Accounting software isn’t exciting. But it’s one of the first real decisions every small business makes.

I’ve used Xero, MYOB, and QuickBooks across different businesses. Here’s the honest comparison.

The Quick Answer

Xero: Best for most modern small businesses. Clean interface, good integrations, handles growth well.

MYOB: Better for Australian-specific needs, especially payroll complexity. Interface is dated but functional.

QuickBooks: Good if you have US operations or need US accountant compatibility. Less common in Australia.

Now the details.

Xero

Pricing: $29-78/month depending on plan

What’s good:

• Beautiful interface. Actually pleasant to use.
• Huge app ecosystem. Connects to everything.
• Bank feeds work seamlessly.
• Invoicing is excellent.
• Mobile app is solid.

What’s not:

• Australian payroll is okay, not great. Complex awards need workarounds.
• Customer support can be slow.
• Gets expensive as you add features.

Best for: Service businesses, agencies, consultants, tech startups. Anyone who wants accounting to be simple.

MYOB

Pricing: $25-130/month depending on plan

What’s good:

• Deep Australian compliance. Handles complex payroll situations.
• Been around forever. Accountants know it.
• Good inventory management.
• Strong job tracking for trades/construction.

What’s not:

• Interface feels 10 years old.
• Fewer integrations than Xero.
• Mobile experience is weak.
• Can feel clunky for simple businesses.

Best for: Trades, construction, manufacturing. Businesses with complex Australian payroll needs. Anyone whose accountant insists on MYOB.

QuickBooks

Pricing: $15-60/month

What’s good:

• Cheapest entry point.
• Good if you have US connections.
• Decent interface, improving over time.
• Self-employed plan is genuinely good for solos.

What’s not:

• Smaller app ecosystem in Australia.
• Less common, so fewer local experts.
• Australian localization sometimes feels incomplete.

Best for: Very small businesses watching costs. Anyone with US operations. Sole traders who want something simple.

What Actually Matters

After using all three, here’s what I think really matters:

Accountant compatibility: Ask your accountant what they prefer. Their efficiency affects your costs.

Bank feeds: All three do this but Xero’s implementation is slightly better. Minor difference.

Invoicing workflow: If you send lots of invoices, test this. Small friction adds up.

Payroll needs: If you have employees with complex award rates, test payroll specifically.

Growth path: What happens when you’re 5x bigger? Check the scaling costs.

My Recommendation Process

1. Ask your accountant what they use most
2. List your top 3 must-have integrations
3. Trial Xero first (most versatile)
4. If payroll is complex, trial MYOB
5. If budget is critical, check QuickBooks

Don’t overthink it. They all do basic accounting fine. Pick one and move on. You can switch later if needed.

The AI Angle

All three are adding AI features. Auto-categorization, insights, predictions.

My take: Mildly useful but not a deciding factor. The AI features are similar across platforms. Don’t choose based on AI marketing.

Switching Costs

Switching accounting software is annoying but not impossible. Takes about a month to fully transition.

Don’t stay with bad software because switching feels hard. It’s not that hard.

Final Take

For most small businesses in Australia: Start with Xero.

It’s not perfect, but it’s the best default choice. Good enough at everything, excellent at the things that matter most.

MYOB if you have complex payroll. QuickBooks if you’re tiny or have US ties.

Just pick one and focus on your actual business. The best accounting software is the one you’ll actually use.