Which accounting software is best for small business in Australia?

TLDR;

For Australian small businesses in 2025, Xero stands out for its user-friendly interface and robust integrations, making it ideal for those seeking simplicity and efficiency. MYOB offers comprehensive features suitable for growing businesses needing advanced payroll and inventory management. Ultimately, the best choice depends on your specific business needs and preferences.

Why Choosing the Right Accounting Software Matters in Australia

Selecting the appropriate accounting software is crucial for Australian small businesses to ensure compliance with ATO regulations, manage GST effectively, and streamline financial operations.

Meeting ATO and GST Compliance Requirements

Ensure the software supports ATO-compliant Single Touch Payroll (STP).
Facilitates accurate GST calculations and BAS reporting.
Automates tax obligations, reducing manual errors.

Saving Time with Automation and Cloud Access

Automates invoicing, expense tracking, and bank reconciliations.
Cloud-based access allows real-time financial monitoring from anywhere.
Reduces administrative workload, freeing time for core business activities.

Supporting Business Growth with the Right Tools

Scalable solutions accommodate business expansion.
Integrations with other business tools enhance operational efficiency.
Provides insights through detailed financial reporting.

Key Features to Look For in Small Business Accounting Software

GST and BAS Lodgement

Automated GST tracking and BAS preparation.
Direct submission to the ATO from within the software.

Invoicing, Billing, and Receivables

Customisable invoice templates.
Automated reminders for overdue payments.
Integration with payment gateways for easy transactions.

Payroll and Superannuation Tracking

Compliant with Australian payroll standards.
Automates superannuation calculations and submissions.
Manages employee leave and entitlements.

Inventory and Stock Management

Real-time inventory tracking.
Alerts for low stock levels.
Integration with sales and purchasing systems.

Bank Reconciliation and Live Bank Feeds

Automatic import of bank transactions.
Simplifies reconciliation processes.
Reduces errors through real-time data syncing.

Cloud Access and Mobile Compatibility

Access financial data on-the-go via mobile apps.
Ensures data security with cloud backups.
Facilitates collaboration with accountants and bookkeepers.

Top Accounting Software for Small Business in Australia 2025

Xero – Best for Cloud Simplicity

User-friendly interface suitable for non-accountants.
Strong integration capabilities with third-party apps.
Real-time financial reporting and dashboard insights.

MYOB – Best for Local Support & Traditional Businesses

Comprehensive features including payroll and inventory management.
Strong customer support based in Australia.
Suitable for businesses transitioning from traditional accounting methods.

QuickBooks Online – Best for Automation & User Interface

Advanced automation features for invoicing and expenses.
Intuitive user interface with customisable dashboards.
Robust reporting tools for financial analysis.

Zoho Books – Best for Customisation & Multi-Currency

Highly customisable to fit unique business needs.
Supports multi-currency transactions, ideal for international dealings.
Integrates seamlessly with other Zoho applications.

Thriday – Best for All-in-One Banking + Accounting

Combines banking, accounting, and tax features in one platform.
Automates BAS and GST compliance.
Real-time financial insights with a focus on profitability.

Rounded – Best for Sole Traders and Freelancers

Simplified accounting tailored for freelancers.
Time tracking and invoicing features.
Affordable pricing with essential accounting tools.

FreshBooks – Best for Invoicing and Time Tracking

Streamlined invoicing processes.
Time tracking capabilities for service-based businesses.
User-friendly interface with mobile accessibility.