Xero vs Wave vs MYOB: Which Accounting Software Should NZ Small Businesses Use in 2026?

Three out of five NZ sole traders and micro-businesses are paying for accounting software they barely understand, or using spreadsheets they don't trust. If you've got fewer than five employees and you're trying to work out whether Xero, Wave, or MYOB is worth your money, this comparison is for you.

The short version: Xero wins for most NZ businesses. But the reasons why, and when that's NOT true, are worth knowing before you sign up.

What you'll actually pay (NZD pricing, May 2026)

One critical caveat for Wave users: Wave is a Canadian-US product. Its free tier doesn't support IRD GST returns, payday filing, or direct NZ bank feeds in the way Xero and MYOB do. That's not a small gap. If you're filing GST with IRD quarterly, Wave makes that harder, not easier.

Xero NZ: the market leader (and why that actually matters)

Xero's Ignite plan starts at $35/month NZD (ex-GST), which gets you 20 invoices per month, 5 bills, bank reconciliation, and direct IRD GST filing. That's tight if you're a tradie sending invoices every week, but fine for a consultant doing five or six a month.

The Grow plan at $83/month adds unlimited invoices and bills, plus payroll for one person. For a small business with one employee or one contractor on payroll, that's the realistic starting point.

New customers get 80% off for the first three months (Xero runs this discount regularly with a code at checkout), which brings Ignite down to about $7/month for the first quarter. Useful while you're testing.

The strongest argument for Xero isn't the features. It's ecosystem lock-in, in a good way. Over 90% of NZ accountants are Xero-certified according to taxaccountants.co.nz. When you send your accountant your Xero file at year-end, they can open it and work in it directly. When you use MYOB and your accountant uses Xero, someone pays a conversion cost. Usually you.

Try Xero Ignite (80% off first 3 months)

[!TIP]
If your accountant already uses Xero, don't overthink it. Pick the Ignite plan, use it for three months, upgrade if you hit the invoice cap. The 80% introductory discount makes the decision even easier.

MYOB NZ: better value for small teams, genuinely

MYOB gets a bad reputation from people who used AccountRight desktop in 2015. The current MYOB Business product is different.

MYOB Business Lite is $157.50/year NZD (ex-GST) on the current promotional price, which works out to $13.13/month. That price doubles after the introductory period to $315/year ($26.25/month), but even the standard rate is cheaper than Xero Ignite. Lite covers invoicing, two connected bank accounts, and GST filing with IRD. Payroll is an add-on at $3/employee/month (ex-GST).

MYOB Business Pro is $48.75/month (after promo period, $585/year), which adds unlimited bank accounts, receipt scanning, and more detailed reporting.

Where MYOB genuinely wins: businesses with more complex payroll (retail staff, multiple shifts), or those on MYOB AccountRight Plus ($100/month) who need inventory management. Tradies with parts stock, retailers with product counts, or anyone who needs a desktop install alongside the web version.

The weak point is exactly the same as it was five years ago. NZ accountant penetration. Most NZ accountants default to Xero, and switching your MYOB file into Xero is a project with a time cost. If you're happy with your accountant and they support MYOB, stay. If you're about to hire an accountant, ask them what they use first.

Explore MYOB Business plans (NZ pricing)

Wave: free, but not really built for New Zealand

Wave's free Starter plan is genuinely free. Unlimited invoicing, unlimited bookkeeping entries, a mobile app. The Pro plan at roughly $16 USD/month (~$26 NZD) adds bank transaction auto-import and categorisation, receipt capture, and automated late payment reminders.

The business case for Wave is straightforward: if you're a sole trader doing under $50,000 a year, you send a handful of invoices per month, and you have an accountant who does your IRD filing manually, Wave costs nothing and does the basics.

The problem is IRD compliance. Wave doesn't connect to Inland Revenue for GST returns or payday filing. You'd export a report and your accountant or Hnry handles the IRD side. That extra step is fine if you're already outsourcing all your tax work. If you want to file GST yourself directly from your accounting software (like Xero and MYOB let you do), Wave isn't it.

There's also the NZ bank feed question. Wave's bank connections work for some NZ banks via third-party aggregators, but coverage and reliability is patchier than Xero's direct bank feeds. An ANZ or BNZ user connecting to Xero gets a clean daily import. Wave may require manual CSV uploads depending on your bank.

One honest alternative for NZ sole traders specifically: Solo (soloapp.nz) is a NZ-built product with NZ income tax calculations and IRD integration built in. Not the same feature depth as Xero or MYOB, but if you're a one-person operation wanting something that actually understands the NZ tax system, it's worth comparing.

[!WARNING]
If you're GST-registered, Wave is not a good fit for doing your own GST returns. You'll still need to manually calculate and file with IRD. Xero and MYOB both file directly from the software.

Who should use what: the actual decision

Use Xero Ignite ($35/month) if:

• You send fewer than 20 invoices per month
• Your accountant uses Xero (ask them)
• You want to file GST yourself directly from the software
• You might grow to needing payroll in the next year

Use MYOB Business Lite ($26.25/month after promo) if:

• You're cost-sensitive and Xero's $35 entry point feels steep
• You need inventory management (go straight to AccountRight Plus)
• Your current accountant supports MYOB

Use Wave (free) if:

• You're pre-revenue or very early stage
• You don't need to file GST directly from the software
• You outsource all tax work to an accountant or Hnry
• You're testing a business idea and want zero tool spend

Skip Wave and consider Solo NZ instead if:

• You're a NZ sole trader who wants NZ income tax help built in
• You file your own returns and want IRD integration without paying for Xero

What costs extra (don't get surprised)

Xero charges extra for payroll employees above the plan limit, expense claims above five users, and project tracking above five users. On Ignite, there's no payroll at all. On Grow, you get one employee. That catches people out when they hire a second staff member.

MYOB's payroll add-on is $3/employee/month plus GST. That's cheap for one or two people, but check the total at scale.

Wave's online payment processing charges 2.9% + $0.60 per credit card transaction on the free plan. The Pro plan drops the $0.60 per transaction. If you're processing a high volume of smaller invoices, that transaction fee adds up faster than the Pro subscription costs.

The bottom line

For most NZ businesses with one to five employees, Xero Grow at $83/month is the right answer. IRD integration works, your accountant already knows it, payroll is included for one person, and the ecosystem of add-ons (Hubdoc for receipts, Stripe for payments, Tradify for trades) is the best of the three.

If you're a sole trader watching every dollar, MYOB Business Lite at $26.25/month is a legitimate alternative with solid IRD compliance. It's not as loved by accountants, but it works.

Wave is free, and that's genuinely useful for pre-revenue or zero-employee businesses. Just accept that you'll need your accountant handling IRD, because the software won't do it for you.

New Xero customers can get the first three months at 80% off. At $7/month for three months, it's worth trying even if you're not sure you'll stick with it.

Start Xero with 80% off first 3 months
Compare MYOB plans for NZ