Understanding the Differences Between MYOB & Xero

Understanding the Differences Between MYOB & Xero

Should I pick MYOB or Xero? Which one is the best choice for me? What's the differences between these two accounting software options? These are common questions people ask in our free networking group, Business Networking NZ. So today were going to answer them all, thanks to some help from accountant Chris Mercer from MBP Advisors + Accountants.

Differences Between MYOB and Xero

You know you need to use an accounting software, and with Xero and MYOB being the two big paid players in NZ, it makes sense to look at them first. There are some key differences between them, thought the pros and cons for both will depend on your point of view and where your business is at. We'll leave choosing which one to use down to you, instead giving you the main differences between both.

 MYOB

  • Requires you install software on your machine, except if you are using the new web based AccountRight Live option
  • Offers a large variety of default reports
  • Can send out quotes via email
  • Can send out invoices
  • Cheaper per month

 XERO

  • Functions in the cloud, needs an internet connection to work
  • Can be accessed anywhere you have an internet connection
  • Can send out quotes and turn them into invoices when accepted
  • Can send branded invoices and see when they have been viewed
  • Costs more per month
  • Includes an asset register
  • Connects to more software options,

We asked Chris to share the main differences between both Xero and MYOB too. He said:

  • Xero has been built from scratch as a solution for the modern business world. This gives you the freedom to work where and when you need to
  • If bookkeeping and accounting frustrate you, Xero offers a cleaner, more intuitive and far more user friendly experience.
  • If you like to report on performance, MYOB has a greater range of default reports within its apps but Xero has more seamless integrations with specialist reporting apps.
  • MYOB is less reliant on the internet as many solutions can be used offline but the browser reliance of Xero is less of an issue in todays connected world than it was when they started.

Tips On Choosing the Right Accounting Software

Now you know the main differences between them, one may be standing out above the other. If so cool, but you would still benefit from considering these points:

  • how much can you afford to spend?
  • how many users will need to access the software?
  • do you have regular and reliable internet access?
  • what are the main features you need?
  • is there a free trial?
  • will it be able to link to your bank?
  • what support will you need and how do you want it?
  • do you need to integrate with any other business software?
  • can the software grow with your business?

Often a bookkeeper or accountant will recommend you use one over the other. This may be because that is the one they feel comfortable using, is the one they are associated with in their business or have partnered with it. It is your decision though. You should pick the option which best suits what you need and which you find easiest to use. As always, we welcome discussions about business related topics in our Facebook networking group - so head over and ask away about the differences between MYOB and Xero today!

Posted: Friday 23 November 2018