There is no single best accounting software for small business, but there is usually a best fit. Xero, MYOB Business and QuickBooks Online all handle bank feeds, GST, BAS lodgement and Single Touch Payroll. Choose Xero if you want the widest choice of connected apps or expect to run several entities, MYOB if you have a bigger team or want installed desktop software, QuickBooks Online if you want multi-currency and inventory on mid-priced plans, and Reckon One if your needs are simple and price comes first.
Below is a plain-English 2026 comparison for Australian businesses, a feature table, our suggestions by business type, how to switch, and the mistakes we see most often.
Disclosure: New Wave Accounting is a Xero Platinum Partner, and most of our clients run Xero. We have tried to be fair below, including where MYOB, QuickBooks or Reckon is the better choice.
What small business accounting software actually needs to do
Cloud accounting software runs in your browser, so you, your team and your accountant work from the same live file instead of emailing backups around. Updates arrive automatically. For an Australian business, the non-negotiables are:
- GST and BAS. The software should track GST on every transaction and, ideally, lodge your Business Activity Statement (BAS) with the ATO directly.
- Single Touch Payroll (STP). If you have employees, the ATO requires payroll reporting through STP-enabled software. From 1 July 2026, under Payday Super, STP reports must also include qualifying earnings and super liability, so your payroll provider needs to be up to date.
- Bank feeds. Transactions should flow in automatically from your bank so reconciliation takes minutes, not days.
- Accountant access. Your accountant or bookkeeper should be able to log in and work in the file with you.
Beyond those basics, the differences that matter are inventory, multi-currency, multi-entity reporting, payroll costs and which apps connect.
The main options in 2026
Xero
Every Xero plan includes “Track GST and lodge BAS”, bank connections, inventory and purchase orders. The entry plan, Ignite, caps you at 20 invoices and 5 bills with payroll for one person. Grow lifts those caps and pays two people, Comprehensive pays five and adds multi-currency, and the Ultimate plans pay 10, 20 or 50.
Strengths: Xero says all plans include unlimited general users at no extra cost, so your accountant and team are not charged per seat. It lists more than 1,000 connected apps, against 350+ for MYOB and “hundreds” for QuickBooks. The Ultra plan adds consolidation for up to five entities through Syft Advanced, plus priority support.
Where it is weaker: payroll headcount is tied to the plan, so eight staff means an Ultimate plan. Built-in inventory covers up to 4,000 items in one location, with no batch or serial tracking, and Xero itself suggests an app for those needs.
MYOB Business (Solo, Lite, Pro, AccountRight Plus and Premier)
Solo is a mobile-only app for sole traders that tracks GST but does not lodge BAS. Lite and Pro are browser-based and include “Track GST and lodge BAS” and STP. AccountRight Plus and Premier add installed Windows desktop software alongside browser access.
Strengths: AccountRight Plus and Premier include unlimited payroll at no extra cost, which suits larger teams. Premier adds multiple currencies, multiple warehouse locations and a second business, and MYOB’s inventory can assemble items from components. You can share Lite, Pro, Plus and Premier files with your accountant at no extra cost.
Where it is weaker: on Lite and Pro, payroll is a per-employee add-on and unlimited inventory costs $22 a month extra. Multi-currency is only on Premier, and some features (multi-currency, advanced inventory and time billing) need the Windows desktop software.
QuickBooks Online
All four plans (Simple Start, Essentials, Plus and Advanced) include “GST tracking & e-lodge BAS”, automated bank feeds and phone and chat support.
Strengths: multi-currency starts on Essentials. Inventory, purchase orders, project profitability and up to 40 classes and locations arrive on Plus. Payroll, powered by Employment Hero, can be added to any plan, and Advanced Payroll includes automated Modern Award interpretation and rostering. QuickBooks covers a basic data migration on Essentials and above.
Where it is weaker: users are capped by plan (1, 3, 5 or 25, plus your accountant), Simple Start has no bill management, and payroll is always an extra per-employee cost. Inventory uses first in, first out (FIFO) costing, a change if you are used to average cost.
Reckon One
Reckon is an Australian company. Reckon One’s three plans (Accounting Plus, Accounting Premium and Ultimate) all include unlimited users, bank connections and GST tracking and reporting for BAS. Inventory is limited to 10 items on Premium and is unlimited on Ultimate, which also includes unlimited payroll.
At entry level it is the lowest-priced of the four at standard rates, with phone support seven days a week. It suits simple businesses that do not need a large app ecosystem. Reckon One prepares your BAS figures but does not lodge the BAS itself, so you lodge through the ATO’s online services or your BAS agent. Multi-currency is not listed on its plan comparison.
Comparison table: Xero vs MYOB vs QuickBooks vs Reckon
Prices checked October 2026, excluding promotions. Standard monthly rates in AUD from each vendor’s Australian pricing page. Xero and QuickBooks state their prices include GST. All four vendors were running introductory discounts when we checked, so your first months may cost less.
| Xero | MYOB Business | QuickBooks Online | Reckon One | |
|---|---|---|---|---|
| Plans and standard price | Ignite $37, Grow $78, Comprehensive $107, Ultimate 10 $143, Ultimate 20 $180, Ultimate 50 $250, Ultra $500 a month | Solo $99 a year, Lite $315 a year, Pro $70, AccountRight Plus $165, Premier $210 a month | Simple Start $33, Essentials $60, Plus $84, Advanced $125 a month | Accounting Plus $24, Premium $46, Ultimate $85 a month |
| BAS lodgement | “Track GST and lodge BAS” on all plans | Lite and above. Solo tracks GST only | “GST tracking & e-lodge BAS” on all plans | Prepares BAS figures; lodge through the ATO or your BAS agent |
| Single Touch Payroll | Yes, STP Phase 2 | Lite and above | Yes, through QuickBooks Payroll | Yes, including Payday Super |
| Payroll cost | Included by headcount: 1 (Ignite), 2 (Grow), 5 (Comprehensive), 10 to 50 (Ultimate), 10 then $2 per extra employee (Ultra). Extra charges apply above plan limits | Lite (up to 2) and Pro: $3 per employee a month, rising to $5 from 1 November 2026. Unlimited on Plus and Premier | Standard Payroll $6 per employee a month. Advanced Payroll $10 a month plus $6 per employee | Add-on on Plus and Premium (see vendor site). Unlimited on Ultimate |
| Bank feeds | All plans | Up to 2 accounts on Solo and Lite, unlimited on Pro and above | All plans | All plans |
| Inventory | All plans, up to 4,000 tracked items, one location, weighted average cost | Lite and above. Unlimited inventory $22 a month add-on on Lite and Pro, included on Plus. Multiple locations on Premier | Plus and Advanced only, FIFO costing | Premium (1 to 10 items), Ultimate (unlimited) |
| Multi-currency | Comprehensive and above | Premier only | Essentials and above | Not listed on plan comparison |
| Multi-entity | One subscription per organisation. Ultra consolidates up to 5 entities via Syft | Premier includes a second business | Separate subscription per company, multi-plan discounts by phone | See vendor site |
| App ecosystem | 1,000+ apps | 350+ apps | “Hundreds of apps” | Add-on marketplace |
| Users and accountant access | Unlimited general users on all plans | Solo: 1 user. Lite and above: unlimited user profiles, free accountant access | 1, 3, 5 or 25 users by plan, plus your accountant | Unlimited users on all plans |
What payroll really adds: an example
Payroll pricing models differ so much that the sticker price can mislead. Using the standard prices above, here is roughly what a business paying eight employees would pay each month for software that handles BAS and runs STP:
- Xero: Ultimate 10, $143 (Comprehensive covers only five people).
- MYOB: Pro at $70 plus 8 × $5 = $110 from 1 November 2026, or AccountRight Plus at $165 with unlimited payroll and inventory.
- QuickBooks Online: Essentials at $60 plus 8 × $6 = $108 (Simple Start brings this to $81 but has one user and no bill management).
- Reckon One: Ultimate at $85 with unlimited payroll included.
This is an illustration only. It ignores promotions, add-ons such as inventory or expense claims, and the apps you might need on top.
Xero vs MYOB vs QuickBooks: the short answer
If you have narrowed it down to the big three, these are the differences that usually decide it.
- Pick Xero if you want the widest choice of connected apps, unlimited users on every plan, or consolidated reporting across several entities (Ultra). It also makes sense if your accountant and bookkeeper already work in Xero every day.
- Pick MYOB if you pay a larger team and want unlimited payroll on one plan (AccountRight Plus and Premier), need to build items from components or hold stock in several warehouses (Premier), or want installed desktop software as well as browser access.
- Pick QuickBooks Online if you trade in foreign currencies and want that on a mid-priced plan (Essentials), want phone support on every plan, or need Modern Award interpretation and rostering in payroll (Advanced Payroll).
Support works differently at each vendor. Xero offers unlimited online support and will call you back if you contact it, but it has no inbound phone line. MYOB includes 24/7 chat support on all plans, with priority support and guided setup with a specialist on AccountRight Plus. QuickBooks lists phone and chat support on all plans. If being able to ring someone matters to you, factor that in.
Try before you commit. Which one feels easiest is personal. Run a fortnight of real invoices, bills and bank transactions through your top two choices, using a free trial where the vendor offers one, and ask your accountant which file they can support best.
Choosing by business type
Service businesses (consultants, agencies, allied health, professional firms)
Service businesses mostly need fast invoicing, time tracking and job profitability. Xero includes project time and cost tracking on its Ultimate plans, QuickBooks includes project management and project profitability on Plus, and MYOB lets you track jobs on Lite and Pro and bill by time on AccountRight Plus and Premier.
Trades and construction
Tradies need quoting, job costing and payroll that copes with awards and allowances. Check how each package handles job budgets (MYOB AccountRight Plus and Premier compare actual costs to job budgets) and award interpretation (QuickBooks Advanced Payroll includes automated Modern Award interpretation). Trades businesses often run a separate job management app, so confirm it connects to your chosen ledger before you commit.
Retail and businesses with inventory
If you hold stock in one location with a modest catalogue, the built-in inventory in Xero, MYOB Lite and above, or QuickBooks Plus is usually enough. Watch the limits: Xero tracks up to 4,000 items in one location, QuickBooks inventory starts on Plus, and Reckon One’s Premium plan allows only 10 items. For several warehouses, batch or serial numbers, or detailed landed costs, plan on MYOB Premier or a dedicated inventory app connected to your ledger.
Manufacturing and assembly
Small manufacturers need bills of materials, assemblies and accurate cost of goods sold. MYOB can assemble items from multiple components, and Premier adds multiple warehouse locations. Xero suggests a third-party app if you need manufacturing support, and its App Store lists several. Decide early which system owns inventory value, or you risk two systems both posting cost of goods sold.
Ecommerce and online sellers
Online sellers have a different problem: turning Shopify, Amazon and marketplace payouts into clean ledger entries. That usually means a settlement connector and an inventory app on top of the ledger. We cover this in detail in our ecommerce accounting software stack guide.
Groups with several entities
Many owners run a trading company, a trust and perhaps a property entity. Each entity needs its own set of books, so the subscription cost multiplies. Xero’s Ultra plan consolidates up to five entities, MYOB Premier includes a second business, and QuickBooks offers discounts for multiple plans. Plan for group reporting before you add the second entity.
Businesses with employees
Compare total payroll cost at your expected headcount in 12 months, not today. Confirm the payroll module supports STP Phase 2 and Payday Super reporting, handles your award, and lets employees onboard themselves and view payslips online. If you have a large or shift-based team, MYOB AccountRight Plus (unlimited payroll), QuickBooks Advanced Payroll (rostering and award interpretation) and Reckon One Ultimate (unlimited payroll) are worth a close look alongside Xero.
How to switch accounting software
Switching is very achievable, but a rushed switch leaves you with two half-right sets of books. A sensible sequence:
- Pick a clean cut-off date. The start of a BAS period, or ideally the start of a financial year, keeps GST and payroll year-to-date figures simple.
- Finish the old system first. Reconcile the bank, lodge the last BAS and finalise the last pay run in the old software up to the cut-off.
- Decide how much history to bring. Opening balances may be enough, or you may want a year or two of transactions. Some vendors help: MYOB says it covers migrating the current and previous financial year from Reckon, QuickBooks or Xero, QuickBooks covers a basic migration on Essentials and above, and Reckon includes one year of history plus year to date.
- Clean up before you move. Rebuild the chart of accounts, clear old unreconciled items and archive dead contacts. Messy data stays messy in a new system.
- Set up payroll carefully. Enter year-to-date figures for every employee and confirm how the new software will report through STP, so the ATO does not receive duplicate or missing amounts. If you switch part way through a financial year, agree with your accountant how year-to-date amounts carry across before your first pay run.
- Keep access to the old file. The ATO generally requires most business records to be kept for five years, so keep a read-only copy or exported reports.
Our bookkeeping team handles conversions and clean-ups as a quoted project, agreed in writing before work starts.
Mistakes to avoid
- Choosing on the promotional price. Every vendor was discounting when we checked. Compare standard prices over two or three years.
- Buying a plan you will outgrow in months. MYOB Solo tracks GST but does not lodge BAS, and Xero Ignite’s 20-invoice and 5-bill limits catch out growing businesses.
- Ignoring how payroll scales. Per-employee fees and plan headcount limits can push you onto a much dearer plan as you hire.
- Not checking the apps you rely on. Your point of sale, job management, practice software or ecommerce platform should connect to the ledger you choose.
- Treating software as a substitute for setup. The best package still produces wrong numbers if the chart of accounts, GST codes and bank rules are set up badly.
- Locking your accountant out. Give them their own login rather than sharing yours. It is safer and lets them help at BAS time.
How we help
As a Xero accountant and Platinum Partner, we set up and support Xero files every day, and we also work with clients who run MYOB and QuickBooks. If your software is working well, we will usually tell you to keep it. Our small business accountant team can review your current setup, recommend a plan that fits your size and industry, and handle the move if one makes sense.
FAQ
Is Xero, MYOB or QuickBooks better for a small Australian business?
None is better for everyone. All three lodge BAS from their main plans and support Single Touch Payroll. Xero lists the most connected apps and includes unlimited users. MYOB suits larger teams through unlimited payroll on AccountRight Plus and offers desktop software. QuickBooks offers multi-currency from its mid-priced Essentials plan and inventory on Plus. The right choice depends on your headcount, stock, entities and the apps you already use.
Can every accounting package lodge my BAS directly with the ATO?
No. Xero says all its Australian plans can track GST and lodge BAS, and QuickBooks lists e-lodge BAS on all four plans. MYOB Business Lite and above lodge BAS, but Solo by MYOB only tracks GST. Reckon One prepares your BAS figures but does not lodge them, so you lodge through the ATO’s online services. If your software cannot lodge, your BAS agent or tax agent can lodge for you.
How much does payroll add to the cost of accounting software?
It depends on the vendor’s model. Xero bundles payroll into each plan by headcount. MYOB Lite and Pro charge $3 per employee a month, rising to $5 from 1 November 2026, while AccountRight Plus and Premier include unlimited payroll. QuickBooks Standard Payroll costs $6 per employee a month. Reckon One’s Ultimate plan includes unlimited payroll. Prices checked October 2026, excluding promotions.
Can my accountant or bookkeeper access my accounting software for free?
Generally yes. Xero says every plan includes unlimited general users at no extra cost. MYOB lets you share Lite, Pro, Plus and Premier files with your advisor at no extra cost, though Solo is single-user. QuickBooks plans include access for your accountant on top of the plan’s user limit. Reckon One includes unlimited users on all plans. Give each person their own login with the right permissions.
Which accounting software suits a small manufacturer or a business that assembles products?
Look for assemblies or bills of materials, multi-location stock and reliable cost of goods sold. MYOB can build items from multiple components, and AccountRight Premier adds multiple warehouse locations. Xero’s built-in inventory covers one location and up to 4,000 items, and Xero recommends a third-party app for manufacturing support. QuickBooks Plus and Advanced track inventory using FIFO costing. Many manufacturers pair the ledger with a dedicated inventory app.
When is the best time to change accounting software?
The cleanest point is the start of a new financial year, because payroll year-to-date figures and annual reports begin fresh. The next best is the start of a BAS period, so one quarter’s GST is not split across two systems. Whenever you switch, reconcile and lodge everything in the old system first, and keep access to the old records for at least five years.
Talk to us before you choose
Choosing software is a small decision with long consequences for your BAS, payroll and reporting. If you would like a second opinion on your current setup or help choosing and moving, book a free 30-minute discovery call. New Wave Accounting is a firm of Chartered Accountants, a registered tax agent (25483393) and a Xero Platinum Partner, based in Mermaid Beach on the Gold Coast and working with businesses across Australia.
This is general information only and does not consider your circumstances. Software plans and prices change often, so check each vendor’s site and talk to a registered tax agent before acting on it.
Sources
Prices and plan features checked 27 October 2026.
- Xero AU pricing and plans: https://www.xero.com/au/pricing-plans/
- Xero AU Ignite plan: https://www.xero.com/au/pricing-plans/ignite/
- Xero AU Grow plan: https://www.xero.com/au/pricing-plans/grow/
- Xero AU Ultra plan: https://www.xero.com/au/pricing-plans/ultra/
- Xero AU self-employed page (unlimited general users): https://www.xero.com/au/small-businesses/xero-for-self-employed/
- Xero AU inventory guide: https://www.xero.com/au/guides/inventory-management-system/
- Xero STP Phase 2 resource hub: https://www.xero.com/au/programme/single-touch-payroll/stp-2/
- Xero App Store AU, inventory category: https://apps.xero.com/au/function/inventory
- Xero AU support (online support and callbacks, no inbound phone line), checked 28 October 2026: https://www.xero.com/au/support/
- MYOB AU pricing (includes support by plan, checked again 28 October 2026): https://www.myob.com/au/pricing
- MYOB AccountRight Premier: https://www.myob.com/au/products/myob-business/accountright-premier
- MYOB Business Lite: https://www.myob.com/au/products/myob-business/lite
- MYOB pricing update from 1 November 2026: https://pages.myob.com/au/lp/pr/price/ca
- QuickBooks AU pricing: https://quickbooks.intuit.com/au/pricing/
- QuickBooks AU payroll: https://quickbooks.intuit.com/au/payroll/
- QuickBooks AU help, set up and track inventory: https://quickbooks.intuit.com/learn-support/en-au/help-article/stock-management/set-track-inventory-quickbooks-online/L22FZLBGN_AU_en_AU
- Reckon One accounting software and plans: https://www.reckon.com/au/accounting-software/
- ATO, Single Touch Payroll: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll
- ATO, STP reporting under Payday Super: https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-on-payday/single-touch-payroll-reporting-under-payday-super
- ATO, overview of record-keeping rules for business: https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/record-keeping-for-business/overview-of-record-keeping-rules-for-business
