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Choosing the Best Sole Trader Accounting Software for Your Needs

A person looking at a computer finding choices for accounting software

As a sole trader in Australia, managing your finances and accounting tasks can be overwhelming. But the right accounting software will streamline your financial management processes and simplify your life as a sole trader. While you can’t say one of these is the best accounting software for sole traders, looking at their key features and benefits can help you decide.


Xero is a popular accounting software choice for sole traders in Australia, and a Moula partner. It offers a range of features specifically designed to meet the needs of small businesses. Here are a few ways Xero stands out:

Real-time collaboration – Xero enables you to collaborate with your accountant or bookkeeper in real time, making it easier to stay on top of your financials.

Inventory management – Xero’s inventory management feature can be extremely beneficial if you sell products as a sole trader. It helps you track stock levels, manage purchase orders, and streamline the order fulfilment process.

Payroll management – Xero’s payroll feature simplifies the process of managing employee wages, calculating tax obligations, and generating payslips. If you’re a sole operator, you won’t need this feature, but it’s something to keep in mind as your business grows.

Bank feeds and reconciliation – Xero automatically imports your bank account transactions and offers easy bank reconciliation.

Integration with other platforms – The software seamlessly integrates with various third-party apps such as PayPal, Shopify, and Square. So you can sync your data across different platforms.

QuickBooks Online

Intuit QuickBooks Online is another popular choice for sole trader accounting software in Australia due to its user-friendly interface and comprehensive features. Here are some reasons why it’s considered one of the best accounting software options for sole traders:

Invoicing and expense tracking – QuickBooks Online enables you to create professional invoices and track expenses effortlessly. You can also customise invoices to match your branding.

Bank reconciliation – It automatically imports your bank transactions, making reconciling your accounts and keeping track of your cash flow easy.

GST compliance – QuickBooks Online is designed to handle Australian Goods and Services Tax (GST) requirements, simplifying tax calculations and reporting.

Integration with other platforms – The software seamlessly integrates with various third-party apps such as PayPal, Shopify, and Square. So you can sync your data across different platforms.

MYOB Business Lite

MYOB Business Lite is a basic accounting software solution that caters to the needs of sole traders in Australia. Here are a few reasons that make it a top choice:

Time tracking and billing – If you charge clients based on time spent on projects, the time tracking and billing features can simplify the process. You can easily track billable hours and generate accurate invoices.

Scan and store receipts – you can take pictures of your receipts to track expenses or forward them from your inbox directly to the software where they are stored.

Track GST and lodge BAS – MYOB Business Lite tracks Goods and Services Tax (GST), simplifying tax calculations and reporting.

Bank connection – you can connect up to 2 bank accounts for easy reconciliation.

Quoting and accepting payments – you can easily create quotes and send invoices from your smartphone.

You also have the choice to add payroll features for a small additional monthly fee.

Reckon One

Reckon One is a cloud-based accounting software designed for small business owners and sole traders. Here are some key features that make it a great choice:

Affordable pricing – Reckon One offers cost-effective pricing plans, making it an attractive option for sole traders on a budget.

Customisable modules – You can tailor Reckon One to suit your specific needs by choosing from a range of modules, such as creating invoices, payroll, and inventory management.

Project tracking – With Reckon One, you can track your income and expenses by project, providing valuable insights into the profitability of each project.

Bank feed integration – Reckon One integrates with major Australian banks, ensuring that your bank transactions are automatically imported, saving you time and effort.

Sage Business Cloud Accounting

Sage Business Cloud Accounting is a comprehensive accounting software solution that offers a range of features for sole traders. Here’s why it’s worth considering:

Easy setup and navigation – Sage Business Cloud Accounting is known for its user-friendly interface, making it easy to set up and navigate, even for those with limited accounting knowledge.

Bank reconciliation – It offers seamless bank reconciliation, automatically importing your bank transactions and matching them to your accounting records.

Invoicing and payment tracking – Sage Business Cloud Accounting allows you to create professional invoices and track payments, helping you get paid on time.

Tax compliance – The software helps you stay compliant with Australian tax regulations by providing tools to calculate and report on GST and generate the necessary tax reports to prepare for tax time.


FreshBooks is a popular sole trader accounting software among people with side gigs, digital nomads and artists. It doesn’t have as many features – such as advanced financial reports – as the others but is very easy to use. Some of the features include:

Professional invoicing – you can create impressive invoices and click to send, plus automatic payment reminders when invoices are overdue.

Accounting – easy-to-use accounting tools and reports include profitability, cash flow health and spending details.

Expenses – you can snap photos of your receipts, forward them to your account, and import expenses to your bank account to avoid time-consuming data entry.

Project management – the projects feature enables your, your clients, teams and contractors to collaborate and share files and updates.

Time tracking – If you work on many projects simultaneously, FreshBooks makes it easy to log your time and add it to invoices.

Choosing the best accounting software for sole traders in Australia

Choosing the best accounting software is crucial for sole traders in Australia and will depend on your specific needs. Each of the software options covered offers unique features and benefits. Most offer free trials to consider your specific needs and budget to determine which software suits you best. Also, most have mobile apps that enable you to do your accounting on the go. By leveraging these accounting software solutions, you can simplify your financial management processes and focus on growing your business.


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