Xero or MYOB Which Accounting Software Is Best for Small Businesses in New Zealand

Choosing the right accounting software can make a big difference for small businesses in New Zealand. With so many options available, it’s important to find a solution that fits your business needs, budget, and growth plans. Two of the most popular choices are Xero and MYOB. Both offer strong features tailored for small businesses, but they differ in key areas that could affect your decision.

This post compares Xero and MYOB across several important factors to help you decide which software suits your small business best.

Overview of Xero and MYOB

Xero and MYOB are well-established accounting platforms with a strong presence in New Zealand. Both provide cloud-based solutions, allowing business owners to manage their finances from anywhere.

• Xero was founded in New Zealand and has grown into a global player with a focus on simplicity and integration.

• MYOB has a longer history in Australia and New Zealand and offers a range of products including desktop and cloud options.

  
  

Both platforms cover essential accounting tasks such as invoicing, bank reconciliation, payroll, and reporting, but their approach and user experience vary.

User Experience and Interface

For small business owners, ease of use is crucial. You want software that doesn’t require a steep learning curve or constant technical support.

• Xero offers a clean, modern interface that many users find intuitive. Its dashboard provides a clear snapshot of cash flow, invoices, and bills.

• MYOB has improved its cloud interface but some users find it less straightforward than Xero, especially those new to accounting software.

  
  

Xero’s design focuses on simplicity, making it easier for non-accountants to navigate. MYOB’s interface is functional but can feel more traditional and complex.

Features and Functionality

Both Xero and MYOB cover the basics, but there are differences in features that might matter depending on your business type.

Invoicing and Payments

• Xero allows you to create professional invoices quickly and supports online payments through multiple gateways, speeding up cash flow.

• MYOB also offers invoicing and payment options but may require additional setup for online payments.

  
  

Bank Feeds and Reconciliation

• Xero automatically imports bank transactions daily, making reconciliation faster and more accurate.

• MYOB provides bank feeds but sometimes with delays or limited bank support compared to Xero.

  
  

Payroll

• MYOB has a strong payroll system tailored for New Zealand compliance, including tax and KiwiSaver management.

• Xero offers payroll features suitable for small businesses but may require add-ons or higher-tier plans for full compliance.

  
  

Reporting

• Xero provides a wide range of customizable reports and real-time financial data.

• MYOB offers detailed reports but some users find customization options less flexible.

  
  

Pricing and Plans

Cost is a key factor for small businesses. Both platforms offer tiered pricing, but the structure differs.

• Xero pricing starts with a basic plan suitable for sole traders and small businesses, with higher tiers unlocking more features like multi-currency and project tracking.

• MYOB offers Essentials and AccountRight plans, with AccountRight being more expensive but including desktop software and advanced features.

  
  

Xero’s subscription is fully cloud-based with no extra fees for updates. MYOB’s desktop option requires a one-time purchase plus optional subscription for cloud features.

Integration and Add-ons

Small businesses often use multiple tools. Integration capabilities can save time and reduce errors.

• Xero has a large marketplace with over 800 third-party apps, including inventory, CRM, and e-commerce platforms.

• MYOB supports integrations but has a smaller app ecosystem compared to Xero.

  
  

If your business relies on specific software, check if it connects smoothly with your chosen accounting platform.

Customer Support and Resources

Reliable support can ease the transition to new software and help resolve issues quickly.

• Xero offers 24/7 online support, a comprehensive help center, and an active community forum.

• MYOB provides phone and online support during business hours, plus extensive guides and tutorials.

  
  

Both companies offer training resources, but Xero’s community and online presence are often praised for responsiveness.

Comparison of Xero and MYOB accounting software dashboards

Security and Compliance

Security is critical when handling financial data.

• Xero uses bank-level security, two-factor authentication, and regular audits to protect data.

• MYOB also employs strong security measures and complies with New Zealand tax regulations.

  
  

Both platforms keep up with GST and tax law changes, ensuring your business stays compliant.

Which Software Fits Your Business?

Choosing between Xero and MYOB depends on your business size, industry, and specific needs.

• Choose Xero if you want a user-friendly, cloud-first solution with strong bank feeds, extensive integrations, and flexible reporting.

• Choose MYOB if you need robust payroll features tailored for New Zealand, prefer desktop options, or require specific accounting functions.

  
  

For example, a small retail store might benefit from Xero’s app ecosystem for inventory and e-commerce, while a service business with complex payroll needs might find MYOB more suitable.

Final Thoughts

Both Xero and MYOB offer solid accounting tools for New Zealand small businesses. Xero stands out for ease of use, cloud capabilities, and integrations. MYOB excels in payroll and offers desktop options for those who prefer it.