Choosing a cloud accounting service

Xero has changed small business accounting, moving it from desktops to the cloud. Today, cloud-based accounting tools are essential. They let businesses handle financials anywhere and they simplify collaboration with accountants

Xero vs MYOB: Choosing your cloud partner

Xero’s early mover advantage in cloud accounting, means it started operating online at least six months ahead of MYOB. It is still in front.

Designed with small businesses in mind, Xero offers a streamlined, one-size-fits-all approach in three pricing tiers. Its mobile and tablet apps are highly functional, allowing business owners to manage everything on the go, with complex reporting reserved for PC use.

MYOB, by comparison, targets a broader range of businesses, with products suited for different business sizes and integrated cloud functionality. MYOB’s offerings include some features Xero does not, like in-house inventory management, which can be especially useful for businesses that need inventory control without relying on third-party add-ons.

Intuit and Reckon: Smaller players with niche appeal

Further down the market, Intuit and Reckon offer options that may work well for businesses with specialised requirements. They currently lag behind Xero and MYOB in features and cloud functionality, but certain users might still find them suitable.

Consulting your accountant

For many, the best approach is to discuss software choices with an accountant.

Most accountants prefer either Xero or MYOB, both of which have features that enhance ease of use for professionals. While accountants may earn commissions from referrals, these fees are often minor compared to the efficiencies gained from shared cloud access. This collaboration can streamline work, with accountants able to access your books instantly—saving time and simplifying your financial work.