Xero vs MYOB vs QuickBooks: Best Accounting Software for Australian Small Business
Quick answer
For most Australian small businesses, Xero is the easiest all-rounder, with strong bank feeds and payroll included in every plan. MYOB suits businesses with complex inventory or that want a desktop option. QuickBooks is a good-value choice, especially for businesses already using Intuit products or selling overseas. All three start at about $30–35 a month.
Accounting software is one of the best investments a small business can make. It reconciles your bank account, sends invoices, tracks GST and prepares your BAS. Here’s how the three biggest names compare in Australia.
Quick comparison
| Xero | MYOB | QuickBooks Online | |
|---|---|---|---|
| Entry plan (early 2026) | Ignite, about $35/month | Lite, about $34/month | Simple Start, about $30/month |
| Payroll | Included in all plans | Paid add-on | Paid add-on |
| Bank feeds | Excellent | Good | Good |
| Inventory | Basic (more via apps) | Strongest (AccountRight) | Moderate |
| Desktop option | No, cloud only | Yes (AccountRight) | No, cloud only |
| App integrations | 1,000+ | Around 300 | Large global marketplace |
Prices are monthly in AUD including GST, based on standard published rates in early 2026. Introductory discounts are common, so compare the full price after any promotion ends.
Xero: best all-rounder
Xero is one of the most popular choices among Australian small businesses and their accountants. Its bank reconciliation is fast and smart, invoicing is simple and it connects to a huge range of apps for payments, quotes, inventory and receipts. Payroll for Single Touch Payroll is now included in all plans, which makes it good value once you have staff.
- Best for: most service businesses, freelancers moving off spreadsheets and growing companies
- Watch out for: the entry plan has limits on invoices and bills, so check it fits your volume
MYOB: best for stock and desktop users
MYOB is an Australian company with a long history. Its AccountRight product handles inventory, job costing and multi-location stock better than its rivals and can run as a desktop app that syncs to the cloud.
- Best for: retail, wholesale, trades with lots of stock and existing MYOB users
- Watch out for: payroll costs extra and the plans can be confusing to compare
QuickBooks Online: best value
QuickBooks is a global product with a clean interface and strong automation features, such as automatic transaction categorisation and payment reminders. Its entry plan is usually the cheapest of the three.
- Best for: cost-conscious businesses, those already using Intuit products and businesses trading across countries
- Watch out for: fewer Australia-specific integrations, and payroll is an add-on
Which should you choose?
| If you are… | Consider |
|---|---|
| A sole trader with simple invoicing | Xero Ignite or QuickBooks Simple Start |
| A small business with 1–5 staff | Xero, because payroll is included |
| A shop or trade business with lots of stock | MYOB AccountRight |
| Working closely with an accountant | Ask which one they use, as it makes their work faster and often cheaper |
Tip: All three offer a free trial. Before you commit, connect your real bank account and reconcile one month of transactions. You’ll quickly see which one feels right.
What every option should do for you
- Connect to your bank for automatic transaction feeds
- Create and send invoices with your ABN and GST shown correctly
- Track GST and prepare your BAS
- Report payroll through Single Touch Payroll (if you have staff)
- Let your accountant or BAS agent log in directly
Need help setting up your software?
We’ll set up your accounting software, connect your bank and keep your books and BAS up to date. Fixed price from $299/mo.
Frequently asked questions
Is Xero or MYOB better for sole traders?
Both work well. Xero is usually simpler to learn. MYOB can suit you if you already know it or need its inventory features. Many sole traders start on the cheapest plan of either.
Can I lodge my BAS from the software?
All three prepare your BAS from your bookkeeping. Depending on the plan and your setup, you can lodge it online directly or have your tax or BAS agent lodge it.
Is there free accounting software in Australia?
There are free invoicing tools, but most free options don’t include bank feeds, BAS reports or payroll. For a growing business, a paid plan usually pays for itself in time saved.
Can I switch software later?
Yes. All three have conversion tools or partners to help you move, but it’s easiest to switch at the start of a financial year.
This article is general information only, not tax, legal or financial advice. We may earn a commission from some links on this site, which doesn’t change our view. Check each provider’s website for current features and pricing.
