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Writer's pictureReuben Bergola

Xero and MYOB⁠—the Differences and Which One to Pick

Updated: Aug 18, 2022

When it comes to business accounting software, there are two main contenders in Australia: Xero and MYOB. Both tools have their pros and cons, so it's important to choose the one that's best for your business. In this blog, we'll compare Xero and MYOB so you can make an informed decision about which tool is right for you.


What Is Xero?


Xero is cloud-based accounting software that is designed to be easy to use and is suitable for businesses of all sizes. Xero offers a range of features, including invoicing, bank reconciliation, and expense tracking. One of the main advantages of Xero is that it can be used by businesses in any location, as it can be accessed from any internet-connected device. Xero also offers a range of integrations, so you can connect it to other business tools you use, such as your CRM or e-commerce platform.


What Is MYOB?


MYOB is another cloud-based accounting software, and like Xero, it is suitable for businesses of all sizes. MYOB also offers a range of features, including invoicing, bank reconciliation, and expense tracking. MYOB has a strong focus on automation, which can save you time on tasks like data entry and report generation. MYOB also offers a wide range of integrations, so you can connect it to other business tools you use.


The ECommerce Accountant offers advisory services for online stores and influencers.


What Are the Main Differences?


Here's a quick overview of the key differences between Xero and MYOB:


On where your data is stored, Xero is a cloud-based accounting software solution, which means that all your data is stored online and can be accessed from anywhere with an internet connection. MYOB, on the other hand, is a desktop-based solution, which means that your data is stored locally on your computer.


Design-wise, Xero is designed to be easy to use and is suitable for businesses of all sizes. MYOB, on the other hand, is more suited to larger businesses.


When it comes to features, Xero offers a range of features, including invoicing, expense tracking, bank reconciliation, and reporting. MYOB also offers similar features but also includes inventory management and project management tools.


Pricing-wise, Xero pricing is based on a monthly subscription, while MYOB pricing is based on the number of users.


Overall, Xero and MYOB are both great accounting software solutions with a lot to offer businesses of all sizes. The key difference is that Xero is cloud-based, and MYOB is desktop-based. If you're not sure which one is right for you, we recommend trying out both to see which one better suits your needs.


Conclusion


So, which tool is best for your business? If you're looking for easy-to-use accounting software that is suitable for businesses of all sizes, then Xero is a good option. If you're looking for accounting software with a strong focus on automation, then MYOB is a good option. Ultimately, the decision comes down to your specific business needs, so it's important to assess both tools before making a decision. Remember, both are meant for different users, so knowing who you are and what you specifically need is vital to picking the right solution for your business.


The ECommerce Accountant offers advisory services for both online stores and influencers. If you are looking for accountant services online and more in Australia, work with us today!



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