Xero vs. QuickBooks vs. MYOB: Selecting the Best Accounting Software for Your Australian SME

Choosing the right accounting software for your Australian SME depends on your business size, needs, and budget. Here's a quick breakdown of the three major options:

• Xero: Best for small service-based businesses. Offers a user-friendly interface, strong cloud functionality, and seamless compliance with Australian tax laws. Pricing starts at $35/month.
• QuickBooks: Ideal for retail and e-commerce businesses. Known for its detailed reporting, affordable entry pricing ($29/month), and integrations with over 650 apps.
• MYOB: Suited for trades, manufacturing, or businesses with complex payroll needs. Excellent for Australian compliance, with both cloud and offline options. Entry pricing is $34/month.

Quick Comparison Table

Each platform simplifies GST, BAS, and Single Touch Payroll compliance. Xero shines for ease of use, QuickBooks for reporting and integrations, and MYOB for handling intricate Australian regulations. Trial periods are available, so test the software to find the right fit for your business.

Accounting Softwares 2024 - XERO vs QUICKBOOKS vs MYOB: Which is Better for You?

Xero: Features, Pricing, and Performance

With 1.8 million users across Australia and New Zealand, Xero has become a frontrunner in cloud-based accounting software. Its user-friendly design and strong local integrations have made it a go-to choice for businesses.

Main Features

Xero's cloud-based system lets you access your financial data from any device. It integrates with over 160 financial institutions, including all the major Australian banks, enabling secure, real-time bank feeds that automatically import transactions daily. This feature simplifies reconciliation and saves time.

The software employs AI-powered transaction categorisation, achieving an impressive 95% accuracy rate. Its invoicing tools allow unlimited, customisable invoicing and are e-invoicing compliant, with direct integration to the ATO for streamlined business-to-business transactions.

Xero Payroll handles the complexities of Australian employment laws, managing payslips, superannuation, and leave entitlements while staying STP-compliant. Reporting tools provide real-time updates on profit and loss, balance sheets, and cash flow. Additional features include inventory tracking to monitor stock levels and pricing, as well as project tracking to manage time, expenses, and profitability. For businesses dealing with international clients, the platform offers multi-currency support, and the Xero App Store provides a wide range of third-party integrations to expand functionality.

Security is a priority, with bank-grade encryption, two-factor authentication, and role-based access controls. Xero's mobile app also allows users to manage invoices, cash flow, and bank balances on the go.

Now, let’s examine Xero’s pricing options for businesses of different sizes.

Pricing Plans

Xero's pricing is tailored to Australian SMEs, offering flexible options with robust features. Currently, there’s a limited-time 90% discount for four months, valid until 31st July 2025. Here’s a breakdown of the four main pricing tiers (all prices include GST):

• Ignite: Usually $35 AUD/month, now $3.50. Ideal for new businesses, this plan includes sending quotes, 20 invoices, and entering 5 bills.
• Grow: Usually $75 AUD/month, now $7.50. A popular choice for growing businesses, it offers unlimited invoices and bills.
• Comprehensive: Usually $100 AUD/month, now $10. This plan includes multi-currency support and Xero Analytics Plus for in-depth business insights.
• Ultimate 10: Usually $130 AUD/month, now $13. Designed for established businesses, it features advanced tools and capabilities.

From 1st July 2025, prices will adjust as follows:

• Grow: $51.14 + GST
• Comprehensive: $68.18 + GST
• Ultimate 10: $88.64 + GST

Optional add-ons include payroll (starting at $10/month for one employee, with $5 for each additional employee), Hubdoc ($10/month), and Analytics Plus ($7/month). Australian not-for-profits can also enjoy a 25% discount on standard monthly subscriptions.

Australian Tax and Legal Requirements

Xero is designed to simplify compliance with Australian tax laws. It automatically calculates GST on transactions, making BAS preparation easier. Users can input amounts as GST-inclusive or exclusive, with Xero handling the calculations.

The platform supports direct online BAS lodgement to the ATO, pre-filling forms with existing data to minimise manual entry. You can also check the status of BAS filings and retrieve due dates directly from the ATO.

Xero ensures Single Touch Payroll compliance, automatically sending payroll reports to the ATO with every payday. According to user feedback, 93% of customers feel Xero helps them stay compliant. It also supports various entity types - individuals, companies, partnerships, trusts, and self-managed super funds - making tax preparation and lodgement straightforward.

For example, a café on the Gold Coast with a $350,000 quarterly turnover used Xero to automate GST calculations, pre-fill BAS forms, and integrate with POS systems. This saved them 15 hours per lodgement and helped them avoid $500 in penalties [ScaleSuite.com.au, 2025].

Advantages and Disadvantages

"As non-accounting experts, we find Xero to be perfect for invoicing, tracking inventory and keeping tabs on our expenses."
– Nicole and Anne, Olive and Poppy

QuickBooks: Features, Pricing, and Performance

QuickBooks holds a 15% market share, making it a popular choice among Australian SMEs by combining traditional accounting practices with the convenience of cloud access.

Main Features

QuickBooks operates as a cloud-based platform, allowing users to access their accounts from any device with an internet connection. It supports traditional accounting methods and integrates with over 650 apps, including 25 payment processing options. To simplify switching, the platform offers data migration services from systems like Xero, MYOB, Reckon, Freshbooks, Hnry, Sage, or even Excel.

Key features include automated expense management and invoicing, which reduce the time spent on routine tasks. While it does offer inventory management, this feature is relatively basic compared to some competitors. Payroll processing is available, though it incurs extra charges per employee. Reporting tools are included, but they lack the flexibility and customisation offered by other platforms. On the security front, QuickBooks employs advanced 256-bit SSL encryption, multi-factor authentication, and regular data backups to safeguard user information. A mobile app is also available, although some users report it isn’t as streamlined as those offered by competing providers.

QuickBooks caters to a range of business sizes through its tiered plans, from Simple Start for small businesses to Plus editions for medium-sized enterprises. New users are also offered a free onboarding session to ease the learning curve. Now, let’s dive into its pricing structure.

Pricing Plans

QuickBooks offers several pricing tiers with discounts for new users. All prices are in AUD and include GST. For the first three months, promotional rates apply:

• Simple Start: $29/month, discounted to $3/month
• Essentials: $45/month, discounted to $4/month
• Plus: $60/month, discounted to $6/month
• Advanced: $110/month, discounted to $33/month (a 70% discount)

Each plan includes integration with over 500 apps, a mobile accounting app, secure cloud storage, the ability to invite an accountant, and the flexibility to cancel anytime. QuickBooks positions itself as an affordable alternative to hiring an accountant, appealing to budget-conscious SMEs. The platform has received strong user ratings: 4.3/5 on Capterra, GetApp, and Google Play, and 4.7/5 on the App Store.

Australian Tax and Legal Requirements

QuickBooks is designed to meet Australian tax requirements seamlessly. It automatically applies the correct GST rates to transactions and calculates GST liability in real time. For BAS reporting, the software generates pre-filled BAS reports ready for ATO submission and allows electronic lodgement directly to the ATO. This makes handling activity statements far less stressful.

On average, QuickBooks users save up to 29 hours per month. A study by Intuit from March to December 2021 found that accountants and bookkeepers using QuickBooks for BAS preparation reduced their time spent on these reports by around 40%.

Users praise QuickBooks for its compliance capabilities:

"BAS compliance work that used to take me 20 minutes per client, is now done in 20 seconds thanks to QuickBooks Tax. It's a game-changer!" – Denise Twigger, Founder and Co-Director of BAS and Balances

"Great interface and easy to use. Reports help to save a lot of time while preparing BAS and tax returns." – Kanika Chaundhary, Accountant

Additionally, businesses that integrate PayPal with QuickBooks report getting paid in under five days on average - over five days faster than invoices paid through other methods.

Advantages and Disadvantages

User opinions vary, reflecting both the strengths and weaknesses of the platform:

"QuickBooks is a great package for small business. It's easy to learn how to use and the reports that you can generate are fantastic." – Cathy Peake, Bookkeeper

"The QuickBooks team provide amazing support. The program is easy to navigate and there's plenty of training and self-help information available." – Frances Hendrie, Bookkeeper

MYOB: Features, Pricing, and Performance

After reviewing Xero and QuickBooks, let's dive into MYOB. Established in 1991, MYOB has become a trusted tool for over 500,000 Australian small businesses and boasts a global subscriber base of 1.2 million.

MYOB stands out for its strong compliance features tailored to Australian businesses and its offline capabilities, which ensure uninterrupted access to accounting tools, even when internet connectivity is unreliable.

Main Features

MYOB is particularly known for its focus on Australian compliance. Its MYOB AccountRight software allows offline accounting, a great option for businesses in areas with patchy internet. The platform offers tools designed to handle BAS, GST, and Single Touch Payroll requirements, alongside advanced features like multi-location inventory and supplier tracking.

Payroll automation is another strength, with features like award rates compliance and leave tracking. It also includes built-in award interpretation for industries like construction and manufacturing, as well as multi-entity support for managing complex financial structures.

MYOB integrates with over 500 third-party apps, including payment gateways, CRM tools, and e-commerce platforms. While this number is smaller compared to some competitors, it covers essential business needs. For businesses transitioning from Xero or QuickBooks Desktop, MYOB offers free data migration services to ease the switch.

Pricing Plans

MYOB provides various pricing options to cater to businesses of different sizes, with promotional rates available for the first year. All prices are in AUD and include GST.

Annual Plans:

• Solo: $12/year for the first 12 months, then $99/year – ideal for sole traders, freelancers, and the self-employed.
• Lite: $61.20/year for the first 12 months, then $306/year – designed for sole traders or small businesses with up to 2 employees.
• Pro: $113.40/year for the first 12 months, then $567/year – suitable for small to medium businesses with multiple employees.

Monthly Plans:

• MYOB Solo: $11/month.
• MYOB Business: Starting at $31/month.
• MYOB Business Pro: $63/month.
• MYOB AccountRight: Starting at $70.50/month.
• MYOB AccountRight Plus: $150/month.

Additional Costs:

• Payroll: $2/month per employee for Lite and Pro plans.
• Unlimited inventory: $22/month for Lite and Pro plans.
• MYOB Business – Payroll Only: Starting at $10/month for ATO compliance.

When compared to competitors, MYOB Business Lite at $27/month is slightly pricier than Xero's Starter plan for micro businesses (1–5 employees). However, MYOB Advanced at $69/month is more affordable than Xero Premium at $70/month for medium businesses with 20+ employees.

Australian Tax and Legal Requirements

MYOB simplifies tax compliance by auto-generating PAYG and GST reports for ATO submissions, ensuring GST calculations are accurate. All MYOB Business plans meet STP Phase 2 standards, covering pay, tax, and superannuation reporting. The software also supports the preparation and lodging of Business Activity Statements and allows users to collaborate with accountants or advisors at no extra cost.

Advantages and Disadvantages

MYOB is a solid choice for businesses that need reliable tax compliance tools and advanced features for handling complex operations. Its payroll and inventory management capabilities make it especially appealing to companies with intricate tax reporting needs or those operating across multiple locations.

Complete Comparison of All 3 Platforms

Following the detailed feature and pricing breakdowns earlier, here's a streamlined side-by-side comparison of the three platforms. This comparison is designed to help Australian SMEs determine which software best fits their operational needs and budget.

What We're Comparing

We’ve focused on the key factors that matter most to Australian businesses: pricing, ease of use, compliance features, core functionality, and support options. These platforms hold a significant presence in the Australian market, making them popular choices for businesses of all sizes.

This comparison zeroes in on practical aspects, such as managing compliance requirements and delivering a smooth user experience, from setup to day-to-day operations. Below is a table that summarises these essential points.

Full Comparison Table

Key Insights

Each platform’s pricing reflects its feature set. QuickBooks offers an affordable entry point but may require upgrades for advanced tools. Xero provides well-rounded cloud functionality at mid-range pricing, while MYOB’s higher-end plans cater to businesses with complex compliance and payroll needs.

MYOB stands out for its strong focus on Australian compliance, offering automatic GST tracking and pre-filled BAS forms. Xero and QuickBooks also handle these processes but may require more manual input for intricate scenarios.

For integrations, QuickBooks takes the lead with over 650 third-party connections and 25 payment options. Xero’s app marketplace is also extensive, covering most business requirements. MYOB, while smaller with 500+ integrations, prioritises tools tailored to Australian businesses.

Summary of Choices:

• Xero: Ideal for those seeking an intuitive, user-friendly cloud experience.
• QuickBooks: Best for businesses needing detailed reporting and a low-cost entry point.
• MYOB: Perfect for companies requiring comprehensive payroll and compliance tailored to Australian standards.

How to Pick the Right Software for Your Business

Simple Decision Guide

Choosing the right software for your business comes down to a few key questions: What’s the size of your business? How complex are your needs? And, of course, what’s your budget?

For smaller service-based businesses, Xero is a great option. Its simple, user-friendly dashboard makes it easy to get started, and the Starter plan, priced at $35/month, covers all the essentials you’ll likely need.

If you’re in retail or e-commerce, QuickBooks might be a better fit, especially if managing inventory is a priority. With over 650 integrations and in-depth reporting tools, it’s built to handle detailed transaction tracking and analysis.

For tradies, manufacturers, or businesses with more complex payroll needs, MYOB stands out. It’s tailored to Australian businesses, offering features that focus on meeting local compliance requirements. While it’s on the pricier side, its payroll and compliance tools are specifically designed to handle Australia’s regulations effectively.

Also, think about your future growth. If you’re planning to expand internationally, Xero’s premium features can support global trade without needing a new system. QuickBooks is a solid choice for businesses that need advanced reporting as they grow, while MYOB continues to excel in addressing increasingly intricate local compliance needs.

This overview pairs well with the detailed feature comparisons provided earlier, helping you refine your decision further.

Australian Business Requirements

Small and medium-sized businesses in Australia face unique regulatory challenges that not all international software can handle smoothly. Each platform has tools to simplify GST and BAS reporting, but their approaches vary.

Xero, for example, uses an AI-powered system to reduce errors, with users reporting a 40% drop in mistakes. This can be a lifesaver when it comes to avoiding penalties from the ATO.

QuickBooks, on the other hand, allows you to prepare and lodge BAS directly online from your account. No more manual forms or repeated ATO logins. According to an Intuit study, accountants using the Books Review feature cut BAS preparation time by nearly 40%.

Single Touch Payroll (STP) compliance is another must for most Australian businesses. MYOB includes STP for one employee, with an option to extend to unlimited users. Xero offers STP for unlimited users, but it comes at an additional cost. QuickBooks also provides payroll functionality, though it’s charged per employee.

You should also factor in your accountant’s preferences. Many Australian accounting firms already have established workflows with specific platforms. Choosing software that aligns with their expertise can save you money on professional fees and make things run more smoothly.

Once you’ve addressed compliance needs, the next step is aligning these tools with your specific business operations.

Final Recommendations

Here’s a quick summary to match the right platform with your business type, based on ease of use, reporting capabilities, and compliance requirements:

• Xero: Ideal for service-based businesses that prioritise simplicity and want to minimise reliance on an accountant. Many users report saving between $1,500 and $3,000 annually. Its intuitive dashboard and strong integration options make it a popular choice.
• QuickBooks: Best for businesses needing detailed reporting, retail or e-commerce operations, or an affordable starting point. The Simple Start plan at $29/month is a budget-friendly option, though costs can rise quickly with advanced features.
• MYOB: A go-to for trades, manufacturing, or industries with complex payroll needs. While it’s more expensive and has a more traditional interface, its Australian-specific features are designed to handle strict compliance requirements.

Digital accounting has already helped many Australian SMEs improve accuracy and efficiency. No matter which platform you choose, moving away from manual processes can transform how your business operates.

Start with a 30-day trial of the software you’re considering. Use this time to import sample data, customise your accounts, and get your team familiar with the system. This hands-on experience will quickly show whether the software fits your workflow and meets your business needs.

FAQs

How can I choose the right accounting software for my Australian SME?

Choosing the Right Accounting Software for Your Australian SME

Finding the best accounting software for your small or medium-sized business in Australia starts with a clear understanding of your specific needs. Look for essential features like invoicing, payroll, and inventory management. If flexibility and remote access are priorities, a cloud-based option might be worth considering. Also, make sure the software is compatible with your existing tools and meets Australian tax compliance requirements, including GST and BAS reporting.

Ease of use is another key factor - no one wants to spend hours figuring out how to navigate their software. Check if the platform can grow with your business and whether it offers reliable customer support when you need it. It’s also important to ensure the software caters to your industry’s unique needs and streamlines your daily financial tasks. Keeping these points in mind will help you choose a solution that supports your business effectively.

How do the pricing structures of Xero, QuickBooks, and MYOB compare, and what do they mean for Australian SMEs?

The pricing for Xero, QuickBooks, and MYOB varies, with each offering plans tailored to different business needs. QuickBooks typically starts at a lower monthly cost, while Xero and MYOB have entry-level pricing in the range of $25–$28 AUD per month. As businesses scale or need more advanced features, the costs for all three platforms increase.

For small to medium-sized businesses with straightforward accounting needs, QuickBooks often proves to be the most budget-friendly option. Meanwhile, Xero and MYOB tend to deliver better value for businesses that are expanding or have more complex requirements, as their higher-tier plans come with more extensive features. When deciding, it’s essential to weigh not just the upfront price but also the long-term benefits each platform can bring to your business.

What compliance features do Xero, QuickBooks, and MYOB offer to help Australian businesses meet tax and legal obligations?

Xero equips Australian businesses with tools to handle compliance with ease. Features include GST tracking, BAS reporting, Single Touch Payroll (STP), and payroll and superannuation calculations that meet ATO requirements.

QuickBooks makes managing compliance straightforward by offering automatic tax tracking, BAS lodgement support, and STP compliance to help your business adhere to Australian tax regulations.

MYOB provides compliance assistance with in-built validation checks, GST and BAS management, and automated payroll and tax submissions - all designed to align with ATO standards for Australian businesses.