Comparison of MYOB and XERO Features and Functionalities

This document provides a comparison and contrast of the features and functionalities of MYOB and XERO accounting software packages. It recommends MYOB as the suitable vendor and accounting software package for Eureka Limited, a company in the beverage production industry.

Stratergic information system

Vendor Selection
Comparison and Contrast of the Features and Functionalities of MYOB and XERO
Comparison Basis XERO MYOB
User Friendly Xero has a more user-friendly
interface and can offer
customized services as per the
needs and requirements of the
company. The most
distinguishing feature
provided by XERO which
makes it relatively easier to
use is dashboard. The
dashboard provides all
relevant information such as
outstanding invoices, pending
bills, bank balances and
expenses. Also, it has quick
performance in page loading
and also it facilitates in
opening up of several tabs at a
time.
MYOB does not offer
customizable as interface and
also its performance is
relatively slower as compared
to Xero. MYOB can process
only in one activity at a time
and does not facilitate in
processing of multiple tabs at
a time. Also, unlike Xero that
enables the ease to access the
software from anywhere
MYOB requires to be installed
on a desktop to become
functional (Johnston, 2018).
Managing Inventory XERO is less functional in
providing enhanced features
of managing inventory as it
possesses only a basic feature
of inventory management. The
more advanced features
requires spate logins and
incurs extra cost for a business
entity
MYOB provides relatively
better features for managing
inventory and its basic
subscription plan already
possess the complex features
of managing inventory (Lane,
2018)
Payroll
The payroll module of XERO
performs better that MYOB as
it performs additional features
such as developing payroll
according to the employee
calendar
On the other hand, the payroll
feature of MYOB is not as
efficient as XERO as its
subscription is for only a
limited number of staff

Sales and Purchases
Functionalities
The sales and purchases
functions carried out by
XERO does not require to
login again and enable in
automatically performing of
repeat invoice or bill
On the other hand, MYOB
require logging in on the part
of user for performing the
function of carrying out repeat
invoice or bill and therefore
results in delaying the process
Reporting System The financial reports such as
balance sheet and income
statement provides the feature
of accessing the report on live
basis at any point of time
The financial reports
developed by MYOB can be
accessed only after a specific
period of time such after a
month
Bank Reconciliation
XERO possess powerful tools
such as bank rules and cash
coding that enables the users
to achieve time saving as
compared to MYOB. Also, it
possesses more effective tools
for reconciling accounts that is
performed on daily basis
instead of carrying it on a
monthly basis
The bank reconciliation
feature provided by MYOB is
not so advanced as compared
to that of Xero and also it
enables to conduct
reconciliation on monthly
basis only (Xero vs MYOB vs
QuickBooks, 2017)
Sales Function The sale module of Xero is not
so effective as compared to
that of MYOB as it provides
only limited features such as
draft invoices and does not
enable in providing sales
quotes
The sale feature provided by
MYOB is advanced as
compared to that of XERO
due to providing additional
facilities such as generating
sales quotes, orders and
invoices (Ellis, 2019)
Suitable Vendor and Accounting Software Package for Eureka Limited
As provided in the given case study, Eureka Limited is involved in production of
beverages but is recently facing difficulty in promoting its growth due to ineffectiveness of its
traditional bookkeeping system. The company traditional system of managing its accounting and
financial transactions is posing difficulty for it due to its inability to manage the complex
accounting transactions for the company to support its innovation of introducing new healthy
beverages products.
As such, the company from the analysis of software features of MYOB and XERO
discussed above is recommended to integrate the use of MYOB. This is because MYOB can be
regarded as the best online accounting software for meeting the diverse accounting needs and
requirements of a business undergoing rapid expansion and growth. It provides appropriate
features to manage a broad range of business processes of the selecting company ranging from

manufacturing to managing inventory, service delivery, marketing and sales. Eureka Limited is
planning to introduce its new drink products within the market and therefore requires efficient
systems of managing large volume of accounting and financial data relating to scheduling of its
inventory and invoicing (Johnston, 2018). The increase in production will require purchasing of
bulk raw materials and therefore maintaining appropriately bill of materials and tracking of
inventory in a regular manner is required to meet the new strategic goals and priorities of the
company. This will help in streamlining the production process by appropriate allocation of
financial resources to different departments and ensuring continuous replenishment of inventory
and mining its hold cost. This increase in operational efficiency will help the company to incur
more cost on its core strategic business processes for achieving its business goals and objectives
(Lane, 2018).
In addition to this, MYOB cloud-based accounting software will also enable the company
in developing an efficient sales system and managing all the accounting and financial data
associated with the sales process in an effective manner. The implementation of MYOB
accounting software by the company will help in developing sales quotes, orders and invoices’ in
a effective manner. The automatic processing of accounts receivable and payables accounts will
help in managing cash adequately. The sufficient flow of cash is required by the company for
meeting its newly developed goals and objectives of business expansion. Also, as the company is
in expansion phase it requires cost-cutting in its operational functions and thus the adoption of
MYOB accounting software can be regarded as bets for the company. This is because it can is
less costly to install as compared to XERO and therefore would prove to be economic for the
company. It also possesses strong project management features such as job and project costing
that will help the company to effectively manage its profitability. It also provides a payroll
maintenance feature that would help the company to automatic process the wage so fist
employees and therefore reducing the time involved in manual handling of employee details to
process their salaries and wages (Craft, 2016).

References
Craft, S. 2016. MYOB stays fighting fit in competitive accounting software ring. [Online].
Available at: https://www.intheblack.com/articles/2016/07/01/myob-stays-fighting-fit-in-
competitive-accounting-software-ring [Accessed on: 28 May 2019].
Ellis, G. 2019. Xero vs MYOB – What works best for your business? [Online]. Available at:
https://geca.co.nz/xero-myob-comparison/ [Accessed on: 28 May 2019].
Johnston, M. 2018. Best Small Business Accounting Tools: Xero vs Quickbooks vs Freshbooks
vs MYOB. [Online]. Available at: https://beanninjas.com/blog/best-small-business-accounting-
tools-xero-vs-quickbooks-vs-freshbooks-vs-myob/ [Accessed on: 28 May 2019].
Lane, S. 2018. Xero vs MYOB: which will work better for your business? [Online]. Available at:
https://www.listonnewton.com.au/information-centre/xero-vs-myob-which-will-work-better-for-
your-business [Accessed on: 28 May 2019].
Xero vs MYOB vs QuickBooks. 2017. [Online]. Available at: https://bristax.com.au/xero-vs-
myob-vs-quickbooks/ [Accessed on: 28 May 2019].