Best Xero Alternatives for Sole Traders in Australia (2026)

Xero alternatives for sole traders fall into two groups: tools that only invoice, and accounting apps that also handle bank feeds and BAS. If you only need to bill clients, InvoiceSonic is the best overall pick and Invoice-Generator.com.au is the best free one. If you lodge a BAS, the Xero alternatives sole traders pick most often are MYOB, QuickBooks Online, Sole, Rounded, Hnry and Zoho Books, and all cost less than Xero's cheapest plan. We judged each on bank feeds, a GST report you can lodge from, and the per-user cap.

Why sole traders look for a Xero alternative

Xero's cheapest Australian plan, Ignite, is $37 a month including GST at the time of writing, after a 90%-off first three months, and caps you at 20 invoices a month; Grow is $78. That is $444 a year for accounting software built for small business bookkeepers, when most Australian sole traders use invoicing, expense tracking and one GST figure a quarter.

Quick comparison

The "BAS-ready?" test: bank feeds plus a GST report you can lodge from. Prices are AUD at the time of writing, after any introductory offer.

If you only need to invoice

If a spreadsheet and a tax agent handle your books, Xero is a ledger you never open.

1. InvoiceSonic — Best overall

The InvoiceSonic invoicing app is free invoicing software that creates and sends an invoice from your phone or browser in under a minute, then tracks who has paid. No signup for the first invoice.

Pros

• Australian GST format with ABN and PayID; no watermark, 0% InvoiceSonic fee.
• Invoice tracker, automatic payment reminders and recurring billing; the founder answers customer support email.

Cons

• No bank feeds and no BAS report — it is not accounting software.
• No expense tracking or financial reports.

Price: free, with a Pro upgrade. Best for: sole traders under the GST threshold.

2. Invoice-Generator.com.au — Best free tool

Invoice-Generator.com.au is a free, no-signup generator that produces an ATO-compliant tax invoice PDF in your browser, with nothing stored on our servers. A live checklist flags a missing ABN or GST line before you download.

Pros

• 100% free, no signup, no watermark, no ads; invoice data never leaves your browser.
• The sole trader invoice generator adds the ABN field and 10% GST; the GST calculator checks a price either way.

Cons

• It generates a PDF; it does not send, track or remind. That is why InvoiceSonic ranks above it.
• No invoice history, because nothing is stored.

Price: free. Best for: one-off or occasional tax invoices.

If you need bookkeeping and BAS

All six tools below pass at least part of the BAS-ready test and cost less than Xero Ignite.

3. MYOB Solo and Business Lite — Cheapest in-app BAS lodgement

MYOB sells two plans for Australian sole traders: Solo, a one-user mobile app with GST tracking, and Business Lite, which adds BAS lodgement direct to the ATO, two bank accounts and unlimited users.

Pros

• Business Lite lodges BAS from inside the app, the same way Xero does.
• Unlimited users on Business Lite; 24/7 chat customer support on every plan.

Cons

• Solo tracks GST but does not lodge a BAS.
• Yearly billing, and the first-year offer prices jump after year one.

Price: Solo $12 for the first year then $99 a year; Business Lite $94.50 for the first year then $315 a year, at the time of writing. Best for: in-app BAS lodgement at the lowest ongoing price.

4. QuickBooks Online Simple Start — Closest Xero replacement

QuickBooks Online Simple Start is full accounting software for one user, with bank feeds, receipt capture and BAS lodgement to the ATO, at under half the price of Xero Grow.

Pros

• Bank feeds, expense tracking and BAS lodgement with no invoice cap.
• Financial reports your accountant will accept as-is.

Cons

• One user; a second seat means upgrading.
• The 70% introductory discount ends after six months.

Price: $33 a month including GST at the time of writing, after a 70%-off first six months. Best for: sole traders replacing Xero feature-for-feature.

5. Sole — Australian-built for sole traders

Sole is an Australian accounting app for sole traders with a free-forever tier. It covers invoicing, quotes, expenses, GST tracking and BAS reports, with bank feeds on the paid plan.

Pros

• Free tier covers 5 invoices, 5 quotes and 3 expenses a month — enough for a side business.
• Australian company and customer support.

Cons

• Free tier is web-only and tightly capped.
• It produces the BAS figures but does not lodge for you.

Price: free tier; paid plans available — check current pricing (the vendor's pricing page is interactive and we could not verify the figure). Best for: Australian sole traders on a tight budget.

6. Rounded — For freelancers who bill by the hour

Rounded is Australian invoicing and accounting software for freelancers: time tracking and tax estimates on Starter; bank feeds and a pre-filled BAS on Pro.

Pros

• Time tracking and income-tax estimates built in.
• Pro pre-fills your BAS from bank feeds.

Cons

• No free plan; 14-day trial only.
• The BAS-ready version costs $29.95 a month — not far off Xero Ignite.

Price: Starter $23.95, Pro $29.95 a month at the time of writing. Best for: hourly-billing freelancers who want tax estimates through the financial year.

7. Hnry — Tax and BAS done for you

Hnry is less an accounting app than an accountant with an app. Client payments land in your Hnry account, Hnry sets aside your tax, then lodges your BAS and income tax return.

Pros

• Unlimited invoicing, expense management and tax-return lodgement in one fee; no monthly subscription.
• Tax experts on staff answer questions.

Cons

• 1% + GST adds up: $120,000 of income costs $1,200 + GST a year.
• All income must flow through the Hnry account.

Price: 1% + GST of income received, capped at $1,500 + GST a year at the time of writing. Best for: contractors who want to outsource tax admin entirely.

8. Zoho Books — Cheapest option for full accounting

Zoho Books has a free plan for Australian businesses under A$50,000 revenue with GST tracking, BAS generation and 1,000 invoices a year — the only free tier here that generates a BAS.

Pros

• Free plan with a BAS report and an accountant login.
• Standard adds bank feeds and three users for $16.50 a month billed annually — under half the price of Xero Ignite.

Cons

• The free plan ends at A$50,000 revenue, below the GST threshold.
• Not Australian-built; ATO workflows take more setup than MYOB or QuickBooks.

Price: free under A$50,000 revenue; Standard A$16.50 a month billed annually, at the time of writing. Best for: the cheapest option for a sole trader who needs real accounting software.

When NOT to use InvoiceSonic or a free generator

Neither InvoiceSonic nor Invoice-Generator.com.au replaces Xero for bank feeds, BAS lodgement or payroll. If you lodge a BAS, use MYOB Business Lite, QuickBooks Online or Rounded Pro, or Hnry to have it lodged for you. If you employ anyone, you need Xero, MYOB or QuickBooks for Single Touch Payroll. For job scheduling, look at Tradify or ServiceM8.

What to look for in a Xero alternative for sole traders

• The ATO's tax-invoice fields. The words "Tax invoice", your identity and ABN, the date, a description of the items and the GST amount; sales of $1,000 or more must also identify the buyer.
• Bank feeds. Without them you key in every transaction.
• A GST report you can lodge from. Direct lodgement, or a BAS summary you copy into ATO Online services.
• User cap. Most plans are one user; if your bookkeeper needs a login, look for accountant access or unlimited users.
• Payment reminders. Automatic chasing is what gets you paid; a PDF alone does not.
• Exit cost. Check the month-13 price, not the introductory one.

Which one should you choose?

• If you are under the $75,000 GST threshold → InvoiceSonic (see the GST registration threshold).
• If you lodge a BAS and want the lowest ongoing price → MYOB Business Lite or Zoho Books.
• If you want Xero's workflow at half the price → QuickBooks Online Simple Start.
• If you never want to think about tax again → Hnry.

New to this? Read how to invoice as a sole trader in Australia first.

Frequently asked questions