How to decide quickly
Work backwards from what you actually need the software to do this quarter. If the priority is BAS accuracy, STP payroll or cleaning historic transactions, choose the tool and support that make those outcomes fast and safe.
Most businesses can shortlist in under an hour by mapping must‑have features, then testing two live trials with bank feeds on. If you don’t have time to test, ask for a guided setup so you avoid rework and duplicate data entry.
Best accounting software for small business in Australia: quick comparison
- Xero: Excellent usability, strong bank feeds, robust BAS/GST handling, class-leading app marketplace. Great for services, trades with add‑ons, and growing teams.
- MYOB Business: Local payroll strength, decent built‑in inventory and jobs. Good when you want more out‑of‑the‑box features with fewer add‑ons.
- QuickBooks Online: Competitive pricing, solid core features, good reporting and mileage tracking. Works well for micro to small businesses and sole traders scaling up.
- Zoho Books: Cost‑effective if you already use Zoho apps; good automation and client portal. Pair with Zoho Inventory for product businesses.
- Reckon/others: Consider if you’re continuing from legacy files, but evaluate cloud features, STP Phase 2 and add‑on availability before committing.
If you sell online or need job costing, the add-ons you connect matter more than the ledger brand. Prioritise clean integrations with your POS, payments, time tracking, CRM and e‑commerce platform.
Australian compliance features to check
- BAS & GST: Correct GST codes, BAS reports and audit trail. Make sure bank rules and allocations post to the right tax codes.
- Payroll & STP Phase 2: Native STP, superannuation via SuperStream, leave accruals and award interpretation support (or a clean link to a payroll add‑on).
- eInvoicing (Peppol): Useful for government procurement and larger customers that prefer eInvoicing.
- TPAR & industry reports: If you’re in building, cleaning, courier or similar, ensure contractor reporting is easy.
- Document capture & audit: Receipt capture and attachments to support ATO reviews.
What to compare before you commit
Scope
Confirm your plan covers setup, chart of accounts design, bank feed rules, opening balances, payroll opening figures, BAS mapping and any migration cleanup.
Software fit
Match features to your needs: invoicing, quotes, projects/jobs, inventory depth, multi‑currency, e‑commerce, and reporting. Check the quality of integrations you rely on.
Turnaround and communication
Agree when the file will be ready, what is included post‑go‑live and who you contact for urgent BAS or payroll issues.
Commercial fit
Compare subscription tiers, add‑on costs, payment gateway fees and ongoing bookkeeping or payroll service pricing.
Migration and setup checklist
- Pick a cut‑over date after a BAS period and reconcile bank, PAYG and super up to that date.
- Export chart of accounts, contacts, items, unpaid invoices/bills and payroll year‑to‑date figures.
- Import, then set opening balances and GST codes. Lock the old file read‑only.
- Connect bank feeds, set bank rules and test a full invoice‑to‑payment cycle.
- Run a parallel payroll once to confirm STP figures, super and leave accruals are correct.
- Document processes so handover to your team or bookkeeper is smooth.
Typical setups by business type
- Sole traders and micro businesses: QuickBooks Online or Zoho Books entry plans; Xero if you want broader add‑ons later.
- Trades and field services: Xero or MYOB with job management add‑ons for quotes, scheduling and progress invoicing.
- Professional services: Xero or QuickBooks with projects, time tracking and proposal tools for retainers and WIP.
- E‑commerce and inventory: Xero or Zoho Books with inventory/POS apps; MYOB Business if you want more native stock features.
If payroll or BAS is a stress point, consider ongoing payroll services and bookkeeping services so the compliance load doesn’t sit on the owner.
Best next steps
Write down the outcomes you want from your software in the next 90 days: accurate BAS, clean bank reconciliation, confident payroll, clear job profitability or a working e‑commerce link.
Test two platforms against that list or ask for a guided setup with a small business accountant or bookkeeper. If tax planning is also in play, loop in a tax accountant early.
Use the links on this page to move from a broad question into the right service: accounting services, BAS, payroll, or new business setup.
Frequently asked questions
What is the best accounting software for small business in Australia?
There isn’t a single winner. Most Australian small businesses choose between Xero, MYOB Business, QuickBooks Online and Zoho Books. The best fit depends on GST/BAS, STP payroll, inventory, job costing, e‑commerce integrations, reporting and budget.
Xero vs MYOB vs QuickBooks Online — which should I choose?
Xero offers excellent usability and integrations; MYOB Business has strong local payroll and inventory out‑of‑the‑box; QuickBooks Online provides good value and solid core features; Zoho Books suits those already in the Zoho ecosystem. Map features to your must‑haves and trial before you decide.
Do I need payroll (STP Phase 2) built in?
If you pay staff or directors, you need STP Phase 2 compliance and SuperStream. Native payroll reduces errors. If you have complex awards or rosters, use a payroll add‑on that syncs cleanly with your ledger.
Can I switch software mid‑year, and how do I migrate data?
Yes. Choose a cut‑over date after a BAS period, reconcile to that date, export key lists and open balances, import to the new file, then lock the old file read‑only. Validate GST codes and payroll opening figures, and run one parallel payroll to check STP totals.
Is there free accounting software for Australian small businesses?
Free tools usually miss compliant BAS, STP or reliable feeds. For Australian compliance, a paid plan is typically safer and saves time once you factor cleanup and penalty risk.
Which software is best for tradies and job costing?
Xero or MYOB combined with job management apps works well for quoting, scheduling, progress billing and timesheets. Ensure the add‑on syncs customers, items and invoices reliably.
What about e‑commerce and inventory?
For online stores, prioritise accurate integrations with Shopify/WooCommerce and stock control. Xero or Zoho Books with inventory add‑ons, or MYOB Business with built‑in inventory, are common picks.
How much does small business accounting software cost in Australia?
Entry plans cover basics; mid‑tier adds payroll and more users; higher tiers add multi‑currency and advanced inventory. Include add‑on costs and payment gateway fees in your budget.
When should I get professional advice?
Get advice if you have employees, inventory, trusts or groups, multi‑currency, e‑commerce, ATO pressure or if you’re short on time. A short consult can prevent months of rework. Use the form below to request help.