What do you think is the most challenging aspect of running a business in Australia—the financial burden or the complexity of tax compliance? Well, as a country with strict tax rules and regulations, operating a business in Australia is definitely not an ice on the cake for business leaders and other entrepreneurs. From ensuring timely submission of invoices to meeting the latest tax regulations of GST, BAS, and PAYG set by the Australian Taxation Office (ATO), the utilisation of accounting software has gained tremendous recognition and significance among business leaders and traders.
With accounting software, businesses can gain real-time access to financial records that support data-driven decisions. Also, with accounting software, businesses can adhere to timely compliance of tax audits as the software assists in automating invoices and tax submissions. But which accounting software works best for the Australian business community?
In this blog, let’s explore the best accounting software that support every business requirement for Australian business leaders and professionals. The blog will further discuss the main factors to consider in accounting software, including features, pricing options, and other significant elements.
Top Accounting Software for Small Businesses in Australia:
| Software | Best For | Key Features | What Makes It Stand Out | Price (AUD) |
| SoleApp | Sole Traders & Small Businesses | GST & BAS, Payroll, Cloud-based | Best for sole traders, freelancers & small businesses; affordable & easy to use. | Check Price |
| Xero | Small to Medium Businesses | GST, BAS, Payroll, Invoicing | Most widely used in Australia; excellent integrations & scalability. | Check Price |
| MYOB | Established Businesses & Payroll | Payroll, Inventory, Multi-Currency | Ideal for businesses with payroll & inventory needs. | Check Price |
| QuickBooks Online | All Small Businesses | Bank Reconciliation, Payroll, Invoicing | Comprehensive features for small businesses; strong financial reporting. | Check Price |
| FreshBooks | Freelancers & Service-Based Businesses | Time Tracking, Invoicing, Reports | Great for service-based businesses; excellent time tracking & invoicing. | Check Price |
| Reckon One | Affordable Accounting for SMBs | Simple UI, Payroll Add-on, Cloud | Budget-friendly option; simple interface with essential features. | Check Price |
| Sage 50 Accounting | Mid-Sized & Large Enterprises | Comprehensive Reports, Enterprise Features | Best for growing businesses & enterprises; powerful accounting tools. | Check Price |
| Wave | Startups & Freelancers (Free Option) | Free Accounting, Invoicing, Basic Reports | Free, but charges for transactions & payroll services. | Check Price |
1. Sole App
Designed for the Aussies by the Aussies, the Sole App is one of the major assets for the Australian business community looking for a user-friendly yet premium accounting software that helps with daily financial operations to tax preparations. With tailored tools and a streamlined process, the Sole App is a simple yet straightforward platform that eliminates the need for manual entry of financial data and reports. This way, your business can maximise on tax returns and automate invoice payments to clients, assuring your business is well paid on time.
Key features:
- Custom invoicing & automated management.
- Multiple invoice formats to suit diverse business needs.
- Robust encryption of data.
- Integrated bank feed.
- Automated follow-ups.
- Smart reminders.
- Intuitive dashboards with visual representations of profit and loss.
- Direct share of financial insights to accountants.
- Real-time tracking of financial reports.
Pros:
- Simple accounting software designed for small businesses, sole traders, and freelancers.
- Highly customisable and efficient to work.
- Platform-agnostic that requires little to no accounting knowledge.
- Professional templates that support business brand logos and design elements.
Cons:
- Has limitations in handling advanced inventory management
- Has restricted compatibility with multiple CRM integrations and complex payroll systems.
Pricing:
- Risk-free 30-day free trial for free and premium version
- The free version is available forever.
- The standard/premium version comes at a price of $14.99/month.
Who should use it?
- Freelancers
- Small business owners
- Businesses without payroll requirements
- Sole traders
2. Xero Accounting
As a cloud-based solution, Xero accounting software serves as one of the most potential platforms for small businesses to handle their financial operations, such as invoice generation, bank reconciliation, payroll execution, and third-party app integration. With its intuitive interface and smart accounting features, Xero ensures business owners and traders are well empowered with necessary financial details that support error-free decision-making.
Key features:
- Smart invoice creation.
- Instant bank data access.
- Comprehensive financial insight overview.
- Cash flow management.
- Effortless payroll payments.
- Automated document & data capture with Hubdoc.
- Direct BAS submission to ATO.
- Hassle-free multi-currency management for global transactions.
Pros:
- Simple & straightforward UI/UX.
- Suitable for small businesses & sole traders.
- Remote collaboration with accountants & bookkeepers
- Compliance with Australian tax regulations.
- Clean & intuitive dashboards with easy navigation.
- Automatic cloud backups.
Cons:
- Lacks advanced inventory tracking features.
- Supports only cloud-based, making it difficult in remote locations.
- Limited templates for invoice processing and report customisation.
- Data migration required additional effort and investments.
Who should use it?
- Small to medium-sized businesses
- E-commerce businesses
- Startups & Freelancers
- Businesses with remote workforces.
3. MYOB:
MYOB is an accounting software designed and developed for the business community in Australia and New Zealand. The software is well-built with user-friendly and intuitive features, allowing businesses to organise and manage accounting requirements in one comprehensive platform.
Key features:
- Real-time cloud backup
- Fast & secure payments
- Automated timesheets & rosters
- One-click single-touch payroll
- Automatic GST calculation
- Customisable invoices & reports
- Live job & project tracking
Pros:
- Provides local Australian customer support.
- Facilitates strong payroll and tax compliance features.
- Supports cloud & desktop capabilities.
- Manages stock levels and product movements in real-time.
- Highly secure and encrypted.
- Helps with scalability as your business grows.
- Allows 350+ app integration.
Cons:
- Slow system performance
- Higher pricing for small businesses that require basic accounting features.
- Users may need special training or a workshop to navigate the functions with ease.
Who should use it?
- Sole traders
- Small and medium-sized businesses
- Large businesses
- Accountants & bookkeepers
4. QuickBooks
As one of Australia’s leading accounting software solutions, QuickBooks is built to help businesses efficiently manage and streamline their financial operations. It provides real-time insights into expenses, cash flow, project phases, and other crucial details, ensuring businesses stay informed and prepared, minimising last-minute stress and disruptions.
Key features:
- Automated expense management.
- GST & BAS tracking.
- 500+ app integration.
- Cash flow planner.
- User-friendly mobile app.
- Automatic capture of receipts & bills.
- Batch transactions.
- Spreadsheet sync.
- Project-based reporting.
- Role-based access.
- Cloud backup.
Pros:
- Fully compliant with ATO.
- Highly scalable software for small and new businesses.
- Allows multi-user accessibility.
- Intuitive dashboard with real-time financial insights.
- Supports real-time balances from banks and credit card accounts.
- Facilitates seamless migration from other accounting software.
Cons:
- Expensive for small businesses with limited budgets.
- The software may be challenging to navigate for users without prior accounting experience.
- Certain versions of QuickBooks impose restrictions on file sizes, impacting performances.
Who should use it?
- Start-ups
- Self-employed
- Small-businesses
- Mid-sized businesses
5. FreshBooks
Sign up with FreshBooks for a cloud-based invoicing and accounting service where your business gets to create, share, and keep track of invoices and payments in one click. With FreshBooks, you can automate, organise, and back-up your daily financial operations and head onto core business activities that demand your time and effort.
Key features:
- Customisable invoice generator.
- Auto-pilot payment reminders
- Progress-based payments.
- Project timelines and cash flow management.
- Automatic tax calculations.
- Built-in time tracker.
- Real-time payment notifications.
Pros:
- User-friendly design & smart features.
- Double-entry accounting.
- 24×7 global customer support.
- Runs on both Android & iPhone.
- Helps with mileage tracking.
- 10 accountants per business are allowed to utilise without additional charges.
Cons:
- Lacks advanced features such as budgeting or inventory management.
- Does not support built-in payroll payments.
- Has fewer third-party application integrations.
- No automatic currency conversion.
Who should use it?
- Freelancers.
- Self-employed professionals.
- Accountants.
- Small business owners.
- Business with contractors.
6. Reckon One
Designed for the Australian business community, Reckon One is one of the most widely used accounting softwares in the Australian business landscape. With its user-friendly features and secure database, Reckon empowers business owners to streamline their financial operations, payroll management, invoice processing, and other accounting requirements not just on time but also effectively and efficiently.
Key features:
- Bank transaction automation.
- Reckon payment integration.
- Customisable scheduled invoicing.
- Preset tax & GST configuration.
- Precision expense tracking.
- Employee time tracking system.
- Industry-wide compatibility.
Pros:
- Provides high data security measures.
- Facilitates free data migration to Reckon.
- Supports businesses across all industries, from agriculture to e-commerce.
- 24/7 access to specialists.
- Backed by over 30 years of industry expertise.
- Unlimited user access with no additional charges.
Cons:
- Does not facilitate built-in inventory management.
- Restricted mainly to Australian & New Zealand regions.
- Lacks in advanced accounting features such as AI capabilities & limited cloud support.
Who should use it?
- Small businesses
7. Sage 50 Accounting
As desktop-connected accounting software with cloud connectivity, Sage 50 serves as one of the modern platforms where businesses can gain complete access to their daily financial insight and inventory details from anywhere and anytime. Designed to assist small business owners, Sage 50 offers one of the premium yet simple features that ensure every financial activity is automated, error-free, and up-to-date.
Key features:
- Cash flow manager.
- Account reconciliation module.
- Fully integrated inventory management.
- Project insight dashboard.
- One-click financial reports.
- Sage Security Shield.
Pros:
- Supports multiple users with role-based access.
- Connects with Microsoft 365, enabling access to Sage 50 data in Outlook and secure backups on OneDrive.
- Provides projections to anticipate future expenses.
- Generates specialised reports for construction, manufacturing, & distribution sectors.
- Allows customisation of units of measure with item assembly.
- Facilitates multiple costing, including FIFO, average, & specific unit.
Cons:
- Relatively expensive.
- Limited third-party integrations.
- Payroll payments require add-ons.
- Needs accounting expertise to use.
- Not ideal for beginners.
Who Should use it?
- Small businesses
- Mid-size businesses
- Accountants & Bookkeepers
8. Wave
Designed exclusively to support and assist small business owners and freelancers in invoice creation, bookkeeping activities, and tax compliance, the Wave accounting software offers a complete suite of financial management tools that are user-friendly and cost-effective. Gain access to your business’s financial health from anywhere and anytime with the web-based Wave accounting software.
Key features:
- Seamless payment record sync.
- Flexible billing options (Manual & automatic)
- Accurate double-entry accounting
- Smart & intuitive financial dashboard
- Instant estimate generation
- Pre-formatted invoices for quick sending
- Automated state tax filing & payments
Pros:
- PCI Level-1 certified in handling sensitive information.
- User-friendly dashboard with complete view of financial insights.
- Unlimited invoice creation.
- Expert in-house bookkeeping & accounting services.
- Helps generate W2 and 1099 forms for tax audit.
- Supports file attachments in estimates.
Cons:
- Payroll is region-limited.
- Does not support payrolls for huge employee-based organisations.
- Incurs transaction charges.
- Mobile access is limited to invoicing and receipts.
Who should use it?
- Small businesses
- Freelancers
- Self-employed
- Consultants
- Contractors
Accounting Software Selection Guide: What to Look For
The above comparison would have given a complete view of the leading available accounting software in the industry, along with its features and pricing options. However, selecting the one that best suits your business requires a deeper evaluation of key factors. Considering the following aspects before making a final purchase can help you choose the most suitable and effective tool for your business.
- Pricing
The primary factor to evaluate is the pricing plans and the features included for the given cost. Not all accounting software offers an affordable yet comprehensive set of features to support basic accounting and financial management. Some plans come with restricted access to certain functionalities, while others limit the number of users allowed on the basic plan.
- Features (Payroll, GST, Multi-Currency)
The next crucial factor after pricing is the range of features offered by the accounting software. Beyond basic invoice creation and payment processing, it’s important to consider advanced capabilities like automated GST calculations, payroll management, multi-currency support, cash flow insights, project tracking, and other financial tools that simplify tax compliance and financial management.
- Customer Support
It may seem less crucial, but 24/7 global customer support is invaluable during emergencies and inquiries. Always opt for accounting software that provides customer service in your preferred language and region, ensuring smooth communication and quick resolution of issues. Reliable professional support is essential to help navigate the complexities of the software and keep your business running efficiently.
- Scalability
As your business grows, financial needs such as managing multiple payrolls, handling complex tax compliance, and tracking rising expenses also increase. To accommodate these demands, it is crucial to have accounting software that scales with your business. This ensures seamless handling of high transaction volumes and financial complexities without disrupting business operations or continuity.
Latest Trends in Accounting Software (2025)
Technology is rapidly evolving, bringing groundbreaking innovations that help industries adapt to emerging trends and business demands. By 2025, accounting and bookkeeping software in Australia will play a crucial role in transforming how businesses manage their financial operations. To stay ahead, companies must embrace the following future trends, ensuring their accounting processes align with industry demands and advancements.
- Artificial Intelligence & Automation: This trend will help businesses not just automate transactions but also provide businesses with predictive and preventive insights that facilitate driving data-driven decisions.
- Advanced Data Analytics: With this technology, businesses can extract actionable insights, identify errors, and forecast financial performance in advance, offering businesses the ability to perform strategic decisions and provide accurate results.
- Blockchain Technology: A transparent and irreversible security measure can be achieved with the blockchain technology, as it utilises a decentralised ledger system where every process is recorded. Although still in its early stages, its future impact on accounting practices will be substantial.
- Integration of Embedded Finance: By integrating financial services directly into the software platform, businesses can enhance the user experience by ensuring the financial operations are effectively managed within a unified system.
- Cloud Computing & Collaboration: Achieve real-time access to financial data from anywhere and anytime with cloud-based connectivity. This technology also helps in the auto-backup of data, ensuring business continuity.
Expert Tips for Selecting the Right Accounting Software
Here are a few recommendations that ease your purchase of accounting software.
- If you’re a sole trader, freelancer or small business → SoleApp
- If you want the best free option → Wave
- If you need strong payroll → MYOB
- If you need user-friendly cloud-based → Xero
- If you need automation & reporting capabilities → QuickBooks
- If you need inventory management → Sage 50
Accounting Software FAQs:
- What is the best accounting software in Australia?
From invoice processing to payroll compliance, the utilisation of accounting software varies from business to business. With so many popular options, such as Sole App, MYOB, and QuickBooks, available for the business community in Australia, organisations can choose the one that best aligns with their business requirements and company size.
- Is MYOB or Xero better for small businesses?
While both MYOB and Xero offer seamless and user-friendly features, Xero is considered one step ahead of MYOB, due to its simple and intuitive design. Also, Xero prominently caters to small businesses while MYOB on the other hand is well-suited for large enterprises
- What accounting software do accountants use in Australia?
Depending on business needs and organisation capabilities, professional accountants in Australia commonly use Sole App, Xero, MYOB, QuickBooks, and Sage 50 for bookkeeping and tax compliance. Many firms also use Reckon and Wave for small business clients, depending on their needs.
- Which free accounting software is best in Australia?
Sole App is one of the simplest yet most effective accounting software solutions in Australia, providing invoicing, expense tracking, and basic financial management for free. It has enabled many small businesses to efficiently manage their finances and streamline tax processing with ease.
- What is the cheapest accounting software for small businesses?
Wave Accounting stands out as one of the best options for businesses seeking free accounting features. In addition to Wave, Sole App is a top choice for small businesses looking for an affordable yet feature-rich accounting solution. Developed by Australians, Sole App offers premium features at a highly competitive price, making financial management more accessible.