Best Accounting Software Australia 2026: Xero, MYOB & QuickBooks Compared

Last updated: March 2026  ·  Prices verified from official AU vendor sites  ·  Affiliate disclosure

Xero is the best accounting software for most Australian small businesses. It's the easiest to use, has the best support, and your accountant almost certainly prefers it. MYOB is the right call for businesses with serious inventory or job costing needs. QuickBooks is a solid third option for simple businesses without employees. Reckon is worth considering if you're price-sensitive and have straightforward requirements.

This guide compares small business accounting software on what Australian owners actually deal with: payroll, GST and BAS, and how much help you get when something breaks. You get a direct recommendation, not a fence-sitting "it depends" for every question.

Beyond accounting, the natural next question for most growing businesses is CRM. If you settle on Xero, Capsule CRM is the cleanest native fit for Australian sole traders and small teams (and the free plan is genuinely usable).

Software	Starting price	Best for	Payroll	Our rating
Xero	$37/mo	Most small businesses	Included	★★★★★
MYOB	$26.25/mo	Inventory, construction, tradies	Add-on (Lite/Pro)	★★★★☆
QuickBooks	$32.72/mo	Micro businesses, simple needs	Add-on ($6/emp)	★★★☆☆
Reckon	$21.82/mo	Budget-conscious, simple ops	Add-on	★★★☆☆

For MYOB's desktop tier, see AccountRight Plus and Premier pricing, which sits above the MYOB Business plans covered here.

1. Xero - best for most Australian small businesses

Xero holds around 60% of the Australian cloud accounting market and it earns that position. It's the most polished product for businesses without a dedicated finance team - modern interface, smart bank reconciliation, excellent mobile app, and 1,000+ integrations with every Australian business tool you can think of. The clincher for most businesses: Australian bookkeepers and accountants overwhelmingly prefer Xero. That preference means lower accounting fees and smoother collaboration, which has real dollar value.

Xero also includes Hubdoc - its receipt and invoice capture tool - at no extra cost. For businesses comparing it with Dext, we've covered both in our Dext vs Hubdoc comparison.

Xero pricing (AUD, 2026)

Plan	Price/mo	Payroll included	Best for
Ignite	$37	1 person	Solo operators, freelancers
Grow	$78	2 people	Small teams
Comprehensive	$107	5 people	Growing businesses
Ultimate 10	$143	10 people	Larger SMBs

Xero includes payroll in every plan up to the headcount limit, and to pay more people you move up a tier rather than buying extra seats. That makes it dearer than MYOB's add-on model at every headcount, not cheaper: 5 people is $107 on Xero Comprehensive against $85 on MYOB Business Pro.

What Xero does well: easiest to learn for non-accountants; best mobile app of the three; 1,000+ integrations including Shopify, ServiceM8, Deputy, Cliniko; 24/7 support (the only one of the four); smart bank reconciliation that makes a month of transactions take minutes; preferred by most Australian bookkeepers.

Where Xero falls short: basic built-in inventory (add-ons needed for lot tracking or multiple warehouses); limited job costing vs MYOB; has raised prices significantly in recent years.

Xero is right for service businesses, cafés, ecommerce, medical and allied health practices, NDIS providers, sole traders, and any business where your bookkeeper already uses Xero. That covers about 80% of Australian small businesses.

Try Xero free for 30 days →  |  Xero vs MYOB deep dive →

2. MYOB - best for inventory, construction, and complex payroll

MYOB has been in Australian businesses since 1991. The interface is older and the learning curve steeper than Xero, but for businesses that need serious inventory management or job costing, nothing else in this market matches it. If your business fits that profile, MYOB is the right call regardless of Xero's other advantages.

MYOB pricing (AUD, 2026)

Plan	Price/mo	Payroll	Best for
Lite	$26.25	+$3/emp (max 2)	Sole traders, micro
Pro	$70	+$3/emp (unlimited)	Small business with staff
AccountRight Plus	$165	Included (unlimited)	Inventory, job costing, construction
AccountRight Premier	$210	Included (unlimited)	Multi-currency, multiple businesses

On the Lite and Pro plans, payroll is an add-on at $3/employee/month. On AccountRight Plus and Premier, payroll is included - which makes these plans competitive once you have a team of 10 or more.

What MYOB does well: inventory management is the best of any cloud accounting tool in Australia (multiple warehouses, lot tracking, serial numbers, product assemblies - all native); built-in job costing on AccountRight.

Where MYOB falls short: interface feels dated; fewer integrations (350+ vs Xero's 1,000+); business hours support only; weak mobile app.

MYOB is right for manufacturers, wholesalers, builders, construction companies, and retailers with complex inventory. Also worth a look as payroll headcount grows, because AccountRight Plus includes unlimited payroll at a flat price. For a full plan-by-plan cost breakdown, see our MYOB pricing guide.

Try MYOB free for 30 days →  |  MYOB vs Xero deep dive →

3. QuickBooks - solid but third choice for Australian businesses

QuickBooks is a well-built product that works fine in Australia. It loses marks here primarily because of ecosystem, not features: most Australian bookkeepers prefer Xero or MYOB, payroll is a separate add-on via Employment Hero at $6/employee/month, and local support is limited. There are specific situations where QuickBooks makes sense, but they're narrow.

QuickBooks pricing (AUD, 2026)

Plan	Price/mo	Users	Best for
Simple Start	$32.72	1	Solo, micro business
Essentials	$60	3	Small teams, bill management
Plus	$81.81	5	Inventory, project tracking
Advanced	$125.45	25	Larger businesses

The payroll add-on: $6/employee/month on top of any plan via Employment Hero. With 5 employees on Essentials you're at $60 + $30 = $90/month. That is cheaper than Xero, which needs Comprehensive at $107 to pay five people, though MYOB Business Pro still beats both at $85.

QuickBooks is right for a sole trader or micro business with very simple needs and no employees. Simple Start at $32.72/month is the cheapest QuickBooks tier, though Reckon One at $21.82 and MYOB Lite at $26.25 both undercut it. We'd still lean toward Xero Ignite at $37 for the better support and ecosystem.

Try QuickBooks free for 30 days →  |  Full 3-way comparison →

4. Reckon - best budget option for simple businesses

Reckon One is an Australian-built cloud accounting tool that often gets overlooked. It won't win on features or ecosystem, but at $21.82/month for full accounting it's the cheapest credible option for sole traders and small service businesses who just need invoicing, expense tracking, BAS, and basic payroll.

Reckon pricing (AUD ex GST, November 2026)

Plan	Price/mo	Best for
Accounting Plus	$21.82	Full accounting, BAS, bank feeds, unlimited users
Accounting Premium	$41.82	Adds enhanced reporting
Ultimate	$77.27	Unlimited payroll and inventory included
Payroll add-on	$14.55 to $54.55	Flat rate for up to 4, up to 10, or unlimited employees

What Reckon does well: Australian-built and hosted; $21.82/month is the lowest price among credible options; unlimited users on all plans; correct BAS, GST, and STP Phase 2 compliance.

Where Reckon falls short: small integration ecosystem; fewer bookkeepers know it (which can mean higher fees); reporting is basic compared to Xero or MYOB.

Reckon is right for sole traders and micro businesses with simple needs whose accountant already supports it. If you're price-sensitive and don't need integrations, it's a legitimate option. Check your accountant is comfortable with it before committing.

Which accounting software is right for your business?

Business type	Our pick	Why
Sole trader / freelancer	Xero Ignite	Easy, 24/7 support, accountants prefer it. $37/mo
Café / restaurant	Xero	POS integrations, high transaction volume, simple needs
Tradie (1-5 people)	Xero	ServiceM8, Deputy integrations; easy to use on the go
Builder / construction	MYOB AccountRight	Job costing on AccountRight
Retailer (simple stock)	Xero	Shopify, Square integrations; easy bank reconciliation
Retailer (complex inventory)	MYOB	Multi-location stock, lot tracking, no add-ons needed
Manufacturer / wholesaler	MYOB	Inventory management is the best in the category
Medical / allied health	Xero	Cliniko, Nookal, and practice management integrations
NDIS provider	Xero	Best integrations with NDIS management software
Ecommerce	Xero	Shopify, Amazon, eBay, Stripe - all connect natively
Professional services	Xero	Clean invoicing, great for time billing, accountant-preferred
Hospitality (complex awards)	Xero + Deputy or Tanda	The rostering tool interprets the award; neither Xero nor MYOB does
Budget-conscious, simple	Reckon	$21.82/mo full accounting, Australian servers, unlimited users

What to look for when choosing accounting software in Australia

Australian compliance - non-negotiable

All four options here handle GST tracking, BAS lodgement, STP Phase 2, and superannuation. This is the baseline - any software that doesn't tick all four boxes isn't worth considering for an Australian business.

Ask your accountant first

Your bookkeeper or accountant is a key stakeholder in this decision. Most Australian accountants prefer Xero - going with their preference typically means lower fees and smoother collaboration. If you don't have an accountant yet, choosing Xero gives you the widest pool of bookkeepers to choose from.

Total cost, not sticker price

The advertised monthly price is rarely what you'll actually pay. Add up the base plan, payroll add-ons, per-employee fees, and any third-party apps you need. The cheapest headline price can easily become the most expensive solution once everything is added up. Use our cost calculator to model your specific situation.

Check your key integrations

If you use specific tools - a POS system, a job management app, an ecommerce platform - verify they connect to your shortlisted software before committing. Xero wins this category broadly, but MYOB and QuickBooks cover most mainstream integrations. Reckon's ecosystem is the thinnest.

Use the free trials

All four offer 30-day free trials with no credit card required. The interface experience matters more than any spec sheet - a tool that frustrates you daily is a bad tool regardless of feature count. Run your actual transactions through the trial before deciding.

Common questions

Our verdict

Xero for most Australian small businesses. Easy to use, 24/7 support, 1,000+ integrations, preferred by accountants. Start here unless you have a specific reason not to.

MYOB for inventory-heavy businesses, builders and construction. The interface is dated but the capability is deep where it counts.

QuickBooks is a distant third in Australia on ecosystem, not price. With five staff, QuickBooks Essentials plus payroll is $90 a month against $107 for Xero Comprehensive. What holds it back is that fewer Australian bookkeepers work in it, and payroll runs in a separate platform (Employment Hero).

Reckon is legitimate for simple businesses whose accountant supports it. Don't overlook it if cost is the primary constraint and your needs are genuinely simple.

Payday Super is coming 1 July 2026. From that date, super must be paid on every payday - not quarterly. Both MYOB and Xero have built-in tools to handle this at no extra cost, but the setup differs. See our guide to Payday Super and which platform is easiest to set up →

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