Xero Vs MYOB Vs QuickBooks Software Comparison

Which accounting software is best for your business? Xero, MYOB, or QuickBooks? This can be a difficult question to answer, especially if you’re not familiar with each program’s different features and capabilities.

Choosing the right bookkeeping software for your business can be confusing. There are so many options available on the market that it can be hard to decide which one is right for you.

We compare three of the most popular bookkeeping software programs – Xero, MYOB, and QuickBooks.

We explore the pros and cons of each program and help you decide which one is best suited for your business needs.

In the market for bookkeeping software? Confused about which option is right for your business? You’re not alone.

This article will compare three of the most popular bookkeeping software options on the market: Xero, MYOB, and QuickBooks.

We’ll talk about what each program offers, who it’s best suited for, and how much it costs. By the end of this post, you should better know which program is right for you.

Let’s get started!

Optimising Financial Health: The Essential Role of Professional Tax Services

Tax services play a vital role in the financial landscape, particularly for individuals and businesses navigating the complex web of tax regulations. These services, provided by skilled professionals such as CPAs and tax advisors, encompass a range of activities from tax preparation and filing to strategic planning and consulting. They are especially crucial during the tax season when accurate and timely filing is imperative. Tax professionals ensure compliance with the latest tax laws and regulations, helping clients avoid costly penalties and take advantage of potential deductions and credits. Beyond mere compliance, tax services offer invaluable advice on efficient tax planning, guiding clients through decisions that can significantly impact their financial health. Whether it’s for an individual seeking to optimise their tax return or a business aiming to enhance its fiscal strategy, tax services are a cornerstone for prudent financial management and planning.

What Features Should I Look for in a Cloud/Online Accounting Solution?

When selecting cloud or online accounting software, the following are probably the two most significant considerations to take into consideration:

The variety of applications (programmes) that are made available by each service provider in response to your requirements. If you can help it, avoid shelling out money for a lot of extra features that you won’t end up using anyway.

For instance, if you don’t have any employees, you won’t have a need for a payroll feature, and if you run a service-based company, you won’t have a need for inventory capability because you won’t have any goods. In most cases, additional software like this can be installed whenever it is required.

How well will the accounting software that is hosted in the cloud or online connect with the other systems and services that your company uses?

Detailed Descriptions of All Major Cloud-Based Accounting Services

1. Xero

Originating from New Zealand In comparison to the other two programmes, Xero is one of the more recent ones. It first made its debut on the Australian market in 2008, and it currently boasts more than one million paying customers across the globe. Because it did not have to direct its attention towards developing solutions for the traditional accounting software industry, the company was able to seize the lead over its rivals for a period of time by concentrating solely on developing cloud-based accounting software.

2. MYOB

In comparison, MYOB has been operating in the Australian market since 1991, during which time it has been delivering services related to bookkeeping and accounting. Since that time, MYOB has established itself as a prominent player in the market for traditional accounting bookkeeping software, and the company has recently joined the market for cloud bookkeeping.

3. QuickBooks

Intuit has its origins in the United States. This company began operations in 1983, and since then, the number of its subscribers has been steadily increasing. They have already accumulated 624,000 customers in just the year 2014. One of its advantages is the high functionality it provides across a variety of devices, all while keeping the price of access to its services at an affordable level.

Xero

Xero is a company founded in New Zealand that specialises in the creation of accounting software for use in the cloud or online that is targeted towards companies of a smaller or medium size. It first debuted on the Australian market in 2008, having been established in 2006.

It has recently opened offices in Sydney, Melbourne, Brisbane, Perth, and Canberra, and it has successfully cornered a substantial portion of the market. At the end of 2017, Xero had a global subscriber base of more than 1.2 million people.

Because it only offers cloud-based or web-based accounting software, Xero has been able to concentrate its efforts only on this sector of the industry as it has expanded over the course of the last decade. Unfortunately, its primary rivals, MYOB and Intuit/QuickBooks, have not been able to enjoy this privilege.

Instead, they have concentrated on developing products for a variety of markets, including traditional accounting software, where they continue to maintain and improve their product offerings despite the industry’s overall downward trend.

Xero’s cloud and online accounting services for businesses are available in three different plan tiers: Xero Starter, Xero Standard, and Xero Premium. In addition, the company provides free trials of any of these goods for a period of thirty days.

The following description of each Xero plan includes a summary of its primary features as well as its current cost.

The Xero Starter plan is $25 per month. One individual can be paid each month, up to five invoices and quotes can be sent, up to five bills can be entered and paid, and you can reconcile up to twenty bank transactions.

The Xero Standard plan costs $50 per month. You are permitted to send an infinite number of invoices and quotes each month, input and pay an unlimited number of bills, make a payment to one individual, and reconcile a large number of bank transactions.

Xero Premium costs $60 USD per month. You have the ability to send an infinite number of invoices and quotes each month, enter and pay complete bills, pay up to five employees* (including their retirement benefits), and reconcile a large number of bank transactions. Additionally, the premium package is able to deal with numerous currencies.

If it becomes necessary, you can make arrangements to pay more than five staff members by paying an additional monthly fee for the premium plan.

Each of the three Xero plans includes components such as the following:

The contents of a bank account (including a payment facility).
Monitoring and administration of the inventory
Budgeting.
Reporting (with a configurable dashboard) (including a customisable dashboard).
Requests for purchase orders
GST/BAS computations.
A registry of the fixed assets.
Protection of sensitive information
File storage.
Mobile accessibility.
Lists of contacts.
There are no long-term contracts.
Accessibility on Macs, PCs, tablets, and mobile devices
Free online help around the clock.

Xero Projects is an additional feature that may be added on to any of the aforementioned three plans. Because this function is completely optional, it gives you the chance to monitor the amount of time, money, and profit that each individual job in your company generates. Activating this feature will result in an additional monthly cost of $10 for one user, and an additional monthly cost of $7 for each additional user after that.

MYOB

MYOB is an Australian company that was established in the year 1991. It caters to the needs of small and medium-sized enterprises by offering a variety of tax, accounting, and software services.

For the most of the time that it has been in operation, it has maintained a dominant position among computerised accounting systems for small and medium-sized firms. Xero has been able to pose a significant threat to its dominance in the rapidly expanding market for cloud-based and online accounting services.

MYOB Essentials is currently the cloud-based accounting solution offered by MYOB that has the most customers.

MYOB, much like Xero, provides three distinct kinds of cloud-based or online accounting business plans, which are referred to as MYOB Essentials Starter, MYOB Essentials Payroll, and MYOB Essentials Unlimited Payroll. They also provide free trials of any of these goods for a period of 30 days.

The following is an outline of the most important MYOB plan features, as well as the pricing as of the end of 2017.

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MYOB Essentials Starter costs $25 per month to subscribe to. You are allowed to submit up to five invoices, pay one individual, and have up to twenty-five feeds of bank transactions per month.

MYOB Essentials Payroll costs forty dollars each month. You are permitted to submit an unlimited number of invoices, pay one individual, and get up to 250 bank transaction feeds on a monthly basis.

Pricing starts at $50 per month for MYOB Essentials Unlimited Payroll. You are permitted to submit an infinite number of invoices, pay an unlimited number of employees, and get up to 250 transaction feeds from your bank each and every month.

All three MYOB Essentials plans incorporate features such as:

Reporting (with a configurable dashboard) (including a customisable dashboard).
Calculations of GST and BAS
Protection of sensitive information
There are no long-term contracts.
Guaranteed full refund within the first 90 days.
Accessibility on Macs, PCs, tablets, and mobile devices
Free help through phone or online round-the-clock.

QuickBooks

Intuit, a firm based in the United States that specialises in business and financial software and was founded in 1983, produces the accounting software package known as QuickBooks. QuickBooks Online is now the most popular cloud-based or online accounting product that they offer.

The QuickBooks Mobile App, QuickBooks Simple Start, QuickBooks Essentials, and QuickBooks Plus are the four different types of cloud-based and online accounting business plans that are offered by QuickBooks. QuickBooks provides a free trial version of its software for a period of 30 days, just like Xero and MYOB.

The following is an outline of the primary features as well as the pricing for various QuickBooks plans as of the end of 2017.

1) The QuickBooks Mobile App has a monthly fee of $9.99. This product is marketed by the company as the best cloud/online accounting software for the sole proprietor who works for themselves. It gives you the ability to:

Keep track of the number of kilometres that you travel.
Maintain accurate records and make the most of your tax deductions.
Keep track of both your income and your expenditures.
Send over some invoices.

2) The monthly cost for QuickBooks Simple Start is $16.50. It gives you the ability to:

Maintain accurate records and make the most of your tax deductions.
Keep track of both your income and your expenditures.
Send over some invoices.
Pay up to 10 employees once every month*
Please quote me on an infinite number of items.
Keep an eye on the GST and handle your BAS filings.
You can access your data using either your desktop computer or any of your mobile devices.

In the event that you need to pay more than ten staff members, you have the option to do so for an extra $4 per staff person every month.

3) The most basic version of QuickBooks is $27.50 a month. With addition to those capabilities, it also comes with the following, which are not included in the QuickBooks Simple Start plan:

You can have numerous users.
You have complete control over the types of data that each of your users can access.
You will be able to take care of your bills and payments.
You have the ability to record transactions in a number of different currencies.
You are able to make the necessary arrangements to pay ongoing expenses and invoices.
You are able to keep an eye on your billable hours.

4) The monthly cost for QuickBooks Plus is $38.50. It comes with all of the features described in the QuickBooks Essentials plan described above, plus the features listed below:

The capability to keep track of your spending that might be billed to customers.
Monitoring and administration of the inventory
Functionality for monitoring the progress of a project
Requests for purchase orders
Budgeting.

Each of the four plans offered by QuickBooks includes components such as:

Reporting, in addition to a dashboard that can be personalised.
Protection of sensitive information
There are no long-term contracts.
Accessibility on Macs, PCs, tablets, and mobile devices
Free help through phone or online round-the-clock.

Comparison of Features

1. Price

Because the price is likely to be one of the most essential factors for the owner of a small business, we will begin our analysis with the many options available.

Because each of the three programmes use a unique pricing structure, a direct comparison across them is impossible. Frequently, they would offer a fundamental programme bundle with a fundamental pricing, and you would have the option to acquire a “premium” version, which would either have additional features or additional cost.

MYOB, for example, provides customers with the option to purchase one of three distinct bundles: MYOB Essentials Starter, MYOB Essentials Payroll, and MYOB Essentials Unlimited Payroll. The initial package is $25 per month and enables you to submit up to 5 invoices, 25 bank transaction feeds, and payroll for one employee. In addition, you can import payroll data.

The second plan costs $40 per month and enables payroll processing for a single employee, in addition to supporting up to 250 bank transaction feeds and an infinite amount of invoices. The last plan, which may be purchased for $50 per month, enables users to generate an unlimited number of invoices and up to 250 bank transaction feeds. To reiterate, as the name says, it enables the payroll of an unlimited number of workers.

Xero Starter, Xero Standard, and Xero Premium all contain features that are comparable to those found in MYOB’s various product tiers. The Xero Starter plan costs $25 a month and enables users to send up to 5 invoices and quotes, pay one individual, and reconcile up to 20 bank transactions.

Xero Standard costs $100 a year, which is twice as much as Xero Starter ($50), and it enables you to send an unlimited number of invoices and quotes, in addition to allowing you to reconcile an unlimited number of bank transactions. The only difference between Xero Starter and Xero Premium is that the latter allows you to pay up to five employees. Xero Premium costs $60 per month. You may work with a variety of currencies, which is another advantage of using this system.

QuickBooks is suggested for people who are just getting their business started since it is more reasonably priced than the other two options, and because it includes functions that are comparable to those of the other two options. It is available in a total of four packages, one of which being its mobile application. This includes the QuickBooks Mobile Appa, which costs $10 per month, the QuickBooks Simple Start software, which costs $16.50 per month, QuickBooks Essentials, which costs $27.50 per month, and QuickBooks Plus, which costs $38.50 per month. A later part will devote its attention to a different topic, namely the characteristics of the mobile application. As the second package, its capabilities include payroll processing for a maximum of ten employees, tracking of sales and expenses, and the ability to send an unlimited number of invoices.

The Essentials package also provides you with the same functionality, enabling you to manage and pay bills, produce sales quotes, and transact in several currencies at the same time. In addition, the finished product gives you the option to keep tabs on the profitability of individual projects as well as jobs, as well as track inventory and make purchase orders.

2. User Interface

Despite the fact that every piece of software has its own one-of-a-kind graphical layout, they all perform the same functions. As a result, it is highly recommended that you make use of the 30-day trial period that is provided by these products so that you can “get a feel” for its interface and determine whether or not it is suitable for your needs.

People with varying preferences will be able to choose the programme that meets their needs the most effectively. When it comes to productivity, accuracy, and reducing the amount of time spent entering data and processing it, having an easy-to-use interface makes a significant difference.

QuickBooks Online is fantastic because, although having a large number of capabilities, the user interface does not appear to be overly complicated. For instance, the left-hand navigation pane displays all of the categories that you require, making it simple to discover the tab that you are looking for. These categories range from All Sales to Invoices to Products and Services List.

You are constrained by the way they are mapped depending on how you input an item in my account and how you entered it previously. This could potentially be more time-consuming, but it is simple to adjust by making adjustments to the products and services list mapping.

Tasks that are more difficult to complete, such as reporting on cost centres, are buried until they are enabled. Those users who are accustomed to previous applications and anticipate finding particular functionality in particular locations may find this to be an unsatisfactory solution.

If this is the case, then using Xero as your accounting software of choice may be the best option. The jobs and duties can be found very simply in the places where people most frequently anticipate finding them. Not only does this make Xero convenient for basic bookkeeping tasks, but it also provides a level of versatility that many other applications do not.

For instance, a product that is currently mapped to an income account can very easily be altered to map to another account while the transaction is still being processed. Sadly, this option is not available in any other apps I’ve tried.

MYOB Essentials is probably going to be the best option for you if you have never used any of these products before. The user interface is created with non-specialists in mind. For example, rather than using technical jargon, it utilises language like “Money In” and “Money Out,” which makes it ideal for folks who have no prior knowledge of the technical aspects of bookkeeping.

The disadvantage of its straightforward design is that only a select few features are made available to users. One example would be that the profit-and-loss statement cannot be broken down by month.

3. Monthly Reports

To generate a monthly balance sheet in Xero, you must first run the data for the final month in the period that you are looking at before comparing it to the data for the first 11 months. This is necessary before you can view the monthly balance sheet. The display arrangement presents the monthly reports in reverse chronological order, beginning with the most recent month and proceeding backwards.

To generate a monthly report in QuickBooks, you must first run the report for the specified date range, and then select one of the choices located in the report’s upper area to show the columns organised by month.

4. User Limit

Because there is no cap on the amount of people who may use the Xero software at once, the platform is ideally suited for companies that are rapidly expanding and employing a large number of people. On the other hand, the other programmes can only support a predetermined number of users.

The maximum number of users that each MYOB version supports is different depending on the version. For instance, the minimum number of users required for MYOB accounting is one, whereas the maximum number of users that MYOB premier can support is fifteen. However, if numerous people are using the programme at the same time, it may become more sluggish; this issue, however, is solvable by utilising additional software.

When it comes to Quickbooks, the QuickBooks Essential edition supports a maximum of three users, while the Quickbooks Plus edition supports a maximum of five users.

5. Additional Features

Bookkeeping features are already incorporated into the fundamental software programmes, however add-ons can be installed to fulfil specialised requirements. Whether you need it for quotation, inventory tracking, or stock management, there is a wide variety of add-ons available to meet your individual requirements.

A quick search would reveal that Quickbooks has over 140 certified add-ons, while MYOB has approximately 20 certified add-ons.

Because it was one of the first companies to dabble in cloud accounting, Xero has the most add-ons available, with a total of up to 400. This is largely due to the fact that Xero was also one of the first companies to offer its services online. Because of this, Xero is an excellent choice if you have highly particular accounting needs; but, if you just want simple bookkeeping, it is possible that using Xero would not be a good idea due to the expense.

6. Mobile Applications

MYOB started off behind the competition since it did not have a mobile application. Nevertheless, they have just recently come up with the MYOB Invoices app, which enables users to submit invoices directly from their mobile devices. These invoices, after they have been issued, instantaneously update all of your MYOB software. In addition to this, the mobile-only version has functions for contacts and payments.

Both Xero and QuickBooks offer mobile applications for their respective software, enabling users to create invoices and quotes, as well as scan receipts. In addition, QuickBooks Online is capable of performing bank reconciliations and reporting on balance sheets.

Payments can be done by utilising a Paypal card reader and app, and the version of the software designed for tablets has a GPS and location-based prefilling for easier input of invoice information. In addition, Xero integrates with apps developed by third parties in order to process payments. These apps include Paypal Square and Ezidebit.

Statements may be easily updated because they all have a well-organised and straightforward design that is simple to utilise.

7. Customer Assistance

Customer assistance is essential for the organisation to develop a rapport with its subscribers and customers who may have some trouble adjusting to cloud bookkeeping or who may not have accounting know-how.

This may be the case for people who do not have accounting expertise.

Therefore, the availability of customer assistance is perhaps another issue that should be considered when selecting the appropriate programme.

Included at no additional cost is unlimited customer assistance by email, phone, and live chat on the QuickBooks website from 9 a.m. to 9 p.m., Monday through Friday.

Additionally, it features a frequently asked questions section that can be searched, in addition to helpful forum categories.

Additionally, MYOB has a helpful customer support structure in place. It provides community forums where users may find topics and discussions pertinent to problems they may be experiencing.

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Users can also learn how to get the most out of their product by watching training videos and reading documentation that can be found online. In addition to this, they provide customers with a phone line that is staffed by employees who are available to provide assistance Monday through Friday, 9 am to 5 pm local time.

In contrast to its rivals, Xero does not offer phone assistance; nevertheless, the company does have a large following on social media, where users can write articles and connect with each other and Xero’s other customers.

Additionally, they provide customers with community forums, online documentation, and training videos, all of which can be accessed online. This is an added help considering that the software may already be utilised by non-accountants without much difficulty.

What Is the Best Online Accounting Software to Use in the Cloud?

The requirements of your company will determine whether cloud-based or online accounting software is the best fit for you.

Xero, MYOB, and QuickBooks are the three firms that comply with Australian accounting requirements and all three have earned positive reputations (e.g. GST and payroll).

The following is a rundown of the primary benefits and drawbacks associated with each of their cloud and online software offerings:

1. Xero

Benefits:

Very well designed, and very easy to use and understand intuitively.
Functionality at its finest.
Excellent capability for generating reports.
There is extensive instruction in the form of webinars that may be accessed online.
A solid mobile application.
More add-ons than MYOB and QuickBooks combined are available. Add-ons that are geared specifically for a given business are available, for instance, for the hospitality, manufacturing, and educational sectors.

Drawbacks:

The option that costs the most out of the three choices. QuickBooks could be a better option for you if it provides additional features that you do not require.

2. MYOB Essentials

Benefits:

A user-friendly design.
Additionally, it is simple to use and comprehend.
It is ideal for people who are not trained in accounting because it does not use accounting lingo such as debtors and creditors. In its place, it employs expressions such as “Money in” and “Money out.”
A solid mobile application.

Drawback:

It includes some functionality for reporting, but not very much.

3. QuickBooks Online

Benefits:

Functionality at its finest.
Excellent capability for generating reports.
It is simple to use.
In the event that it is required, online training and video support are accessible.
Great mobile app. Because it offers more features than both the Xero and QuickBooks mobile apps, it is the superior choice if you need to complete more tasks while you are on the move.
In comparison, the functionality of the product will fulfil all of your requirements, making it an excellent value for the money.

Drawback:

There is a possibility that the style and layout are not as user-friendly as those offered by Xero and MYOB.

All of the cloud-based and online accounting software programmes that we analysed and contrasted in this piece contain features that readers may find helpful. These cloud-based accounting software solutions will help you become more efficient, which will result in time savings when compared to traditional desktop accounting software.

They will also make it considerably simpler for you (or your accountant) to prepare your annual tax return as well as your monthly or quarterly Business Activity Statements.

Other basic advantages of using accounting software that is hosted in the cloud or online include the following:

Get access to the financial information of your company whenever and wherever you want it (provided you have an Internet connection). As we gain flexibility in terms of when and where we work, it is becoming increasingly crucial that we pay attention to this.

You will no longer be constrained by your reliance on your computer. Traditional desktop accounting software, on the other hand, can typically only be viewed on the computer that it was installed on. This is because traditional desktop accounting software does not provide remote access.

You are able to simply communicate the company’s financial information to the necessary third parties, both inside and outside the company (e.g. your accountant or the Australian Taxation Office). You are no longer required to make an appointment with your accountant or to send your accountant huge and confidential files by email. Instead, they will have the ability to get all of the information they require by using your cloud or online accounting system.

A small charge per month for subscription rather than a significant one-time payment for the licence.

Reduced initial financial outlay (for the accounting software and the computer infrastructure needed within your organisation).

Reduce the amount of money your company spends on maintaining its computer systems.

The capacity to link with your other company software and financial services in a more smooth manner through the automatic feeding of data to systems that are compatible. Because of this, the quantity of boring administrative labour that falls on your shoulders is decreased.

Giving you the ability to maintain the financial information of your company in the most precise and up-to-date manner possible Because of this, you should be able to make better and more expedient business selections.

There is no requirement to have your computer’s backup systems or its security measures.

The capacity for a number of users located in various geographical areas to simultaneously access a piece of software for a variety of reasons. Unique users can have unique passwords.

Upgrades and improvements to the software are performed automatically. There is no requirement for you to perform manual software updates, as there is with traditional accounting software programmes.

Large accounting software applications do not need to be installed and run on your computer system as there is no need to do so.

The capacity of the software to expand in tandem with the expansion of your company.

Although Xero, MYOB Essentials, and QuickBooks Online presently hold the largest proportion of the cloud-based and online accounting software market in Australia, there are a number of other minor companies in the industry. Reckon One, Saasu, and Sage One are some examples of them.

Reckon One. The Reckon Australian organisation uses this accounting software, which is hosted in the cloud and accessible online. 1987 marked the beginning of operations for this business. It offers a variety of accounting, business, document, and practise management software that may be run on local computers or in the cloud.

In the past, Reckon was responsible for the distribution of QuickBooks software in Australia on behalf of its parent firm, Intuit, which is situated in the United States. However, when that arrangement came to an end, it developed its own software so that it could compete in this rapidly expanding and already dominant part of the market for computerised accounting.

Conclusion

These businesses provide excellent cloud accounting software solutions that, in addition to making your lives simpler, can also be of assistance to you in the various commercial endeavours you undertake. Every one of them is able to supply you with the fundamental resources that you require for bookkeeping services and monthly reports. However, selecting the appropriate software application to utilise is dependent on the specific requirements and preferences of the user.