MYOB or Xero?
Not only can you create items to use on each invoice, you can also ‘build items’. This is where you take two or more items (known as components), to make another item, referred to as a ‘finished item’. For example, you could transfer the quantity of timber and fabric (component items) to furniture (finished items).
You can do this manually, as a one off, or you can set it up so it auto-builds items for transfers you repeatedly make. This allows you to track the actual cost of a product.
Additionally, you can keep tabs on how much stock you have on hand and its total cost and sales value. You will also be able to see what stock you have received and what you are waiting for.
Xero’s inventory feature is very limited. We can create items and use them on each invoice, so you don’t have to remember the account code for certain products or services, however it doesn’t allow you to keep track, like MYOB does, so it is purely a memory tool.
Overall, MYOB is a lot more advanced when it comes to using the inventory feature.
If you are still unsure whether MYOB or Xero is better for your needs, I have broken down their different functions and given a recommendation for each, depending on:
- The type of service you require
- Your business-type, g., construction or retail etc.
- Structure of your business
using online sales platforms for overseas transactions – Xero
with employees on a salary – MYOB or XERO
using PayPal or Amex accounts – Xero
with employees on an hourly wage – MYOB
which choose to use managers to approve bills – XERO
who do a lot of invoicing – MYOB
that manage inventory – MYOB
Construction – MYOB
Retail – MYOB
Online stores – Xero or MYOB
Services – MYOB
NDIS providers – MYOB
Medical – MYOB
Type of structure:
Sole traders – MYOB or Xero
Companies with employees – MYOB
Trusts – MYOB
I hope you found this guide helpful – but remember, as useful as these pieces of accounting software are, they are no substitute for the bespoke service you receive when you employ a professional bookkeeper. Visit our website to see how you can access expert advice and save money in the long run.
If you have any questions, or you require any bookkeeping advice, contact us here.