So what’s best? If you’re in one, should you switch?
I will say Evolve is a little biased in this respect. Having used both systems from setup to reporting and payroll, Xero wins for us hands down as it’s easy to use, and helps our clients and their businesses and makes everything just much more efficient.
So let’s see how they compare….
Size of the Business
Xero is more suitable for small to medium-sized businesses as it is easy to setup, use and has a great dashboard that displays a snapshot of the financial position of your business.
MYOB AccountRight is better suited for larger companies with much more complicated business operations. It has inventory management tools outright unlike Xero which needs a third party application like Cin7. MYOB can track inventory on hand, handle complex payroll and has time billing to generate sales invoices and payroll. To achieve these things in Xero you need third party addons which are specialist software applications which sync perfectly with Xero.
MYOB AccountRight is capable of handling an unlimited number of transactions and contracts whilst Xero has a limit of approximately 1,000 invoices per month, 1,000 banking transactions per month and around 5,000 contracts in total. To overcome this limit, using third-party partner applications with Xero is the way to go.
Both experienced bookkeepers and those who hardly have any bookkeeping background seem to love how Xero is an easy-to-use and straightforward system. It has user-friendly dashboards the shows frequent reports making it easier for the business to understand what their financial status is. This allows the business owner to make decisions and see its financial impact right away.
With Xero – your accountant or advisor can jump in at any time, where with MYOB, you must ensure it is ‘checked in’ to the cloud. Xero also allows for your accountant to use the same ledger as you when preparing year end accounts, so you know that your figures will always match.
As mentioned MYOB AccountRight has the ability to handle complex business operations and as such, has more going for it in terms of how the system is packed together. It can be too much for a small to medium-sized business owner to navigate through its interface. You can get lost trying to find your way when you only need a simple action to be done.
Hardware, upgrades and ease of access
With Xero, you won’t need to download and update your software at all, in fact you don’t even need a hard drive to access your files as everything is ‘in the cloud’. That means you can have access to your files anywhere anytime from any internet / browser enabled device.
Although MYOB AccountRight introduced a cloud-based solution, they still require the software to be downloaded on to a computer to manage your file.
What about the online version of MYOB called MYOB Essentials?
It may be online, but there are a few shortcomings of this newest MYOB offering as it can’t produce ABA files for either payroll or suppliers, has no user roles to specify function access and no classes or tracking categories. It also has limited user control over posting payroll into the accounts and no outright inventory even through an add-on.
Xero & MYOB both have add-ons, however Xero is the leader in this field with hundreds of add-ons. They range from employee time scheduling, to chasing debtors, to stock to better management reporting.
What it really comes down to is your business, how flexible you need your access to be, and how complex your needs are. Whilst both systems offer their advantages, you should talk to an expert to get a good insight in to what may be best for your needs.
If you need a more detailed explanation of which software should apply specifically for your business, contact the Evolve Online Bookkeeping team today on (07) 5413 9393.