MYOB Vs. Xero: Which One Fits For Your Small Business In Australia?

In the past, all the bookkeeping works in the small business were done using hard copy balance books and ledgers written in hand. After personal computers arrived on the scene with an internet connection, these handwritten ledgers were replaced with excel spreadsheets. These soft copies could be easily corrected and were also first and agile to handle. 

After that came powerful accounting software, but that could not be easily updated and replaced quickly. Now, technology had advanced so much that small business accounting had come through a real revolution. Every aspect of bookkeeping has been changed now – communication, inventories, ordering, marketing and selling, daily purposes, everything. Everyone’s life has transformed into a digital, more accessible and faster phase.

Bookkeepers now use cloud-based software applications for accounting purposes that have made accounting highly beneficial. These cloud-based accounting software solutions are allowing accounting professionals to manage financial activities accurately and quickly. You can also get access to the software and essential data anytime you require, from any location in the world. It shortens the time as you will no longer need to go to the accountant’s office for getting informed about profit and loss. You will always have crucial financial information in your hands, which will help you grow your company or partnership while keeping a smooth cash flow.

What software can you use for your business?

In Australia, Xero and MYOB are the two most widely used software. You can use this software for flawless management and accounting analysis, human resource operations and payroll management. The reasons behind their wide use include the smoothness and all the user-friendly and vast features they offer.

Important features about Xero

An experienced Xero bookkeeper Perth can give you all the vital information. Irrespective of your business size, you can use Xero for accounting services. It is a highly dedicated and easy-to-use cloud-based software. It was founded in 2006 by a New Zealander tech entrepreneur Rod Drury and quickly became one of the first software solutions that are entirely browser-based. In the year 2014, Zero had reached the top of the list of Innovative Growth Companies. 

• Besides faster and easier sign-up services, another benefit of Xero is that it can be available on both computer and Mac. The mobile application is also quicker and responds promptly. 
• The invoicing system is also pretty streamlined. You can have customized layouts for the invoices and also track them whenever the recipients open. Also, you can send invoices from Xero. 
• There are specific plans to manage the payrolls. Standard and starter packs will allow you to control the payroll for only one person. But if you can afford a little more, say $60 per month, you can manage it for people as more as 5. $100/mo will allow you to manage that for 10 people. 
• The reporting system is also faster as you can get several reports at one time. In addition, you will also get services for inventory as basic inventory tracking and management are included in all the plans. 
• If your inventory is complex, Xero will allow integrations from a third party. In the ”Employee Login’Login’ section, you will see ”My Payroll”, under which you can enter timesheets, view payslips, and request leaves. 
• As there is perpetuity in the data, you do not need to close or make any rollover to the financial year. Xero also supports multi-currency transactions, but that is only applicable when you go for premium plans.

Important features about MYOB

You can consult with any MYOB bookkeeper Perth to know the essential features of MYOB software. MYOB stands for ”Mind Your Own Business” and was launched in the 80s primarily because of digitizing books. Exonet 2000, a branded solution of that time, survived the fear of the millennium bug and then became highly popular in both Australia and New Zealand. Then in 2004, it was branded as an MYOB and in the next few years became a dominant force in the field of accounting solution. 

Before such cloud-based accounting systems, you had to buy software applications in a large box and then install them to a computing system, where nothing occurred as ”automatic updates”. With time, MYOB advanced and, subsequently, customer’s needs, too.

• MYOB is also faster and easy-to-sign up software. But if you need more advanced features like inventory and job management, you will require a Windows program on your computer. Like Xero, you can have it on both Mac and computer, but you will need Mac to get the AccountRight. 
• The mobile application is easy, but the user interface is a little old-fashioned. Invoicing system is also advanced in MYOB. You can send invoices, get customized layouts and track invoices, but an advanced level of customization can only be accessed through AccountRight. Payroll functions are relatively cheaper here. 
• The First 2 standard plans will allow you to manage for just one person, but if you take the $50 per month plan, you can work it for an unlimited number of employees. If you use AccountRight, you cannot get unlimited payroll only in the first plan that costs $61 per month. You can get advanced inventory tracking and job management also in AccountRight.
• Regarding Employee Login, you can enter timesheets, view payslips through ”Your Pay”. All the data are also perpetual, but if you use MYOB AccountRight, you will require two separate data rollover functions when you close the financial year. MYOB does not support foreign currency.

Which one is better?

Every small business has its own goals and systems. So, it isn’t easy to answer in one word, which one is better. Xero may fit perfectly into your friend’s business, but that doesn’t imply that it will also serve your business. However, Xero is the most used software because of some additional benefits like advanced mobile applications, multiple currency support, etc. 

Ending note

For more information regarding features and plans of these two software, always keep in mind that you have to choose according to your business requirements and systems. For guidance, experienced bookkeepers in Perth and experts like Palladium are always there for you.