Best Accounting Software for Australian Small Businesses (2026)
Picking accounting software is one of those decisions you make once and live with for years, so it pays to get it right the first time. The good news: all four of the big names in Australia — Xero, MYOB, QuickBooks Online and Reckon — will keep you compliant with the ATO. The real differences come down to price, payroll, and how well each one fits the way your business actually runs.
What actually matters in 2026
Before comparing brands, be clear on the non-negotiables. Any software you choose needs to handle:
- STP Phase 2. If you pay employees, every pay run must be reported to the ATO through Single Touch Payroll Phase 2. Xero, MYOB, QuickBooks and Reckon are all STP Phase 2 enabled, so this is a pass/fail test they all pass — but a spreadsheet doesn't.
- Payday super. From 1 July 2026, employers must pay super with each pay run rather than quarterly, with contributions reaching the fund within seven business days of payday (see the ATO's payday super guidance). The super guarantee rate is 12% (as at August 2026). This change makes automated, integrated payroll far more valuable than it was a year ago — manually processing super every week gets old fast.
- BAS and GST. If you're registered for GST, you want software that codes GST correctly on every transaction and lets you prepare and lodge your BAS electronically. All four do this. If BAS is still a mystery to you, our plain-English BAS and GST guide is worth ten minutes of your time.
- Bank feeds. Automatic bank feeds are the single biggest time-saver in modern bookkeeping. All four support feeds from the major Australian banks; coverage of smaller institutions varies, so check your specific bank before committing.
With the compliance boxes ticked, here's how they stack up.
Xero
Xero is the market favourite among Australian accountants and bookkeepers, and that popularity is a genuine feature — whoever does your tax almost certainly knows it inside out.
Pricing (as at August 2026, after the July price rise): Ignite $37/month, Grow $78/month, Comprehensive $107/month, with Ultimate tiers from $143/month for bigger payroll needs. Watch the Ignite plan's limits: roughly 20 invoices and 5 bills a month, which sounds fine until you have a busy month. Payroll is built into the plans rather than sold separately — one person on Ignite, stretching to five on Comprehensive.
Strengths: the biggest app ecosystem in the market (over a thousand integrations), clean bank reconciliation, BAS lodgement direct to the ATO, and near-universal accountant support.
Weaknesses: it has become expensive, and prices have risen almost every year. Inventory is basic — retailers usually end up paying extra for an add-on like Cin7 or Dext.
MYOB
MYOB is the old guard of Australian accounting software, and it has reinvented itself reasonably well as a cloud product. Its pricing undercuts Xero at most levels, especially once payroll enters the picture.
Pricing (as at August 2026): MYOB Business Lite around $26/month (billed annually) and Pro $70/month, with payroll as a $3 per employee per month add-on — Lite caps payroll at two employees. The desktop-grade AccountRight Plus ($165/month) and Premier tiers include unlimited payroll plus serious inventory and job costing. There's also a standalone payroll-only plan at about $15/month for up to four employees, handy if you only need STP reporting.
Strengths: strong payroll value at scale, proper inventory on the AccountRight tiers, online BAS lodgement, and deep roots with Australian accountants — most support it even if they prefer Xero.
Weaknesses: the interface is less polished than Xero's, the app ecosystem is smaller, and the product range (Solo, Lite, Pro, AccountRight) can be confusing to navigate.
QuickBooks Online
QuickBooks Online is the value pick. Intuit prices aggressively in Australia — you'll almost always find a deep discount for the first several months — and the underlying product is genuinely good.
Pricing (as at August 2026): Simple Start $33/month, Essentials $60/month, Plus $84/month, Advanced $125/month. Unlike Xero, there are no invoice caps on the entry plan. Payroll is an add-on powered by Employment Hero, priced with a small base fee plus a per-employee charge — check current rates on the QuickBooks Australia site before you budget.
Strengths: excellent reporting for the price, unlimited invoicing from the cheapest plan, solid GST coding and electronic BAS lodgement, and a very good mobile app.
Weaknesses: payroll being a third-party bolt-on means an extra login and occasional sync friction. Fewer Australian accountants specialise in it than in Xero or MYOB, and it's a US-headquartered product, so some features arrive in Australia later.
Reckon
Reckon is the cheapest of the four and the one most people forget. Reckon One starts at about $24/month (as at August 2026) with invoicing, bank feeds, GST tracking and BAS reporting included — and unusually, unlimited users. Payroll is a modular add-on from around $16/month for up to four employees, and it's fully STP Phase 2 compliant.
Strengths: lowest total cost, unlimited users at no extra charge, modular pricing so you only pay for what you use, and an Australian-owned company with local support.
Weaknesses: a small integration ecosystem, a basic mobile app, support limited to business hours, and — practically important — fewer accountants and bookkeepers work with it, which can add friction (and cost) at tax time.
Side-by-side comparison
Prices are AUD per month, as at August 2026. All four are STP Phase 2 enabled and support electronic BAS preparation and lodgement. Vendors change pricing and run promotions constantly, so confirm on their sites before signing up.
| Xero | MYOB | QuickBooks Online | Reckon One | |
|---|---|---|---|---|
| Entry plan | $37 (Ignite) | ~$26 (Lite) | $33 (Simple Start) | ~$24 |
| Mid-tier plan | $78 (Grow) | $70 (Pro) | $60 (Essentials) | Modular add-ons |
| Payroll | Built in, per-plan employee limits | +$3/employee/month (unlimited included on AccountRight) | Add-on via Employment Hero | +$16/month (up to 4 employees) |
| Bank feeds | Excellent | Very good | Very good | Good (major banks) |
| Inventory | Basic (add-ons needed) | Strong (AccountRight tiers) | Good (Plus and up) | Basic |
| Accountant familiarity | Highest | High | Moderate | Low |
| Best for | Growing service businesses | Payroll-heavy teams, retail | Budget-conscious, reporting fans | Simplest businesses, tight budgets |
Which one should you choose?
There's no single winner — the right answer depends on your situation.
- Sole trader, no employees, service-based: QuickBooks Simple Start or Reckon One. Both give you invoicing, bank feeds and GST tracking for close to half of what Xero's mid tiers cost, and you don't need payroll at all. Xero Ignite works too if your accountant insists, but mind the invoice caps.
- Small team of 2–10 employees: this is where payday super makes payroll quality decisive. Xero Grow or Comprehensive if you value the ecosystem and your accountant lives in Xero; MYOB Pro if you want to keep costs down, since $3 per employee scales gently. Run the numbers for your exact headcount — the gap can be $30+ a month.
- Retail or anything with stock: MYOB AccountRight Plus is the strongest native inventory option of the four. QuickBooks Plus is a capable cheaper alternative for lighter inventory needs. Xero can do it, but usually only with paid add-ons stacked on an already premium price.
- Tightest possible budget, simple affairs: Reckon One. Just confirm your accountant will work with it first — an hour of extra accounting fees each quarter wipes out the savings.
Two last practical tips. First, ask your accountant or bookkeeper before you commit — working in the software they know saves you real money, and if you're still deciding on structure, that conversation pairs well with our guide to choosing between sole trader, company and trust. Second, whichever you pick, switch at the start of a quarter (or better, a financial year) so your BAS periods stay clean. And remember the software is one piece of a bigger picture — see our rundown of the essential software stack for a new business and our guide to staying on top of cash flow once the bookkeeping is humming.
Key takeaways
- All four options — Xero, MYOB, QuickBooks Online and Reckon — are STP Phase 2 enabled and handle GST and BAS, so compliance won't be your deciding factor.
- Payday super (from 1 July 2026) makes integrated, automated payroll far more important; weigh payroll pricing carefully at your actual headcount.
- Xero costs the most but has the deepest ecosystem and accountant support; MYOB wins on payroll value and inventory; QuickBooks wins on price-to-features; Reckon wins on raw cost.
- Entry prices range from about $24 to $37 a month (as at August 2026), but promotions and add-ons change the real total — always price your full setup.
- Ask your accountant which software they work in before committing; their efficiency is worth more than a few dollars of subscription savings.
- Switch software at the start of a quarter or financial year to keep BAS periods tidy.
Where to get help
- ATO — Single Touch Payroll and payday super for current employer obligations and rates.
- business.gov.au for general guidance on record keeping and choosing business software.
- ASIC if your choice ties into company reporting obligations.
- Your accountant or BAS agent — the cheapest way to avoid an expensive migration is a 15-minute conversation before you subscribe.
General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — confirm current figures with ato.gov.au or your accountant before acting.