Independent guideAll prices in AUD

Best Accounting Software for Small Business in Australia (2026)

The best accounting software for most Australian small businesses is Xero, because it includes unlimited users and payroll on every plan and has the largest local accountant network. Zoho Books is the best value, MYOB the strongest for local compliance and inventory, and QuickBooks the most affordable all-rounder.

Independent guide by MerchantCompare. Prices last checked . How we compare

Our top picks for small business

1Best overall
Xero logo

Xero

4.6$35/mo (Ignite)

Xero is the default pick for a growing Australian small business. Every plan includes unlimited users and built-in payroll, so your bookkeeper, accountant and team all get access without extra seats, and it has the largest app and accountant network in the country.

  • Unlimited users on every plan
  • Payroll included, no per-seat charge
  • Largest AU app ecosystem and accountant network

Watch out: The entry Ignite plan caps you at 20 invoices a month, so busier businesses move up to Grow sooner.

2Best value
Zoho Books logo

Zoho Books

4.2$16.50/mo (Standard)

Zoho Books gives the most capability per dollar. It is free for businesses under $50K AUD revenue and just $16.50 a month after that, and it slots into the wider Zoho ecosystem if you use their CRM or email tools.

  • Free under $50K AUD annual revenue
  • $16.50/mo Standard plan, the cheapest paid tier here
  • Part of the broader Zoho app suite

Watch out: Payroll is a separate Zoho Payroll add-on, not built in.

3Best for local compliance and inventory
MYOB logo

MYOB

4.3$26/mo (Lite)

MYOB has decades of Australian history and the deepest local compliance, with strong inventory and job tracking on its higher plans. A solid choice for established small businesses heading toward stock control.

  • Cheapest entry plan at $26/mo
  • Deep AU compliance and local phone support
  • Strong inventory and job tracking on AccountRight

Watch out: Payroll is $2 per employee a month, and the entry plan includes a single user.

4Best affordable all-rounder
QuickBooks Online logo

QuickBooks Online

4.2$33/mo (Simple Start)

QuickBooks Online pairs solid Australian compliance with strong reporting at a low monthly price. A practical option for small businesses that want good dashboards without paying for features they will not use.

  • Affordable across the range
  • Strong reporting and dashboards
  • Solid AU BAS and GST handling

Watch out: Payroll runs as a paid add-on, and the entry plan limits users.

Compare the picks at your numbers

Enter your business details to see what each option would cost you. Prices are live from our database and shown in Australian dollars.

4 Providers
Xero
Zoho Books
MYOB
QuickBooks Online
Est. Cost /mo (AUD)$35/mo$17/moCheapest$26/mo$33/mo
Plans & Pricing
Entry plan /mo$35/mo (Ignite)$16.50/mo (Standard)$26/mo (Lite)$33/mo (Simple Start)
Free tierunder $50K revenue
AU payroll includedadd-on$2/emp/moadd-on
Users includedUnlimited3 (Standard)1 (Lite)1 (Simple Start)
Payroll costIncludedAdd-on (Zoho Payroll)$2/emp/mo (Lite/Pro)Add-on (Employment Hero)
Contract required
Compliance & Payroll
BAS/GST lodgement
STP Phase 2via integration
Bank feeds
Bank feed connections1 (Ignite)Unlimited2 (Lite)Unlimited
Invoicing20/mo (Ignite)unlimitedunlimitedunlimited
Features & Integrations
Multi-currencyComprehensivePremiumPremierPlus
Receipt captureHubdoc
Accountant accessfree
Customer support24/7 onlineBusiness hours AUBusiness hours AUBusiness hours AU
Estimates based on $15,000/mo volume. Best-in-row cells are highlighted in emerald. Rates can change without notice, confirm current pricing with the provider before signing on.How we calculate fees

Choosing accounting software is one of the first real decisions a small business makes, and it is a sticky one: once your transactions, payroll and reporting live in a platform, moving is work. The good news is that the Australian market is mature, so the question is less "which one is good" and more "which one fits how you actually run your business". Below are our ranked picks, then a live calculator so you can cost each at your own invoice count and headcount.

How we chose

Small businesses weigh accounting software differently from sole traders or enterprises. We ranked on the things that matter at this size: total monthly cost once users and payroll are counted (not just the sticker price), how well the software handles Australian BAS, GST and Single Touch Payroll, whether it grows with you into inventory and multiple users, and the depth of the local support and accountant network. Pricing is pulled live from our database and shown in Australian dollars.

What small businesses should prioritise

The biggest hidden cost is users and payroll. A plan that looks cheap can become the dearest once you add a second user or run a pay run, because some platforms charge per seat or per employee while others bundle it. If you have any staff, price the option with payroll included, not the base subscription. The second thing to weigh is where you will be in two years: if you expect to carry stock or add team members, a platform with inventory and unlimited users saves a painful migration later.

Australian compliance is table stakes

Every serious contender here lodges your BAS, tracks GST and reports Single Touch Payroll Phase 2 to the ATO without a manual export, and keeps pace with award and superannuation changes. Because compliance is handled across the board, it should not be your deciding factor. Let cost, users, payroll and inventory needs make the call instead.

Switching is easier than you think

If you are moving from spreadsheets or another platform, the main contenders offer guided conversion that brings across your chart of accounts, contacts and recent history. The practical advice is to switch near the end of a BAS quarter so your reporting periods stay clean, and to reconcile both systems for one overlap month before you retire the old one.

The verdict

For most Australian small businesses, Xero is the pick: unlimited users, included payroll and the widest accountant network make it the safe, scalable default, and its cost is competitive once staff are counted. If you are watching every dollar, Zoho Books is the value champion, free under $50K revenue and cheap beyond it. Choose MYOB if you want the lowest entry price with deep local compliance and inventory, and QuickBooks if strong reporting at a low price matters most. Use the calculator above to see which lands cheapest for your invoice count and team size.

Frequently asked questions

What is the best accounting software for a small business in Australia?

For most small businesses, Xero is the best overall because it includes unlimited users and payroll on every plan and has the largest local accountant network. If budget is the priority, Zoho Books is cheaper, and MYOB is stronger for inventory-heavy businesses.

What is the cheapest accounting software for small business?

Zoho Books is the cheapest paid option at $16.50 a month, and it is free under $50K AUD annual revenue. MYOB Business Lite is $26 a month, and QuickBooks and Xero start a little higher but include more on each plan.

Do I need accounting software with payroll?

If you have employees, yes. Xero includes payroll on every plan and QuickBooks offers it as an add-on, both lodging Single Touch Payroll to the ATO. MYOB charges $2 per employee a month. Sole traders with no staff can skip payroll entirely.

Does small business accounting software handle BAS and GST?

Yes. Xero, MYOB, QuickBooks, Reckon and Zoho Books all prepare your BAS, track GST, and lodge directly to the ATO. This is standard for Australian-built or AU-localised platforms, so it rarely separates the main contenders.

How does MerchantCompare choose the best accounting software for small business?

We are independent and not owned by any provider. Our picks weigh price, features and Australian fit for small business, using live pricing from our database, last checked 31 May 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.

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