What’s The Best Accounting Software in Australia: Xero vs MYOB
Small business bookkeeping was once a world of handwritten ledgers and hard copy balance books. With the arrival of personal computers and the internet, business owners quickly upgraded to enjoy the speed and agility of excel spreadsheets. A short time later, you could purchase and install powerful accounting software that would not update and quickly be replaced in the market. Fast forward a few years and today, technology has permanently changed how small business bookkeeping operates.
Well, it has changed how everything operates. Communication, ordering, inventories, marketing and selling, daily errands. Life is digital, faster, easier, and more streamlined.The accounting process is one that has been greatly rewarded from these modern days cloud-based benefits.
Small business operators in their droves are turning to modern cloud-based bookkeeping solutions. Cloud based accounting software allows you to quickly and accurately manage, and access the software and data anytime you need, and from any location. You no longer need to trapse to the accountant’s office to get your hands on a profit and loss. Valuable financial data is always at your fingertips and can be used to grow your business while keeping your cash flow in check.
Considering MYOB or Xero software for your business?
MYOB and Xero are the two most widely used top Australian platforms that allow for easy management and analysis of accounting, payroll and human resource functions. These two Australian bookkeeping software giants are renowned for how smoothly they operate, and the vast, user-friendly features they offer.
Which is better for your business? MYOB or Xero?
Our Shoebox Bookkeepers are experts at using (and LOVE the functionality of) both applications; however, every business is unique in its goals and systems. There is no definitive answer as to which is better. The software that fits perfectly into your friends’ or even competitors operation, may not be an ideal fit for you. Between MYOB and Xero there are alternative features and benefits suited to different types and sizes of business.
Which cloud-based solution might be best for you? Here’s a baseline comparison to help you make the right choice.
A bit about MYOB
MYOB (Mind Your Own Business) burst onto the software scene way back in the 80’s to help SME’s digitise their books. The then-branded solution called Exonet 2000 survived the millenium bug flurry and became extremely popular in Australia and NZ. In 2004 it was branded MYOB and for many years was the dominant accounting software solution. Before cloud-based accounting systems you had to purchase software in a big box and install it on your computer – there was no such thing as ‘automatic updates’ and round the clock access from anywhere. MYOB grew and evolved with the times and it’s customer’s needs to be the incredible cloud-based solution we love today.
A little about Xero
Xero is a dedicated cloud-based accounting software for both small and medium sized businesses. Founded by New Zealand tech entrepreneur Rod Drury in 2006, Xero launched into the digital space as one of the first completely browser-based software solutions. By 2014 Xero had made it to the top of the Innovative Growth Companies list. As a dedicated cloud-based “software-as-a-service” solution for SME’s BEFORE Facebook, the iPhone and a time when everyone was happily putting their personal information online. Xero was a product ahead of its time. At Shoebox Books we LOVE these quotes from Drury Spoken at a Xerocon conference in Brisbane;
“We loved solving the problems. There was this mathematical beauty in accounting. We love the equation that debits equal credits.”
“We’re probably the same sort of people who really like sudoku. There’s a mathematical elegance in accounting and getting the accounting right.”
We agree!
Fun fact: Xero was originally called Accounting 2.0 which wasn’t working for anyone. They loved the name Zero; but the domain Zero.com was taken and was going to cost them upwards of $100K! Eventually they settled on Xero, with only one problem…
Xero was the original band name of US rock band Linkin Park. The domain was taken and being used for the groups’ fan site, and the owner did NOT want to part with it. It took two flights to NZ to wine, dine and gift the administrator with a tour of the sights, to convince him to take US$20,000 for the domain Xero.com.
How do MYOB and Xero Compare?
1. Number of company accounts
Xero: One per subscription
MYOB: Up to two company accounts when using a MYOB premier AccountRight
2. Accessibility
Xero: PC and Mac
MYOB: MYOB essentials: Pc and Mac, MYOB AccountRight: PC only
3. Payroll
Xero: Both starter and standard plans have payrolls for only one person. For an extra fee each month you can get payroll for more people.
MYOB: The MYOB Essential starter and plus plans only provide a payroll for one person, however the premier plan offers an unlimited payroll. While MYOB AccountRight offers unlimited payroll for plus and premier.
4. Invoicing
Xero: Offers users a customisable invoice layout, and it also allows you to track when invoices are opened.
MYOB: Offers users a customisable invoice layout and it also allows you to track when invoices are opened. However, advanced customisation of the invoice layouts are only available when using MYOB AccountRight.
5. Reporting
Xero: Multiple reports are able to be run at once
MYOB: Reports only run one at a time.
How to decide?
Small business bookkeeping can be confusing as it is; without having to decide what software will best serve you and your operation. If the books aren’t your strongest point in business management, before you make a decision, you may need a helping hand.
We know this software like the back of our bookkeeper hands.
Get in touch with us at Shoebox. Your local bookkeeper can meet with you to discuss the pros and cons of each software package, with your business in mind the whole time. We can work together to find the ideal software package for you and your business