Best Accounting Software in Australia

Ever been stuck in a nightmare of spreadsheets at 11 PM on a Sunday, desperately trying to organize your finances before tax season?

I’ve been there.

In 2013, before founding ProfitBooks, I ran a small digital agency and spent countless hours manually tracking invoices, expenses, and GST calculations.

That frustration became the catalyst for creating a solution that would help fellow business owners avoid the same pain.

After over a decade in the SaaS industry, I’ve evaluated virtually every accounting platform on the Australian market.

In the coming years, the landscape has evolved dramatically, with cloud technology, automation, and AI-driven solutions transforming how we manage our finances.

Let me walk you through what I’ve learned about the best accounting software options in Australia today, sharing insights from my experience and extensive research.

 

What is Accounting Software? 

Accounting software is essentially your financial command center. It’s a tool that assists in recording and reporting your business transactions. It’s evolved significantly from those early digital ledgers of the Y2K era. 

Today’s accounting platforms do far more than basic bookkeeping.

Modern accounting solutions automatically calculate GST, generate BAS reports, facilitate Single Touch Payroll compliance, and provide real-time financial insights through sophisticated analytics.

 

 

With recent technological advancements, the scope of computerized accounting has flourished as prices have decreased and software has become increasingly user-friendly. Even for those without accounting knowledge.

This democratization has been a game-changer for small business owners.

 

Why You Should Use Accounting Software?

If you’re still managing finances manually, you’re not just wasting time – you’re putting your business at a competitive disadvantage.

Here’s why modern accounting software is essential:

 

1. Saves Your Time (And Your Sanity)

Time is your most precious resource as a business owner. I learned this the hard way during my first venture, spending weekends reconciling transactions instead of focusing on growth. Modern accounting software automates these tedious tasks, with AI-powered solutions reducing reconciliation errors by 62% compared to manual methods.

 

 

 

2. Ensures Tax Compliance

As an Australian business owner, I’ve witnessed firsthand how tax compliance requirements have intensified. Today’s software automatically handles GST calculations, simplifies BAS lodgment, and ensures STP Phase 2 compliance.

This is an essential protection against costly compliance errors. 

With the ATO’s increasing digitization, using software that integrates directly with tax authorities has become non-negotiable for smooth operations.

 

3. Delivers Real-Time Financial Insights

Remember making business decisions based on outdated quarterly reports?

Those days are gone. Modern accounting platforms provide instant visibility into your cash flow, profitability, and financial health. I’ve personally seen how this real-time data transforms decision-making, allowing for agile responses to market changes.

 

4. Reduces Operational Costs

When I launched ProfitBooks, I was amazed to discover that automating accounting tasks reduced our bookkeeping costs by nearly 40%. That’s just what we’ve observed.

 

 

This efficiency isn’t unique to us. Research shows that cloud accounting solutions typically cut traditional accounting expenses by 25-30% through reduced labor and infrastructure requirements.

 

5. Enhances Accuracy and Reliability

The manual spreadsheet era was plagued with formula errors and data entry mistakes. Modern accounting software eliminates these issues through automation and built-in validation.

One of my clients reported that their error rate dropped from 8.7% to under 0.5% after implementing automated reconciliation tools.

 

 

 

Things to Consider Before Choosing Accounting Software 

The Australian market offers numerous accounting solutions, making selection challenging

Here’s what I consider essential when evaluating options for my clients:

 

1. Australian Tax Compliance Features

Always prioritize platforms with robust GST and BAS compliance capabilities. From experience, I’ve found that software developed specifically for the Australian market handles our unique tax requirements far better than international platforms with Australian “add-ons.”

 

2. Cloud Accessibility and Security

Cloud-based solutions are the standard, offering access anywhere and automatic updates. When evaluating options, I recommend checking where your data is stored – platforms with Australian data centers like Xero (Sydney AWS Region) and MYOB (Melbourne Equinix) provide better performance and compliance with local privacy regulations.

 

3. Scalability for Growth

Your business won’t stay the same size forever. The accounting solution you choose should grow with you. I’ve seen too many businesses outgrow their initial software choice within 12-18 months, necessitating a costly and time-consuming migration. Look for modular options that allow you to add features as needed.

 

4. User-Friendliness and Support

The best features are worthless if your team can’t use them effectively. In my experience working with hundreds of Australian businesses, user adoption is the single biggest factor in successful implementation. Prioritize intuitive interfaces and quality support, especially if you don’t have accounting expertise in-house.

 

5. Integration Capabilities

Your accounting software shouldn’t exist in isolation. The ability to connect with payment platforms, CRM systems, and industry-specific tools creates a seamless workflow. When evaluating potential solutions, I always check if they integrate with my existing business applications.

 

Top Accounting Software in Australia for Small Businesses

Having personally tested and implemented various accounting solutions across different industries, here’s my honest assessment of the leading options available in Australia today:

 

1. MYOB

 

 

MYOB remains a fixture in the Australian accounting landscape, winning Canstar Blue’s Most Satisfied Customers award for Small Business Accounting Software in 2023-2024. Its comprehensive feature set makes it suitable for a range of business sizes. 

Pros: 

• Strong Australian compliance features 
• Excellent inventory management for retail businesses 
• Comprehensive payroll capabilities 

Cons: 

• The interface feels dated compared to newer platforms 
• Customer service issues have been reported after recent upgrades 
• The setup process can be lengthy and complex 

In my experience, MYOB works well for established businesses with complex payroll needs, but newer businesses often find the learning curve steep.

 

2. Xero

 

 

Xero consistently ranks as the preferred choice for many Australian SMEs due to its user-friendly interface. The best aspect of this software is that you can customise many things. You can also add custom fields to capture more information related to your business process.

Pros: 

• Intuitive cloud-based interface 
• Extensive app integration ecosystem (500+ apps) 
• Real-time cash flow tracking 

Cons: 

• Recent price increases (4 in the last 12 months, according to Reddit) 
• The payroll module requires third-party add-ons for award interpretation 
• Auto-reconciliation can sometimes create errors that require manual checking 

While Xero offers strong capabilities, the price increases have prompted many businesses to explore alternatives.

 

3. Reckon One

 

 

Reckon positions itself as a budget-friendly alternative with a modular approach, allowing businesses to pay only for needed features. Starting at just $72 per year, it offers remarkable value. 

Pros: 

• Modular pricing perfect for startups 
• Strong GST & BAS reporting capabilities 
• Free 24/7 support and regular updates 

Cons: 

• Steeper learning curve than competitors 
• Limited features for multi-currency handling 
• Lack of detailed user guides for advanced modules 

Having worked with several clients using Reckon, I’ve found it offers 92% satisfaction among sole traders but only 67% for mid-sized businesses. This indicates it’s best suited for smaller operations.

 

 

 

4. QuickBooks Online

 

 

QuickBooks offers strong project costing tools and machine learning-powered reconciliation. While its US origins sometimes show through in the interface, it has made significant strides in Australian compliance. 

Pros: 

• Project costing tools help contractors improve margin tracking 
• Machine learning reduces reconciliation errors 
• Competitive pricing (described as “dirt cheap” by some users) 

Cons: 

• US-centric interface creates friction for Australian GST workflows 
• Less intuitive interface than competitors 
• Limited invoice customization options 

QuickBooks works well for businesses that prioritize project-based accounting and can tolerate some interface quirks.

 

5. Zoho Books

 

 

Zoho Books offers a free tier for businesses with annual revenue under $50,000, making it an attractive option for new ventures and freelancers. 

Pros: 

• Free plan for small businesses 
• Part of a larger business software ecosystem 
• Australian GST compliant 

Cons: 

• Singapore-based data centers may impact performance. 
• Less accounting-specific support than specialized platforms 
• Limited payroll features 

While Zoho Books works well as part of the broader Zoho ecosystem, it may not offer enough specialized accounting features for growing businesses.

 

6. ProfitBooks

 

 

As the co-founder of ProfitBooks, I’ve spent the last decade perfecting a solution specifically designed for Australian small business owners who want simplicity without sacrificing functionality.

Pros: 

• Designed specifically for non-accountants with an intuitive interface
• Complete GST compliance with detailed BAS reporting
• Multi-currency support for international businesses
• Free plan available for startups and small businesses
• Customizable invoice templates and workflows
• 45+ financial reports for comprehensive business insights
• Australian data sovereignty and security compliance

Cons: 

• Newer to the Australian market than some competitors
• Currently building out the third-party integration ecosystem

 

What makes ProfitBooks different is our focus on simplifying complex accounting processes. You can see this in our simple interface below.

 

 

When I was struggling with my own business finances years ago, I realized most accounting software was built by accountants for accountants. ProfitBooks was built by a business owner for business owners.

Our customers typically report saving 5-7 hours per week on financial management tasks after switching to ProfitBooks.

As one user noted, “I finally found accounting software I can understand without calling my accountant every other day.”

 

Migration Considerations When Switching Accounting Platforms

One topic often overlooked is how to successfully migrate between accounting systems. Having guided numerous businesses through this process, I can share some practical insights:

 

Migration Timeline Planning

Based on industry research and my own implementation experience, here’s what to expect: 

• Small businesses (under 50 monthly transactions): 2-3 weeks 
• Mid-market businesses: 6-8 weeks with parallel running 
• Enterprise businesses: 3-6 month phased transitions

 

Australian Tax Compliance During Migration 

To ensure GST compliance during migration, I recommend the following: 

• Conducting a pre-migration BAS audit 
• Using ATO-approved conversion tools where available 
• Retaining source system access for 7 years to meet record-keeping requirements 

Most quality providers offer migration assistance.

At ProfitBooks, we provide a comprehensive migration service to ensure your historical data transfers correctly, particularly focusing on GST reconciliation to maintain tax compliance.

 

Frequently Asked Questions (FAQs)

 

What is the best accounting software for small businesses in Australia? 

While Xero is often cited as the preferred choice for small Australian businesses, my experience shows that the “best” solution depends on your specific needs. ProfitBooks excels for small business owners seeking simplicity and value, while Xero offers a robust app ecosystem, and Reckon provides affordable modularity. 

Reddit users frequently state “Xero hands down” when asked about preferences, but recent price increases have prompted many to explore alternatives.

 

How much does accounting software typically cost in Australia? 

Pricing varies significantly: 

• Basic plans: $6-20 per month 
• Comprehensive solutions: $25-60+ per month 
• Free options: Zoho Books (for businesses under $50K revenue) and ProfitBooks’ Startup plan 

ProfitBooks offers a free Startup plan for solo entrepreneurs and a comprehensive SMB plan for just $20/month with unlimited users and invoices.

 

Which accounting features are essential for Australian tax compliance? 

Essential compliance features include: 

• GST calculation and reporting 
• BAS preparation functionality 
• Single Touch Payroll (STP) capabilities 
• Superannuation processing 

All major platforms offer these features, but implementation quality varies. ProfitBooks was specifically designed to make Australian tax compliance straightforward for non-accountants.

 

Is cloud-based accounting software better than desktop versions? 

Based on my decade of experience in the industry, cloud-based solutions offer significant advantages: 

• Anywhere accessibility 
• Real-time collaboration with accountants 
• Automatic updates with changing regulations 
• Reduced IT maintenance 
• Enhanced security through professional data centers 

The pandemic accelerated this trend, making remote work capabilities essential rather than optional for many businesses.

 

What’s the average timeline for accounting software migration? 

For SMBs with fewer than 50 transactions per month, expect 2-3 weeks for migration. Mid-market businesses typically need 6-8 weeks with the parallel running of old and new systems. Enterprise migrations can take 3-6 months with phased transitions. 

At ProfitBooks, we’ve streamlined our migration process to minimize disruption to your business operations.

 

How can I ensure GST compliance during migration? 

To maintain GST compliance during platform migration: 

• Conduct a pre-migration BAS audit 
• Use ATO-approved conversion tools where available 
• Retain source system access for the required 7-year period 
• Verify tax code mapping during the transfer process 

ProfitBooks offers comprehensive migration assistance to ensure your GST records are transferred correctly.

 

Which accounting software is best for freelancers and sole traders? 

For freelancers and sole traders, I recommend solutions with: 

• No monthly minimum fees 
• Simple invoice creation 
• Basic expense tracking 
• GST support for registered businesses 

ProfitBooks’ free Startup plan is specifically designed for solo entrepreneurs, while Zoho Books and Reckon One also offer cost-effective options.

 

Conclusion: Choosing the Right Accounting Solution for Your Business 

After a decade of implementing accounting solutions for Australian businesses across various industries, I’ve learned that the “best” software is ultimately the one that fits your specific needs, budget, and technical comfort level. 

Cloud-based solutions now dominate the market, offering accessibility, collaboration, and automatic compliance updates that traditional desktop software simply can’t match.

The rising influence of AI and automation continues to transform financial management, making this an ideal time to evaluate your accounting technology needs.

 

Whether you’re a freelancer looking for simple invoicing, a retailer needing inventory management, or a growing business with complex payroll requirements, there’s a solution tailored to your needs. The most important factor is finding software that makes accounting easier rather than adding complexity to your workday.

 

 

At ProfitBooks, we’ve built our solution specifically for business owners who want simplicity without sacrificing functionality. Our free Startup plan lets you experience the difference firsthand without financial commitment. 

Ready to simplify your accounting? Try ProfitBooks for free and join thousands of Australian business owners who’ve discovered that accounting doesn’t have to be complicated. 

 

 

Also Read:

4 Perfect Quickbooks Alternatives In Australia

Starting A Small Business In Australia

GST- A Guide For Australian Business Owners

What Taxes Do Small Businesses Pay In Australia?

How To Calculate GST In Australia?