Best Accounting Software for
Australian Sole Traders (2026)
Five tools, honestly compared on what sole traders, freelancers and the self-employed actually need: GST and BAS handling, invoicing, real Australian pricing and how much tax admin each one genuinely removes. We checked every price in June 2026 directly with each provider. Use our free calculators below to figure out your tax situation before spending a cent on software.
Written by Rob, founder of AusCalc
Australian small business owner. Checked against current ATO published rates. Updated July 2026. About AusCalc
1% of income. BAS & returns lodged for you
From $16.95/mo. AU-built invoicing-first
From $35/mo. The accountant's favourite
Side-By-Side Comparison
| Software | Price (AUD) | GST / BAS | Tax Return Lodged | Payroll | Best For |
|---|---|---|---|---|---|
| Hnry | 1% of income (+GST) | Calculated, set aside & lodged for you | Included | No (sole traders only) | Sole traders who want tax done for them entirely |
| Rounded | From $16.95/mo | GST tracking & BAS report (Pro plan) | You / your agent | No | Freelancers who mainly need invoicing + expense tracking |
| Xero | From $35/mo | Track GST & lodge BAS from the software | You / your agent | Yes (1 person on Ignite, more on higher plans) | Sole traders planning to grow, hire, or work closely with an accountant |
| QuickBooks Online | From $33/mo | GST tracking & e-lodge BAS | You / your agent | Add-on | Sole traders who want maximum features per dollar |
| MYOB (Solo & Business Lite) | From $99/yr | Solo tracks GST only; Lite/Pro lodge BAS | You / your agent | Lite: up to 2 staff ($3/mo each) | Mobile-first sole traders (Solo) or those whose accountant runs MYOB |
Full standard prices shown (intro discounts excluded). Third-party pricing changes without notice and Xero raised prices on 1 July 2026, so always confirm current pricing directly with the provider before deciding.
Hnry
All-in-one tax automation built only for sole traders
Pros
- Income tax, GST and Medicare automatically deducted as you get paid. No tax-time bill shock
- Tax returns and BAS lodged by their accountants, included in the fee
- No subscription: earn nothing, pay nothing
- Includes invoicing, expense management and a business Mastercard
Cons
- Income must flow through your Hnry account for the magic to work
- 1% can exceed software subscriptions at higher incomes (caps at $1,500 +GST)
- Not suited if you employ staff or run a company structure
Our verdict: The "never think about tax again" option. If your biggest pain is BAS, PAYG and the year-end return, Hnry replaces both the software and the accountant.
Rounded
Australian invoicing-first software made for freelancers
Pros
- Cheapest full-featured option for solo freelancers
- Built in Australia, for sole traders only. No small-business bloat
- Unlimited invoices, quotes, time tracking on every plan
- Friendly local support
Cons
- No tax or BAS lodgement. You (or your agent) still lodge
- No payroll if you ever take on staff
- Fewer integrations than Xero/QuickBooks
Our verdict: The best value pick if you invoice clients, track expenses, and are happy lodging your own BAS from its reports.
Xero
The full accounting platform your accountant probably loves
Pros
- Industry standard. Nearly every Australian accountant and bookkeeper supports it
- Lodge BAS directly to the ATO from the software
- Huge app marketplace and bank-feed coverage
- Scales from sole trader to multi-employee business
Cons
- Entry Ignite plan caps invoices (20/mo) and bills (5/mo)
- Most expensive option over a year at full price
- Income tax return still requires you or an accountant
Our verdict: Buy Xero if your business is heading somewhere bigger. Employees, inventory, an accountant relationship. It is more than most solo operators need on day one.
QuickBooks Online
Feature-dense accounting with aggressive intro pricing
Pros
- Simple Start covers unlimited invoices, GST and BAS e-lodgement on the cheapest plan
- Strong mobile app with receipt capture and kilometre tracking
- Deep reporting and growing AI features
- Intro discounts make year one very cheap
Cons
- Renews at full price after the intro period
- Interface can feel busy for simple sole-trader needs
- Payroll costs extra
Our verdict: The value-hunter's pick: the $33 Simple Start plan does more than competitors' entry tiers, especially during a promo window.
MYOB (Solo & Business Lite)
The Australian veteran, from a $99/yr sole-trader app to full accounting
Pros
- Solo at $99/yr is the cheapest entry point of any major brand
- Solo includes Tap to Pay and an in-app business bank account
- Clear upgrade path into full MYOB Business as you grow
- Long-established Australian support and accountant network
Cons
- Solo is mobile-app only and cannot lodge BAS. And you can't upgrade a Solo account to other plans later
- Web-based plans cost meaningfully more after intro discounts
- Less modern interface than Xero/QuickBooks on bigger plans
Our verdict: Solo is a great $99/yr starting point if you live on your phone. Just note the BAS limitation and the no-upgrade-path catch.
How To Choose (60-Second Version)
Start with the job you're hiring the software for. If the job is "make tax stop stressing me out", pick Hnry. Nothing else lodges your BAS and return for you. If the job is "send invoices and know my numbers" at the lowest cost, pick Rounded, or MYOB Solo if you want to run everything from your phone for $99 a year. If the job is "build a real business that might hire people", pick Xero or QuickBooks. Both lodge BAS from the software and your future accountant will support either.
Whichever you pick: the subscription is deductible, switching later is easier than you think (all five import/export data), and the worst option is the spreadsheet you never update. Pair your choice with our BAS set-aside calculator so the money is always there when the quarter ends.
Hnry vs Xero vs QuickBooks for Sole Traders
These three get compared most, but they are not the same kind of product. Hnry is a service that does your tax for you. Xero and QuickBooks are software you (or your accountant) run.
Hnry vs Xero
Hnry charges 1% of income (+GST), capped at $1,500 +GST/yr, and its accountants lodge your BAS and your tax return, so there is nothing to reconcile and no accountant to pay separately. Xero is from $35/mo on a monthly plan: you keep the books and lodge BAS from the software, and you usually still pay an accountant for the tax return. Pick Hnry if you are a sole trader with simple income who wants tax handled. Pick Xero if you plan to hire staff, need payroll, or want an accountant working inside your books.
Hnry vs QuickBooks
QuickBooks Online is from $33/mo and often discounted for the first months. It does more than most sole traders need, lodges BAS from the software, and suits a business that wants detailed reports. Hnry does less in the software but takes the lodging off your hands. If your income is mostly invoices and you never want to think about BAS, Hnry is simpler. If you sell products, track stock or want every report, QuickBooks fits better.
A proper tax invoice in a minute, with the tax to set aside worked out.
Frequently Asked Questions
Do sole traders actually need accounting software?
Not legally. A spreadsheet plus good records satisfies the ATO. But once you are GST-registered, invoicing regularly or claiming many deductions, software pays for itself in time saved and missed-deduction prevention. The subscription itself is also tax deductible.
What is the difference between Hnry and Xero or QuickBooks?
Different categories. Xero, QuickBooks, MYOB and Rounded are tools. They organise your numbers, but you (or your accountant) still lodge returns and put tax money aside. Hnry is a service: it deducts tax from every payment as you earn, lodges your BAS and tax return, and charges 1% of income instead of a subscription.
What is the cheapest accounting software for Australian sole traders?
MYOB Solo at $99/year is the cheapest from a major brand (mobile-only, GST tracking but no BAS lodgement). Rounded at $16.95/month is the cheapest full web option for freelancers. For very low incomes, Hnry can be cheapest of all since 1% of a small income beats any subscription.
Can accounting software lodge my BAS for me?
Xero, QuickBooks and MYOB Business plans can lodge BAS electronically with the ATO directly from the software once connected. Rounded produces the BAS figures for you to lodge via myGov. Hnry goes furthest. Their accountants prepare and lodge the BAS for you.
Is accounting software tax deductible?
Yes. Subscriptions for software used to run your business are fully deductible operating expenses, and Hnry's 1% fee is equally deductible (they even claim it automatically for you).
How much does accounting software cost for a sole trader in Australia?
Realistic 2026 pricing: MYOB Solo $99/year, Rounded $16.95-$22.95/month, QuickBooks from $33/month, Xero from $35/month, and Hnry charges 1% of income (capped at $1,500 +GST) instead of a subscription. Intro discounts can halve year-one costs, and the full amount is tax deductible.
What is the best accounting software for self-employed people in Australia?
The same shortlist applies. In Australia "self-employed", "freelancer" and "sole trader" usually mean the same tax structure: an individual with an ABN. Hnry suits self-employed people who want tax handled for them, Rounded suits freelancers who mainly invoice, and Xero or QuickBooks suit anyone planning to grow beyond solo work.
What if I only need invoicing software, not full accounting?
Rounded is the strongest invoicing-first pick for sole traders: unlimited invoices, quotes and time tracking on every plan. MYOB Solo covers mobile invoicing with Tap to Pay for $99/year, and Hnry includes invoicing free within its 1% fee. All three also track expenses, so you get light bookkeeping without paying for full accounting.
Is there desktop accounting software for Australian sole traders?
The market has moved almost entirely to the cloud. Xero, QuickBooks, MYOB Business, Rounded and Hnry all run in the browser or on mobile, which is what keeps bank feeds, BAS lodgement and backups automatic. Reckon still offers a desktop product, but for a sole trader a cloud option is cheaper, safer and better supported in 2026.
Free Tools To Pair With Your Software
Regulatory Notice:
Standard ATO estimates only; consult a professional before acting. For more details, see our Disclaimer.
AusCalc has no commercial relationship with any provider listed and receives no commission or referral fee. Prices verified against each provider's Australian pricing page in June 2026 and may have changed. Always confirm directly with the provider before purchasing.