Xero vs MYOB vs QuickBooks: Which Accounting Software is Right for Your Business?

One of the most common questions we get from business owners at Elite Accounting Solutions is: "Which accounting software should I use?" And while we have strong opinions (spoiler: we love Xero), the right answer really does depend on your business type, size, and how you work with your accountant.

This guide breaks down the three market leaders — Xero, MYOB, and QuickBooks Online — in plain language, and helps you make the right call for your business.

The Three Contenders: A Quick Overview

Xero: Our Pick for Most Australian Small Businesses

Xero is the platform we recommend to the majority of our clients, and it's the platform our team works in daily. Here's why:

Strengths

• Bank reconciliation is best in class — Xero's bank feed technology is fast, reliable, and smart. Reconciling transactions takes minutes, not hours.
• App marketplace — Xero integrates with over 1,000 third-party apps including Shopify, Deputy, Hubdoc, Stripe, and more. This ecosystem is unmatched.
• Accountant collaboration — Xero was built for the accountant-client relationship. Real-time access, file sharing, and report generation all work beautifully.
• Single ledger — both you and your accountant work on the same data, in real time. No emailing spreadsheets.
• Automatic GST reporting — BAS preparation in Xero is straightforward and integrates directly with the ATO portal.
• UI and ease of use — Xero has the cleanest, most intuitive interface of the three platforms.

Weaknesses

• Payroll (Xero Payroll) is functional but slightly behind MYOB for complex payroll scenarios
• Reporting is good but less customisable than MYOB's advanced reporting modules
• Pricing has increased significantly in recent years

Pricing (2024)

Xero offers three plans: Starter ($32/month) — limited invoices/bills; Standard ($65/month) — unlimited invoices and BAS; Premium ($85/month) — adds multi-currency. Payroll is included in all plans.

MYOB: Best for Complex Payroll & Established Businesses

MYOB is the original Australian accounting platform — it's been around since 1991 and has a deep understanding of Australian payroll legislation, Award rates, and compliance.

Strengths

• Payroll is outstanding — MYOB's payroll module handles Award interpretation, STP Phase 2, complex pay structures, and leave accruals better than any competitor in the Australian market.
• Enterprise-grade reporting — MYOB Business and AccountRight offer detailed, customisable reporting that suits larger businesses with complex reporting needs.
• Inventory management — built-in inventory tracking is more sophisticated than Xero's base offering.
• Familiar to many accountants — many traditional accounting firms still work primarily in MYOB.

Weaknesses

• UI is less intuitive — has a steeper learning curve, especially for desktop versions (AccountRight)
• App integrations are more limited than Xero's
• The product line is fragmented (MYOB Essentials vs MYOB Business vs AccountRight) which creates confusion
• AccountRight still requires a desktop installation, which feels dated in a cloud-first world

Best Suited For

Businesses with complex payroll (e.g., hospitality with Award rates, construction with multiple classifications), medium-to-large businesses needing enterprise reporting, or clients already established on MYOB who don't want to migrate.

QuickBooks Online: Best for Budget-Conscious Startups

QuickBooks Online (QBO) is a US-born product with a global user base. It has gained traction in Australia as an affordable entry-level option.

Strengths

• Cheapest entry point — Simple Start from ~$15/month makes it accessible for sole traders and very small businesses
• Easy invoicing and expense tracking — straightforward for basic bookkeeping
• Cash flow forecasting — QBO's cash flow projections are more visual and accessible than Xero's base plan

Weaknesses

• Less Australian-specific than Xero or MYOB — BAS setup and STP compliance require more manual configuration
• Australian accountant adoption is low — most local accountants prefer Xero
• App marketplace is smaller than Xero's in the Australian context
• Less sophisticated bank reconciliation than Xero

The Verdict: Which Should You Choose?

Migrating Between Platforms

If you're already on MYOB or QuickBooks and want to switch to Xero, migration is straightforward for most businesses. We handle Xero migrations regularly and can typically get a business fully transitioned with clean, reconciled data in 2–4 weeks depending on complexity. The earlier in the financial year you migrate, the simpler the process.

What We Use with Our Clients

Our team at Elite Accounting Solutions is Xero Certified and works natively in Xero. When you use Xero, you get the benefit of real-time collaboration — we can see your books at any time, flag issues early, and prepare your BAS and annual accounts with minimal back-and-forth. It genuinely makes your accounting more efficient and less expensive.