Xero vs MYOB vs QuickBooks: Which Is Best for Your Australian Business?

Choosing accounting software is one of the most important decisions you'll make for your business. This is what you'll use every day to manage your money, send invoices, and stay compliant with the ATO.

I'm Linda from In Addition Bookkeeping, and I've set up and worked with all three of these systems for hundreds of Australian businesses. Let me give you an honest comparison based on real experience, not marketing hype.

Quick Comparison Table

Xero: Best for Most Small Businesses

What I love about Xero:

Super easy to use. Even if you're not tech-savvy, Xero just makes sense. Everything is where you expect it to be. I spend way less time training clients on Xero than the other systems.

Bank feeds work brilliantly. Transactions import automatically, and Xero is smart about matching them to the right category. Bank reconciliation becomes quick and painless.

Great mobile app. Snap photos of receipts, send invoices, check your cash flow. All from your phone, and it actually works well.

Connects to everything. Over 1,000 apps integrate with Xero. Your POS system, inventory software, time tracking tools—they all talk to Xero.

Unlimited users. On the higher plans, you can add as many users as you need at no extra cost. Perfect when your business grows.

What's not so great:

Inventory is basic. If you have a simple retail shop, it's fine. But if you need lot tracking, multiple warehouses, or complex stock management, you'll need add-ons.

Payroll costs extra. Xero Payroll is excellent but adds $15/month plus $5 per employee on top of your subscription.

Pricing:

• Starter: $35/month (5 invoices only)

• Standard: $66/month (unlimited everything)

• Premium: $78/month (multi-currency, projects)

My recommendation: Most businesses should start with Xero Standard. It's the best value.

I help businesses set up and manage their Xero bookkeeping all the time. It's my go-to recommendation for most clients.

Choose Xero if you:

• Run a service business

• Have simple inventory needs

• Want the easiest system to learn

• Need lots of people to access it

• Want your bookkeeper to love you (we all prefer Xero!)

MYOB: Best for Inventory-Heavy Businesses

What I love about MYOB:

Amazing inventory features. Multiple warehouses? Lot tracking? Serial numbers? Product assemblies? MYOB handles all of this without needing extra apps. This is MYOB's biggest strength.

Includes payroll. On the Business plan and up, payroll processing is included. For businesses with employees, this can save money.

Great for tradies. Built-in job costing and project tracking make MYOB popular with tradies and construction businesses.

Australian company. Based right here in Australia, they understand local business needs.

What's not so great:

Harder to learn. MYOB has more features, which makes it more complex. New users often struggle at first.

Looks dated. The interface feels old compared to Xero's modern design.

Extra users cost money. Unlike Xero's unlimited users, MYOB charges per additional user.

Support is limited. Only available during business hours, and wait times can be long.

Pricing:

• Starter: $27/month (no payroll)

• Business: $60/month (includes payroll, 1 user)

• Business Pro: $99+/month (multiple users)

My recommendation: MYOB is worth the learning curve if you need those inventory features.

I provide MYOB bookkeeping services for clients who need robust inventory management.

Choose MYOB if you:

• Have complex inventory (multiple locations, lot tracking)

• Run a retail or wholesale business

• Need serious job costing

• Already know how to use MYOB

• Don't mind a learning curve

QuickBooks: Best for Micro Businesses

What I love about QuickBooks:

Simple and clean. QuickBooks is easy to pick up. The interface is modern and uncluttered.

Good invoicing. Creating and sending professional invoices is really smooth.

Nice mobile app. Capture receipts, track expenses, send invoices on the go.

Cheaper entry point. The Simple Start plan is affordable for brand new businesses.

What's not so great:

Weak Australian support. This is the big problem. Support is mostly online/email. When you need help, it's frustrating.

Fewer bookkeepers use it. Most Australian bookkeepers prefer Xero or MYOB, so finding help is harder.

Less Australian-focused. It feels like an American product adapted for Australia, not built for it.

Payroll isn't great. QuickBooks Payroll exists but isn't as good as Xero or MYOB for Australian requirements.

Pricing:

• Simple Start: $30/month (1 user)

• Essentials: $57/month (3 users)

• Plus: $100/month (5 users, inventory)

My recommendation: QuickBooks works fine for very small businesses, but I usually recommend Xero instead.

I provide QuickBooks bookkeeping services but honestly don't recommend it unless you have a specific reason.

Choose QuickBooks if you:

• Are a sole trader or very small business

• Already use QuickBooks overseas

• Have really simple needs

• Are on a tight budget

Which One Should YOU Choose?

Let me make this really simple based on common business types:

Café or Restaurant? → Xero. High transaction volume, simple needs, easy to use. Perfect for cafes and restaurants.

Tradie or Builder? → Xero or MYOB. Xero for smaller operations, MYOB if you need detailed job costing.

Retail Store with Lots of Stock? → MYOB. The inventory features are unbeatable.

Retail Store with Simple Stock? → Xero. Easier to use and connects to everything.

Service Business (Consultant, Accountant, Cleaner)? → Xero. Simple, affordable, works perfectly for professional services.

Ecommerce Business? → Xero. Best integrations with Shopify, Amazon, eBay. Great for ecommerce bookkeeping.

Manufacturing or Wholesale? → MYOB. The inventory management is essential for manufacturing.

Medical or Allied Health Practice? → Xero. Integrates well with practice management software. Perfect for medical practices.

NDIS Provider? → Xero. Works well with NDIS software. Good for NDIS bookkeeping.

The Features That Actually Matter

Bank Feeds

Winner: Xero

All three connect to your bank, but Xero does it best. It's faster, smarter, and just works better.

Invoicing

Winner: Xero and QuickBooks (tie)

Both have beautiful, professional invoices that are easy to send. MYOB works but looks more basic.

Mobile App

Winner: Xero

Xero's app is the most complete. You can do almost everything from your phone.

Payroll

Winner: Xero (for features) / MYOB (for value)

Xero Payroll is best but costs extra. MYOB includes it, which can be better value.

Inventory

Winner: MYOB (by a mile)

If inventory matters to your business, MYOB is the clear winner.

Customer Support

Winner: Xero

24/7 phone and chat support. MYOB is business hours only. QuickBooks is mostly online help articles.

Ease of Use

Winner: Xero

The easiest system to learn and use daily. Hands down.

What About BAS and Tax Compliance?

All three systems handle Australian tax requirements:

• BAS lodgement via SBR (Standard Business Reporting)

• GST tracking and reporting

• PAYG withholding

• Single Touch Payroll (STP)

They're all ATO-compliant. The difference is how easy they make it.

As a registered BAS agent, I provide BAS and GST services using all three systems. Xero makes my job easiest, but all three work fine when set up correctly.

The Hidden Costs to Consider

Xero:

• Payroll: $15/month + $5 per employee

• Add-ons for inventory: $20-50/month if needed

MYOB:

• Extra users: $10-15 each per month

• Usually less need for add-ons

QuickBooks:

• Payroll: Extra subscription

• May need add-ons for Australian features

Don't forget:

• Your bookkeeper's fees (often lower with Xero due to ease of use)

• Setup and training time

• Integration apps you might need

Getting Started: Setup Tips

Whichever system you choose, proper setup is crucial.

What needs configuring:

• Chart of accounts for your business type

• GST codes and tax settings

• Bank feed connections

• Invoice templates

• Products and services

• Users and permissions

Linda's tip: Bad setup leads to messy books. I offer accounting system setup services to get you started right.

Many businesses waste months fixing mistakes from poor initial setup. Do it right from day one.

Can You Switch Later?

Yes, but it's painful. Software migration takes time and can lose historical data.

What transfers:

• Chart of accounts structure

• Customer and supplier lists

• Basic transactions

What's difficult:

• Bank reconciliation history

• Attachments and files

• Custom settings and integrations

• Historical reports

My advice: Choose carefully now. Switching later is possible but annoying.

My Honest Recommendation

For 80% of Australian small businesses, Xero is the best choice.

It's easier to use, has better features for most businesses, connects to everything, and has great support.

Choose MYOB if you have complex inventory needs or serious job costing requirements.

Choose QuickBooks only if you're a micro business on a tight budget or already use it internationally.

Need Help Deciding?

Still not sure which system is right for your business?

I offer a free consultation where we can:

• Discuss your specific business needs

• Recommend the best system for you

• Quote on setup and training

• Explain ongoing general bookkeeping support options

Whether you're in Melbourne, Sydney, Brisbane, or anywhere in Australia, I can help you get set up properly.

Book your free consultation and let's find the right accounting software for your business.

Linda is the founder and principal bookkeeper at In Addition Bookkeeping, a registered BAS agent helping Australian businesses choose and implement the right accounting software. She provides expert setup, training, and ongoing bookkeeping support for Xero, MYOB, and QuickBooks.

Artifact