Short version: Xero suits most tradies who have staff or plan to, QuickBooks and Rounded suit sole traders who want simple and cheap, and MYOB suits people who want local support and strong payroll. All four handle GST, BAS and invoicing. The right one depends on whether you have employees, how you quote jobs and what your accountant already uses.
What a tradie actually needs from accounting software
Generic reviews compare dozens of features you’ll never use. For a trade business, these matter most:
- Quoting and invoicing from your phone. You should be able to send an invoice before you leave the job, and get paid by card or bank transfer.
- GST and BAS. It should track GST on every sale and expense and produce a BAS you or your accountant can lodge. See our BAS and GST guide if you’re new to it.
- Bank feeds. Transactions come in automatically from your business account, so you match instead of typing.
- Receipt capture. Take a photo of a receipt and attach it to the expense. This matters at tax time and when you’re claiming everything on our tax deductions checklist.
- Payroll and super. If you pay staff, the software needs to handle PAYG withholding, Single Touch Payroll reporting to the ATO and super.
- Job costing. Knowing whether a job made money, not just whether the business did.
- Integrations. Job management and quoting tools (such as ServiceM8) that feed into your books.
- Contractor payment reporting. If you work in building and construction and pay subcontractors, you may need to report those payments to the ATO each year. Check the ATO’s current rules and whether your software supports it.
Xero
Best for: tradies with employees, or planning to grow.
Xero is the most widely used cloud accounting package among Australian small businesses and many accountants prefer it. Its bank feeds and app are strong, and it connects to a large range of job management, payments and quoting tools.
Pros: large ecosystem, strong accountant support, reliable bank feeds, payroll available.
Cons: can feel like more than you need if you only send a few invoices a month, and add-ons can raise the real cost.
MYOB
Best for: tradies who want local support and strong payroll features.
MYOB is an Australian company with a long history. Many bookkeepers and accountants know it well, and it has solid payroll and super features.
Pros: Australian support, strong payroll, familiar to many accountants.
Cons: some plans feel dated, and there are fewer third-party integrations than Xero.
Product names and plans change, so check MYOB’s own site for the plan that matches your business.
QuickBooks
Best for: sole traders and small teams who want something simple and affordable.
QuickBooks is easy to pick up and has good invoicing and expense tracking. It’s a sensible choice if you’re mainly after tidy records and a straightforward BAS.
Pros: easy to learn, friendly invoicing, reasonable entry price.
Cons: smaller Australian user base than Xero, and fewer local integrations.
Rounded
Best for: sole traders and freelancers with no employees.
Rounded is built for people working for themselves. It does invoicing, expenses and BAS without the extra features that complicate things.
Pros: built for sole traders, simple.
Cons: you’ll outgrow it once you take on staff or need job costing.
Quick comparison
| Software | Best for | Staff and payroll | Integrations | Simplicity |
|---|---|---|---|---|
| Xero | Growing businesses | Yes | Very wide | Medium |
| MYOB | Local support, payroll | Yes | Moderate | Medium |
| QuickBooks | Sole traders on a budget | Basic to moderate | Moderate | High |
| Rounded | Solo operators | No | Limited | Highest |
Prices and plans change often, so check each provider’s current pricing and free trial before you decide.
Which should you choose?
You’re a sole trader with no staff
Start with Rounded or QuickBooks, and move up later if you need to. Both are enough for invoicing, expenses and BAS.
You have one to five employees
Xero or MYOB. Payroll, Single Touch Payroll and super are built in, and your accountant will probably be happy with either.
You run jobs through ServiceM8 or similar
Xero usually has the smoothest integrations, but check that your job management tool connects to the package you pick.
You already have an accountant or bookkeeper
Ask them first. Using the same software makes their job easier, which often lowers your bill, and some will set it up for you.
Before you switch
- Try the free trial with real invoices from last month.
- Check the bank feed works with your business bank.
- Find out how to export your data if you leave.
- Ask your accountant how they want year-end handled.
- Set up your chart of accounts with your accountant, not from the default template.
Common mistakes
- Paying for features you never use, like multi-currency or inventory
- Skipping the bank feed and typing everything by hand
- Letting receipts pile up instead of photographing them the day you get them
- Mixing personal and business spending in one account
- Switching software without asking your accountant
Frequently asked questions
Do I need accounting software as a sole trader?
You aren’t legally required to use it, but you do have to keep accurate records. Software makes that much easier and speeds up BAS and tax time.
Can I lodge my BAS from the software?
Most packages prepare the BAS figures for you. Some let you lodge directly, while others hand you the numbers to lodge via the ATO or through your accountant.
Can I claim the cost of accounting software?
The cost of managing your tax affairs, including software, is generally deductible for a business. Check with your accountant.
Is it easy to switch later?
It’s possible, but it takes time. Export your data and chart of accounts, and plan the switch around the end of a quarter or financial year.
Sources and further reading
General information only, not tax or financial advice. Features and prices change, so check each provider’s website. We may earn a commission if you sign up through links on this site, at no extra cost to you.