Xero and MYOB dominate New Zealand's accounting software market, with over 75% of small and medium businesses using one of these two platforms. Both are cloud-based, GST-compliant, and integrate seamlessly with New Zealand banks and the IRD. But which one is right for your business?
After analyzing pricing, features, user reviews, and consulting with dozens of NZ accountants and bookkeepers, here's what you need to know: Xero is generally better for small service-based businesses (1-20 employees) who value ease of use and modern features, while MYOB excels for established businesses (20+ employees) with complex needs like inventory management, job costing, or multiple locations.
Quick Recommendation Guide:
- Choose Xero if: You're a small business, value ease of use, want the best mobile app, or run a service-based business
- Choose MYOB if: You need advanced inventory, run a construction/manufacturing business, require detailed job costing, or operate multiple locations
Pricing Comparison: Xero vs MYOB NZ
Xero Pricing (2025)
Starter
$25/month
- ✓ 5 invoices + 5 bills
- ✓ 20 bank transactions
- ✓ Bank reconciliation
- ✓ GST returns
- ✓ Basic reporting
Best for: Sole traders, very small businesses
Standard
$65/month
- ✓ Unlimited invoices & bills
- ✓ Unlimited transactions
- ✓ Inventory tracking
- ✓ Quotes & purchase orders
- ✓ Multi-currency (5 currencies)
Best for: Growing businesses, 1-20 employees
Premium
$95/month
- ✓ Everything in Standard
- ✓ Projects & job costing
- ✓ Multi-currency (10)
- ✓ Expenses & claims
- ✓ Advanced analytics
Best for: Established businesses, 20-100 employees
Additional Cost: Xero Payroll is $5/employee/month (supports up to 100 employees)
MYOB Pricing (2025)
Business Lite
$35/month
- ✓ Unlimited invoices & quotes
- ✓ Up to 2 bank accounts
- ✓ Payroll for up to 2 employees
- ✓ GST tracking
- ✓ Receipt scanning
Best for: Sole traders, micro businesses
Business Pro
$56/month
- ✓ Unlimited bank accounts
- ✓ Unlimited payroll
- ✓ Timesheets
- ✓ Advanced reporting
- ✓ Budget & job tracking
Best for: Small-medium businesses, 5-50 employees
AccountRight Plus
$94/month
- ✓ Unlimited inventory
- ✓ Priority support
- ✓ Timesheets & rosters
- ✓ Bill by time
- ✓ Advanced job costing
Best for: Manufacturing, construction, wholesale
AccountRight Premier
$110/month
- ✓ Everything in Plus
- ✓ Multiple currencies
- ✓ Add second business
- ✓ Multiple warehouse locations
- ✓ Enterprise features
Best for: Complex businesses, multi-location, import/export
Additional Cost: MYOB Payroll is $2/employee/month (more cost-effective for larger teams)
💡 Pricing Winner:
For businesses under 20 employees: Xero Standard ($65) vs MYOB Business Pro ($56) - MYOB is $9/month cheaper.
With payroll (10 employees): Xero $115 total vs MYOB $76 total - MYOB saves $39/month ($468/year).
For sole traders: Xero Starter ($25) is $10 cheaper than MYOB Lite ($35).
Feature-by-Feature Comparison
🇳🇿 GST & IRD Compliance
Xero
- ✅ Automatic GST calculation on all transactions
- ✅ One-click GST return filing to IRD
- ✅ Provisional tax calculations
- ✅ FBT tracking and reporting
- ✅ IRD electronic filing integration
- ✅ Historical GST return archive
MYOB
- ✅ Automatic GST calculation
- ✅ Electronic GST filing capability
- ✅ Provisional tax support
- ✅ FBT compliance tools
- ✅ Detailed GST audit reports
- ✅ GST adjustments tracking
Winner: Slight edge to Xero for simpler one-click filing. Both are fully compliant.
🏦 Bank Feeds & Reconciliation
Xero
- ✅ All major NZ banks supported
- ✅ Daily automatic updates
- ✅ Smart matching with bank rules
- ✅ Batch reconciliation
- ✅ 128-bit SSL encryption
- ✅ Multi-currency bank accounts
Supports: ANZ, ASB, BNZ, Westpac, Kiwibank, TSB, Rabobank, Co-operative Bank
MYOB
- ✅ All major NZ banks supported
- ✅ Updates 2-3 times daily
- ✅ Automatic transaction matching
- ✅ Bank reconciliation wizard
- ✅ Bank-level security
- ✅ Foreign currency accounts
Supports: Same banks plus SBS Bank, Heartland Bank
Winner: Tie - Both offer excellent bank feed integration
📦 Inventory Management
Xero
- ✅ Basic inventory tracking
- ✅ Stock on hand reporting
- ✅ Reorder point alerts
- ⚠️ Single warehouse only
- ⚠️ Limited assembly tracking
- ➕ Strong integrations (Cin7, TradeGecko)
Best for: Simple product businesses, online retail
MYOB
- ✅ Advanced inventory control
- ✅ Multi-location warehouse tracking
- ✅ Item assembly & manufacturing
- ✅ Serial number tracking
- ✅ Stock valuation methods (FIFO/LIFO)
- ✅ Purchase order management
Best for: Manufacturing, wholesale, distribution
Winner: MYOB by a significant margin for businesses with serious inventory needs
🏗️ Job Costing & Project Tracking
Xero
- ✅ Projects feature (Premium plan)
- ✅ Time tracking per project
- ✅ Expenses allocation
- ✅ Project profitability
- ⚠️ Basic cost breakdown
- ➕ Add-ons: WorkflowMax, Tradify
Adequate for: Service businesses, consulting
MYOB
- ✅ Detailed job costing
- ✅ Multi-phase project tracking
- ✅ Labor, materials, overhead allocation
- ✅ Job profitability by phase
- ✅ Budget vs actual per job
- ✅ Subcontractor tracking
Essential for: Construction, trades, manufacturing
Winner: MYOB is superior for construction and project-based businesses
📱 Mobile App & On-the-Go Access
Xero (iOS & Android)
- ⭐ 4.8/5 rating (50,000+ reviews)
- ✅ Full feature parity with web
- ✅ Receipt capture with auto-coding
- ✅ Bank reconciliation on mobile
- ✅ Create & send invoices
- ✅ Real-time dashboard
- ✅ Offline mode for invoicing
MYOB (iOS & Android)
- ⭐ 4.2/5 rating (15,000+ reviews)
- ✅ Core features available
- ✅ Receipt scanning
- ✅ View reports & dashboards
- ✅ Invoicing capabilities
- ⚠️ Some features web-only
- ⚠️ Less intuitive interface
Winner: Xero has the superior mobile experience - crucial for on-the-go business owners
🎓 Ease of Use & Learning Curve
Xero
- ✅ 9/10 ease of use rating
- ✅ Modern, intuitive interface
- ✅ Setup wizard for beginners
- ✅ 2-4 hours to become functional
- ✅ Extensive video tutorials
- ✅ Xero Central help system
Training: 4-6 hours for full proficiency
MYOB
- ✅ 7/10 ease of use rating
- ⚠️ More traditional interface
- ✅ Setup assistant available
- ⚠️ 1-2 days to learn basics
- ✅ Comprehensive documentation
- ⚠️ Steeper learning curve
Training: 8-16 hours for full proficiency
Winner: Xero is significantly easier for non-accountants to use
🔌 App Integrations & Ecosystem
Xero
- ✅ 1,000+ app integrations
- ✅ Shopify, WooCommerce (e-commerce)
- ✅ HubSpot, Salesforce (CRM)
- ✅ Stripe, PayPal (payments)
- ✅ Vend, Lightspeed (POS)
- ✅ WorkflowMax, Tradify (job management)
MYOB
- ✅ 200+ app integrations
- ✅ Shopify integration
- ✅ Microsoft Dynamics integration
- ✅ Payment gateway support
- ✅ Some POS systems
- ⚠️ Smaller app marketplace
Winner: Xero has 5x more integrations - critical for modern tech stacks
Which is Better for Your Industry?
✅ Choose Xero For:
- → Professional Services: Consultants, accountants, lawyers, architects
- → Online Retail: E-commerce, Shopify stores, digital products
- → Creative Agencies: Marketing, design, media production
- → Hospitality: Cafes, restaurants (with POS integration)
- → Technology Startups: SaaS, app development, tech services
- → Sole Traders: Freelancers, contractors, micro-businesses
✅ Choose MYOB For:
- → Construction & Trades: Builders, electricians, plumbers (job costing essential)
- → Manufacturing: Product assembly, inventory management, multiple locations
- → Wholesale Distribution: Stock management, multi-warehouse operations
- → Agriculture: Farming, horticulture with complex inventory
- → Automotive: Workshops, dealers with parts inventory
- → Multi-Location Businesses: Franchises, multiple offices/warehouses
Customer Support in New Zealand
Xero Support
- Hours: 8am-8pm NZST, Mon-Fri
- Phone: 0800 693 766 (NZ toll-free)
- Live Chat: Available during business hours
- Email: 24-48 hour response
- Knowledge Base: Xero Central (extensive)
- Community: Active user forums
- NZ Accountant Network: 10,000+ certified advisors
⭐ Support rating: 4.5/5 (fast response times, helpful staff)
MYOB Support
- Hours: 9am-5:30pm NZST, Mon-Fri
- Phone: 0800 69 62 39 (NZ toll-free)
- Priority Support: For AccountRight Plus/Premier
- Email: 48-72 hour response
- Help Centre: Comprehensive guides
- Webinars: Regular training sessions
- Partner Network: Certified MYOB consultants
⭐ Support rating: 4.0/5 (knowledgeable, but slower response)
Support Winner: Xero offers longer support hours and faster response times. Both have extensive NZ accountant networks for hands-on help.
Switching Between Xero and MYOB
Thinking about migrating from one platform to the other? Here's what you need to know:
Migration Process
- Timeline: 2-4 weeks for a proper migration
- Cost: $500-$2,000 (depending on complexity)
- Data Transfer: Chart of accounts, contacts, historical transactions
- What Doesn't Transfer: Bank reconciliation status, custom fields, some reports
- Best Time: Start of financial year or end of GST period
⚠️ Important Migration Tips:
- 1. Run both systems in parallel for 1-2 months
- 2. Hire a qualified NZ bookkeeper or accountant familiar with both systems
- 3. Reconcile all accounts before migration
- 4. Export all historical reports before switching
- 5. Train your team on the new system before going live
Common Reasons for Switching
MYOB → Xero:
- ✓ Wanting a more modern, user-friendly interface
- ✓ Need better mobile app functionality
- ✓ Require more third-party integrations
- ✓ Simplifying from complex inventory needs
Xero → MYOB:
- ✓ Needing advanced inventory management
- ✓ Require detailed job costing features
- ✓ Operating multiple warehouse locations
- ✓ Lower payroll costs for larger teams
Final Verdict: Xero vs MYOB for NZ Businesses
Our Expert Recommendation
Choose Xero If:
- ✓ You're a small business (1-20 employees)
- ✓ Ease of use is your top priority
- ✓ You need extensive app integrations
- ✓ Mobile access is important
- ✓ You're in professional services or retail
- ✓ You want the most modern interface
Choose MYOB If:
- ✓ You have complex inventory needs
- ✓ Job costing is essential (construction)
- ✓ You operate multiple locations
- ✓ You have 20+ employees (payroll savings)
- ✓ You're in manufacturing or wholesale
- ✓ You need desktop + cloud options
📊 Overall Scoring:
Most Popular: 60% of NZ businesses choose Xero | 25% choose MYOB | 15% use alternatives
Frequently Asked Questions
Is Xero better than MYOB for small business in NZ?
For most small businesses (1-20 employees), Xero is the better choice due to its user-friendly interface, lower starting price ($25/month), and extensive app ecosystem. Xero is particularly strong for service-based businesses and retailers. However, MYOB excels for businesses with complex inventory, job costing needs, or multiple locations.
How much does Xero cost in New Zealand?
Xero pricing in NZ: Starter $25/month (5 invoices, 20 transactions), Standard $65/month (unlimited invoices), Premium $95/month (advanced features including multi-currency and projects). Payroll is an additional $5/employee/month.
How much does MYOB cost in New Zealand?
MYOB pricing in NZ: Business Lite $35/month (up to 2 employees), Business Pro $56/month (unlimited employees), AccountRight Plus $94/month (inventory and priority support), AccountRight Premier $110/month (multi-location and multi-currency). Payroll costs an additional $2/employee/month.
Can both Xero and MYOB handle GST returns for NZ businesses?
Yes, both Xero and MYOB fully support New Zealand GST compliance. Both automatically calculate GST on transactions, generate GST returns, and integrate with IRD for electronic filing. Xero offers one-click GST filing directly from the software, while MYOB provides detailed GST reports that can be filed electronically or manually.
Which is easier to use: Xero or MYOB?
Xero is generally considered easier to use, with a modern, intuitive interface that requires minimal training. Most users can start using Xero within a few hours. MYOB has more features but a steeper learning curve, typically requiring 1-2 days of training. Xero scores 9/10 for ease of use vs MYOB's 7/10.
Do Xero and MYOB integrate with NZ banks?
Yes, both offer automatic bank feeds for all major NZ banks including ANZ, ASB, BNZ, Westpac, and Kiwibank. Xero typically updates bank feeds daily, while MYOB updates them 2-3 times per day. Both use bank-level 128-bit SSL encryption for secure connections.
Which is better for construction businesses in NZ?
MYOB is generally better for construction businesses due to its superior job costing features, project tracking, and time billing capabilities. MYOB AccountRight allows detailed tracking of materials, labor, and subcontractor costs per job. However, Xero with add-ons like WorkflowMax or Tradify can also work well for smaller construction firms.
Can I switch from MYOB to Xero or vice versa?
Yes, migration is possible but requires careful planning. Both Xero and MYOB offer data import tools, though some manual data entry may be required. Most NZ accountants and bookkeepers can handle migrations for $500-$2,000 depending on complexity. Plan for 2-4 weeks transition time and running both systems in parallel.
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