The best accounting software for an Australian sole trader is Xero if you plan to grow, but Zoho Books is the best free option (free under $50K annual turnover), FreshBooks suits freelancers focused on invoicing, and Reckon is the cheapest paid Australian plan. Most sole traders without staff can skip payroll entirely.
Independent guide by MerchantCompare. Prices last checked . How we compare
Xero is the safest choice for a sole trader who expects to grow. The Ignite plan covers the basics, it lodges BAS and GST straight to the ATO, and if you later take on staff or a bookkeeper the platform scales without a migration.
Watch out: Dearer than the free and budget options, and Ignite caps invoices at 20 a month.
Zoho Books is free while your annual turnover stays under $50K, which covers a great many sole traders outright. Unlike most free tools it still lodges BAS and GST to the ATO, so being GST-registered does not force you off it, and the paid Standard plan is only $16.50 a month when you outgrow the threshold.
Watch out: Payroll is a separate Zoho Payroll add-on, and local advisor support is thinner than the AU-built platforms.
FreshBooks is built around time tracking and invoicing, so it suits consultants and freelancers who bill by the hour or project and want polished invoices and easy client management.
Watch out: Prices in US dollars and has more limited Australian compliance, so check BAS handling fits your needs.
Reckon is the cheapest paid Australian plan here, with strong ATO integration. A practical pick for a cost-conscious sole trader who wants local compliance without paying for features they will not use.
Watch out: A smaller app ecosystem than Xero or MYOB.
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 | ||||
|---|---|---|---|---|
| Est. Cost /mo (AUD) | $37/mo | $17/moCheapest | $29/mo | $24/mo |
| Ratings | ||||
|---|---|---|---|---|
| 4.4Capterra (3,299) | 4.4Capterra (673) | 4.5Capterra (4,504) | 4.6Capterra (110) | |
| Plans & Pricing | ||||
| $78/mo (Grow) | $16.50/mo (Standard) | $29/mo (Lite) | $24/mo (Plus) | |
| ✕ | ✓under $50K revenue | ✕ | ✕ | |
| ✓ | ✕add-on | ✕ | ✓banded add-on from $16/mo | |
| Unlimited | 3 (Standard) | 1 + collaborators | 1 | |
| Included | Add-on (Zoho Payroll) | N/A | From $16/mo (banded) | |
| ✕ | ✕ | ✕ | ✕ | |
| Compliance & Payroll | ||||
| ✓ | ✓ | Limited | ✓ | |
| ✓ | ✓via integration | ✕ | ✓ | |
| ✓ | ✓ | ✓ | ✓ | |
| Unlimited | Unlimited | Unlimited | Unlimited | |
| Unlimited | ✓unlimited | ✓unlimited | ✓unlimited | |
| AI | ||||
| Native (JAX) | Native (Zia) | Native (AI categorisation, OCR) | Limited (AI spend tracking, chat) | |
| Native MCP (official) | Native MCP (Zoho, official) | Via 3rd-party (Zapier) | Via 3rd-party (CData) | |
| Features & Integrations | ||||
| ✓Comprehensive | ✓Premium | ✓ | ✓Premium | |
| ✓Hubdoc | ✓ | ✓ | ✓ | |
| ✓free | ✓ | ✓free | ✓ | |
| 24/7 online | Business hours AU | Business hours | Business hours AU |
A sole trader needs almost the opposite of an enterprise: low cost, simplicity, and just enough compliance to keep the ATO happy, without paying for payroll, multiple users or inventory you will never touch. The risk is paying for a business-grade platform when a free or budget plan would do, or picking something so basic you outgrow it the moment you take on your first contractor. Below are our ranked picks for a one-person business, then a live calculator to cost each at your numbers.
Sole traders weigh accounting software on price first, then simplicity and Australian compliance. We ranked on whether there is a genuinely free or very cheap path, how easy the software is to run without an accountant, whether it lodges BAS and GST to the ATO when you are GST-registered, and whether it can grow with you if your one-person business becomes a small team. Pricing is live from our database in Australian dollars.
Skip what you do not need. Most sole traders have no employees, so payroll is irrelevant and you should not pay for a plan that bundles it. The same goes for inventory and multiple users. What matters is clean invoicing, expense capture, and the ability to hand tidy figures to your accountant or lodge your own BAS. If your turnover is under $75,000 you may not be GST-registered at all, which widens your options to the free tools.
Free is the right answer for many sole traders, but there are two triggers to move to a paid plan: registering for GST (you want reliable BAS and GST lodgement), and hiring your first person (you suddenly need payroll). If either is on the horizon, starting on a platform that scales, like Xero, can save you a migration later, even if you pay a little more now.
If you want zero cost and have no staff, Zoho Books is the best free option, and it stays viable once you register for GST because it lodges BAS to the ATO. If you bill by the hour or project, FreshBooks is built for you, with the caveat to check its Australian compliance fits. If you want the cheapest paid Australian plan with solid ATO integration, Reckon is hard to beat. And if you expect to grow into a small business, start on Xero so you never have to switch. Use the calculator above to see each option costed at your invoice count.
Xero is the best overall if you expect to grow, because it scales without a later migration and lodges to the ATO. If you want to pay nothing, Zoho Books is the best free option, and Reckon is the cheapest paid Australian plan. See the live pricing and calculator above.
Yes. Zoho Books is free while your annual turnover stays under $50K AUD, and it still lodges BAS and GST to the ATO, which most free tools do not. It skips Australian payroll, which most sole traders do not need anyway. Beyond that threshold its Standard plan is $16.50 a month.
Usually not. If you are a one-person business with no employees, you can skip payroll entirely and choose a cheaper plan. You only need payroll once you hire staff, at which point Xero (included) or MYOB (a per-employee add-on) become more relevant.
Only if you are registered for GST, which is required once your turnover reaches $75,000 a year. If you are registered, choose software that lodges BAS and GST to the ATO directly, which Xero, Reckon, MYOB and Zoho Books all do.
We are independent and not owned by any provider. Our picks weigh price, features and Australian fit for sole traders, using live pricing from our database, last checked 16 July 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.