Best Accounting Software for Small Business

Managing your business finances doesn’t have to be complicated or time-consuming. Using the right accounting software for small businesses can save you hours. Cloud accounting software makes it even easier to access your finances from anywhere, helping you stay on top of your business.

Beyond saving time, accounting software gives you real clarity over your finances. With real-time dashboards and detailed reports, you can track cash flow, monitor expenses, and make smarter business decisions with confidence.

But with so many options available—from simple invoicing tools to full-featured platforms—choosing the right one depends on your business size, industry, and how you manage your day-to-day workflow. In this guide, we’ll compare the best accounting software for small businesses in 2025 to help you find the perfect fit.

Factors to consider when choosing a business accounting software

Choosing the right accounting software is essential for managing your finances efficiently. Here are the key factors every small business should consider before making a decision:

1. Easy to Use: Choose accounting software that’s simple and user-friendly. You don’t need to be an expert. Look for one with a clear design and straightforward instructions to get started quickly. This saves time and reduces mistakes.

2. Key Features You Need: Consider what you need the software to do. Common features include invoicing, expense tracking, payroll, and tax reporting. If you need stock management or team access, choose software that covers those areas too.

3. Grows with Your Business: Even if your business is small now, pick software that can expand with you. Look for one that offers extra features as your needs grow, so you don’t have to switch platforms later.

4. Access Anywhere (Cloud-Based): Cloud-based software lets you access your accounts from any device, anytime. This is ideal for businesses that travel or work remotely. Plus, it updates automatically and keeps your data secure.

5. Australian Tax Compliance: For businesses in Australia, make sure the software supports local tax rules, like GST, BAS, and PAYG. This ensures you're always on top of your tax obligations and can submit reports on time.

6. Works with Other Apps: If you use tools like PayPal, Shopify, or email software, make sure the accounting software integrates with them. This saves you time by preventing double entry of information and streamlines your workflow.

7. Helpful Customer Support: Choose software with reliable customer support available through chat, email, or phone. Access to help when you need it can save you a lot of stress and time.

8. Fair Pricing and Plans: Compare pricing plans to find the best fit for your business. Ensure the software meets your needs without overspending. It’s better to invest in a solid solution than opt for a cheap one that lacks necessary features.

9. Time-Saving Features: Look for software that automates tasks like sending reminders, syncing bank info, or calculating taxes. These features reduce manual work and free up time for running your business.

10. Mobile App: A good mobile app lets you handle accounting tasks on the go. You can send invoices, track expenses, or check financial data anytime, making it easier to manage your business wherever you are.

Top Accounting Software for Small Businesses in Australia

1. Xero accounting software – Best for Australian Small Businesses

Feature	Details
Ease of Use	Very beginner-friendly with an easy-to-navigate interface.
GST/BAS Compliance	Excellent, with built-in tools for GST/BAS compliance.
Bank Feeds	Seamless integration with bank accounts, providing daily updates.
Payroll	Integrated payroll for up to 4 employees in starter plans.
Mobile App	Strong app with invoicing, receipts, and expense tracking.
Support	24/7 online support with extensive guides and tutorials.

💡Why choose Xero? Xero is perfect for businesses looking for localized, comprehensive accounting software that streamlines tax tasks and automates accounting functions.

2. MYOB – Best for Payroll and Inventory

Feature	Details
Ease of Use	Slight learning curve, especially for first-time users.
GST/BAS Compliance	Built-in compliance tools with a simple setup.
Bank Feeds	Bank feeds available in most plans, providing automatic updates.
Payroll	Comprehensive payroll functionality, ATO-compliant.
Mobile App	Limited functionality for on-the-go access.
Support	Offers phone and online support for assistance.

💡Why choose MYOB? MYOB is ideal for businesses with more complex accounting needs, especially those in industries with frequent inventory and payroll requirements.

3. QuickBooks Online – Best for Growing Businesses

Feature	Details
Ease of Use	Very intuitive and great for beginners.
GST/BAS Compliance	Automatic GST/BAS calculations and filing capabilities.
Bank Feeds	Fast and easy to connect with bank accounts for automatic syncing.
Payroll	Payroll available as a paid add-on.
Mobile App	Full-featured and modern, offering invoicing and expense management.
Support	Offers phone and live chat support for user assistance.

💡Why choose QuickBooks? QuickBooks is great for businesses looking for advanced reporting, integrations, and scalability as they expand.

4. FreshBooks – Best for Freelancers & Service-Based Business

Feature	Details
Ease of Use	Extremely simple, clean interface that’s easy for beginners.
GST/BAS Compliance	Not specifically designed for Australian tax compliance.
Bank Feeds	No direct bank feed integration, but offers manual syncing.
Payroll	Not included.
Mobile App	Excellent mobile app for invoicing and expenses on the go.
Support	Live chat and email support available.

💡Why choose FreshBooks? Perfect for individuals or businesses that want easy-to-use accounting software with simple time-tracking and invoicing features.

5. Zoho Books – Best for Tech-Savvy Users on a Budget

Feature	Details
Ease of Use	Powerful, but may take time to master for beginners.
GST/BAS Compliance	Updated and compliant with Australian GST/BAS requirements.
Bank Feeds	Automation for transaction workflows and reminders.
Payroll	Payroll available through third-party integrations.
Mobile App	Excellent mobile app with all key features.
Support	Live chat and email support for user assistance.Xero accounting software

💡Why choose Zoho Books? Zoho Books offers great value for money, making it a solid choice for businesses that want flexibility, automation, and integration with other Zoho tools.

Are free accounting softwares feasible for small businesses?

If you’re unsure whether accounting software is the right choice for your business, you might consider trying one of the free accounting software options available. This can be a great way to get a basic understanding of how these tools work and what features they offer.

However, it’s important to know that most free small business accounting software doesn’t include all the features you may need as your business grows. These free versions are often limited in what they can do. So, if a free tool doesn’t work well for you, don’t be discouraged.

Many paid accounting software platforms offer free trials, allowing you to test their full features without paying upfront. This can be a smart way to see if the software fits your needs before committing to a subscription.

If you’re just starting out and exploring options, it’s worth taking the time to compare a few different free and paid tools. Doing your research early on will help you choose the right software that supports your business from the beginning.

Power Up Your Accounting with HelloLedger

Running a business means balancing many responsibilities, and keeping track of your finances is one of the most important. Whether you’re just starting out or growing your business, managing your money efficiently is key to long-term success. Using methods like spreadsheets or manual accounting can lead to mistakes, missed deadlines, and added stress. This is where Xero makes a real difference.

At HelloLedger, we work with many businesses, and Xero has become our go-to software for managing finances. As a cloud-based tool, Xero makes accounting easier, saving you time and reducing the hassle of managing financial tasks. With features like automatic bank connections, real-time financial reports, and built-in payroll, Xero keeps you on top of your financial health. It’s simple to use.

We trust Xero accounting software for its seamless integration with payroll software for small business owners, making it easy to manage employee payments, taxes, and more. As your trusted partner, let us help you, giving you the tools you need to confidently manage your business finances.

Ready to take control of your business finances with the best accounting software for small business? Book a free discovery call today to learn how Xero can help streamline your financial management!