Microsoft 365 vs Google Workspace for small business

For most Australian professional services businesses, Microsoft 365 wins, because your clients, accountants and software all expect Word and Excel, and the desktop apps are stronger. Google Workspace wins for teams that were built browser-first and collaborate in real time all day. Both are excellent and similarly priced; the deciding factor is how your business actually works, not which is objectively better.

This is one of the most common questions we get from owners setting up, and the honest answer is that either will serve you well. But switching later is genuinely painful, so it is worth choosing deliberately. Here is a straight comparison.

Microsoft 365 vs Google Workspace at a glance

What is Microsoft 365 best at?

Microsoft 365 is best for businesses that live in documents and need full compatibility with the wider professional world. If you exchange Word contracts and Excel spreadsheets with clients, accountants or lawyers, native Office is a real advantage.

Who it suits: accountants, law firms, financial planners, allied health, and anyone whose clients send Office files expecting them back the same way. The installed desktop apps also mean serious Excel and Word work runs faster and works offline. The trade-off is that it can feel heavier, and its full security needs configuring, which we cover in which Microsoft 365 plan you need.

Example: If you routinely send a client a Word contract and expect the tracked changes to come back intact, native Office removes the format conversion that can garble them.

What is Google Workspace best at?

Google Workspace is best for teams that work in a browser and collaborate on the same document at the same time all day. Its real-time editing and simplicity are genuinely excellent, and many younger businesses find it faster to live in.

Who it suits: startups, creative and marketing teams, and businesses with no legacy of Office files or on-site servers. The trade-off shows up when you need to exchange complex Office documents, where format conversion can cause formatting headaches. We support it fully through our Google Workspace service for the teams it suits.

How do they compare on cost?

Cost is close enough that it should not be the deciding factor. At the recommended tier, Microsoft 365 Business Standard is around $18 per user a month and Google Workspace Business Standard around $16, both including email, storage and collaboration tools.

Where costs actually differ is switching. Migrating an established business from one to the other means moving email, files and habits, which is the real expense. That is exactly why choosing well at the start matters more than saving two dollars a seat.

Warning: The biggest cost of this choice is not the monthly fee but the disruption of switching later, so treat the first decision as close to permanent.

How do they compare on security?

Both offer strong security, and both require you to switch it on rather than assuming it is handled. The most important control on either platform is multi-factor authentication, and neither enforces it by default.

Microsoft 365 Business Premium has an edge for regulated businesses, with deeper device management and threat protection built in. Whichever you choose, the fundamentals are the same, and we cover them in what is MFA and the cyber security essentials guide. If security is your concern, our cyber security service hardens either platform.

Best practice: Turn on multi-factor authentication for every user on day one, whichever platform you pick, since neither one enforces it for you.

Which should you choose?

Choose based on how your business already works, not on features you may never use.

• Choose Microsoft 365 if you are in professional services, exchange Office files with clients, or want installed desktop apps and the strongest compliance options.
• Choose Google Workspace if your team is browser-first, collaborates in real time constantly, and has no attachment to Office files or on-site systems.
• Still unsure? Default to Microsoft 365 in the Australian professional services market. It is what your clients and their software expect, and it is the safer long-term bet.

Whichever way you lean, get it set up properly once. See the full Microsoft 365 small business guide for what a good setup looks like. Microsoft's own comparison detail sits on learn.microsoft.com.

Frequently asked questions

Is Microsoft 365 better than Google Workspace?

Neither is objectively better; it depends on how you work. Microsoft 365 suits document-heavy professional services, while Google Workspace suits browser-first, real-time collaborative teams. For most Australian professional firms, Microsoft 365 is the safer choice.

Can I switch from Google Workspace to Microsoft 365 later?

Yes, but it takes real effort. Email, files and calendars all have to be migrated and staff have to relearn tools, so it is worth choosing carefully upfront rather than planning to switch.

Which is cheaper, Microsoft 365 or Google Workspace?

They are priced very similarly, around $16 to $18 per user a month at the recommended tier. Cost should not be the deciding factor; how your team works matters far more.

Does Google Workspace open Word and Excel files?

Yes, Google Workspace opens and edits Office files, but it converts them to its own format, which can occasionally break the formatting of complex documents. For heavy Office file exchange, native Microsoft 365 is smoother.

Can a business use both?

Technically yes, but it is rarely a good idea. Running both doubles cost and confuses where files and email live. Pick one platform and standardise your whole team on it.

Weighing the two up for your business? Book a free consult and we will give you a straight recommendation based on how you actually work.