Which Accounting Software Actually Works Best for Australian Small Businesses in 2025?

The Software Question Every Small Business Is Asking

Choosing the right accounting software can make or break the way you manage your business. The right platform should make compliance easy, automate repetitive tasks, and give you a clear picture of cash flow — without breaking the bank. But with so many options on the market, how do you decide which is worth your money in 2025?

Here’s a grounded look at the major players, what they do well, where they fall short, and which might fit your business best.

Xero: Still the Industry Standard (for Good Reason)

For most Australian small and medium businesses, Xero remains the benchmark. It’s built around real-time bank feeds, ATO compliance, and intuitive dashboards — things that genuinely make a difference when you’re juggling BAS, payroll, and cash flow.

Pros:

• Seamless integration with the ATO for BAS and Single Touch Payroll (STP2).

• Cloud-based, with strong accountant and bookkeeper support.

• Hundreds of add-ons for invoicing, inventory, and e-commerce.

• Strong data security and audit trails.

Cons:

• Price creep — as of October 2025, most Xero plans sit between $35–$105/month.

• Limited multi-currency access on lower tiers.

• Can feel like overkill for sole traders who only issue a few invoices per month.

Best for: Trades, professional services, and growing SMEs (1–20 employees) who need compliance and reporting handled cleanly.

MYOB: Familiar Name, Struggling to Keep Up

MYOB was once the default choice for Australian businesses. While it has modernised with cloud-based offerings, many users find it less intuitive than newer competitors. MYOB Business Lite starts at around $30/month, but once you add payroll and inventory features, costs can rise beyond $150/month.

Pros:

• Good for businesses already established on MYOB.

• Offers offline desktop options for those who prefer local storage.

Cons:

• Web performance issues and dated interface.

• Higher costs once multiple features are enabled.

Best for: Established small to medium businesses with complex payroll or legacy MYOB data.

QuickBooks Online: Feature-Rich but Frustrating

QuickBooks Online is a powerful, feature-heavy option used by many small businesses. It’s strong on reporting and budgeting, but the user experience can feel clunky compared to Xero.

Pricing: From $25/month (Simple Start) to $75/month (Plus).

Pros:

• Excellent analytics and reporting tools.

• Integrated payroll and mobile app options.

• Well-suited for businesses with U.S. or international links.

Cons:

• Interface can be slow.

• Some features buried in older system menus.

• Less intuitive for Australian tax compliance.

Best for: Small to medium businesses that prioritise detailed financial reporting.

Zoho Books: The Underrated All-Rounder

Zoho Books is one of the most cost-effective cloud options in Australia, with plans starting around $20/month. It offers strong functionality, including quotes, invoicing, inventory, and project tracking.

Pros:

• Excellent value for money.

• Integrates with Zoho CRM, Projects, and other business tools.

• Simple setup and good automation features.

Cons:

• Not as widely adopted by Australian accountants.

• Occasional downtime and limited support for local bank feeds.

Best for: Freelancers and small service-based businesses looking for affordability and flexibility.

Rounded: Built for Freelancers and Micro-Businesses

Australian-made Rounded is designed specifically for freelancers, contractors, and micro-business owners. It’s simple, clean, and GST-compliant — without the unnecessary complexity.

Pricing: Around $25/month, including invoicing, expense tracking, and GST reporting.

Pros:

• Purpose-built for freelancers.

• ATO-compliant BAS summaries.

• Easy to use and mobile-friendly.

Cons:

• No payroll or inventory support.

• Limited scalability for growing teams.

Best for: Freelancers, consultants, and sole traders who need simplicity and compliance without extra cost.

Google Sheets and Excel: The DIY Option

For very small operators — say, fewer than 10 invoices a month — spreadsheets can still work. They’re free, flexible, and familiar, but they lack automation and compliance support.

Pros:

• No monthly cost.

• Fully customisable.

Cons:

• High risk of manual error.

• No automatic BAS or payroll integration.

• Time-consuming as business scales.

Best for: Hobby businesses or startups testing the waters before committing to full software.

The Trident View: Start Simple, Plan Ahead

Your accounting system should grow with you. Xero’s pricing can seem steep at first, but its reliability, compliance tools, and accountant integrations make it the strongest long-term choice for most small and medium businesses.

For sole traders or freelancers, Rounded or Zoho Books offer clean, affordable entry points. But once payroll, GST, or multiple currencies come into play, Xero quickly becomes worth the investment.

If you’re unsure where to start, talk to your accountant before committing. Setting up your software properly from the beginning can save hours of frustration later.

Trident Accounting helps small and medium businesses across Miranda and Southern Sydney choose, set up, and manage accounting software that fits their goals. Whether you’re a tradie, consultant, or growing team, we’ll help you stay compliant and in control.

Written by Aidan Walmsley