Xero vs MYOB for Tradies: Which Is Actually Better in 2026?
Australia's two accounting heavyweights, and tradies are stuck in the middle. Your mate uses Xero. Your accountant swears by MYOB. Your job management app has a native Xero integration. Here's the honest answer — not the one sponsored by either of them.
By Benjy @ Tradie Scaler
Who Should Use Each One
- ✓ You use ServiceM8, Tradify, or simPRO
- ✓ You want the cleanest bank rec experience
- ✓ You're a sole trader or team under 20
- ✓ Your bookkeeper or accountant is Xero-trained
- ✓ You want the best app ecosystem
- ✓ You have complex payroll (award-covered staff)
- ✓ You need MYOB AccountRight features specifically
- ✓ Your accountant specifically recommends MYOB
- ✓ You're a larger business wanting desktop capability
- ✓ You use MYOB Advanced for enterprise ERP
Xero vs MYOB — Full Comparison for Tradies
| Feature | Xero | MYOB | Winner |
|---|---|---|---|
| Starting Price (AUD/mo) | $35 (Ignite) | $26.25 (Lite, ex GST) | MYOB |
| ServiceM8 Integration | Native 2-way | Available | Xero |
| Tradify Integration | Native | Native (new) | Tie |
| simPRO Integration | Native | Available | Xero |
| Bank Reconciliation | Excellent | Good | Xero |
| BAS Lodgement | Via SBR | Via SBR | Tie |
| Payroll (STP Phase 2) | Included in all plans | Add-on $3/employee/mo (Lite/Pro) | Xero (included) / MYOB (award depth) |
| Payday Super Ready | ✓ Confirmed | ✓ Confirmed | Tie |
| App Marketplace | 1,000+ apps | 250+ apps | Xero |
| Mobile App | Strong | Good | Xero |
| UI / Ease of Use | Modern, clean | Improved (web-based) | Xero |
| Accountant Adoption (AU) | Dominant | Strong | Xero |
| Free Trial | 30 days | 30 days | Tie |
What Actually Matters for Tradies
This is the biggest single factor for most tradies, and it's not close. Xero has native, two-way integrations with every major Australian job management app: ServiceM8, Tradify, Fergus, simPRO, AroFlo, Ascora. These aren't just "connects somehow" integrations — they're real-time syncs where invoices, payments, contacts, and job data move between systems automatically.
MYOB integrates with ServiceM8 and simPRO, but the integrations are generally less seamless — more "export and import" than live sync. If your job management app is the engine of your business and accounting is the backend, you want Xero handling that connection.
There is one exception: if you're on MYOB Advanced (the enterprise ERP version), integration depth is comparable to Xero for large operations. But most tradies aren't on Advanced.
Both platforms handle STP Phase 2 and BAS lodgement. For a sole trader with no employees, or a small team on simple hourly rates, either works fine.
Where MYOB pulls ahead is award complexity. Australia's Modern Awards system is notoriously complicated — overtime rates, penalty rates, allowances that change by industry and day of the week. MYOB's payroll module handles award interpretation more robustly than Xero's, particularly for construction and trades awards. If you've got apprentices, award-covered workers, or complex overtime calculations, MYOB AccountRight's payroll is worth the pain of a more complex interface.
For most small trade businesses paying workers a straightforward hourly rate, Xero's payroll is simpler and more than adequate. Also consider dedicated payroll platforms like Employment Hero or KeyPay — they handle award interpretation better than either accounting platform.
Bank reconciliation is the task most tradies hate most about accounting — and the thing that piles up if you ignore it for three months. Xero's bank rec is genuinely its best feature: clean, fast, with smart categorisation that learns from your past behaviour. Most tradies can reconcile a week's transactions in under 10 minutes once they've set up the rules.
MYOB's bank rec is functional but more cumbersome. The interface takes longer to navigate, the rules engine is less intuitive, and the overall experience is more laborious. For busy tradies who want to spend as little time as possible looking at their accounts, this matters.
Xero Ignite (what used to be called Starter) is $35/month. MYOB Business Lite is $26.25/month ex GST. The entry-level gap has widened — Xero is now roughly $7/month more expensive than MYOB at the bottom.
At mid-tier — Xero Grow at $75/month vs MYOB Pro at $52.50/month — the gap is real money: $22.50/month, or $270/year. But here's what's changed: Xero now includes payroll in every plan. MYOB Lite and Pro charge $3/employee/month extra for payroll. For a tradie with 3 staff, MYOB Pro with payroll is $61.50/month vs Xero Grow at $75/month. Factor in the integration ecosystem and the difference shrinks fast.
💰 Prices verified against official vendor sites on 20 May 2026. Pricing changes — always confirm at sign-up.
From 1 July 2026, super stops being a quarterly task. It has to be paid every single pay run and land in the employee's fund within 7 business days. The SG rate is 12%, calculated on Qualifying Earnings — which is broader than the old Ordinary Time Earnings base. Translation: the super amount goes up for most pay runs.
The ATO's Small Business Superannuation Clearing House shuts permanently on 30 June 2026. If you're still using it, you need to switch to your software's built-in super payment before then — Xero Auto Super or MYOB Pay Super.
Both platforms have confirmed Payday Super readiness. MYOB has historically been faster to ship Australian payroll legislative updates. Xero requires a bit more manual configuration — particularly reviewing pay items to make sure allowances and leave loading are categorised correctly under QE.
The cash flow impact is real. If you've been holding quarterly super as working capital — which most tradies with employees have been doing — that float disappears on 1 July. A business with 5 staff on $60K average has been sitting on roughly $2,700 per quarter. That money now needs to leave your account within days of each pay run. Model this now, not in June.
The Bottom Line
For most Australian tradies: Xero. The integrations with job management apps are better, the bank rec is faster, the interface is cleaner, and the bookkeeper/accountant network that knows Xero inside-out is larger. Unless your accountant specifically recommends MYOB, or you have complex award-covered payroll, start with Xero.
Genuinely choose MYOB if: You have staff on complex Modern Awards, you specifically need MYOB AccountRight's desktop capability, or you've got a long-standing relationship with an MYOB-specialist accountant who you trust. In those cases, MYOB is the right call — just set up a dedicated payroll integration alongside it.
Both offer a 30-day free trial. Try before you lock in.
The only way to know which one suits your workflow is to run a month of real transactions through it. Both trials are full-featured with no credit card required.
Frequently Asked Questions
Xero is better for most Australian tradies. It has stronger integrations with job management apps like ServiceM8 and Tradify, a cleaner interface, and better bank reconciliation. MYOB is the better choice for complex award-covered payroll or if your accountant specifically recommends it.
Yes. Xero has native two-way integrations with ServiceM8, Tradify, Fergus, simPRO, AroFlo, and most other major Australian job management apps. The integrations sync invoices, payments, and contacts automatically. MYOB also integrates with ServiceM8 and simPRO, but the connections are generally considered less seamless.
MYOB is cheaper at every tier — Lite $26.25/month (ex GST) vs Xero Ignite at $35/month, and MYOB Pro $52.50 vs Xero Grow at $75. But Xero now includes payroll in all plans, while MYOB charges $3/employee/month extra on Lite and Pro. Factor in payroll costs and the gap narrows fast.
Yes, and many tradies do. The most common approach is to switch at the start of a new financial year (1 July) to keep your books clean. Xero's migration support and the broader bookkeeper community can help import your chart of accounts, contacts, and opening balances. Talk to your accountant before switching — they'll have a preference about timing and data migration method.
From 1 July 2026, employers must pay super with every pay run — not quarterly. Contributions have to reach the fund within 7 business days. Both Xero and MYOB support this natively. Make sure your plan includes payroll and that it's configured before the deadline.
Xero Comprehensive at $100/month covers payroll for up to 5 people. If that's your headcount, that's your plan. You don't need Ultimate unless you go past 5 paid employees. Add Xero Expenses ($5/user/month for approvers) if your team needs to submit receipts.
MYOB. Australia's Modern Awards system — overtime rates, penalty rates, allowances that change by industry and day of the week — is where MYOB's payroll has a genuine edge. Xero's payroll handles straightforward hourly rates well but struggles with complex award interpretation. If you've got apprentices or award-covered workers, MYOB AccountRight or a dedicated payroll tool like Employment Hero is the safer pick.
Yes. A clean migration takes 2–4 weeks with professional support — chart of accounts mapping, bank feed setup, and a reconciliation overlap period. Start at the beginning of a month or quarter to keep BAS reporting clean. Don't wait until June — Payday Super kicks in 1 July and you don't want to be mid-migration when it does.