If you’re running a small business, you’ve probably lost more time than you’d like trying to chase receipts, sort expenses or figure out why the numbers don’t add up. That’s where the right bookkeeping software for small business comes in. It keeps your finances sorted, helps with compliance, and saves you a whole lot of admin time.
So, what’s the best bookkeeping software for small business in Australia?
Let’s break it down.
Why Small Business Owners Are Making the Switch
More small businesses are ditching the spreadsheets and switching to accounting software.
And it’s not hard to see why.
The best bookkeeping platforms do more than track income and expenses. They give you visibility over how your business is actually going. You can see where your cash is flowing, stay on top of ATO requirements, and make smarter decisions without guessing.
And when you’ve got staff, stock or services on the go, things like inventory management, payroll integration and BAS reporting all come into play.
The Best Bookkeeping Program for Small Business (Compared)
We work with a range of accounting software providers, but these four stand out. Here’s how they stack up:
Xero (Our Pick for Most Businesses)
Xero is a cloud-based accounting software solution made specifically for small businesses. It’s popular across Australia for its clean interface, easy BAS handling, and seamless integration with other business tools.
- Easy-to-use dashboard
- Automatic bank feeds and ATO reporting
- Payroll and inventory tools built in
- Mobile-friendly and cloud-based
- Great local support and integrations
QuickBooks Online
QuickBooks is the web-based version of Intuit’s long-standing accounting software. It’s known for its powerful reporting, cash flow forecasting, and flexibility for different types of small businesses.
- Great for budgeting and forecasting
- Handy mileage tracker for sole traders
- Real-time cash flow reports
- Broad app integration and customisation
- Affordable pricing tiers
MYOB
MYOB has been around forever, and it’s still a solid pick, especially if you want local support and offline access. It’s ideal for product-based businesses or those with more complex payroll needs.
- Trusted name with solid Australian support
- Good for businesses with more complex payroll
- Offers offline access when needed
- Direct BAS lodgement with the ATO
- Suitable for retail and product-heavy industries
Rounded
Rounded is built specifically for sole traders, creatives, and freelancers. It’s designed to be fuss-free, focusing only on the essentials like invoicing, expenses, and tax time reports.
- Built for freelancers and sole traders
- Simple time tracking and invoicing
- Clean interface without the bells and whistles
- No payroll or stock tools
- Ideal if you just need the basics
What to Consider Before You Choose Your Bookkeeping and Accounting Software
Choosing the best accounting software comes down to how your business runs.
- Are you sending out dozens of invoices each week?
- Managing a team?
- Moving stock in and out daily?
Some software can do it all, while others are better if you just want to keep things simple. Also, don’t forget compliance. If you’re not using a system that’s ATO-friendly, you could be setting yourself up for trouble come BAS time.
Not sure where to start? That’s where we come in.
Questions Meet Answers
What is the simplest accounting software for a small business?
For most small business owners, simplicity means getting set up quickly, keeping things organised, and not feeling overwhelmed by accounting jargon.
That’s exactly where Xero stands out.
It’s designed to be user-friendly from the get-go, with a clean dashboard, smart automations, and built-in support for everything from invoicing to BAS. Even if you’re not confident with numbers, Xero makes the whole process feel straightforward, and if you ever get stuck, there’s a huge network of local bookkeepers (like us) who can help.
Is there a free bookkeeping software for small businesses?
While there are some free tools floating around, most don’t offer what Australian businesses actually need, like ATO-compliant reporting, BAS lodgement, or proper payroll integration.
That’s why we recommend investing in Xero from the start.
It’s not free, but it’s built for the Australian market, regularly updated to meet compliance requirements, and trusted by business owners across the country. In our experience, paying a small monthly fee for the right software saves a whole lot of time, stress, and clean-up work down the line.
View our bookkeeping packages for more information about costs.
What software do most bookkeepers use?
Across the industry, Xero is the most widely used and recommended bookkeeping software for small businesses in Australia. It’s reliable, intuitive, and covers everything from invoicing and expenses to payroll, super, and BAS.
Because it’s cloud-based, it also means your bookkeeper can work in real time alongside you, no more emailing spreadsheets back and forth. Other options like QuickBooks Online and MYOB are still around, but Xero continues to lead the way for ease of use and local support.
Is Xero bookkeeping free?
No, Xero runs on a paid subscription model. But what you get for that price is unmatched, automated bank feeds, invoicing, GST tracking, payroll, and seamless BAS reporting, all in one platform. It’s built to save you time, reduce human error, and help you stay on top of your finances without the overwhelm.
Most of our clients agree that Xero more than pays for itself by keeping things tidy, accurate, and ATO-ready year-round.
Need a Hand Getting Set Up Your Small Business Accounting Software?
We know picking software can feel like another task on an already full to-do list. Whether you’re starting fresh or switching from something that’s just not working, we can help get you sorted. We’ll match you with the right accounting software solution, set it up properly, and if you like, we’ll even run it for you.
Sounds good?
