Accounting and tax software
Good accounting software turns GST, BAS and tax time from a scramble into a few clicks. Here's what to look for, the main options Australian businesses use, and the free ATO tools that sit alongside them.
This guide includes links to providers. Some are affiliate or referral links and we may earn a commission if you sign up, at no extra cost to you. Providers marked "We don't earn a commission" pay us nothing. Affiliate disclosure.
What to look for
- Bank feeds that pull in transactions automatically for reconciling
- Invoicing and quotes, ideally with online payment
- GST and BAS reporting, with lodgement to the ATO
- Single Touch Payroll (STP) if you have employees
- Receipt capture from your phone
- Accountant or bookkeeper access on your file
- Integrations with your payments, job management or rostering apps
Tax basics for new businesses
- GST: register once your GST turnover reaches $75,000. Registered businesses usually lodge a Business Activity Statement (BAS) quarterly.
- Records: the ATO generally requires you to keep business records for 5 years. Digital records are fine.
- Separate accounts: a dedicated business account keeps your books clean.
- Tax agents: check an agent is registered on the Tax Practitioners Board register (opens in a new tab).
The ATO's starting a business pages (opens in a new tab) and the free ATO app and Online services for business cover lodging, paying and checking your account.
Tools to consider
Listed in no particular order. This isn't every provider in the market, so compare a few and check current pricing and terms on each provider's site.
Xero
Cloud accounting: invoicing, bank feeds, GST/BAS, payroll
Good for: Sole traders through to growing businesses and their accountants
Xero is cloud accounting software that covers invoicing, bank feeds and reconciliation, GST and BAS reporting, and payroll with Single Touch Payroll, with a large marketplace of connected apps.
Worth knowing
- Bank feeds and reconciliation save time
- Monthly subscription; some features need higher plans
- Connects with many payments, job and rostering apps
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MYOB
Accounting, payroll and BAS software
Good for: Australian small and medium businesses
MYOB is accounting and payroll software developed for Australian and New Zealand businesses, covering invoicing, bank feeds, GST and BAS, and STP payroll.
Worth knowing
- Local tax and payroll focus
- Range of plans by business size
- Compare plan inclusions with what you need
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QuickBooks
Cloud accounting and invoicing
Good for: Sole traders and small businesses
QuickBooks Online covers invoicing, expenses, bank feeds, GST and BAS for Australian businesses, with payroll available on selected plans.
Worth knowing
- Self-employed and small business plans
- Check which plans include payroll
- Confirm your accountant is happy to work in it
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Free official resources
Common questions
Do I need accounting software as a sole trader?
It isn't compulsory, but it makes tracking income, expenses and GST much easier, and many sole traders find it pays for itself at tax time. Keep records for 5 years either way.
Can I lodge BAS from accounting software?
Many accounting products let you prepare and lodge BAS to the ATO. You can also lodge through ATO Online services for business or a registered agent.