The ANZ Accounting Software Decision#
For New Zealand and Australian businesses, the MYOB vs Xero decision is often the first major software choice. Both are local success stories with strong market presence. But they serve different business needs.
This comparison cuts through the marketing to help you make the right choice for your specific situation.
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Market Position#
MYOB#
Founded: 1991, Australia Market position: Traditional accounting software evolving to cloud ERP Target market: Sole traders to mid-market businesses Key strength: Full ERP capabilities for growing businesses
Xero#
Founded: 2006, New Zealand Market position: Cloud-native accounting platform Target market: Small to medium businesses, service industries Key strength: Ecosystem integration and user experience
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Feature Comparison#
Core Accounting#
Both platforms offer: - Bank feed integration - Invoicing - Bill tracking - Financial reporting - GST/BAS handling
MYOB advantages: - More sophisticated journal entry handling - Better inventory integration - Advanced fixed asset management - Multi-entity consolidation (Advanced tier)
Xero advantages: - Superior bank reconciliation UX - More intuitive interface - Faster implementation - Lower learning curve
Inventory Management#
MYOB: - Full inventory management in AccountRight and Advanced - Multiple warehouses - Serial/batch tracking (Advanced) - Manufacturing support (Advanced)
Xero: - Basic inventory in standard product - Requires add-ons for advanced needs - Integration with inventory specialists
Winner: MYOB for businesses with significant inventory requirements.
Project/Job Management#
MYOB: - Job tracking in AccountRight - Full project accounting in Advanced - Time and expense tracking - Progress billing
Xero: - Projects feature for tracking - Basic compared to MYOB Advanced - Integrations for advanced needs
Winner: MYOB for project-based businesses.
Payroll#
MYOB: - Integrated payroll across products - STP Phase 2 compliant - Timesheet integration - Award interpretation (Advanced)
Xero: - Integrated payroll - STP Phase 2 compliant - Good for simple needs - Add-ons for complex awards
Comparable for most businesses.
Reporting#
MYOB: - Extensive standard reports - Custom report writer - Multi-entity consolidation - Advanced analytics (Advanced)
Xero: - Good standard reporting - Customisable dashboards - Extensive add-on ecosystem - Executive reporting strong
Winner: MYOB for complex reporting; Xero for accessibility.
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Pricing Comparison#
MYOB Pricing#
MYOB Business: NZD 25-50/month AccountRight: NZD 60-120/month Advanced: Custom pricing, typically NZD 15,000+/year
Xero Pricing#
Starter: NZD 31/month Standard: NZD 65/month Premium: NZD 92/month
Note: Xero pricing is per organisation, not per user.
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Integration Ecosystem#
MYOB Ecosystem#
Integration approach: - MYOB-developed integrations - Partner-developed solutions - API access for custom development
Key integrations: - CRM systems - E-commerce platforms - Payment gateways - Industry-specific solutions
Xero Ecosystem#
Integration approach: - Extensive app marketplace - Pre-built integrations - API-first architecture
Key integrations: - 800+ connected apps - Strong in service industries - E-commerce integration - Payment services
Winner: Xero for ecosystem breadth; MYOB for depth in specific areas.
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Decision Framework#
Choose MYOB When#
- Inventory management is critical
- Project accounting required
- Manufacturing or distribution business
- Multi-entity structure
- Growth trajectory toward ERP needs
- Prefer desktop option (AccountRight)
Choose Xero When#
- Service-based business
- Minimal inventory requirements
- Ecosystem integration priority
- User experience priority
- Lower total cost
- Pure cloud preference
The Growth Path#
Many businesses start with Xero and migrate to MYOB Advanced as they grow. This is a valid path, not a failure. The key is recognising when you've outgrown your current solution:
Signs you've outgrown Xero: - Inventory complexity increasing - Multi-entity requirements - Project accounting needs - Reporting limitations - Integration complexity
Migration considerations: - Data migration planning - Process re-engineering opportunity - Training investment - Timing with financial year