and does not constitute financial, tax or legal advice. Always consult a

Accounting software has changed dramatically over the past decade. The

old approach -- installing desktop software, backing up to a USB drive,

emailing files to your accountant -- has been almost entirely replaced by

cloud-based platforms that work anywhere, on any device, and integrate

directly with your bank and ATO.

For a sole trader tradie in 2026, picking the right cloud accounting

software matters. Not just because it makes tax time easier, but because

the right platform gives you real-time visibility on your business

finances throughout the year. This guide helps you choose without

getting lost in the marketing noise.

Do You Actually Need Accounting Software?

If you're a sole trader turning over less than $75,000 (below the GST

registration threshold) with simple finances, you might be fine with a

spreadsheet and a good accountant. But once you hit the GST threshold

and need to lodge quarterly BAS, accounting software that handles GST

automatically is genuinely valuable.

And once you're employing anyone -- even a single apprentice -- you need

payroll software with Single Touch Payroll (STP) reporting. All the

major cloud platforms have this covered. Trying to handle STP manually

or through a spreadsheet is a mistake.

Xero: The Most Popular Choice for Australian Small Businesses

Xero is the dominant cloud accounting platform in Australia for small

businesses, and for good reason. The interface is clean and relatively

intuitive, the bank feed integration is excellent, and the ecosystem of

apps that integrate with Xero -- including most Australian job management

software like ServiceM8, Tradify and Fergus -- is extensive.

For BAS lodgement, Xero handles GST coding, generates your BAS summary,

and allows you to lodge directly with the ATO or share a pre-filled BAS

with your accountant or BAS agent. This alone saves hours every quarter

for tradies who were previously doing this manually.

Pricing starts at around $32 per month for the Starter plan (limited

transactions) and $65-$85 per month for plans suitable for active trade

businesses. The Payroll plan, required once you have employees, is

available as an add-on or included in higher-tier plans. It's worth

checking Xero's current pricing directly as it changes periodically.

MYOB: The Australian Alternative

MYOB has been in the Australian accounting software market for decades

and remains a popular choice, particularly among tradies whose

accountants are MYOB-preferring firms. The platform has been through

significant changes in recent years with its AccountRight (desktop-cloud

hybrid) and MYOB Business (fully cloud) products.

MYOB's strengths include strong payroll features (important for trade

businesses with employees or apprentices), solid BAS handling, and

widespread accountant support. For tradies whose accountant or

bookkeeper is already MYOB-trained, sticking with MYOB makes practical

sense.

The main limitation is that MYOB's integration ecosystem -- the range of

apps that connect to it -- is smaller than Xero's. If you're using job

management software, check compatibility before committing.

QuickBooks Online: A Capable Third Option

QuickBooks Online (Intuit) is the third main option in the Australian

market. It's well-regarded globally and has solid BAS and STP

capabilities. Pricing is competitive, often cheaper than Xero on

equivalent plans.

QuickBooks has a smaller Australian user base than Xero or MYOB, which

means the local accountant and integration ecosystem is somewhat

smaller. For tradies whose specific job management software integrates

with QuickBooks, it's a legitimate choice. For most others, Xero or MYOB

will be the better-supported option locally.

Rounded: Built Specifically for Sole Traders

Rounded is an Australian-made accounting platform built specifically for

sole traders and small businesses. It's simpler and cheaper than Xero or

MYOB -- plans start at under $20 per month -- and covers invoicing,

expense tracking, GST calculation and basic BAS preparation.

For a sole trader tradie with simple finances, no employees, and an

accountant who handles the ATO lodgements, Rounded is worth considering.

It won't suit businesses that need payroll, job costing integration, or

complex reporting, but for a one-person operation it's clean,

affordable, and Australian.

What to Ask Before Choosing

Before committing to any accounting platform, ask your accountant which

platforms they support and which they prefer. If your accountant is set

up primarily for Xero, switching to MYOB might create friction and cost

you more in accountant time. Platform alignment with your accountant

matters.

Also confirm: Does your job management software integrate with the

platform? Does the mobile app work well for your day-to-day needs? Does

it handle GST and BAS correctly for your business structure? Is payroll

available if you need it now or in the future?

The Setup Investment

Whichever platform you choose, setting it up properly at the start takes

time -- usually 2-4 hours to connect your bank, import any existing data,

set up GST, configure your chart of accounts, and link your job

management software. This is often best done with your accountant in a

single session.

A poorly set up accounting system causes problems for years. A

well-set-up one largely runs itself with minimal input beyond regular

bank reconciliation. The setup investment is worth it.

The Real Goal

The purpose of accounting software isn't to make lodging your BAS less

painful (though it does that). The real goal is giving you timely,

accurate information about your business so you can make better

decisions. When you look at your Xero dashboard and immediately see your

revenue for the month, your outstanding invoices, and your current GST

liability, you're operating with a level of financial clarity that most

tradies simply don't have.

That clarity -- knowing exactly where you stand financially at any moment

-- is one of the most powerful advantages you can give your business. And

it starts with choosing a good platform and using it consistently.

General Information Only: This article is for educational purposes and does not constitute financial, tax or legal advice. Always consult a qualified professional for advice specific to your situation.
## Setting Up Cloud Accounting for Your Sole Trader Business: The Australian Step-by-Step When you're running solo as a tradie, every hour counts. The good news is that cloud accounting setup doesn't need to be complicated, especially if you follow the right sequence. Here's what actually matters for Australian sole traders. **Start with your ABN and tax file number.** You'll need both to set up most Australian cloud accounting platforms. If you haven't registered for GST yet, consider whether you should — the $75,000 turnover threshold might seem distant now, but it sneaks up quickly in the trades. **Connect your business bank account first.** This is where cloud accounting earns its keep. Rather than manually entering every transaction, your bank feeds directly into Xero, Wave, or MYOB. You'll see invoices, expenses, and equipment purchases automatically categorised. You'll still need to review and approve them — the software isn't magic — but it cuts data entry time from hours to minutes each week. **Upload a recent invoice template.** Most cloud platforms let you customise invoices to match your branding. Get this right early because you'll use it hundreds of times. Include your ABN, your bank details for faster payments, and a clear payment due date. Faster invoices mean faster cash flow, which matters when you're waiting on materials for the next job. **Set up your GST categories.** If you're registered for GST, categorise your expenses properly from day one. The Australian Taxation Office expects you to separate input tax credits (GST you've paid) from your general expenses. Tools like Tradify actually integrate with accounting software, meaning your job-costed data flows straight into your accounting records without double entry. **Add your accountant as a viewer.** Most cloud platforms allow you to grant read-only access to your accountant. This means they can review your records throughout the year instead of scrambling through receipts in July or August. It also catches errors early when they're easier to fix. div style="background:#FEF3C7;border-left:4px solid #F59E0B;border-radius:0 8px 8px 0;padding:16px 20px;margin:20px 0;">

TIP: Sole traders often overlook the "billable expenses" feature. If you're buying materials for a specific job, tag them as billable in your accounting software, then add them to your invoice at cost-plus markup. This ensures you're not accidentally absorbing material costs and keeps your job profitability accurate.