I’ve used both. I have opinions.

Xero wins for most startups. But MYOB has specific use cases where it’s better. Let me explain.

The Quick Answer

Choose Xero if:

• You’re service-based
• You want modern integrations
• Your accountant prefers it (most do)
• You value user experience

Choose MYOB if:

• You need complex inventory
• You have manufacturing or job costing
• You’re already locked into MYOB integrations
• Your industry has MYOB-specific add-ons

Pricing Reality

Xero:

• Starter: $29/month (limited invoices)
• Standard: $51/month (most startups)
• Premium: $70/month (multi-currency)

MYOB:

• Lite: $15/month (very basic)
• Pro: $55/month (comparable to Xero Standard)
• AccountRight: $139+/month (advanced features)

Xero’s Standard tier does everything most startups need. MYOB’s comparable tier is slightly more expensive.

Don’t be fooled by MYOB’s $15 tier. It’s so limited it’s almost useless.

What Xero Does Better

User interface

Xero was built in this decade. It shows. Clean design. Intuitive navigation. You can figure things out without training.

MYOB feels like enterprise software from 2010. Menus inside menus. Nothing where you expect it.

Bank feeds

Xero’s bank connections are rock solid. Australian banks play nice. Categorisation works well.

MYOB’s bank feeds break more often. Support forums are full of connection issues.

Third-party integrations

Everything connects to Xero. Payment processors. CRMs. Project management tools. Inventory systems.

MYOB’s ecosystem is smaller. Fewer options. Older integrations.

Mobile app

Xero’s app is actually usable. Send invoices. Approve bills. Check cashflow.

MYOB’s app exists but feels like an afterthought.

What MYOB Does Better

Inventory management

If you have physical products with complex costing, MYOB AccountRight handles it better than Xero.

Weighted average costing. Multiple warehouses. Production bills of materials.

Xero’s inventory is basic. Fine for simple products. Not for manufacturing.

Job and project costing

MYOB tracks costs per job natively. Critical for builders, tradies, and agencies billing projects.

Xero needs add-ons like WorkflowMax (also owned by Xero, but separate subscription).

Payroll complexity

Australian payroll is complicated. Both handle basics fine.

But if you have complex awards, MYOB’s payroll is more robust. More edge cases covered.

What My Accountant Says

Most accountants prefer Xero. Better interfaces for them too. Faster to do the work.

MYOB accountants exist but they’re fewer. If your accountant strongly prefers one, use that one. Switching later is painful.

Migration Pain

Moving from one to the other is a nightmare. Plan for:

• 2-4 weeks of parallel running
• Manual data entry for historical transactions
• Reconciliation headaches
• Staff retraining

Don’t switch unless you have strong reasons.

My Setup

Xero Standard: $51/month Dext (receipt capture): $30/month Go Proposals (quotes): $39/month

Total: $120/month for the full finance stack.

Works for a service business with simple invoicing and standard payroll. If I had inventory, I’d reconsider.

The Bottom Line

Xero for most startups. It’s more pleasant. Integrates better. Accountants prefer it.

MYOB if you have specific needs it handles better. Complex inventory. Job costing. Manufacturing.

Both do the basics. Invoicing, expenses, payroll, reporting. The difference is in edge cases and user experience.

Choose based on your actual needs, not marketing.