Running a small business in Australia means juggling quotes, invoices, GST, payroll, expenses and the ever-present Business Activity Statement (BAS) deadline. If you’re still tracking everything in spreadsheets or manually sorting receipts, bookkeeping can quickly become a time-consuming part of running your business.
The right accounting software can make everyday tasks much easier by bringing invoicing, expense tracking, bank reconciliation and GST reporting into one place. But with so many platforms available, how do you decide which one actually fits your business?
This guide compares some of the best small business accounting software options available to Australian businesses in 2026, looking at features, pricing, business size and common use cases.
What to Look for in Small Business Accounting Software
Before comparing individual platforms, it helps to understand which features matter most for an Australian business.
GST and BAS Support
If your business is registered for GST, your accounting software should make it easier to track GST and prepare the information needed for your BAS.
Look for software that can calculate GST, track tax-related transactions and generate BAS reports. Zoho Books, for example, includes GST tracking and BAS generation in its Australian plans, including its eligible free plan.
Payroll and STP
If you employ staff, payroll functionality becomes an important consideration. Check whether payroll is included in your chosen plan or available as an additional service.
For example, QuickBooks Online in Australia offers payroll as an add-on powered by Employment Hero, while MYOB includes payroll options depending on the plan.
Bank Feeds and Reconciliation
Connecting your business bank accounts can reduce manual data entry and make it easier to reconcile transactions.
This can be particularly useful if your business handles a large number of payments or expenses each month.
Invoicing and Expense Tracking
At a minimum, small business accounting software should make it easy to create invoices, record expenses and keep your financial information organised.
Scalability
Your needs may change as your business grows. A sole trader today could have employees, inventory or more complex reporting requirements in the future.
Choosing software that can grow with your business can save you from having to migrate your financial records later.
Xero: A Strong Option for Growing Businesses
Xero is one of the major cloud accounting platforms available to Australian businesses. Its Australian offering includes features for GST, BAS, bank reconciliation, invoicing and payroll-related needs.
Why It Stands Out
Xero has a broad ecosystem of accounting and business integrations, which can be useful for businesses that rely on additional tools for payments, inventory, projects or customer management.
Its Australian platform also supports GST tracking and BAS-related workflows, making it suitable for businesses that want accounting and compliance features in one system.
Pricing
Xero’s Australian pricing varies by plan and current promotions. Its website currently lists different subscription levels and promotional pricing, so businesses should check the current plan prices directly before subscribing.
Best For
Growing small businesses, service-based businesses and businesses that want a broad accounting software ecosystem.
Watch Out For
The higher-tier plans can become more expensive as your business needs additional features or users. A smaller business should compare the features it actually needs before choosing a higher plan.
MYOB Business: Useful for Inventory and Growing Businesses
MYOB is an Australian-founded accounting software provider with products designed for sole traders, small businesses and larger organisations.
Why It Stands Out
MYOB Business supports GST tracking, BAS, inventory and payroll features depending on the plan. Its current Lite plan is designed for sole traders and small businesses with up to two employees, while the Pro plan is aimed at small to medium businesses with multiple employees.
MYOB also provides inventory and order management features, which can make it useful for businesses that sell physical products.
Pricing
Current MYOB pricing includes:
- Lite: promotional pricing is currently available, with the regular price listed as $315 per year after the offer period
- Pro: $70/month after the current promotional period
- AccountRight Plus: $165/month after the current promotional period
Promotions can change, so check MYOB’s current pricing before making a purchase.
Best For
Retail businesses, trades, product-based businesses and growing businesses that need inventory, payroll or job-related features.
Watch Out For
Businesses should compare the features and pricing of the current MYOB plans carefully because different products are designed for different business sizes and requirements.
QuickBooks Online: A Flexible Option for Small Businesses
QuickBooks Online is a cloud-based accounting platform offering several plans for Australian businesses.
Why It Stands Out
QuickBooks includes features such as income and expense tracking, invoicing, bank connections, GST tracking and BAS-related functionality. Higher plans add features such as supplier and bill management, multi-currency, project management and inventory tracking.
QuickBooks also offers a 30-day trial, subject to its current terms.
Pricing
QuickBooks Australia’s current pricing page lists plans including Simple Start, Essentials, Plus and Advanced. Current standard pricing shown on the Australian site is approximately:
- Simple Start: $33/month
- Essentials: $60/month
- Plus: $84/month
- Advanced: $125/month
Promotional discounts may reduce these prices for eligible new customers. Payroll is available as an additional service.
Best For
Sole traders and small businesses that want cloud accounting with options to add more features as the business grows.
Watch Out For
Payroll is an additional service, so businesses with employees should include that cost when comparing the total monthly expense.
Zoho Books: A Low-Cost Option for Micro-Businesses
Zoho Books is particularly interesting for very small Australian businesses because it offers a free plan for eligible businesses with annual revenue below $50,000 AUD.
Why It Stands Out
The free plan includes features such as invoicing, expense tracking, bank accounts, reconciliation, GST tracking and BAS generation. It also integrates with other Zoho products, including Zoho CRM and Zoho Analytics.
Pricing
Zoho Books currently lists the following Australian pricing:
- Free: $0 for eligible businesses with revenue below $50,000 AUD per year
- Standard: $19.80/month
- Professional: $39.60/month
- Premium: $59.40/month
Annual billing offers lower monthly equivalent prices on some plans.
Best For
Micro-businesses, new sole traders and businesses already using other Zoho products.
Watch Out For
Businesses with more complex accounting requirements should compare the plan limits and available integrations before choosing the free or entry-level option.
Rounded: Designed for Freelancers and Sole Traders
Rounded takes a more specialised approach than larger accounting platforms. It is designed primarily for freelancers, contractors and sole traders.
Why It Stands Out
Rounded focuses on quoting, invoicing, payments, time tracking, bank feeds and expense management without trying to provide every feature of a larger accounting platform.
Its Pro plan includes bank feeds, expense categorisation and automatic GST tracking.
Pricing
Rounded currently lists:
- Starter: $23.95/month
- Pro: $29.95/month
Annual billing is also available at a lower effective monthly cost.
Best For
Freelancers, consultants, contractors and GST-registered sole traders who want straightforward accounting software.
Watch Out For
Rounded is focused on solo businesses, so businesses with employees, inventory or more complex accounting requirements may need a more comprehensive platform.
Quick Comparison Table
| Software | Current Starting Price* | Best For | Payroll |
| Xero | Check current plan | Growing small businesses | Available depending on plan |
| MYOB Business | Promotional pricing varies | Product-based and growing businesses | Available depending on plan |
| QuickBooks Online | $33/month | Small businesses and sole traders | Add-on |
| Zoho Books | Free for eligible businesses | Micro-businesses | Check current plan |
| Rounded | $23.95/month | Freelancers and sole traders | Not designed for employees |
*Prices and promotions can change. Always check the provider’s current Australian pricing before subscribing.
How to Choose the Right Accounting Software for Your Business
Instead of choosing software simply because it is well known, match it to your current business needs.
Just Starting Out as a Sole Trader?
A simple platform such as Rounded or the eligible free plan from Zoho Books may be enough if your main requirements are invoicing, expense tracking and GST management.
Growing and Planning to Hire Staff?
Look at platforms that offer payroll and can handle a larger number of transactions and users. Xero, MYOB and QuickBooks all offer options for businesses with employees, although the features and pricing differ.
Selling Physical Products?
Inventory management becomes much more important. MYOB and higher-tier QuickBooks plans offer inventory-related functionality, while other platforms may require different plans or integrations.
Already Using Other Business Tools?
Check integrations before choosing your accounting platform. If you already use tools for CRM, payments, inventory or project management, compatibility can save you from entering the same information into multiple systems.
One other thing to consider is how difficult it would be to switch later. Moving historical accounting data can take time, so choosing software that fits your expected needs over the next 12 to 24 months can be useful.
Frequently Asked Questions
What is the best small business accounting software in Australia?
There is no single option that is best for every Australian small business. Xero, MYOB, QuickBooks Online, Zoho Books and Rounded serve different types of businesses. The right choice depends on factors such as your business structure, employees, GST requirements, inventory needs and budget.
Is Xero worth it for a small business in Australia?
Xero can be a suitable option for businesses that want cloud accounting, GST and BAS functionality, bank reconciliation and access to a broad ecosystem of integrations. Businesses should compare the current plans and features against their actual requirements before subscribing.
What’s the difference between MYOB and Xero?
Both provide accounting features for Australian businesses, but the best fit depends on the business. MYOB offers inventory and payroll options across its plans, while Xero provides cloud accounting with GST, BAS and other business management features. Comparing specific plans is more useful than choosing based on the brand alone.
Do I need accounting software if I’m a sole trader?
You are not required to use a particular accounting software simply because you are a sole trader. However, accounting software can make invoicing, expense tracking, GST records and financial reporting easier to manage.
Can accounting software handle GST and BAS?
Many Australian accounting platforms provide GST tracking and BAS-related reports. Zoho Books, for example, specifically lists GST tracking and BAS generation among its features.
However, software does not remove the need to review your records carefully. Depending on your circumstances, you may also choose to have your BAS reviewed or lodged by a registered tax or BAS professional.
Is free accounting software reliable?
A free plan can be useful if it provides the features your business actually needs. Zoho Books currently offers a free Australian plan for eligible businesses with annual revenue below $50,000 AUD. However, free plans can have limits on users, invoices, transactions or other features, so check the current terms before relying on one for a growing business.
Final Takeaway
There is no single piece of accounting software that works perfectly for every Australian small business.
A growing business may prefer Xero, while a product-based business may find MYOB’s inventory features useful. QuickBooks Online offers several plans for businesses at different stages, while Zoho Books provides a free option for eligible micro-businesses. Rounded takes a simpler approach for freelancers and sole traders.
The most important thing is to choose software that matches your actual needs rather than paying for features you will never use. Check the current Australian pricing, compare the features included in each plan, and consider how your business may change over the next 12 to 24 months.
Disclaimer: This article provides general information about accounting software for Australian small businesses. Pricing, features and promotional offers can change, so check the provider’s official website before making a purchasing decision. This article is not accounting, tax or financial advice.
