As an Australian sole trader, you don't need enterprise accounting software with bells and whistles you'll never use. You need something simple, affordable, and compliant — software that tracks your income and expenses, handles GST, helps you prepare your BAS, and makes tax time painless.
We've compared the five best accounting platforms for Australian sole traders in 2026, focusing on ease of use, Australian tax compliance, and value for money. Whether you're a freelance designer, a tradie, or a consultant, one of these will be right for you.
Quick Comparison
| Feature | Xero | MYOB | QuickBooks | Wave | Rounded |
|---|---|---|---|---|---|
| Starting Price (AUD/mo) | $29 | $25 | $15 | Free | Free / $15 |
| GST Tracking | ✓ | ✓ | ✓ | ✓ | ✓ |
| BAS Preparation | ✓ | ✓ | ✓ | ✗ | ✗ |
| ATO Lodgement | ✓ | ✓ | ✓ | ✗ | ✗ |
| Bank Feeds (AU) | ✓ | ✓ | ✓ | ✗ | ✓ |
| Receipt Scanning | ✓ | ✓ | ✓ | ✗ | ✓ |
| Tax Estimates | ✗ | ✗ | ✗ | ✗ | ✓ |
| Sole Trader Focus | General | General | General | General | Purpose-built |
| Our Score | 8.8/10 | 8.2/10 | 8.5/10 | 7.0/10 | 8.4/10 |
Xero is the most popular accounting platform in Australia and New Zealand, and it works beautifully for sole traders. It handles everything — invoicing, expense tracking, bank reconciliation, GST, BAS preparation, and direct ATO lodgement. Its Starter plan ($29/month) limits you to 20 invoices and 5 bills per month, which is fine for many sole traders.
The real advantage of Xero for sole traders is accountant compatibility. Almost every accountant and bookkeeper in Australia uses Xero, which means seamless collaboration at tax time. The mobile app is excellent for capturing receipts on the go, and bank feeds from all major Australian banks update automatically.
Pros
- Most accountants use it — easy collaboration
- Full BAS and ATO lodgement
- Excellent bank feeds for AU banks
- Beautiful mobile app
- Huge integration ecosystem
Cons
- $29/month is pricey for basic needs
- Starter plan has invoice limits
- Can feel complex for very simple businesses
Best for: Sole traders who want the most widely-supported platform and easy accountant collaboration.
Visit Xero →QuickBooks Online is the best value-for-money option for Australian sole traders who want proper accounting with BAS and GST support. At $15/month for the Simple Start plan, it's nearly half the price of Xero's entry plan while offering unlimited invoicing, expense tracking, GST calculations, BAS preparation, and Australian bank feeds.
The interface is clean and modern — arguably easier to learn than Xero for accounting beginners. QuickBooks frequently runs promotions offering 50% off the first three months, making it even more affordable to get started. The trade-off is a smaller Australian accountant network compared to Xero.
Pros
- Most affordable option with full BAS support
- Easy to learn interface
- Unlimited invoices on all plans
- Good mobile app
- Frequent promotional discounts
Cons
- Fewer AU accountants use it vs Xero
- Smaller Australian integration ecosystem
- Customer support quality varies
Best for: Budget-conscious sole traders who want real accounting software (not just invoicing) at the lowest price.
Visit QuickBooks →Rounded is a hidden gem — an Australian-built accounting tool designed specifically for freelancers and sole traders. It strips away everything you don't need (payroll, inventory, purchase orders) and focuses on what matters: invoicing, expense tracking, GST handling, and tax estimates.
One standout feature is real-time tax estimates. Rounded calculates your estimated income tax and GST liability as you go, so you're never surprised at tax time. It also connects to Australian banks for automatic transaction imports and has a clean receipt scanning feature. The free plan covers basic invoicing, while the $15/month plan adds bank feeds, tax estimates, and reports.
Pros
- Built specifically for Australian sole traders
- Real-time tax and GST estimates
- Beautifully simple interface
- Very affordable
- Bank feeds for major AU banks
Cons
- No BAS lodgement (export only)
- Too simple for businesses with employees
- Smaller company — less well-known
- Limited integrations
Best for: Australian freelancers and sole traders who want purpose-built simplicity and real-time tax estimates.
Visit Rounded →MYOB has been the backbone of Australian small business accounting for over 30 years. Its Lite plan ($25/month) gives sole traders invoicing, expense tracking, GST, BAS preparation, and bank feeds. MYOB's Australian compliance features are second to none — it handles every nuance of ATO reporting, including BAS lodgement and Single Touch Payroll if you ever hire staff.
For sole traders, MYOB can feel like more software than you need. The interface is functional but less modern than Xero or QuickBooks. However, if you value Australian-owned, Australian-supported software with deep compliance features, MYOB delivers.
Pros
- Deepest Australian compliance features
- Australian-owned with local phone support
- Full BAS and ATO lodgement
- Trusted by accountants nationwide
Cons
- Interface less modern than competitors
- Can be complex for sole traders
- No free plan
- Slightly more expensive than QuickBooks
Best for: Sole traders who want a trusted Australian brand with deep compliance and may hire staff in future.
Visit MYOB →Wave is a completely free accounting platform that covers invoicing, expense tracking, and basic financial reporting. It's a solid choice for sole traders on a very tight budget who need to track income and expenses without paying for software.
However, Wave has significant limitations for Australian users. It doesn't offer Australian bank feeds, BAS preparation, or ATO lodgement. You'll need to manually import bank statements and handle BAS separately. It also lacks receipt scanning and has limited Australian tax settings. Wave is best thought of as a step up from spreadsheets — not a replacement for Xero or QuickBooks.
Pros
- Completely free accounting
- Unlimited invoicing
- Basic reporting included
- Good for tracking income/expenses
Cons
- No Australian bank feeds
- No BAS or ATO support
- No receipt scanning
- Limited AU-specific features
- Manual data entry required
Best for: Sole traders on a very tight budget who just need basic income/expense tracking and can handle BAS manually.
Visit Wave →What Sole Traders Actually Need
As a sole trader, your accounting needs are simpler than a company with employees and inventory. Here's what actually matters:
- GST tracking: If you're registered for GST (mandatory above $75,000 turnover), your software must calculate and track GST automatically.
- BAS preparation: Quarterly BAS lodgement is a legal requirement for GST-registered businesses. Software that prepares and lodges your BAS saves hours.
- Bank feeds: Automatic bank transaction imports save massive time vs manual entry. Ensure the software supports your Australian bank.
- Receipt capture: Snap photos of receipts with your phone and attach them to expenses. Essential for claiming deductions.
- Simple reporting: Profit and loss, income by client, expense by category — the basics your accountant needs at tax time.
You probably don't need payroll, inventory management, purchase orders, or multi-currency support. Keep it simple.