Xero
Xero continues to be a standout choice among small businesses in Australia. Designed for flexibility and ease of use, this cloud-based platform is built with scalability and integration in mind. It is particularly favored by growing businesses and startups for its accessibility and robust feature set. Xero offers multi-currency capabilities, direct bank feeds, and seamless payroll integration, making it suitable for businesses with both local and international dealings.
Xero’s main features include automated bank reconciliation, real-time financial dashboards, and mobile functionality. Its dashboard provides a snapshot of financial health, displaying key metrics like cash flow, invoices owed, and upcoming bills. Users can connect their bank accounts for real-time reconciliation, saving hours of manual entry. Additionally, the software integrates with over 1,000 third-party apps, allowing businesses to expand its functionality across areas such as inventory, time tracking, and customer relationship management.
Among its strongest points is its robust invoicing system. Businesses can customize templates, schedule recurring invoices, and accept payments online. The automated payment reminders help improve cash flow by encouraging clients to pay on time. Xero’s mobile app also ensures business owners can create quotes and send invoices on the go.
The advantages of Xero include a user-friendly interface, cloud-based flexibility, extensive third-party integrations, and solid customer support. The software’s automation tools minimise human error and help streamline daily accounting tasks. Its ability to handle GST, BAS, and single-touch payroll reporting ensures it complies with Australian tax regulations, which is vital for business continuity.
However, some drawbacks exist. The pricing can be high for businesses that require access to premium features or multiple users. Moreover, while the interface is clean and modern, beginners might initially find some advanced functions overwhelming. Larger organisations might also find its reporting tools somewhat limited compared to enterprise-level platforms.
Nonetheless, Xero is an excellent choice for businesses seeking scalability, reliability, and a wide range of features suitable for Australian tax and accounting needs.
QuickBooks Online
QuickBooks Online is another top contender in the Australian market, especially for businesses that want a blend of robust accounting tools with automation and ease of use. Developed by Intuit, QuickBooks has a long-standing reputation and offers a strong foundation for small to mid-sized enterprises looking to digitise their finances.
QuickBooks’ main features include automatic transaction categorisation, project profitability tracking, time tracking, and inventory management. The software also provides detailed reporting tools, including profit and loss statements, cash flow forecasts, and balance sheets. For businesses with employees, the integrated payroll system simplifies tax filings and superannuation calculations.
One of QuickBooks’ standout features is its smart reporting and analytics tools. Business owners can gain insights into financial performance with customisable dashboards that showcase key indicators. The cash flow planner is particularly useful for predicting upcoming income and expenses, aiding in more informed decision-making.
Other major advantages of QuickBooks include its user-friendly interface, excellent mobile app, and comprehensive support resources, including video tutorials and a vibrant user community. Integration with banking institutions is seamless, and transactions are automatically imported and categorised. This reduces the time spent on bookkeeping and allows more focus on business growth.
Another notable benefit is the multi-user collaboration. QuickBooks allows accountants and business owners to access the same data simultaneously, which simplifies the process of filing taxes or conducting audits. The real-time syncing ensures everyone is always on the same page.
Despite its benefits, QuickBooks does have limitations. Pricing plans can be restrictive for startups with limited budgets. Some users also report occasional syncing issues with certain banks. Additionally, businesses that rely heavily on inventory may find QuickBooks’ inventory management capabilities lacking compared to specialised systems.
Even with these minor concerns, QuickBooks Online remains a versatile and powerful accounting solution that aligns well with the needs of Australian small businesses.
FreshBooks
FreshBooks, originally developed for service-based freelancers and sole traders, has expanded significantly in recent years to serve small businesses more broadly. Known for its intuitive design and excellent customer service, FreshBooks continues to attract users looking for an efficient, user-friendly accounting solution.
FreshBooks’ core features include time tracking, expense categorisation, invoicing, and project management. The platform allows businesses to send custom-branded invoices, track hours worked by project or client, and accept online payments through major gateways. Its mobile app enhances productivity by allowing users to snap photos of receipts, send invoices, and track time even when away from the office.
What distinguishes FreshBooks from many competitors is its emphasis on simplicity and user experience. The layout is clean, and the onboarding process is straightforward. This makes it ideal for business owners with minimal accounting knowledge. It supports automatic payment reminders and late fees, helping businesses improve cash flow without constant follow-up.
FreshBooks also shines in its time-tracking capabilities. Businesses that bill clients by the hour will find it easy to convert logged time into professional invoices. Team collaboration tools allow managers to assign tasks, monitor progress, and communicate with employees or contractors within the platform.
Advantages of FreshBooks include excellent customer service, high levels of user satisfaction, strong invoicing and time-tracking capabilities, and easy-to-understand reports. It also supports multi-currency and tax configuration options, making it a solid fit for Australian businesses with international clients.
However, FreshBooks does have some limitations. It lacks full double-entry accounting features, which may be essential for businesses with more complex financial needs. Also, the basic plan is quite limited, and many valuable features are only available in higher-tier plans. The software is less ideal for product-based businesses needing robust inventory management.
Nevertheless, FreshBooks is a great option for freelancers, service providers, and creative professionals who prioritise ease of use, invoicing, and client management. It brings a practical, efficient approach to small business accounting without overwhelming users with unnecessary complexity.
MYOB
One of the most established names in the Australian accounting software landscape, MYOB (Mind Your Own Business) has been serving businesses for decades. With products tailored specifically to the Australian market, it supports compliance with local tax laws and regulations, including BAS, PAYG, and SuperStream.
MYOB offers a suite of tools covering payroll, invoicing, expenses, and inventory. The platform is available in both desktop and cloud-based versions, giving businesses the flexibility to choose what best fits their operational needs. MYOB Business and MYOB AccountRight are its two primary offerings, with the former suited for sole traders and the latter for more complex businesses.
The software’s standout features include automatic bank feeds, comprehensive inventory tracking, and detailed reporting. MYOB’s payroll system is compliant with Australian standards and includes features like leave management and automated super payments. Integration with ATO systems ensures that tax reporting is streamlined and accurate.
MYOB excels in inventory management, allowing businesses to track stock levels, set reorder points, and manage suppliers with ease. This is particularly beneficial for product-based businesses or retailers that need real-time inventory insights.
Among the pros of MYOB are its localised features tailored for the Australian market, strong reporting capabilities, payroll support, and long-standing reputation. Customer support is accessible, and local knowledge among support staff is a definite advantage.
On the downside, MYOB’s interface can feel outdated compared to newer platforms. The learning curve is steeper, especially for users transitioning from manual systems or simpler software. Additionally, some cloud-based functions are limited unless users upgrade to the more expensive AccountRight plans.
Despite these issues, MYOB remains a robust, trustworthy option for Australian businesses seeking reliability, local support, and a wide array of accounting features.
Sage
Sage is a legacy software provider that has effectively modernised its offerings for the digital age. Known for reliability and depth, Sage has carved out a significant place in the global market, and its Australian version is well-suited to the needs of local small businesses. Sage Business Cloud Accounting is the version most relevant to small enterprises in Australia, offering flexibility and a streamlined user experience.
The main features of Sage include cash flow forecasting, invoicing, expense tracking, and compliance with Australian tax requirements. One of its core strengths lies in its financial forecasting tools. Users can create scenarios and examine the potential impact on revenue, helping them prepare for best- and worst-case outcomes. This is particularly useful for small business owners with fluctuating cash flow who want a more precise understanding of their financial trajectory.
Sage also offers bank connectivity, automating transaction imports and reconciliation. The dashboard is clean and informative, providing an at-a-glance overview of key financial indicators. Sage supports both accrual and cash-based accounting methods, and it includes real-time collaboration with accountants.
A key advantage of Sage is its scalability. While it’s tailored for small businesses, its functionality extends to medium-sized operations as well. It also supports multi-user access and role-based permissions, making it suitable for teams. Another benefit is the automatic generation of financial statements and audit trails, which adds a layer of accountability and compliance.
However, Sage is not without its drawbacks. The user interface, while functional, may feel a bit dated compared to newer platforms. Some users find the setup process slightly complex, especially when importing historical data. Additionally, advanced features are sometimes hidden behind higher subscription tiers.
Despite these limitations, Sage remains a solid and dependable accounting solution that adapts well to Australian standards and is ideal for businesses seeking robust forecasting tools and compliance support.
Zoho Books
Zoho Books is part of the larger Zoho suite, which includes CRM, email, project management, and more. As a standalone product, Zoho Books is an impressive cloud-based accounting tool tailored for small businesses that want affordability without sacrificing functionality. It is especially popular among tech-savvy entrepreneurs and startups looking for a unified platform.
Zoho Books’ main features include automated workflows, multi-currency handling, time tracking, inventory control, and bank reconciliation. It also provides tools for managing projects and billing clients on a per-hour basis, which makes it an attractive choice for service-based businesses. The software includes client portals that allow customers to view invoices, make payments, and communicate within the app.
One of the standout aspects of Zoho Books is its automation capabilities. Users can automate recurring invoices, payment reminders, and even bank rule categorisations. This significantly reduces the manual workload, enabling small business owners to focus more on strategy and operations rather than bookkeeping.
Another major benefit is its strong mobile application. Business owners can access their financial data, generate reports, and communicate with clients from anywhere. The app is well-designed and mirrors the functionality of the desktop version, which is not always the case with other platforms.
Zoho Books also excels in integration. Being part of the broader Zoho ecosystem, it seamlessly connects with Zoho CRM, Zoho Inventory, and Zoho Projects. It also supports third-party integrations with payment gateways, e-commerce platforms, and other essential business tools.
Among the pros of Zoho Books are its affordability, comprehensive feature set, intuitive user interface, and extensive automation tools. It is also GST-compliant and includes BAS reporting, which are crucial for Australian businesses. The platform offers various pricing tiers, making it accessible to businesses of different sizes and budgets.
On the downside, Zoho Books may lack the deep customization options found in more enterprise-focused software. Customer support can be inconsistent depending on the region and subscription plan. Additionally, the ecosystem’s vastness can be overwhelming for users who are only interested in the accounting portion.
Nevertheless, Zoho Books is a highly capable and flexible accounting solution, particularly suitable for tech-savvy entrepreneurs and businesses that value automation and integrated systems.
NetSuite
NetSuite, a product by Oracle, is best known for its enterprise-level ERP capabilities, but its cloud-based accounting module is powerful enough to stand on its own. While it may be more than what a micro-business needs, NetSuite is an excellent option for growing small businesses that anticipate the need for advanced features, scalability, and cross-departmental integration.
NetSuite’s main features include general ledger, accounts receivable and payable, fixed asset management, and real-time financial reporting. It supports multi-entity operations, which is ideal for businesses with multiple branches or product lines. The dashboard offers a comprehensive view of business performance and can be customized to show KPIs relevant to different departments or users.
One of NetSuite’s strongest features is its global compliance and tax management. It supports multi-currency transactions, tax rules for different jurisdictions, and automated tax reporting, making it suitable for Australian businesses with international dealings. It also includes advanced audit trails and role-based access to ensure security and regulatory compliance.
Another key advantage is the platform’s automation capabilities. NetSuite can automate everything from recurring billing and revenue recognition to purchase orders and inventory management. This reduces human error and improves operational efficiency. Its built-in analytics allow businesses to drill down into reports, compare historical performance, and create forecasting models.
NetSuite is highly customisable. Users can tailor dashboards, reports, workflows, and even the user interface to match their business needs. This level of personalisation is particularly useful for businesses with complex operational structures or those transitioning from legacy systems.
Among the benefits of NetSuite are its scalability, customisation options, global compliance tools, and comprehensive reporting. It is a future-proof platform that grows with your business and integrates seamlessly with other Oracle products and third-party applications.
However, NetSuite is not without challenges. The cost can be prohibitive for very small businesses or startups. Implementation is also more complex than with plug-and-play platforms and often requires the support of certified consultants. Additionally, the learning curve is steep, especially for teams unfamiliar with ERP systems.
Despite these considerations, NetSuite is ideal for Australian businesses with growth ambitions that require more than basic accounting functionality. Its power, flexibility, and comprehensive feature set make it a standout choice for firms looking to streamline operations across departments.
Reckon
Reckon is a homegrown Australian accounting software brand that has long been associated with reliability and compliance. Once part of the QuickBooks franchise, Reckon has since evolved into its own robust ecosystem tailored for Australian businesses. It offers a cloud-based version called Reckon One, which is modular in nature—meaning users can pick and pay for only the features they need.
The main features of Reckon One include invoicing, expense tracking, payroll integration, bank reconciliation, and BAS submissions. A key benefit of Reckon’s modular system is its flexibility. Whether you only need basic bookkeeping or more advanced features like time tracking and payroll, you can customize your subscription accordingly. This is particularly advantageous for businesses that want to start small and scale their accounting needs over time.
Reckon One is designed with simplicity in mind. The dashboard is user-friendly, presenting financial data in a clear and digestible format. Business owners can quickly generate financial reports such as profit and loss statements, balance sheets, and cash flow forecasts. These reports are customisable and compliant with Australian tax laws.
A noteworthy feature is its Single Touch Payroll (STP) functionality, which allows businesses to report employee payments and superannuation to the Australian Tax Office in real-time. This helps companies maintain compliance without requiring a separate payroll system.
Reckon also includes secure bank feeds, allowing automatic transaction imports and categorisation. Users can set rules for expense tracking, which accelerates reconciliation and reduces manual entry errors. Another unique benefit is offline capability. Unlike many cloud-only services, Reckon also offers desktop options, making it a versatile choice for businesses that prefer a local installation.
Among the pros of Reckon are its affordable modular pricing, Australian-specific compliance features, intuitive interface, and scalable modules. It is a great fit for freelancers, consultants, and small firms that want control over their software costs without sacrificing functionality.
However, there are some downsides. While the modular system is flexible, it can also lead to a higher cumulative cost if many features are added. Some users have reported that customer support can be slow, and integration with third-party tools is not as extensive as competitors. Additionally, while its UI is functional, it may not feel as modern or visually polished as newer SaaS platforms.
Despite these limitations, Reckon is a well-rounded solution for Australian small businesses looking for local support, government compliance, and modular flexibility. It strikes a balance between functionality and affordability, making it a dependable tool in the accountant’s arsenal.
ZipBooks
ZipBooks is a relatively new player in the accounting software market, targeting freelancers, solo entrepreneurs, and small businesses with a preference for simplicity and speed. Although it is US-based, its core features are general enough to serve Australian businesses effectively, especially for those that do not require localised tax compliance features out of the box.
The main features of ZipBooks include invoicing, expense tracking, time tracking, project management, and simple reporting. It also offers a clean and minimalistic user interface, which contributes to a low learning curve for new users. Unlike more feature-heavy tools, ZipBooks prioritises usability and ease of navigation, making it particularly appealing to entrepreneurs with limited accounting knowledge.
Invoicing in ZipBooks is fast and highly customisable. Users can create professional-looking invoices, set up recurring billing, and accept payments through integrated payment gateways. Time tracking and project management tools are built-in, allowing service-based businesses to manage clients and bill accurately for hours worked.
ZipBooks also offers basic financial reporting. These include profit and loss summaries, customer statements, and invoice aging reports. While it may not deliver the deep insights provided by more complex platforms, the reporting features are sufficient for most micro-business needs.
A major advantage of ZipBooks is its freemium model. The basic version includes core functions like invoicing and expense tracking at no cost, making it ideal for very small businesses or individuals just starting out. Premium versions introduce additional features such as auto-billing, advanced reporting, and more robust team management options.
The user experience is one of ZipBooks’ strongest points. Navigation is intuitive, the layout is clean, and tasks like adding expenses or generating invoices can be completed in just a few clicks. This efficiency allows business owners to spend less time managing finances and more time focusing on growth.
Among the pros of ZipBooks are its affordability, especially for entry-level users, simple and elegant design, integrated project and time tracking, and ease of use. It’s a powerful option for freelancers and solo business operators who need essential accounting tools without the overhead of a complex system.
However, ZipBooks has limitations. The software lacks advanced features such as inventory management, payroll processing, and local tax compliance tools specific to Australia. This means it may not be suitable for retail or product-based businesses unless supplemented with other tools. Additionally, customer support is limited in the free tier, and integrations are relatively sparse.
For Australian users, another consideration is tax reporting. ZipBooks does not currently support GST or BAS submissions, so businesses will need to calculate and file those manually or work with an accountant. While this may not be a dealbreaker for all, it is a factor for compliance-focused businesses.
Despite these shortcomings, ZipBooks stands out for its user-centric design, freemium availability, and basic but reliable accounting features. For solopreneurs and freelancers who prioritise simplicity and cost-efficiency over complexity, it’s a refreshing alternative in the accounting software landscape.
Emerging and Niche Accounting Solutions
As the Australian small business landscape continues to evolve in 2025, a new wave of accounting software solutions is emerging to meet the diverse needs of entrepreneurs. These platforms offer innovative features tailored to specific business models, ensuring that even the most niche requirements are addressed. We explore some of these rising stars in the accounting software arena.
Integrating Banking and Accounting for Seamless Financial Management
Thriday has positioned itself as a game-changer by combining banking, accounting, and tax features into a single platform. Designed specifically for Australian small businesses, Thriday offers up to 10 bank accounts with an auto-allocation feature, enabling businesses to automate their budgeting processes. Its invoice software is crafted to expedite payments, while expense management tools, including automated receipt reconciliation, streamline daily operations.
One of Thriday’s standout features is its ability to lodge BAS and tax directly to the ATO from the same platform used for banking. This integration simplifies compliance and reduces the need for multiple systems. With pricing starting at AUD 0/month for access to free banking and scaling up to AUD 29.95/month for the Timesaver Plan, Thriday offers a cost-effective solution for businesses seeking an all-in-one financial management tool.
Catering to Freelancers and Sole Traders
Rounded is tailored for freelancers and sole traders, focusing on simplicity and efficiency. It offers powerful automation features without restrictions, supporting various payment methods, including credit card payments. Rounded’s built-in time tracker records project time, aiding in accurate billing and time management.
The platform encourages collaboration with accountants by providing comprehensive reports suitable for tax lodgment. Its transparent and affordable pricing plans, coupled with a user-friendly interface, make Rounded an attractive option for independent professionals seeking a straightforward accounting solution.
CashFlow Manager
CashFlow Manager offers an exceptionally user-friendly interface that adopts a simple ‘cashbook’ format, mimicking traditional methods of recording income and expenses. Designed with Australian small businesses in mind, it ensures compliance with ATO requirements, including GST tracking and reporting.
Users can easily generate reports necessary for tax purposes, making tax time less daunting. CashFlow Manager’s straightforward approach appeals to business owners who prefer a tangible, familiar method of financial record-keeping, bridging the gap between manual and digital accounting practices.
Streamlining Accounting with Smart Integrations
Saasu presents itself as a forward-thinking accounting solution, emphasizing automation and integration. Australian businesses can perform instant cash flow forecasting with minimal setup, connecting the Saasu platform seamlessly with CRM systems, e-commerce stores, email platforms, and more.
Its smart bank feeds facilitate quick and efficient bank reconciliations, saving time and reducing errors. The invoicing interface allows for the easy creation of customized invoices, with or without accompanying payments, all from the same screen. Saasu’s focus on integration and automation makes it a compelling choice for businesses looking to streamline their accounting processes.
Simplifying Compliance for Small Businesses
TaxLeopard is a cloud-based accounting software designed specifically for small businesses in Australia. It ensures compliance with Australian GST regulations, simplifying tax reporting. The platform features an intuitive interface, making it easy to manage business finances, and provides real-time financial reports to aid in informed decision-making.
With affordable pricing and integration capabilities, TaxLeopard offers a practical solution for small businesses seeking to maintain compliance without the complexity often associated with larger accounting systems.
Empowering Micro and Small Business Owners
Invoice2go is a mobile and web app designed as a simple invoicing, expense-tracking, and reporting tool for micro and small business owners. Headquartered in Sydney and Palo Alto, Invoice2go processes $24 billion in transactions each year and serves over 220,000 customers in more than 160 countries.
The software simplifies estimates, invoicing, expense tracking, managing online payments, and building an online presence. Its cloud-based nature and tiered subscription plans cater to businesses of varying sizes, providing flexibility and scalability.
Conclusion
Choosing the right accounting software is one of the most critical decisions for any small business owner in Australia. Across this series, we’ve examined ten of the most reliable, innovative, and user-friendly platforms available in 2025, each offering distinct advantages depending on your business size, industry, and financial management preferences.
From powerful giants like Xero and QuickBooks, which cater to growing enterprises with comprehensive features and automation tools, to minimalist platforms like ZipBooks designed for freelancers and startups seeking intuitive simplicity, the spectrum of choices is vast. We’ve also explored solutions like MYOB and Reckon, which are deeply rooted in Australian compliance standards, offering peace of mind for those who want locally tailored features. For businesses with international ambitions or complex operational needs, tools like NetSuite and Sage provide scalability and depth.
FreshBooks and Zoho Books bring a balance of function and flair, targeting service-based industries and users who value project management alongside core accounting. While each platform has its pros and cons, they all serve one essential purpose: to streamline financial tasks, improve cash flow visibility, and ensure tax and regulatory compliance.
In 2025, the competitive landscape of accounting software continues to evolve, driven by automation, artificial intelligence, and growing demands for real-time insights. No matter where your business falls on the spectrum—whether you’re just starting out or scaling operations across regions—there is a solution that can align with your goals and budget.
Ultimately, the best accounting software is the one that not only meets your current needs but also grows with your business. By investing the time to evaluate these tools, you empower your enterprise with clarity, control, and the agility to make smarter financial decisions in an increasingly dynamic business environment.
