security: By adopting accounting software, you also invest in robust data security measures. This guarantees the protection of your financial data against unauthorized access and breaches, offering peace of mind while safeguarding your company’s integrity.

 

• Support from the software company: If you are stuck somewhere in operating your software or any discrepancy arises, the software service support helps you handle it. Customer support would be a crucial factor for our MYOB or Xero debate.

 

How to choose an accounting software

Take into account aspects like cost, usability, and features while choosing accounting software. User count and functionality can affect costs, with cloud-based subscription models being a common option.

1)    Learn About Accounting Software

Decide whether you require a mobile app, multi-user access, or connectivity with other business tools; usability is key. Features like fundamental accounting skills, inventory monitoring, time management, and tax preparation tools should be in line with your company’s needs.

2)    Define The Needs For Your Business

Both desktop and cloud-based accounting software have their benefits, so you can use whatever you like. While desktop software operates offline but does not have the same functionality and flexibility as cloud-based software, it does offer accessibility from anywhere, automatic upgrades, and strong security.

 

Basic accounting functionality, automation of processes like invoicing and reconciliation, tax preparation capabilities, third-party connectors, and the ability to compute and pay taxes are all essential components of accounting software.

3)    Compare And Choose

Leading providers of accounting software include Wave Accounting, Xero, Profitbooks, FreshBooks, Sage, and QuickBooks. Each has its advantages, so make your choice depending on your unique needs. However, in this article, we will specifically cover our title, “MYOB or Xero”.

 

Use free trials to compare different accounting software solutions, and judge the caliber of the customer service. To make sure you get the best solution for your company, ask questions about factors such as industry fit, customization possibilities, scalability, data backup, security measures, overall expenses, and available tech support channels.

MYOB in a beat

 

MYOB provides a consolidated business management platform for various businesses. With features like automatic invoicing, expenditure management, legal compliance, automated timesheets, and real-time inventory monitoring with low stock warnings, it optimizes operations. Additionally, it efficiently controls supplier bills and sales orders.

 

MYOB makes financial reporting and tax preparation easier while enabling real-time communication with your accountant. It gives you the power to take charge of your finances, keep an eye on your cash flow with real-time bank feeds, and combine external systems for a comprehensive corporate picture. Easy payroll ensures accurate and prompt payments.

 

MYOB streamlines business management starting at just $5/month, giving you more time to expand your clientele and maintain organization. MYOB makes business management simple, whether you’re a seasoned entrepreneur or a first-time CEO.

 

Xero in a beat

 

With plans starting at $13 per month, the affordable cloud-based accounting software Xero is a great option for medium- to large-sized businesses. Financial operations like billing, spending, and project management are made simpler. Although Xero offers an unlimited number of users and clients, its most affordable plan only allows for 20 quotes and invoices per month.

 

A more than thousand integrations, a free 30-day trial, in-depth online tutorials, and support for difficult tasks are all advantages of Xero. It does have a few drawbacks though, like the basic plan’s cap on quotes and invoices and its steep learning curve.

 

Xero is a great option for those who require reliable accounting systems and integration with other programs and applications. For basic invoicing, freelancers and solopreneurs can look into free alternatives like Profitbooks.

 

MYOB or Xero: A comparison of characteristics

1) Training

Both of them are not easy to work with and offer various options. Reports are also in a variety on both the software. This makes the management of finances tough for a new user. Training on using the software is necessary to eliminate this problem for you.

Xero provides a very good tutorial series supported by a demo account in the software which can be used to understand the working. All the reports and analyses could be made familiar. The tutorials also are great and in-depth.

MYOB also provides a comprehensive guide on training and ensures that the clients are well-versed with their software. They have modules along with a user community platform for conversations.

So, MYOB takes a point over Training in this ‘Xero or MYOB’ battle.

 

2) Cost

MYOB offers four plans all of which are paid. The ‘Lite’ plan at $5/month, the ‘Pro’ plan at $8/month, the ‘AccountRight Plus plan at $68/month, and the ‘AccountRight Premier plan is valued at $85/month.

Xero on the other hand has four plans in Australia. The starter plan at $16/month, the standard plan at $32.50/month, the premium 5 plan at $42.50/month, and the Ultimate 10 plan at $57.50/month.

MYOB has cheaper plans, which makes using it a bit more cost-effective compared to Xero. Overall though both of these software costs are on the higher side. This makes their purchase difficult for small and medium-sized businesses.

3) Integrations

Xero has over one thousand integrations with platforms like Shopify and PayPal. It offers a seamless transition of data and helps in cross-border transactions too. They have an ‘Xero Appstore’ of their own for connecting to other apps in the software itself.

MYOB also run its API since 2015 but they are not up to the standard either in quantity or quality.

Although Xero has virtually unlimited Integrations, in general, when you study all these integrations, you’ll notice that not all or most of them are not necessary. Especially for small and medium-sized businesses they are just showy features. ‘MYOB or Xero’ has no winner at this juncture.

4) Customer support

Xero has no Customer support over the phone which is one of its major drawbacks. That leaves clients with delays in their functioning. Support over mail usually addresses the issues in a day.

MYOB provides support over the phone and their support is good. They answer the queries with responsibility and beat Xero here.

At this checkpoint, ‘MYOB or Xero’ has MYOB as its victor here.

 

5) Invoices, Bills and Payrolls

Xero has wonderful invoicing, but it has a lot of technicalities that could at times be handled by an accountant. This makes it an accountant’s software. Billing and Payrolls are pretty smooth too. These services are not provided in the basic plan though.

MYOB is

Xero in my opinion would slightly have an edge here.

 

Pros and Cons of MYOB and Xero

Pros and Cons of Xero

Pros

• Simple and elegant user interface
• Efficient payroll management
• Batch payments
• Powerful integrations with multiple complimentary applications

Cons

• Graphic reports and charts are unavailable
• Random bugs make the UX unpleasant sometimes
• Customer service can be better

Pros and Cons of MYOB

Pros

• User-friendly interface
• Own their very cloud service
• Easily accessible through other devices

Cons

• Lacks some advanced and business-specific features
• Limited bank connections for the cheapest plan
• Reports lack customization
• Mobile application needs to be more robust

 

Why would Profitbooks be a better option?

 

Comparing ProfitBooks against MYOB or Xero, ProfitBooks comes out as an appealing option for various reasons. ProfitBooks is incredibly user-friendly, to start. This makes it a great option for those who aren’t accounting specialists because it allows you to handle your accounting effectively without the need to pay an accountant.

 

While MYOB or Xero might have more direct connectors with other platforms, ProfitBooks provides a useful workaround using Excel for data transfers, making sure you can still link your financial data when necessary.

 

In contrast to Xero and MYOB, which can occasionally overwhelm users with complicated reports and capabilities, ProfitBooks maintains a focused approach to crucial accounting activities. By focusing on what is most important for your company, you can develop deeper insights and experience continuous, significant growth. The invoices offered are beautiful and easily understandable.

The fact that ProfitBooks offers a lifelong FREE plan that is not a diluted version is arguably its most outstanding feature. This plan can be especially helpful for start-ups and small enterprises because it offers a less expensive option than Xero and MYOB’s premium offerings. Overall, ProfitBooks makes a strong case for companies looking for an accounting solution that is simple to use, affordable, and competitive in many ways with Xero and MYOB.