Xero vs MYOB for Australian Trade Businesses 2026: Honest Head-to-Head
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Xero vs MYOB for Australian Trade Businesses 2026: Honest Head-to-Head

The 30-Second Verdict

Buy Xero if: You run ServiceM8 and want the cleanest integration, you have under 10 employees, or you value mobile access and a clean interface over payroll depth.

Buy MYOB AccountRight if: You have 5+ employees on the Electrical Contracting Award (MA000025) with complex allowance structures, you’re already embedded in the MYOB ecosystem, or your accountant specifically prefers MYOB for your file type.

For the majority of Australian electricians and solar installers — particularly those using ServiceM8 — Xero is the right call in 2026. The API is wider, the mobile app is better, and the interface is easier to hand to a bookkeeper or spouse doing the admin.

The rest of this article explains exactly why, and where MYOB is the better answer.

The 60-Second Comparison Table

FeatureXero StandardMYOB AccountRight Plus
Monthly price (AUD, 2026)$65/month$75/month
Invoice limitsUnlimitedUnlimited
ServiceM8 integration✅ Deep (API)⚠️ Functional (limited sync)
Payroll employees includedUp to 5 (Standard)Up to 5 (Plus)
STP Phase 2✅✅
BAS/GST lodgement✅ In-browser✅ In-browser
Mobile app✅ Strong⚠️ Functional
Multi-currency❌ (Premium only)✅ (Plus)
Electrical Award allowance setupManual (pay items)Semi-automated (payroll categories)
Bank feeds (major AU banks)✅✅
Inventory/job costing✅ (Projects add-on)✅ (built-in)
Desktop install option❌ Cloud only✅ (AccountRight desktop)

The Integration Factor: ServiceM8 Connection Depth

This is the decision point for most electricians and solar installers.

Xero + ServiceM8

ServiceM8’s Xero integration is the reference implementation. When an invoice is created in ServiceM8:

  • It syncs to Xero automatically as a draft invoice
  • Client details, line items, and tax codes carry across
  • Payments recorded in Xero sync back to ServiceM8 as paid
  • New contacts created in either system sync bidirectionally

The integration uses Xero’s full API and is actively maintained by ServiceM8. Real-time sync means your bookkeeper sees finalised jobs in Xero within minutes of the invoice being created on-site.

MYOB + ServiceM8

ServiceM8 integrates with MYOB AccountRight and MYOB Essentials. The integration works — invoices sync, contacts sync — but the depth is shallower than the Xero connection. Known limitations:

  • Payment sync from MYOB back to ServiceM8 is less reliable
  • Custom tax codes in MYOB require manual mapping in the ServiceM8 integration settings
  • Contact deduplication is more manual than with Xero

If Xero costs the same and integrates better, Xero wins this category clearly.

Payroll: Where MYOB Fights Back

This is where MYOB’s historical depth in the Australian market shows.

Electrical Contracting Award (MA000025) in Xero

Xero Payroll handles STP Phase 2 correctly, manages superannuation, and processes leave entitlements. For electrical allowances (height money, tool allowance, dirt money, confined space), you need to:

  1. Create custom pay items for each allowance type
  2. Set the correct ATO reporting category (critical for STP Phase 2 compliance)
  3. Configure the correct superannuation treatment for each allowance
  4. Apply them manually per employee per payrun

Once configured, it works. But the setup requires accounting knowledge — or the risk of incorrect ATO reporting. See the Xero Payroll Electrical Award guide for step-by-step setup.

Electrical Contracting Award in MYOB

MYOB AccountRight has payroll categories that map more directly to Australian award structures. The allowance configuration is more granular out of the box — MYOB includes ATO reporting categories as part of the pay item setup workflow, reducing the risk of incorrect STP2 classification.

For businesses with 5+ employees on award wages and variable allowances week to week, MYOB’s payroll configuration is more robust and less error-prone than Xero’s, even after Xero’s pay items are correctly set up.

The exception: If your bookkeeper already knows Xero inside out, Xero’s flexibility to configure anything correctly outweighs MYOB’s structured approach. MYOB’s advantage is only realised when the setup is done correctly — and Xero’s correct setup produces the same compliance outcome.

Australian-Specific Features

GST and BAS Lodgement

Both platforms handle GST correctly and allow direct BAS lodgement through the ATO Business Portal integration (SBR — Standard Business Reporting).

Xero: BAS preparation is streamlined. Xero’s activity statement screen is clean and easy to reconcile against bank feeds before lodging.

MYOB: BAS is more configurable — more tax codes, more granular GST reporting categories. For businesses with complex GST situations (mixed residential/commercial, export invoices, partial input tax credits), MYOB’s configuration depth is genuinely useful.

For a standard residential electrical or solar business, Xero’s BAS handling is sufficient and easier to use.

Single Touch Payroll Phase 2 (STP2)

STP Phase 2 requires disaggregated reporting of income types — salary and wages, allowances, redundancy, etc., separately reported to the ATO.

Both Xero and MYOB are fully STP2 compliant. The difference is in setup: Xero requires each pay item to be manually tagged with the correct ATO reporting category. MYOB’s payroll categories include the ATO classification in the workflow. First-time STP2 setup in Xero is more error-prone for non-accountants; first-time setup in MYOB is more guided.

The Pricing Trap

Xero’s plan limits catch trade businesses at the Starter tier. 20 invoices and 5 bills per month sounds adequate until you’re invoicing daily. A busy electrical business can hit 20 invoices in a week.

Xero pricing for trade businesses:

PlanPriceKey Limit
Starter$32/month20 invoices, 5 bills/month — not viable for most active businesses
Standard$65/monthUnlimited invoices and bills — this is the minimum viable plan
Premium$85/monthMulti-currency + additional payroll employees

Don’t plan around Starter. Budget $65/month minimum.

MYOB pricing:

PlanPriceNotes
MYOB Essentials$49/monthCloud only, simpler feature set
MYOB AccountRight Standard$69/monthCloud + desktop, payroll
MYOB AccountRight Plus$75/monthMulti-currency, inventory, full payroll

MYOB AccountRight Plus is the most comparable feature set to Xero Standard/Premium. At $75/month vs Xero Standard’s $65/month, price is not a meaningful differentiator.

The real pricing trap in MYOB: Adding users. MYOB AccountRight charges per-user above the included seats. If your bookkeeper, business partner, and accountant all need access, Xero’s unlimited-user model (at the Standard tier) becomes significantly cheaper than MYOB at scale.

When to Choose MYOB

  1. You’re already on MYOB and your data is there. Migration cost (accountant time, historical data) often exceeds the operational benefit of switching.
  2. Your accountant uses MYOB as their preferred platform and you want them to work directly in your file.
  3. 5+ employees on the Electrical Award with complex variable allowances. MYOB’s payroll categories provide more structured compliance for multi-employee award management.
  4. You need inventory and job costing built in without an add-on. MYOB AccountRight includes job costing natively; Xero requires the Projects add-on (additional cost).

When to Choose Xero

  1. You use ServiceM8 — Xero’s integration is materially better.
  2. You’re starting fresh with no existing accounting platform.
  3. Under 5 employees — Xero Payroll’s limitations matter less at small headcount.
  4. Your bookkeeper prefers Xero — and most modern bookkeepers do.
  5. You want cloud-only — no desktop install complexity.

How ServiceM8 Ties It Together

Whichever platform you choose, ServiceM8 is the job management engine. Quotes, jobs, materials, and invoices live in ServiceM8 — accounting software receives the financial output.

The integration direction matters: ServiceM8 → accounting. Your accounting platform should never be the primary record for job or invoice data. ServiceM8 is the source of truth; Xero or MYOB is the financial ledger.

Start your free ServiceM8 trial →

FAQ

Is Xero or MYOB better for electricians and solar installers?

Xero is better for most — particularly ServiceM8 users. MYOB AccountRight edges ahead only for businesses with 5+ employees on the Electrical Contracting Award needing deep payroll configuration.

Which handles BAS and GST better?

Both handle GST correctly. Xero’s BAS preparation is cleaner and easier. MYOB is more configurable for complex GST situations. For standard residential electrical and solar, Xero’s GST is sufficient.

What does Xero cost for a trade business in 2026?

Budget $65/month (Standard plan) for unlimited invoicing. The $32/month Starter plan’s 20-invoice limit is not practical for active trade businesses.

Can both handle Single Touch Payroll Phase 2?

Yes. Both are STP2 compliant. MYOB’s setup is more guided; Xero requires manual ATO category tagging on each pay item. Incorrect Xero setup creates ATO reporting errors — see the Electrical Award allowance guide for correct setup.

This article is featured in Chapter 8 of The Sparky’s Playbook. The free 12-chapter guide for Australian electricians — licensing, EV charging, commercial solar, cash flow, tech stack, and building a business worth selling. Download the full book free →

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