TOP SMALL BUSINESS ACCOUNTING SOFTWARE IN AUSTRALIA: A 2025 RANKING BY POPULARITY
For small businesses in Australia, choosing the right accounting software can significantly influence day-to-day operations, financial accuracy, and long-term scalability. The Australian Taxation Office (ATO) encourages digital record-keeping and Single Touch Payroll (STP) compliance, making cloud-based accounting solutions more crucial than ever. In this article, we rank the most popular accounting software used by small businesses in Australia in 2025, examining their features, pricing, and suitability for different types of enterprises.
1. XERO – THE MARKET LEADER
Popularity: ★★★★★
Headquarters: Wellington, New Zealand
Pricing: Starting from AUD $32/month
Xero is by far the most popular accounting software among small businesses in Australia, holding a strong presence thanks to its user-friendly interface, seamless bank feeds, and strong ATO integrations. Its cloud-based platform allows business owners and bookkeepers to collaborate in real-time, no matter where they are.
Key Features:
- Single Touch Payroll (STP) Phase 2 compliant
- Automatic bank reconciliation
- Invoicing and quoting
- Inventory management
- Project and time tracking
- Integrates with over 1,000 third-party apps
Best for: Freelancers, growing SMEs, and service-based businesses that value usability and scalability.
2. MYOB – TRUSTED BY ACCOUNTANTS
Popularity: ★★★★☆
Headquarters: Melbourne, Australia
Pricing: Starting from AUD $30/month
MYOB (Mind Your Own Business) has been a staple in Australian small business accounting for decades. Its long-standing reputation and strong local support give it an edge, particularly for businesses that have used desktop accounting in the past and are transitioning to the cloud.
Key Features:
- Payroll with STP compliance
- Customisable invoicing
- BAS and GST reporting
- Inventory and job tracking
- Integration with ATO and major banks
Best for: Traditional businesses and those with more complex payroll or inventory needs.
3. QUICKBOOKS ONLINE – GLOBALLY RECOGNISED
Popularity: ★★★★☆
Headquarters: Mountain View, California, USA
Pricing: Starting from AUD $25/month
QuickBooks Online (by Intuit) has been gaining ground in the Australian market, appealing to cost-conscious startups and micro-businesses. Its sleek mobile interface and solid feature set make it especially attractive for entrepreneurs who manage their accounts on the go.
Key Features:
- Expense tracking and auto-categorisation
- Invoicing with payment links
- STP-enabled payroll (via KeyPay integration)
- Cash flow projections
- Reports and analytics
Best for: Startups, sole traders, and mobile-savvy entrepreneurs looking for a flexible, cloud-first solution.
4. RECKON ONE – AFFORDABLE AND MODULAR
Popularity: ★★★☆☆
Headquarters: Sydney, Australia
Pricing: Starting from AUD $12/month
Reckon One is a budget-friendly option designed with flexibility in mind. Its modular pricing means businesses can build a plan tailored to their needs, only paying for what they use. Although not as flashy as Xero or QuickBooks, Reckon One holds its own in terms of functionality.
Key Features:
- Custom modules (invoicing, payroll, time tracking)
- GST and BAS reporting
- STP-compliant payroll
- Mobile app for on-the-go access
Best for: Micro-businesses and those on tight budgets who want simple bookkeeping tools with room to grow.
5. SAASU – STREAMLINED FOR THE TECH-SAVVY
Popularity: ★★☆☆☆
Headquarters: Sydney, Australia
Pricing: Starting from AUD $20/month
Saasu is a lesser-known but powerful cloud accounting tool that caters well to digital businesses, especially e-commerce retailers and consultants. Its robust API and automation features make it attractive to tech-savvy users.
Key Features:
- Multi-currency support
- eCommerce integrations (e.g., Shopify, WooCommerce)
- Cash flow forecasting
- Customisable reports
- ATO-ready payroll
Best for: E-commerce businesses and tech-savvy users who value automation and integration capabilities.
6. ROUNDED – FOR FREELANCERS AND SOLE TRADERS
Popularity: ★★☆☆☆
Headquarters: Sydney, Australia
Pricing: AUD $29/month (flat rate)
Rounded targets freelancers, creatives, and sole traders with a straightforward interface and tools tailored to their needs. Its design reflects the gig economy’s workflow—simple, fast, and efficient.
Key Features:
- Time tracking and timesheets
- Invoicing and quotes
- Expense tracking
- Australian tax reporting
- No payroll (freelancer-focused)
Best for: Freelancers and solo consultants looking for an easy, no-fuss accounting platform.
7. ZOHO BOOKS – A RISING CONTENDER
Popularity: ★★☆☆☆
Headquarters: Chennai, India
Pricing: Free for businesses with revenue under AUD $70,000/year; paid plans from AUD $20/month
Zoho Books has been quietly building a user base in Australia, thanks to its generous free plan for micro-businesses and rich integration with the broader Zoho ecosystem (CRM, Projects, Inventory, etc.).
Key Features:
- GST and BAS compliance
- Invoice automation
- Project billing
- Bank feeds and reconciliation
- Multi-user support on paid plans
Best for: Small businesses using Zoho’s other products or those just starting out with limited revenue.
CHOOSING THE RIGHT SOFTWARE FOR YOUR BUSINESS
The best accounting software for your business depends on various factors including your industry, size, budget, and growth plans. Here’s a quick comparison guide:
| Software | Best For | STP Payroll | Starting Price (AUD) |
| Xero | All-rounder, scalability | ✔ | $32/month |
| MYOB | Traditional businesses | ✔ | $30/month |
| QuickBooks | Startups and freelancers | ✔ (via KeyPay) | $25/month |
| Reckon One | Budget-conscious businesses | ✔ | $12/month |
| Saasu | Tech-savvy users, e-commerce | ✔ | $20/month |
| Rounded | Freelancers, creatives | ✘ | $29/month |
| Zoho Books | Micro-businesses | ✔ | Free (limited) |
FINAL THOUGHTS
Australian small businesses are spoiled for choice when it comes to accounting software. Xero leads the pack with its wide user base and extensive integrations, while MYOB remains a top choice for those familiar with its legacy systems. QuickBooks, Reckon One, and Zoho Books each offer compelling value depending on your specific business needs.
As compliance standards evolve and automation becomes more critical, choosing accounting software that can grow with your business and stay ahead of regulatory changes is essential. Ultimately, a short trial and consultation with us can help you determine which one is best for your needs.
Disclaimer: This document should not be interpreted as tax advice. All information is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.