With the influx of new Cloud Based Accounting Software, many small business owners may find themselves a little overwhelmed with the choices available for their reporting requirements. There is a very well written article comparing the entry level subscriptions for Xero and MYOB which I found to be very informative and would perhaps help to clarify which system may be more suited to the individual needs of a business.
In summary, both companies base level software subscriptions offer very similar features, with a few exceptions that I felt should be highlighted:
The Bank Rules in MYOB are quite basic while Xero has the provision for up to 7 criteria to be entered per transaction to more accurately sort, filter and allocate your transactions. MYOB hasn’t provided anywhere near that level of performance.
At $29/month, MYOB Essentials has unlimited bank transactions, unlimited invoices, unlimited bank feeds, supplier invoices and unlimited users. I understand that MYOB currently has unlimited Payroll however, this is scheduled to be reduced/removed and a Payroll module offered as an Add-On feature (at an additional cost) in future.
The $25/month Xero Starter package allows for 20 bank transactions, 5 invoices, 5 supplier bills, unlimited users and a single payroll provision. The Standard $50/month subscription allows for unlimited bank transactions, invoices, bills and payroll for up to 5 employees.
Xero reconciliations are more straight forward and easier to use, in conjunction with its ability to more narrowly define and allocate your transactions it makes for a much easier and time efficient reconciliation process. MYOB requires initial allocation of transactions and then redirection to the Bank reconciliation section to finalise the transactions – this process is a little longer.
There are more in depth comparisons of the two systems in the original article, MYOB Essentials Account vs Xero Review – Which is Best for Micro-Business?