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 a revenue cap), MYOB's entry plan is $11/mo (Solo), with direct ATO lodgement, FreshBooks suits freelancers focused on invoicing, and Reckon is a low-cost Australian plan with unlimited users. Most sole traders without staff can skip payroll entirely.
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Xero is the safest choice for a sole trader who expects to grow. Its entry plan ($37/mo (Ignite)) covers the basics, it lodges BAS and GST straight to the ATO, and payroll is included if you later take on staff.
Watch out: Dearer than the free and budget options, and the entry plan limits how many invoices you can send each month.
Zoho Books is free while your annual turnover stays under its revenue cap, which covers a great many sole traders outright. It lodges BAS and GST to the ATO, so being GST-registered does not force you off it, and the first paid plan is $16.50 a month when you outgrow the cap.
Watch out: No payroll in Zoho Books and Zoho Payroll is not sold in Australia, so payroll needs a separate product.
MYOB's entry plan is $11/mo (Solo), on an Australian platform with bank feeds, receipt capture from the mobile app and direct BAS and GST lodgement to the ATO. It suits a sole trader who works alone and wants local compliance at a small monthly cost.
Watch out: The entry plan limits how many people can log in, so a second person who needs their own login means stepping up to $35/mo (Lite).
FreshBooks is built around invoicing, with unlimited invoices, so it suits consultants and freelancers who bill clients directly and want polished invoices and easy client management.
Watch out: BAS and GST support is limited (manual GST configuration), so check it fits your needs before relying on it.
Reckon is a low-cost Australian plan with unlimited users and direct BAS and GST lodgement to the ATO. A practical pick for a cost-conscious sole trader who wants local compliance without paying for features they will not use.
Watch out: Payroll is a banded add-on from $16 a month, and there is no multi-currency.
Enter your business details to see what each option would cost you. Prices are live from our database and shown in Australian dollars.
| 5 Providers | |||||
|---|---|---|---|---|---|
| Est. Cost /mo (AUD) | $37/mo | $17/mo | $11/moCheapest | $29/mo | $24/mo |
| Ratings | |||||
|---|---|---|---|---|---|
| 4.4Capterra (3,299) | 4.4Capterra (673) | 3.9Capterra (148) | 4.5Capterra (4,504) | 4.6Capterra (110) | |
| Plans & Pricing | |||||
| $37/mo (Ignite) | $16.50/mo (Standard, annual) | Best$11/mo (Solo) | $29/mo (Lite) | $24/mo (Plus) | |
| ✕ | ✓under $50K revenue | ✕ | ✕ | ✕ | |
| ✓ | ✕ | ✓$3/emp/mo | ✕ | ✓banded add-on from $16/mo | |
| Unlimited | 3 (Standard) | 1 on Solo, unlimited above | 1 + collaborators | Unlimited | |
| Included | N/A | $3/emp/mo (Lite/Pro) | N/A | From $16/mo (banded) | |
| ✕ | ✕ | ✕ | ✕ | ✕ | |
| Compliance & Payroll | |||||
| ✓ | ✓ | ✓ | Limited | ✓ | |
| ✓ | ✓via integration | ✓ | ✕ | ✓ | |
| ✓ | ✓ | ✓ | ✓ | ✓ | |
| Unlimited | Unlimited | 2 (Lite) | Unlimited | Unlimited | |
| 20/mo (Ignite) | ✓annual caps | ✓unlimited | ✓unlimited | ✓unlimited | |
| AI | |||||
| Native (JAX) | Native (Zia) | Native (AI BAS, Smart Reconciliation) | Native (AI categorisation, OCR) | Limited (AI spend tracking, chat) | |
| Native MCP (official) | Native MCP (Zoho, official) | Native: Claude + ChatGPT apps (rollout from Aug 2026); MCP via 3rd-party (CData) | Via 3rd-party (Zapier) | Via 3rd-party (CData) | |
| Features & Integrations | |||||
| ✓Comprehensive | ✓Professional | ✓Premier | ✓ | ✕ | |
| ✓Hubdoc | ✓ | ✓ | ✓ | ✓ | |
| ✓free | ✓ | ✓ | ✓free | ✓ | |
| 24/7 online | Business hours AU | 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, check that the plan you start on, or the one above it, covers what you will need, 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 work alone and want an Australian platform that lodges BAS and GST directly for a small monthly fee, MYOB's entry plan is $11/mo (Solo). 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 a low-cost Australian plan with unlimited users and direct BAS and GST lodgement, Reckon fits. And if you expect to grow into a small business, Xero includes payroll for when you hire. Use the calculator above to see each option costed at your invoice count.
Xero is the best overall if you expect to grow, because payroll is included if you hire and it lodges BAS and GST directly to the ATO. If you want to pay nothing, Zoho Books is the best free option. MYOB's entry plan is $11/mo (Solo), with direct ATO lodgement, and Reckon is a low-cost Australian plan with unlimited users. See the live pricing and calculator above.
Yes. Zoho Books is free while your annual turnover stays under its revenue cap, and it lodges BAS and GST to the ATO. It skips Australian payroll, which most sole traders do not need anyway. Beyond the cap its first paid 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 and MYOB all do. Zoho Books also includes BAS and GST lodgement.
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 4 October 2026. The comparison table lets you estimate each option at your own numbers. See How we compare for our full method.