The ANZ Accounting Software Decision#
For most NZ and AU small to medium businesses, the accounting software decision comes down to Xero versus MYOB. Both are excellent platforms with deep ANZ roots.
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Company Backgrounds#
Xero#
Founded: 2006 in Wellington, NZ Philosophy: Cloud-native, ecosystem-first Market position: Small to medium businesses, strong in services Subscribers: 3+ million globally
MYOB#
Founded: 1991 in Australia Philosophy: ANZ-focused, comprehensive solutions Market position: Small to medium businesses, strong in inventory/ERP Customers: 1+ million ANZ businesses
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Product Comparison#
Product Lines#
Xero: Single cloud platform, tiered pricing MYOB: Business (cloud), AccountRight (hybrid), Advanced (ERP)
Feature Comparison#
| Feature | Xero | MYOB |
|---|---|---|
| Cloud-native | Yes | Mixed |
| Offline capability | No | Yes (AccountRight) |
| Bank feeds | Excellent | Excellent |
| Inventory | Basic | Better (Advanced has full) |
| Multi-currency | Yes (Premium+) | Yes |
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Pricing Comparison#
Xero Pricing (NZ, approximate)#
| Plan | Monthly | Key Features |
|---|---|---|
| Starter | $31 | 20 invoices, no payroll |
| Standard | $65 | Unlimited, 1 payroll |
| Premium | $92 | Multi-currency, 2+ payroll |
MYOB Pricing (NZ, approximate)#
| Plan | Monthly | Key Features |
|---|---|---|
| Business Lite | $32 | Invoicing, basic expenses |
| Business Pro | $55 | Full accounting, payroll |
| Advanced | Custom | Full ERP, scalable |
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Payroll Comparison#
NZ Payroll#
Both handle NZ payroll competently with payday filing, KiwiSaver, and leave tracking.
AU Payroll#
Xero: STP Phase 2, SuperStream, basic award interpretation MYOB: STP Phase 2, SuperStream, better award support
Verdict: MYOB has slightly better award support.
Payroll Scale#
Xero: Good to ~50 employees MYOB: Good to ~100 employees (AccountRight), more with Advanced
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Inventory Comparison#
Xero Inventory#
Native: Basic quantity tracking, average costing, single location Ecosystem: Dear, Cin7, Unleashed for advanced needs
MYOB Inventory#
AccountRight: Better than Xero native, basic serial tracking Advanced: Full inventory, multi-warehouse, manufacturing
Verdict: MYOB has better native inventory.
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Ecosystem Comparison#
Xero Ecosystem#
Approach: Open ecosystem, hundreds of add-ons Strengths: Extensive marketplace, strong API Weaknesses: Multiple subscriptions, integration complexity
MYOB Ecosystem#
Approach: Curated ecosystem, more built-in Strengths: Fewer add-ons needed, lower integration complexity Weaknesses: Fewer options, less flexibility
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User Experience#
Xero#
- Modern, clean design
- Intuitive navigation
- Mobile-first
- Easier learning curve
MYOB#
- More traditional interface
- AccountRight feels desktop-like
- Functional but less polished
- Steeper for new users
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Scalability#
Xero#
Comfortable range: Startups to ~20-50 employees Limits: Not designed for enterprise Migration path: To MYOB Advanced or NetSuite
MYOB#
Comfortable range: Startups to ~100 employees (AccountRight), ~500 (Advanced) Migration path: AccountRight to Advanced
Verdict: MYOB scales higher natively.
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Industry Fit#
Service Businesses#
Xero: Excellent fit, built for services MYOB: Good fit Verdict: Xero slight advantage
Retail#
Xero: Requires POS and inventory add-ons MYOB: Better native inventory Verdict: MYOB advantage
Manufacturing#
Xero: Requires add-on (Dear, Unleashed) MYOB: Advanced has full manufacturing Verdict: MYOB significant advantage
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Decision Framework#
Choose Xero When:#
- Service business
- Want modern, intuitive software
- Your accountant prefers Xero
- Value ecosystem flexibility
- Simple inventory needs
Choose MYOB When:#
- Need better inventory management
- Manufacturing or distribution
- Want more built-in capability
- Need to scale beyond Xero's range
- Want offline capability
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Migration Considerations#
From Xero to MYOB#
Reasons: Outgrowing Xero, need better inventory/manufacturing Timeline: 4-8 weeks typical
From MYOB to Xero#
Reasons: Want cloud-native, simpler requirements Timeline: 2-4 weeks typical
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Monday Morning Action Plan#
- List Your Requirements: Document every capability needed.
- Assess Your Industry: Service? Xero may be perfect. Manufacturing? MYOB may be better.
- Talk to Your Accountant: Their preference matters for collaboration.
- Calculate Total Cost: Include add-ons for Xero if needed.
- Consider Growth: Where will you be in 3-5 years?
- Try Both: Both offer free trials.
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Conclusion: Both Are Excellent for Their Target Markets#
Xero and MYOB will both serve ANZ businesses well. The choice isn't about which is "better."
Xero wins for: Service businesses, modern UX preference, ecosystem flexibility.
MYOB wins for: Inventory-heavy businesses, manufacturing, scale requirements.
The key is honest assessment of your requirements and growth trajectory.