Sole Trader Accounting Software Australia 2026

The best sole trader accounting software in Australia depends on how much of the job you want the software to do. Xero suits sole traders whose accountant works in Xero, MYOB Solo suits operators who run everything from a phone, Hnry suits people who want tax handled for them, and Rounded is built specifically for freelancers. If you only need to send invoices, you may not need accounting software at all yet.

We build InvoiceSonic, an invoicing tool mentioned below. It is not accounting software. Prices were checked on vendor pages in September 2026 and change often.

Do sole traders need accounting software?

Many sole traders pay A$25–80 a month for accounting software and use a fraction of it. Start by working out which jobs you actually need done.

You probably need accounting software if:

• You are registered for GST and lodge a BAS
• You have more than a handful of expenses to track each month
• You want bank feeds and bank reconciliation instead of manual data entry
• Your accountant has asked you to use a particular platform

You probably do not need it yet if you are under the A$75,000 GST registration threshold, your expenses fit on one page, and your real problem is producing professional invoices and getting paid. That is an invoicing problem, and simple invoicing tools solve it for less.

What good accounting software does for a sole trader

Cloud-based accounting software gives you real-time visibility of cash flow and business performance without waiting for your accountant. The core features are:

• Bank feeds that import business transactions automatically
• Matching deposits to invoices and expenses
• Receipt capture on a phone
• GST coding and BAS preparation to meet ATO requirements
• Reports that show financial data your accountant can use at tax time
• Automatic updates, so tax tables and GST settings stay current

Because it is cloud-based, you need an internet connection, but you can work from any device and your accountant sees the same file.

Sole trader accounting options at a glance

Xero: best when your accountant uses it

Xero is the default platform for many Australian accountants, with strong bank feeds and built-in BAS lodgement. Two costs matter: the learning curve, which is designed around bookkeepers, and the invoice cap. The entry Ignite plan allows 20 invoices a month; above that you need Grow at A$78 a month.

If you bill weekly clients, count your invoices before you commit. Our InvoiceSonic vs Xero page walks through the cap, and there is more on Xero alternatives.

MYOB Solo: accounting from your phone

MYOB Solo is a mobile-first product for sole operators who want invoicing, expense tracking and simple tax obligations handled from a phone. MYOB's Business plans add payroll, inventory management and more bank accounts as you grow. MYOB runs regular introductory discounts, so compare the regular price. See MYOB alternatives.

Hnry: tax handled as a service

Hnry is different from other accounting software. Your income is paid into a Hnry account; Hnry withholds and pays your income tax, GST and levies, and lodges your BAS and return. The fee is 1% + GST of each payment, capped at A$1,500 + GST a year.

Is Hnry cheaper than Xero? Against Xero Grow at A$78 a month (A$936 a year), Hnry costs less below roughly A$85,000 of income once GST is added to its fee. Hnry also includes tax filing, which Xero does not. The trade-off is less direct control over how your income flows. See Hnry alternatives.

Rounded: built for Australian sole traders

Rounded focuses on freelancers and sole traders, with quotes, invoices, expenses and BAS-friendly reporting. Starter is A$23.95 a month and Pro, designed for GST-registered solo businesses, is A$29.95. Both have a 14-day trial.

Reckon One and Zoho Books: lower-cost choices

Reckon One Accounting Plus costs A$24 a month after its introductory offer, with unlimited users and invoices and Australian data hosting. Zoho Books has a free plan for businesses under A$50,000 in revenue a year, with one user plus your accountant. Both are capable; fewer accountants use them, so ask yours first. See Reckon alternatives.

How to choose: a quick checklist

1. Count your invoices per month and check any plan caps.
2. Ask your accountant which platform they prefer.
3. Decide whether you want software you operate or a service like Hnry.
4. Check whether you need payroll, inventory or multiple bank accounts — most sole traders do not.
5. Budget for the regular price after any promotion ends.

Sole traders who later hire staff or add partners should expect to move to a plan designed for small businesses; the same questions apply to small business owners at that stage.

If your real problem is invoicing

If you are not registered for GST, have no employees and simple expenses, paying for accounting software to send a few invoices a month is poor value. What you need is a compliant invoice with your ABN, the correct GST treatment and a record of what has been paid.

That is what sole trader invoicing software does. InvoiceSonic creates ABN and GST-ready invoices, accepts payment by bank transfer or PayID instructions rather than a credit card fee, and lets you download a PDF without signing up. See wider invoicing software australia options or free invoicing software australia if volume is low.

To be clear, it does not reconcile your bank, lodge BAS, run payroll or track expenses. When you need those, choose one of the accounting tools above.

Related reading: best bookkeeping software in Australia and the best free invoice app in Australia.

Frequently asked questions

What is the best accounting software for sole traders in Australia?

Xero if your accountant uses it, MYOB Solo if you want to run everything from a phone, Hnry if you want tax handled for you, and Rounded for freelancers who want something simpler.

What is the cheapest accounting software for a sole trader?

Zoho Books is free for businesses under A$50,000 revenue a year. Paid options start around A$24 a month (Reckon One).

Does Xero limit invoices?

Yes. The entry Ignite plan allows 20 invoices a month. Unlimited invoicing needs Grow at A$78 a month.

Is Hnry worth it for sole traders?

If tax stress costs you more than the fee, yes. Hnry charges 1% + GST of income, capped at A$1,500 + GST a year, and handles BAS and your return.

Can I switch accounting software later?

Yes. It is easiest at the start of a financial year. Most platforms export to CSV — talk to your accountant before migrating.

Prices were checked on vendor pricing pages in September 2026. General information only, not tax or financial advice.

Put this billing workflow into practice

• Sole trader invoicing software for repeat work — save your business, ABN and client details, then update dates and hours for each billing period.
• Australian sole trader invoice template — add your ABN, completed work and payment instructions. Having an ABN does not by itself mean you are registered for GST.