MYOB vs QuickBooks vs Xero – if you’re a small business owner, you’ve probably heard these names mentioned when discussing accounting software.
But how do you choose between them?
Choosing between them isn’t the most exciting task, but it can significantly impact your business’s financial health.
You want a solution that’s user-friendly, efficient and accurate.
The good news:
MYOB, QuickBooks and Xero all meet these criteria.
The challenge?
Each one offers features that might suit your business differently.
In this article, we’ll compare MYOB, QuickBooks and Xero and offer practical tips to help you decide which is the best fit for your business.
Why Choosing the Right Software is Subjective
Choosing the right accounting software is highly subjective.
In my experience, personal preference and familiarity are often the biggest factors influencing this decision.
I’ve seen many clients make software decisions based on recommendations from peers.
For example, someone might hear from a friend that QuickBooks is great for their business. This kind of recommendation can easily push someone toward QuickBooks without them really exploring other options like MYOB or Xero.
The truth is what works for one business may not be the best fit for another.
There’s also the learning curve.
Once people are comfortable with one system, it’s hard to convince them to change. Since each platform offers unique features that cater to different users, it’s difficult to say which software is best for every business.
So, while recommendations and familiarity matter, they shouldn’t be the only things guiding your decision. It’s important to assess each software option based on your business needs before choosing.
Comparing the Big Three
MYOB
MYOB has been around for a long time and was once the go-to for accountants. It has evolved into two versions:
- MYOB Business (formerly MYOB Essentials): This cloud-based option is more affordable and primarily aimed at small businesses.
- MYOB AccountRight: A software-based solution that offers more robust features for larger businesses. Although it has cloud backup, you still need the software installed on your device. AccountRight also comes with a higher price tag than MYOB Business.
MYOB Business is user-friendly, while AccountRight is ideal for businesses needing more advanced features.
Xero
Xero is a relatively new player in the accounting software market compared to MYOB, but it has made a big impact.
Xero positioned itself as a user-friendly alternative, especially for small and medium-sized businesses that wanted to move away from the more traditional accounting software systems.
The platform is entirely cloud-based, making it easy to access from anywhere, and it comes with automatic updates, so users don’t have to worry about installing new software versions. This seamless experience has been a major drawcard for many businesses.
Another key factor in Xero’s rise is its slick interface, which is visually appealing and simple to navigate. Due to its more intuitive interface, it is popular among business owners without a deep accounting background.
QuickBooks
QuickBooks has been gaining traction in the accounting software market, especially recently.
Like Xero, QuickBooks is entirely cloud-based, which makes it convenient for users to log in from anywhere without worrying about installing software or dealing with manual updates.
QuickBooks stands out because of its user-friendly reputation, especially for small to medium-sized businesses.
It offers a range of features similar to MYOB and Xero, such as invoicing, payroll and financial reporting, but with a more simplified interface that appeals to those without a strong accounting background.
MYOB vs QuickBooks vs Xero: Comparison Table
| Feature | MYOB Business | MYOB AccountRight | QuickBooks | Xero |
|---|---|---|---|---|
| Type | Cloud-based | Software-based w/cloud backup | Cloud-based | Cloud-based |
| Best For | Small businesses | Larger businesses with complex needs | Small to medium businesses | Small to medium businesses |
| Pricing (AU) | From $31/month | From $70.50/month | From $15/month | From $35/month |
| Ease of Use | User-friendly | More complex | Very user-friendly | Extremely intuitive |
| Strengths | Comprehensive tools, user-friendly interface, good integration options, cloud accessibility | Comprehensive accounting features, flexibility to work online or offline, strong inventory management | Extensive third-party integrations, scalability, user-friendly design | Strong automation features, real-time collaboration, visually appealing interface |
| Trial Period | Yes, 14 days | No | Yes, 30 days | Yes, 30 days |
How to Make the Right Choice
- Try Before You Buy
Don’t just rely on recommendations or marketing materials.
Take advantage of free trials offered by MYOB, QuickBooks and Xero. It might sound like a hassle, but I always advise my clients to open accounts with all three and give them a test run.
Most offer seven-day trials, and this is enough time to get a feel for the interface and basic functions. This hands-on experience is invaluable in determining which software feels most intuitive to you.
- Look Beyond Cost
While choosing the cheapest option is tempting, I caution against making price your primary factor. There might be slight differences in cost between the various accounting software options, but what really matters is the value you get out of it.
Remember, the goal is to have accurate financial information to run your business effectively. A slightly more expensive option that you can use more efficiently might be better value in the long run than a cheaper one you struggle with.
- Consider the ‘Garbage In, Garbage Out’ Principle
This old saying is particularly relevant when it comes to accounting software.
Even the most sophisticated system won’t be helpful if you’re not using it correctly or inputting accurate data.
When trying out different software options, consider how easy it is for you to input data accurately and consistently. The best choice is often the one that helps you maintain good bookkeeping habits.
- Think About Scalability
While your immediate needs are important, considering your future growth is also wise. Will the software you choose today be able to handle your needs as your business expands? Look for solutions that can grow with your business.
- Seek Expert Advice
If you’re still unsure after trying out different options, don’t hesitate to seek professional advice. As accountants and bookkeepers, we work with these systems daily and can provide insights based on experience with businesses similar to yours.
Conclusion
Choosing between MYOB, QuickBooks and Xero comes down to more than just features or price.
Each platform has its strengths, but the best accounting software is the one that aligns with your business’s specific needs and is easy for you to use consistently.
Take advantage of free trials, explore each platform hands-on and choose the software that helps you maintain accurate records and generate insightful reports.
No matter which accounting software you choose, whether MYOB, QuickBooks or Xero, the most important thing is that you feel comfortable using it consistently and accurately. After all, even the most advanced accounting software is only as good as the data you put into it and how effectively you use it.
Remember, don’t hesitate to contact us if you’re unsure or need personalised advice. We’re here to help you make smart decisions and ensure you have the right tools to support your business’s financial health and growth.
