Best Accounting Software for Sole Traders Australia 2026
Last updated: March 2026 · Prices verified from official AU vendor sites · Affiliate disclosure
The best accounting software for Australian sole traders is Xero Ignite at $37/month. It handles everything a sole trader needs - invoicing, BAS, GST, receipt tracking, and payroll for yourself - in an interface your accountant already knows. If budget is the overriding concern and your needs are genuinely simple, Reckon One at $24.55/month is a credible alternative.
Best accounting software for sole traders - comparison (2026)
| Software | Price/mo | BAS / GST | Payroll (self) | Mobile app | Accountant support |
|---|---|---|---|---|---|
| Xero Ignite | $37 | ✓ | ✓ Included | ★★★★★ | ★★★★★ |
| MYOB Lite | $31.82 | ✓ | +$4.55/mo | ★★★☆☆ | ★★★☆☆ |
| QuickBooks Simple Start | $32.72 | ✓ | +$6/mo | ★★★★☆ | ★★★☆☆ |
| Reckon One | $24.55 | ✓ | +add-on | ★★★☆☆ | ★★☆☆☆ |
| Wave | Free | Limited | ✗ No AU payroll | ★★★☆☆ | ★☆☆☆☆ |
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Try the calculator →What sole traders actually need from accounting software
As a sole trader in Australia you need software that handles GST tracking (automatically categorising transactions as GST-inclusive or exclusive), BAS preparation (calculating your GST liability and ideally lodging directly to the ATO), invoicing, bank feeds, receipt tracking from your phone, and STP payroll if you pay yourself a wage rather than just taking drawings. All four paid options above handle these. The differences are in ease of use, mobile capability, and accountant ecosystem.
Sole tradies running service work usually want job management on top of accounting. Tradify at $48/user/month is the simplest option for one-person operations. ServiceM8 has a permanent free plan capped at 30 jobs/month if you want to test before paying anything.
Xero Ignite - our top pick for sole traders
Xero Ignite at $37/month is our top recommendation for Australian sole traders. It's the easiest to learn, has the best mobile app, offers 24/7 support, integrates with every tool you're likely to use, and is the preferred platform of most Australian accountants. Payroll for one person is included - no add-on required.
The $12.45/month premium over Reckon ($37 vs $24.55) is worth it for most sole traders. If your accountant uses Xero, using anything else typically costs you more in accounting fees than you save on software. What Xero Ignite includes: unlimited invoices and quotes; bank feeds from all major Australian banks; GST tracking and direct BAS lodgement to the ATO; STP Phase 2 payroll for 1 person; superannuation calculations; receipt capture via mobile app; Hubdoc included; 1,000+ integrations; 24/7 online support.
MYOB Lite - best if you pay yearly
MYOB Lite at $31.82/month, or $23.86 if you pay yearly, is among the cheapest full accounting options from a major provider. It handles BAS, GST, bank feeds, and invoicing. Payroll is a $4.55/month add-on (so $36.36/month total if you pay yourself a wage). The interface is less polished than Xero but functional. Most sole traders choose Xero over MYOB Lite because it's easier to use and accountants prefer it. At a $5.18/month price difference, the decision usually comes down to what your accountant recommends.
Reckon One - best budget option
Reckon One at $24.55/month is the cheapest credible full accounting option in Australia. It's Australian-built with local servers, unlimited users, and all the compliance basics (GST, BAS, STP). It has a smaller ecosystem - fewer integrations and fewer accountants who work in it. Worth considering if cost is the primary factor and your accountant is comfortable with Reckon. Ask before signing up - if your accountant charges extra to work in Reckon, the saving disappears quickly.
What about free accounting software?
Wave offers free accounting and invoicing. It works for tracking income and expenses, but it doesn't have native Australian payroll (STP Phase 2), and BAS preparation is more manual. For a sole trader registered for GST with any complexity, the free tools usually cost more in accountant time than a paid subscription saves. The $37/month for Xero is almost always worth it.
Common questions for sole traders
Do I need accounting software as a sole trader?
If you're registered for GST, yes. You need to track GST on every transaction and lodge BAS quarterly. Doing this manually in a spreadsheet is possible but error-prone and time-consuming. Accounting software automates the GST tracking and makes BAS a 10-minute job instead of a half-day. The time saving alone is worth the $37/month.
Do sole traders need payroll software?
Only if you pay yourself a wage rather than just taking drawings. If you're paying yourself a salary, you need STP Phase 2 reporting to the ATO - Xero Ignite includes this for one person. If you only take drawings (profit distributions), you don't need payroll software.
What's the cheapest option that handles BAS properly?
Reckon One at $24.55/month handles BAS and GST correctly for Australian sole traders. If you want a larger ecosystem and better accountant compatibility, Xero Ignite at $37/month is worth the extra $12.45.
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