Small Business Accounting Software in Australia: 7 Options Compared (2026)
Author
Emmanuel Sarris
Date Published
Running a small business in Australia involves specific financial duties, from managing Goods and Services Tax (GST) and lodging Business Activity Statements (BAS) to handling Single Touch Payroll (STP) and, since 1 July 2026, paying super on payday. The right accounting software isn't just about tracking numbers; it's about simplifying compliance, saving time, and gaining crucial insights into your financial health. Software that isn't set up for Australian GST, BAS and STP reporting can lead to costly errors and administrative headaches. This guide helps you compare small business accounting software in Australia for your situation. Whether you're a sole trader managing invoices, a property investor tracking rental income, or a growing company with payroll, the right tool streamlines BAS preparation and lodgement, supports tax compliance, and gives you a clear view of your cash flow. We cover five accounting platforms available in Australia, plus a comparison directory and a retail option, with their key features and indicative pricing and a direct link to each vendor's Australian site. Plan names and prices change often, and introductory discounts are common, so always confirm current pricing on the vendor's own website before you subscribe.
1. Xero (Australia)
Xero is one of the most widely used cloud accounting platforms in Australia, designed for small to medium-sized enterprises (SMEs). Its user-friendly interface and comprehensive features make it a popular choice for businesses looking to streamline their financial management, from invoicing to payroll. Xero is built for the Australian tax system, with native tools that simplify compliance with GST, BAS, and Single Touch Payroll (STP) obligations.
The platform’s ecosystem is another key differentiator. With a large marketplace of third-party app integrations, businesses can connect Xero to other tools they use daily, such as Stripe for payments or industry-specific project management software. This customisability allows you to build a financial workflow tailored to your operational needs.
Key Features and Pricing
Xero's current Australian plans are Ignite, Grow, Comprehensive and Ultimate (prices include GST). Ignite is about $37 a month and is limited to 20 invoices a month; Grow is about $78 a month; Comprehensive is $107 a month and adds multi-currency and payroll for up to 5 people; and Ultimate starts at $143 a month (payroll for 10 people, with 20- and 50-person tiers). Xero raised its prices from 1 July 2026 and regularly runs introductory discounts, so check Xero's pricing page for current figures.
Bank feeds and reconciliation: all plans
GST and BAS lodgement: all plans
Payroll and Single Touch Payroll (STP): available, but the number of people you can pay depends on the plan (5 on Comprehensive; 10, 20 or 50 on Ultimate)
Smart document capture (Hubdoc): included on Comprehensive and Ultimate; check the plan details for smaller plans
Quotes and invoicing: Ignite is capped at 20 invoices a month
Multi-currency: Comprehensive and Ultimate
Practical Advice for New Users
When setting up, take full advantage of the direct bank feeds. This feature automatically imports transaction data from your Australian bank accounts, drastically reducing manual data entry and making reconciliation a simple, one-click process. For service-based businesses, using the invoicing tool to its full potential is key; you can create professional, customised invoices and set up automated payment reminders to improve cash flow. Linking your accounting software directly to your business processes ensures you can accurately track every dollar, which is essential when identifying eligible small business tax deductions throughout the financial year.
Our Take: Xero is a strong all-rounder for many Australian small businesses, particularly those in service industries, retail, and trades. Its AU-specific compliance features and extensive app marketplace provide a scalable solution that can grow with your business. Its 1 July 2026 price increase is worth factoring in, but for many businesses the time it saves justifies the cost.
MYOB is a foundational name in Australian accounting software, offering products for businesses of all sizes, from sole traders to established SMEs. Its small business range includes Solo by MYOB for sole operators and MYOB Business (the Lite, Pro and AccountRight plans), with AccountRight also available as desktop software. For many businesses, MYOB is synonymous with reliable financial management, offering strong tools for GST, e-invoicing, inventory control, and Single Touch Payroll (STP) compliance.
What distinguishes MYOB is its long-standing presence and extensive network of accountants and bookkeepers across Australia, making it easier to find professional support. The platform is built to handle more complex business needs, such as inventory management and detailed job tracking, which appeals to businesses in wholesale, trade, and construction sectors that require more than basic bookkeeping.
Key Features and Pricing
MYOB's small business plans are priced in tiers, with introductory offers frequently available. At full price, MYOB Business Lite is about $315 a year, Pro is about $70 a month and AccountRight Plus is about $165 a month. AccountRight Premier (which adds multi-currency and multiple inventory locations) costs more, and Solo by MYOB for sole operators is about $99 a year. Payroll on Lite and Pro is charged per employee, and MYOB has said payroll prices change from 1 November 2026, so check MYOB's pricing page before you budget.
Bank feeds, reconciliation, GST and BAS lodgement: Lite, Pro and AccountRight
Single Touch Payroll (STP): Lite covers up to 2 employees and Pro unlimited employees, both for a per-employee fee; AccountRight Plus includes unlimited payroll at no extra cost
Quotes and invoicing: unlimited
Inventory: Lite and Pro include basic order management, with full inventory as a paid add-on; AccountRight Plus includes inventory
E-invoicing (Peppol): included in MYOB subscriptions once you register
Practical Advice for New Users
For businesses managing physical stock, exploring the inventory features in the AccountRight plans is a priority. You can track stock levels, set reorder points, and manage suppliers directly within your accounting system. When lodging your first BAS, the platform’s guided workflow simplifies the process, ensuring you correctly report your GST liabilities and credits. Understanding these components is crucial, and it’s wise to familiarise yourself with the fundamentals of what the BAS in accounting involves to maximise the software's benefits.
Our Take: MYOB is a powerful choice for Australian businesses that have outgrown basic software, particularly those needing strong inventory management and job costing features. Its deep compliance tools and vast advisor network provide a solid support system. However, businesses should carefully review the pricing structure, especially regarding per-employee payroll fees, to accurately budget their costs.
A global giant in accounting software, Intuit’s QuickBooks Online offers a powerful, feature-rich platform tailored specifically for the Australian market. It is a strong competitor known for its intuitive design and robust reporting capabilities, catering to a wide range of small businesses, from sole traders to growing companies. A key strength is its comprehensive support for Australian tax obligations, providing seamless GST tracking and simplified Business Activity Statement (BAS) e-lodgement directly to the ATO.
QuickBooks stands out with its emphasis on user support and onboarding, offering free sessions for new Australian customers to help them get started correctly. The platform also boasts a large app marketplace, similar to Xero, allowing businesses to integrate with hundreds of other tools like Shopify or Square to create a connected and efficient workflow. This makes it a highly customisable choice for modern businesses that rely on multiple digital tools.
Key Features and Pricing
QuickBooks Online has four Australian plans: Simple Start (1 user), Essentials (3 users), Plus (5 users) and Advanced (25 users). Intuit regularly runs large introductory discounts; at full price, Simple Start has generally cost from about $33 a month, with the higher plans costing more. Payroll is a paid add-on powered by Employment Hero, with Standard and Advanced options. Check Intuit's pricing page for current figures.
Bank feeds, reconciliation, GST tracking and BAS e-lodgement: all plans
Single Touch Payroll (STP): through the paid QuickBooks Payroll add-on
Receipt capture, invoicing and payments: all plans
Bills and supplier management: Essentials, Plus and Advanced
Inventory tracking: Plus and Advanced
Practical Advice for New Users
Make sure to book your free onboarding session (new customers are offered a 45-minute expert-led session, subject to Intuit's terms). It can save you hours of setup time and help ensure your chart of accounts and GST settings are configured correctly from day one. For businesses that manage inventory, the stock tracking on the Plus and Advanced plans lets you monitor stock levels and create purchase orders. Using the mobile app for receipt capture is another good way to streamline expense management on the go.
Our Take: QuickBooks Online suits Australian small businesses seeking a user-friendly platform with strong reporting and onboarding support. Its entry-level plan makes it worth considering for startups and sole traders. While the separate cost for payroll is a factor to consider, its core accounting features and extensive integrations present a compelling package.
Reckon is an Australian accounting software company offering a distinct value proposition for sole traders and small businesses that prioritise affordability and simplicity. Its cloud platform, Reckon One, provides the essential tools for financial management without the complexity or higher price tags of some larger competitors. Reckon’s strength lies in its straightforward, budget-friendly plans that include unlimited users, making it worth considering for businesses needing core accounting functions and team access from day one.
The platform is designed to handle key Australian compliance tasks, including GST and BAS reporting, with a payroll add-on for Single Touch Payroll (STP) to manage employee wages. While its app ecosystem is smaller than that of Xero or QuickBooks, it covers the fundamental needs of many small businesses, focusing on delivering a solid, no-frills accounting solution. This makes it a practical option for businesses looking to manage their finances efficiently without paying for features they don't need.
Key Features and Pricing
Reckon One's cloud accounting plans are Accounting Plus (about $24 a month), Accounting Premium (about $46 a month, adding projects, timesheets, advanced reporting and inventory for up to 10 items) and Ultimate (about $85 a month, with unlimited inventory and unlimited payroll included). On the other plans, payroll is an add-on from about $16 a month for up to 4 employees. A 30-day free trial is available, and Reckon frequently runs introductory discounts, so check Reckon's pricing page for current prices.
Unlimited users: all plans
GST tracking and BAS reports: all plans
Invoicing, bills, bank feeds and reconciliation: all plans
Budgets: all plans
Payroll and STP: add-on (Payroll Essentials, Plus or Premium); included on Ultimate
Projects and timesheets: Accounting Premium and Ultimate
Inventory: up to 10 items on Accounting Premium; unlimited on Ultimate
Practical Advice for New Users
Every Reckon One plan includes unlimited users, a feature other providers often restrict to higher-tier plans. This suits a startup with multiple partners or staff who need to view financial data. When setting up, make sure to explore the payroll add-on if you have employees, so your pay runs are reported through STP. Reckon's support team can also help during your initial setup and migration.
Our Take: Reckon is a good fit for cost-conscious Australian small businesses, freelancers, and startups that need a reliable, straightforward accounting system without a hefty price tag. Unlimited users on all its cloud plans is a major differentiator, offering good value for growing teams. While it lacks the extensive app marketplace of its rivals, it provides the core features needed for effective financial management and local compliance.
Zoho Books is an online accounting suite known for its competitive pricing and deep integration with a broader ecosystem of business applications. It caters well to micro-businesses and startups with its free plan for businesses with annual revenue under A$50,000, while still offering scalable, feature-rich tiers for growing enterprises. It handles everything from invoicing and expense tracking to GST tracking and BAS reports, all within a clean, intuitive interface.
What truly distinguishes Zoho Books is its seamless connection to the wider Zoho suite. If your business already uses Zoho CRM, Zoho Inventory, or other Zoho apps, this platform provides a unified experience, eliminating data silos and creating automated workflows across sales, operations, and finance. This makes it a compelling choice for businesses looking for an all-in-one solution rather than managing multiple disparate software subscriptions.
Key Features and Pricing
Zoho Books has a free plan for businesses with annual revenue under A$50,000. Paid plans (billed annually, prices include GST) are Standard (about A$16.50 a month), Professional (about A$33), Premium (about A$44), Elite (about A$181.50) and Ultimate (about A$319), with higher plans adding users, transaction limits and advanced inventory. Check Zoho's pricing page for current prices.
Free plan: revenue under A$50,000 a year; 1 user plus 1 accountant; up to 1,000 invoices a year
Standard: 3 users; up to 5,000 invoices a year
Professional: 5 users; up to 10,000 invoices a year; adds stock tracking
GST and BAS reports: all plans. Zoho Books prepares a BAS report; check whether direct lodgement with the ATO is available, or lodge through Online services for business or your tax or BAS agent
Bank feeds and reconciliation: all plans
Zoho suite integration: all plans
Practical Advice for New Users
For micro-businesses, the free plan is a low-cost starting point that covers the essentials without any initial investment. As you set up, connect your bank feeds immediately to automate transaction categorisation. Explore the customisable invoice templates to ensure your branding remains consistent. For businesses using other Zoho products, prioritise setting up integrations to automate data flow; for example, link Zoho CRM to automatically create invoices in Zoho Books when a deal is won. Accounting software subscriptions used in your business are generally deductible in the year you pay them, and if you also buy business equipment you may be able to use the instant asset write-off.
Our Take: Zoho Books suits small businesses already using, or planning to use, the Zoho ecosystem. Its free tier is good value for new and micro-businesses in Australia with revenue under A$50,000. Payroll and STP aren't part of Zoho Books itself, so plan how you'll handle them, but its core accounting, inventory, and integration capabilities make it a versatile and scalable option.
6. Capterra Australia – Accounting Software Directory
Unlike a direct software provider, Capterra Australia is a directory and comparison platform. It’s a useful research tool for businesses navigating the crowded market of small business accounting software in Australia, listing a large range of products with user reviews, feature filters, and pricing snapshots. This lets you shortlist and compare a wide range of options, from major players to niche industry-specific solutions, before committing to a purchase or trial directly from the software vendor. By aggregating user feedback and presenting key data side-by-side, it can help you test marketing claims and get a clearer picture of a tool’s real-world performance. You can filter software based on specific needs like project accounting, payroll features, or integration capabilities. Keep in mind that Capterra is free for users because software vendors pay for leads and sponsored placements, so look beyond the top-listed products.
Key Features and Pricing
Capterra itself is free to use for research and comparison. The pricing information displayed is a snapshot provided by the vendors, so it's always best to confirm final costs on the official software website.
Software directory: a large range of accounting products
User reviews: ratings and written feedback from users
Feature and price filters: narrow results to what you need
Product profiles: snapshots of features, pricing, and integrations
Vendor links: links to official trial and purchase pages
To get the most out of Capterra, start by using the filters to narrow down the list of options. Filter by features that are non-negotiable for your business, such as "Single Touch Payroll" or "BAS Lodgement". Pay close attention to user reviews, particularly those from businesses similar in size and industry to your own. These reviews often contain practical insights into ease of use, customer support quality, and any potential hidden costs or limitations not immediately obvious from a vendor's website. Always use Capterra as a starting point, then click through to the vendor sites to explore free trials and confirm the most current pricing.
Our Take: Capterra is a useful first stop for Australian businesses researching accounting software. It simplifies the selection process with user-driven comparisons. While you don't buy directly from the site, it can help you discover and check options beyond the big names before you make a decision.
While not a software developer, Officeworks sells some accounting software, such as MYOB AccountRight activation cards and Reckon Accounts desktop software. This option may suit businesses that already have an Officeworks business account for their general office supplies and want to consolidate their operational spending onto a single, itemised invoice.
The primary advantage is logistical simplicity: you can buy accounting software alongside other office essentials, with in-store, click & collect and delivery options, and receive a tax invoice that fits into your existing bookkeeping workflow.
Key Features and Offerings
Officeworks sells software as activation cards and digital downloads (you receive an activation code by email). The range and prices vary, so compare them with buying direct from the vendor, which often offers introductory discounts on cloud plans.
MYOB: 12-month activation cards for some MYOB products, such as AccountRight Plus
Reckon Accounts: licences for Reckon's desktop accounting software, where stocked
Business accounts: consolidated purchasing and invoicing across all categories
Delivery options: in-store, click & collect and delivery
Practical Advice for New Users
Before purchasing, double-check that the product or subscription offered at Officeworks matches your specific business needs, particularly regarding payroll limits and GST features. If you have an Officeworks business account, use it for the purchase to streamline your own accounting. The tax invoice can often be uploaded or forwarded to your accounting software's document capture tool for automated data entry.
Our Take: Officeworks is a convenient purchasing option for businesses that value consolidated invoicing. If you are already an Officeworks customer, buying your accounting software here can simplify procurement and record-keeping. However, for the widest selection, direct-from-vendor promotions, and cloud subscriptions, buying directly from the developer is usually simpler.
At a Glance: Comparing the 7 Options
Xero: moderate setup; strong GST, BAS and STP automation and a large app ecosystem; suits SMEs wanting Australian-compliant cloud accounting
MYOB: moderate to high setup across several product lines; strong local reporting, inventory (AccountRight) and a broad adviser network; watch per-employee payroll fees on Lite and Pro
QuickBooks Online: low to moderate setup with a free onboarding session; payroll is a paid add-on; suits small businesses wanting easy setup and integrations
Reckon One: simple setup and lower pricing; unlimited users on every plan; smaller app ecosystem; payroll is an add-on except on Ultimate
Zoho Books: straightforward setup; free plan for businesses under A$50,000 revenue; suits Zoho users; payroll handled separately
Capterra: a free research tool for shortlisting and comparing products, not accounting software itself
Officeworks: a retail channel for some MYOB and Reckon products with consolidated invoicing, not accounting software itself
Integrating Your Software with Expert Advice for Maximum Tax Efficiency
Choosing the right tool is the foundational step in mastering your business finances. As we’ve explored, the landscape of small business accounting software in Australia offers specialised options for every type of enterprise. From Xero’s extensive app ecosystem to MYOB’s locally focused features and QuickBooks Online’s user-friendly interface, there is a platform to suit your business. Your final decision should be a strategic one, balancing your immediate needs with your long-term growth aspirations. Consider not just the price, but the entire value proposition. A slightly more expensive plan with better inventory management, like that found in certain MYOB or Reckon tiers, could save you money in lost stock or inefficient processes down the line. Similarly, for a service-based business, Zoho Books’ project and time-tracking features might offer a better return than a platform geared towards retail.
Check Payroll and Lodgement Compliance
Whichever platform you choose, confirm that its payroll reports through Single Touch Payroll (STP) Phase 2 and supports Payday Super. Since 1 July 2026, employers must pay super with each pay run, and contributions must reach the employee's fund within 7 business days of payday. The ATO's Small Business Superannuation Clearing House closed on 30 June 2026, so you'll need to pay super through your payroll software, your super fund's payment service or a commercial clearing house (see Payday Super has landed: is your payroll actually ready?). For BAS, SBR-enabled (Standard Business Reporting) software lets you lodge directly with the ATO; otherwise you can lodge through Online services for business or your tax or BAS agent.
Key Takeaways and Your Next Steps
To make the best choice, it's crucial to move beyond feature lists and focus on practical application. Here’s a quick summary to guide your decision-making process:
For Scalability: If you anticipate rapid growth and need a platform that can evolve with you through extensive third-party integrations, Xero is a common choice.
For Local Compliance: Businesses that prioritise Australian-specific compliance features, particularly around payroll and industry awards, will find MYOB and Reckon to be strong, reliable choices.
For User-Friendliness: If you or your team are new to accounting software and need an intuitive, easy-to-navigate interface, QuickBooks Online is designed with this in mind.
For an All-in-One Ecosystem: If you're looking to integrate accounting with CRM, project management, and other business functions under one roof, Zoho Books presents a compelling, cost-effective solution.
Once you have selected your software, the implementation phase is critical. This is where the real work of financial organisation begins. Don't just import your contacts and link your bank account; take the time to set up your chart of accounts correctly, establish rules for bank feeds, and configure your payroll to align with Single Touch Payroll (STP) requirements. A proper setup from day one prevents costly and time-consuming clean-ups later. Ultimately, even the most sophisticated accounting software is just a tool. Its true power is unlocked when paired with professional expertise. The software organises your data, but an experienced accountant or tax agent interprets that data, provides strategic advice, and ensures you are not just compliant, but also tax-efficient. They can identify opportunities for deductions you might miss, help you structure your finances for optimal tax outcomes, and provide clarity during complex situations like capital gains calculations or BAS lodgements. This combination of powerful technology and human insight is the definitive formula for financial success in a competitive Australian market.
Ready to ensure your chosen software is perfectly configured for maximum tax efficiency and ATO compliance? The experts at Australia Wide Tax Solutions specialise in helping small businesses integrate platforms like Xero, MYOB, and QuickBooks into a powerful, strategic financial system. Contact us today to see how we can streamline your bookkeeping, simplify your tax obligations, and help you get the most out of your investment in small business accounting software in Australia. Find out more at Australia Wide Tax Solutions.
How do I get help with this from the ATO?
The ATO provides guidance through ato.gov.au, the Small Business Support Line (13 28 66), and Online Services for individuals and businesses. For complex situations, a registered tax agent provides advice tailored to your specific circumstances and professional indemnity protection. You can verify agent registration at the TPB register at tpb.gov.au.
What records do I need to keep for tax purposes in Australia?
Most tax records must be kept for five years from the date of lodgement or the date the transaction occurred, whichever is later. Records must be in English or convertible to English and must be sufficient to explain the income and deductions in your return. The ATO can request records at any time during the retention period.
When do I need a registered tax agent in Australia?
Consider a registered tax agent when your affairs involve multiple income sources, business activity, investment properties, capital gains, or overseas income. Agents extend your lodgement deadline, provide safe harbour protection, and take professional responsibility for the advice given. Verify registration at tpb.gov.au.
How does the ATO calculate penalties for compliance failures?
The failure to lodge penalty is based on penalty units ($364 per unit from 1 July 2026), accruing per 28-day period for late returns and BAS lodgements. Incorrect information penalties range from 25% to 75% of the tax shortfall depending on whether the behaviour was careless, reckless, or intentional. Proactive disclosure before an audit begins typically results in significantly reduced penalties.
What is the difference between tax avoidance and tax minimisation?
Tax minimisation is the legal arrangement of your affairs to reduce tax — claiming all eligible deductions, using appropriate structures, and timing income and expenses. Tax avoidance involves arrangements that technically comply with the law but achieve outcomes parliament did not intend. The ATO can apply Part IVA anti-avoidance rules to cancel benefits from avoidance arrangements.
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