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Selecting the right accounting software is crucial for streamlining your business operations, saving you time and money and ensuring compliance in lodgements and reporting. While Xero, MYOB, and QuickBooks are prominent options, they differ significantly in usability, features, and pricing. Recent pricing changes, particularly by Xero, present an opportunity to reassess which platform aligns best with your business needs.
Here’s a closer look at three of the most popular options—Xero, QuickBooks, and MYOB—their features, strengths, and areas where they may fall short.
But before you invest in new software or consider switching, we encourage you to contact us. We would be very happy to discuss your needs and ensure you’re making the right decision for your business.
Xero
Xero is one of the most widely recognised accounting software platforms, with a strong reputation for usability and reporting capabilities.
Pros
Ease of Use: Xero's intuitive design facilitates easy navigation, even for those without extensive accounting backgrounds.
Robust Reporting: Offers advanced, customizable reports that provide valuable insights into financial performance.
Extensive Integrations: Supports over 1,000 third-party apps, enhancing its functionality across various business operations.
Cloud-Based Access: Allows real-time access from any device, promoting flexibility and collaboration.
Cons
Pricing: Xero's plans can be more expensive than some competitors, which may be a consideration for smaller businesses.
Limited Phone Support: Primarily offers online support, which might not suit users preferring direct phone assistance.
QuickBooks
QuickBooks is a globally recognized accounting software offering various features at competitive prices. However, it has notable limitations.
Pros
Affordable Plans: Offers a range of plans at lower price points, appealing to budget-conscious businesses.
Inventory Management: Provides capabilities beneficial for businesses with significant stock management needs.
Cons
Inferior Reporting: Lacks the depth and customization found in Xero and MYOB, making report generation cumbersome.
Clunky Reconciliation: The bank reconciliation process is less intuitive, leading to inefficiencies.
Limited Payroll Features: Payroll capabilities are minimal, making it less suitable for businesses with growing teams.
MYOB
MYOB is a long-standing player in the Australian accounting software market, known for its locally tailored features.
Pros
Comprehensive Features: Provides tools for payroll, invoicing, and tax reporting, catering to both small and larger businesses.
Australian Tax Compliance: Simplifies GST and BAS lodgement, ensuring adherence to ATO requirements.
Strong Local Support: Offers robust customer service, including phone support, beneficial for users seeking direct assistance.
Cons
User Interface: Some users find the interface less intuitive, with a steeper learning curve compared to Xero.
Limited Integrations: Fewer third-party integrations may restrict flexibility for businesses using multiple applications.
Making the Right Choice for Your Business
Choosing the right accounting software depends on your unique needs, from payroll and compliance to reporting and usability. While features and price play a major role, the overall user experience can make all the difference.
Our team has worked extensively with all three platforms and knows the pros and cons better than anyone. Their feedback provides an honest look at how each software performs in real-world scenarios, helping you decide which option suits your business best. Here’s what they had to say.
We asked our staff to rate each of the three software based on the following categories;
PRICE
This category assesses the affordability of each software package based on its subscription plans and what is included at different price points. It considers:
Whether the price is competitive compared to similar software.
The value offered for the cost, including access to features and upgrades.
Any additional or hidden costs, such as fees for extra users, add-ons, or advanced functionality.
FUNCTIONALITY
Functionality refers to how well the software meets the needs of its users in performing day-to-day accounting tasks. This includes:
The range of accounting tasks supported, such as invoicing, expense tracking, reconciliation, and BAS preparation.
The availability of automation features to save time, like recurring invoices and automated bank feeds.
Flexibility to handle unique business needs, such as inventory management or multi-currency transactions.
SUPPORT
This category evaluates the quality and accessibility of customer support offered by the software provider. Key considerations include:
Availability of support (e.g., phone, email, live chat) and hours of operation.
Speed of response and helpfulness of the support team.
Access to additional resources like knowledge bases, tutorials, and user communities.
EASE OF USE
Ease of use measures how intuitive and user-friendly the software is, particularly for those without extensive accounting knowledge. This includes:
Simplicity of the interface and ease of navigation.
The learning curve for new users or non-accountants.
Availability of training materials, like guides and tutorials, to help users get started.
FEATURES
This category looks at the breadth and depth of features provided by the software, beyond the basics of accounting. It considers:
Advanced features like integrations with other tools and apps (e.g., CRM, e-commerce platforms).
Customisation options for reports, workflows, or user settings.
Industry-specific tools that cater to specialised needs, like job costing or contractor tracking.
PAYROLL
Payroll assesses how well the software handles employee management, including:
Compliance with local payroll regulations, such as STP, superannuation, tax, and leave entitlements.
Ease of setting up and managing employee records and pay runs.
Integration between payroll and accounting systems to streamline reporting.
REPORTING
Reporting focuses on the quality and flexibility of financial insights provided by the software. This includes:
The variety of reports available, such as Profit & Loss, Balance Sheets, and cash flow statements.
The ability to customise reports to meet specific business needs.
Real-time access to data for tracking performance and making informed decisions.
OUR RATINGS
XERO | MYOB | QUICKBOOKS | |
PRICE | 7 | 7 | 9 |
FUNCTIONALITY | 9 | 7.75 | 3.25 |
SUPPORT | 7.75 | 7.5 | 2.75 |
EASE OF USE | 9 | 7.25 | 2.25 |
FEATURES | 8.5 | 7.5 | 3.5 |
PAYROLL | 9 | 7.75 | 3.25 |
REPORTING | 8.75 | 6 | 3.75 |
TOTAL (OUT OF 70) | 59 | 50.75 | 27.75 |
Here’s a few more comments from MJA team on all three platforms:
Xero
Ease of Use: "I prefer Xero out of the three; it’s the most user-friendly. Reports are great once set up correctly, and they’ve improved a lot over the years."
Add-On Compatibility: "Lots of add-on apps available, which makes it versatile for different business needs."
Overall Impression: While Xero is more expensive than QuickBooks and MYOB, "the price you pay is worth it for the ease of use."
QuickBooks
Price vs. Usability: "QuickBooks is cheap and nasty—you get what you pay for. What you save on software costs, you spend on accounting fees. Most tasks, like payroll and year-end processes, take twice as long compared to Xero."
Stock Management: "It’s good for clients who have lots of stock management, but the reports are difficult to produce."
Bank Reconciliation: "Not a fan of their bank reconciliation process—it’s less intuitive than the others."
MYOB
Ease of Use: "MYOB is good software, similar to Xero in terms of usability."
Comparison: While it may not offer as many third-party integrations as Xero, it’s still a solid option, particularly for businesses focused on Australian-specific compliance and inventory needs.
If this all seems too much to consider then pick up the phone and give us a call. We are here to help you make the right decision.
Note: Pricing and features are subject to change. Please consult the respective software providers for the most current information.
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