Best Accounting Software for Sole Traders Australia 2026

Short answer: for Australian sole traders in 2026, Xero is the safest choice if your accountant is involved, MYOB Business Lite is the cheapest full accounting option at A$29/month, Hnry is best if you want tax handled entirely for you, and Rounded is the closest thing to software built specifically for Australian sole traders. If you only send invoices and don't need bookkeeping, none of these are worth the money — skip to the last section.

The honest starting question isn't "which software" — it's whether you need accounting software at all.

Do you actually need accounting software?

A lot of sole traders pay A$30–40 a month for a bookkeeping platform and use roughly 10% of it.

You probably do need it if you're registered for GST and lodging BAS, you have more than a handful of expenses to track, you want bank feeds reconciling automatically, or your accountant has asked for it (most Australian accountants are Xero-certified, and giving them what they know genuinely reduces your bill).

You probably don't need it yet if you're under the A$75,000 GST registration threshold, your expenses fit on one page, and your actual problem is producing professional invoices and chasing payment. That's an invoicing problem, and accounting software is an expensive way to solve it.

Comparison

The one thing to check before you sign up for Xero

Xero Ignite is A$37 a month and caps you at 20 invoices per month. If you send more than 20, you need Grow at A$78. That's A$936 a year.

This catches people out constantly, because the entry price is what gets advertised. Twenty invoices sounds like plenty until you're a cleaner billing weekly, or a tutor billing per family. Count your actual monthly invoice volume before you commit. Our InvoiceSonic vs Xero comparison goes through the cap in detail.

The options, honestly

Xero — the default for a reason. Bank feeds work well, BAS lodgement is built in, and almost every Australian accountant knows it. The costs are the price, the 20-invoice cap on the entry plan, and a learning curve designed for bookkeepers rather than freelancers. If your accountant will do your books in Xero, the friction saved is usually worth the fee. More on Xero.

MYOB Business Lite — A$29/month, and MYOB Solo is a genuinely good mobile-first option for sole operators handling invoicing, expenses and basic tax from a phone. Australian-built, ATO-integrated. The interface feels dated next to Xero but it does the job for less. More on MYOB.

QuickBooks Online — A$33/month for Simple Start, frequently discounted heavily for the first six months. Best mobile app of the big three, strong receipt capture. Watch for the price jump when the introductory discount ends. More on QuickBooks.

Hnry — genuinely different. Instead of software you operate, Hnry takes 1% of your income (capped at A$1,500/year), receives your payments, withholds your tax, pays the ATO, and handles your BAS and return. For sole traders who find tax genuinely stressful, that's worth real money. It costs more than software at higher incomes, and you give up direct control of your income flow. More on Hnry.

Rounded — built specifically for Australian sole traders and freelancers, with quotes, invoices, expenses and BAS-friendly reporting in one place. It's the most narrowly-targeted option here, and that focus shows. Worth a trial if the big three feel like overkill.

Reckon and Saasu — both Australian, both cheaper than the big three, both perfectly capable. Smaller ecosystems and fewer accountants who know them. More on Reckon.

If your real problem is invoicing

This is the case for a lot of people reading a page like this.

If you're not registered for GST, don't have employees, and your expenses are simple, paying A$29–37 a month for accounting software to send eight invoices is poor value. What you need is a compliant tax invoice with your ABN, correct GST treatment, and a record of what's been paid.

That's what InvoiceSonic does — ABN and GST fields, ATO-compliant layout, no sign-up needed to create and download a PDF. Free for occasional use; A$19/month for unlimited. We build it, so weigh that accordingly.

To be clear about what it does not do: no bank reconciliation, no BAS lodgement, no payroll, no expense tracking. If you need those, buy real accounting software — one of the options above.

Frequently asked questions

What is the best accounting software for sole traders in Australia?
Xero if you work with an accountant, MYOB Business Lite if you want the cheapest full-featured option, and Hnry if you'd rather outsource tax entirely. All three handle GST and BAS.

What's the cheapest accounting software for a sole trader in Australia?
Reckon from A$15/month, then MYOB Business Lite at A$29. Zoho Books has a free tier with limits. If you only need invoicing, free invoice tools cost nothing at all.

Do sole traders need accounting software?
Not always. If you're under the A$75,000 GST threshold with simple expenses, a spreadsheet plus a proper invoicing tool is often enough. Once you register for GST and lodge BAS, software starts paying for itself.

Does Xero really limit invoices?
Yes. The Ignite plan at A$37/month caps you at 20 invoices per month. Unlimited invoicing requires Grow at A$78/month.

Is Hnry cheaper than Xero?
It depends on income. Hnry charges 1% capped at A$1,500/year, so below roughly A$44,000 of income it costs less than Xero Ignite — but Hnry includes tax filing, which Xero doesn't.

Can I switch accounting software later?
Yes, though it's easier at the start of a financial year. Most platforms export to CSV. Talk to your accountant before migrating mid-year.

Prices are advertised entry prices in Australian dollars as at August 2026 and change frequently — check vendor pricing pages. This is general information, not tax or financial advice. We build InvoiceSonic, which is mentioned above.