MYOB vs Xero: How to choose the right accounting software for your business as a sole trader

Here's everything you need to know to choose the right accounting software for your needs.

Note: All prices are in AUD and accurate as of June 2026.

Comparing MYOB and Xero for sole traders at a glance

MYOB vs Xero accounting software: What they are and who they’re for

You'll probably have heard of MYOB and Xero as two of Australia's most popular accounting software solutions.

MYOB has been around since 1991, while Xero launched in Australia in 2009 and has grown rapidly since by winning over bookkeepers and accountants.

Both platforms are built to handle the core accounting needs of Australian businesses: 

• Invoicing

• Expense tracking

• BAS and tax reporting

But they take quite different approaches to the sole trader market.

MYOB released their dedicated product for solo operators in December 2024. Solo is a mobile-first app, separate from the rest of the MYOB ecosystem.

Xero has no equivalent, with its entry-level Ignite plan being designed for small business bookkeeping more broadly. 

That said, neither MYOB or Xero is a perfect fit for most sole traders.

Both are feature-rich tools that can feel like overkill if you're running a one-person operation, with price tags that reflect that complexity.

Solo is the exception, being generally affordable and simple to use. However, it does lack several key features that more experienced sole traders rely on day to day. We'll cover those gaps in more detail below.

Key features of Xero and MYOB

MYOB features

Invoicing

Invoicing in MYOB is fairly well-suited to most service-based operators.

• Solo offers unlimited invoices, which is a real advantage over Xero's entry-level plan. You can create invoices, automate payment reminders, and accept online payments, all from the mobile app.

• Business Lite adds desktop access and more advanced options like recurring invoicing. 

That said, template customisation is fairly basic across all MYOB plans, meaning it can be tricky to fully tailor your invoices to your business needs.

Quoting

For many sole traders (particularly tradies, consultants, and creatives), the workflow starts with a quote, not an invoice. How well your accounting software handles this can save or cost you real time.

MYOB Solo doesn't support quotes at all. If your business regularly quotes before invoicing, you'd need a separate tool to create and send them, then manually recreate the invoice in Solo once the job is confirmed. That's friction most sole traders don't want.

MYOB Business Lite and above do include quoting, and quotes can be converted to invoices once accepted. It's a straightforward feature without a lot of customisation, but it covers the core workflow.

Payments     

Solo Money is a built-in business bank account and debit card, which means you can receive client payments, track spending, and manage your cash flow all within the one app.

It's a genuinely useful feature for sole traders just starting out or those who want to consolidate their financial admin.

That said, it's worth noting that Solo Money isn't a full bank account in the traditional sense. There's no BSB/account number for direct debits, no physical branch support, and limited compared to a dedicated business bank account

MYOB also hasn't published much detail about who underwrites it or what protections apply, which may give some sole traders pause.

Tap to Pay is also available on both Apple and Android devices for Solo users, letting you accept in-person card payments directly from your phone without a separate card reader. This is handy for tradespeople, market sellers, or anyone who takes payment on the spot. 

Both Solo Money and Tap to Pay features aren't available on any other MYOB plans.

On Business Lite and above, online payment acceptance is available through invoice payment links. Clients can pay via AMEX, Apple Pay, BPAY, Google Pay, Mastercard, PayPal, or VISA.                                                                       

Expense tracking

Expense tracking in Solo is straightforward: snap a photo of a receipt and upload. Transactions are stored and categorised within the app, making it easy to keep on top of your spending without paper receipts piling up.

Bank feeds are available on Business Lite and above, which lets transactions sync automatically from your connected accounts and be matched against your records. Solo is limited to 2 connected bank accounts, which can be a constraint if you keep separate accounts for business spending, tax savings, and income. Business Pro and above remove this limit entirely.

Reconciliation in MYOB is more manual compared to Xero. There's less rules-based automation, so you'll spend more time matching transactions by hand. For sole traders with relatively simple finances this isn't a big deal, but it's worth knowing if you're coming from Xero or expecting a similar experience.

Tax reporting

GST tracking is built into both Solo and Business Lite plans, making it easy to see how much GST you've collected and paid throughout the quarter.

Direct BAS lodgement with the ATO is available on Business Lite and above. Solo users can prepare their BAS figures within the app but will need to lodge separately through via myGov.

MYOB is rolling out an AI-assisted BAS preparation feature in 2026, currently in beta, which aims to reduce the manual effort involved in pulling your figures together. It's a promising addition, though it's not yet available to all users.

Time tracking

If you bill by the hour, time tracking is a core part of your invoicing workflow, not an optional extra. Yet it's an area where both Xero and MYOB fall short for sole traders.

MYOB Solo has no time tracking at all.

Business Lite and above include project tracking with the ability to log time against jobs, but billing clients directly by time requires an AccountRight Plus plan, which starts at $150/month and is well beyond what most sole traders need or want to pay.

Mobile experience

For sole traders who manage their business on the go, the mobile experience matters as much as the desktop one.

MYOB Solo is built mobile-first. It's the primary way you interact with the product, since there's no desktop or browser version. The app is clean and relatively easy to navigate for basic tasks like invoicing, receipt capture, and checking your financials.

For sole traders who prefer to do everything from their phone, this can feel liberating. For those who like to sit down at a desk for admin, it's a dealbreaker.

MYOB Business Lite and above flip this around: they're primarily desktop products, with the MYOB Assist app handling mobile invoicing and receipt capture on the go. It's more limited than a full mobile experience, but functional for the basics.

Xero features

Invoicing

Invoicing is a core strength of Xero, with customisable templates, automated payment reminders, and online payment acceptance via Stripe, PayPal, and a range of other processors.

You can set up recurring invoices for regular clients, track when an invoice has been opened, and enable automatic late payment reminders — all features that save meaningful time if invoicing is a regular part of your week.

The catch on the entry-level Ignite plan is the cap of 20 invoices per month.

For sole traders with a small number of ongoing clients, this may be fine. But if you invoice frequently, you'll hit the ceiling quickly and face a jump to Grow at $78/month just to keep sending invoices.

Quoting

Xero includes quotes on all plans, including the entry-level Ignite plan.

You can create a quote, send it to a client for approval, and convert it to an invoice in one click once it's accepted.

Quote templates are customisable and consistent with your invoice branding, which helps present a professional front to clients.

If quoting is a regular part of how you win and manage work, Xero has the edge here, particularly given that Solo excludes it entirely.

Expense tracking

Xero handles expense tracking well across all plans. Bank feeds connect directly to your accounts and sync transactions automatically, while rules-based categorisation learns your spending patterns over time. The more you use it, the less manual work reconciliation takes.

The entry-level Ignite plan caps bill entry at 5 per month (4, if you exclude the bill you'll get from Xero), which can be limiting for sole traders with regular supplier invoices or subscriptions to track. If you exceed this limit, you'll need to upgrade to Grow.

Receipt capture is available on all plans via Hubdoc, a companion app that extracts data from receipts and invoices automatically. On Grow and above, you can also capture receipts directly through the Xero mobile app, which is ideal for those who want to keep everything in one app.

GST and BAS reporting

GST and BAS reporting is well-handled across all Xero plans. The BAS summary pulls your figures together automatically based on your categorised transactions, and lodgement connects directly to the ATO so you can review, check, and submit without leaving Xero.

Xero also maintains running GST totals as you go, so you can check your estimated liability at any point during the quarter rather than waiting until it's time to lodge. This makes cash flow planning easier, particularly if you're setting aside GST as you earn.

One practical advantage: Xero is the platform most commonly used by Australian accounting professionals. That means collaboration at tax time tends to be smoother, since your accountant almost certainly knows their way around it already and can access your file directly through the accountant portal.

Time tracking

Xero includes project and time tracking only on its Ultimate plan. For a sole trader who simply wants to log hours and turn them into an invoice, that's a significant premium for one feature.

In practice, many sole traders who bill by the hour use a separate time tracking tool and manually transfer hours into their accounting software when it's time to invoice. It works, but it's an extra step and an extra app to manage.

Mobile experience

Xero's mobile app is available on all plans and covers the essentials: creating and sending invoices, capturing receipts, reconciling transactions, and checking your dashboard.

It's a companion to the desktop experience rather than a replacement for it, and most users find the browser version significantly more capable for anything beyond quick tasks.

Integrations

With over 1,000 third-party app connections, Xero plugs into almost anything you're already using: CRM tools, project management apps, payment processors, and payroll platforms. Meanwhile, MYOB has between 300-400 integrations listed in their ecoystem.

If your business relies on a specific stack of tools, Xero is more likely to connect with them than MYOB.

For businesses that need payroll

For business owners with employees or that pay themselves through a company structure, both Xero and MYOB  help handle superannuation, STP reporting, and payslips without a separate tool.

For paying yourself

If you only need to pay yourself, Xero's entry-level Ignite plan comes with payroll for 1 person that should be sufficient. 

For paying others

You'll need to make sure you choose the right plan.

Xero and MYOB 2026 pricing comparison

Here's the pricing structure for each company (accurate as of April 2026). 

A quick note on Xero and MYOB discounts

Before you sign up to either platform based on the prices below, it's worth understanding how both Xero and MYOB approach pricing over time.  

Both platforms routinely offer steep introductory discounts to attract new users. Think 50–95% off for the first 3-6 months. 

These deals are genuinely attractive, especially in our current economy with prices going up across the board.

But once the promotional period ends, you revert to the full rate. By that point, your data is in the system, switching feels like a hassle, and many sole traders end up staying put and absorbing the higher cost.

It's also worth noting that both Xero and MYOB have increased their standard prices significantly in recent years, with Xero users seeing price hikes every year since 2021.

In fact, Xero will be raising its prices again as of July 1, 2026: 

• Ignite: $35/mo > $37/mo

• Grow: $75/mo> $78/mo

• Comprehensive: $100/mo > $107/mo

• Ultimate: From $130/mo > From $143/mo
  

When evaluating either platform, look at the full standard rate rather than the promotional price, and factor in the likelihood it'll be higher again in a year or two.

MYOB pricing plans

See our full MYOB pricing breakdown for a more detailed comparison between plans. 

Solo: $11/month

The most affordable option in this comparison by a wide margin, and the one most sole traders will be looking at.

This plan covers the basics for running your business.

• Unlimited invoices

• Receipt capture

• Online payments 

• Tap to Pay

• Bank feeds with up to 2 bank accounts

• Solo Money banking

• GST tracking

• BAS prep (In Beta)

However, it does lack basic features that are offered in MYOB's other plans and by other solutions for sole traders:

• No quotes

• Mobile app only – no desktop access

• Limited invoicing features – no deposits, recurring invoices, automated receipts

• Only basic income and expense reporting – no profit and loss reports, no customisation or filtering, no reporting across time periods, categories, or jobs

• No ability to share data with accountant

• No time tracking

• No job tracking or project management

Business Lite: ~$26.25/month (annual)

This plan adds desktop access, project tracking, payroll, inventory, custom reporting, and a proper accountant portal. A significant capability jump from Solo.

Note: MYOB Business was previously known as MYOB Essentials. These plans were phased out for all users as of January 2026. 

Plans for small and medium-sized businesses: Business Pro ($63/month), MYOB AccountRight Plus ($150/month, and Premier (Custom)

Designed for businesses with employees and more complex bookkeeping or accounting processes. Not suitable for most sole traders. 

Xero pricing plans

See our full Xero pricing breakdown for a more detailed comparison between plans. 

Ignite: $37/month (annual)

Ignite is Xero's entry-level plan and the closest thing it has to a sole trader product.

It includes

• Professional invoicing (capped at 20 per month)

• Online payments for clients

• 5 bills per month

• Receipt capture (via Hubdoc)

• Bank feeds

• GST and BAS reporting

• Cashflow forecasts

• Payroll for 1 employee (handy for those who pay themselves using a company structure)

For sole traders with low invoice volumes and simple needs, it covers the basics.

However, the invoice cap means that many business owners will quickly outgrow it.

Grow: $78/month (annual)

Grow removes invoice and bill limits, adds payroll for up to 2 employees, and includes expense claims for 1 user.

This is where Xero can become genuinely useful for sole traders. But the price jump from Ignite is steep (almost double the cost) and hard to justify for a one-person business.

Plans for small business and up: Comprehensive ($100/month) and Ultimate (Starts at $130/month)

Although these plans are built for bigger businesses (with pricing to match), they offer features that are useful for many solo operators like multi-currency invoicing and project and time tracking.

If you need these capabilities, it's worth looking at other accounting solutions built specifically for your business size.

Other key differences between Xero and MYOB

Ease of use for solo business owners

How easy is MYOB to use?

Solo by MYOB is designed to be accessible for sole traders and takes a more simplistic approach to managing business finances. 

The mobile app is clean and relatively intuitive, and for basic invoicing, expense capture, and BAS prep, most sole traders can get up and running fairly quickly.

The main frustration users report is the mobile-only limitation.

There's no desktop browser version, so if you prefer to sit down at a computer and knock out your admin, Solo won't work for you.

Meanwhile,  Business Lite is a more traditional  comes with the learning curve you'd expect. Like most tools at this level, many sole traders find they need to lean on their accountant to get set up and make sense of the reporting.

How easy is Xero to use?

Xero has a reputation for being one of the more polished cloud accounting platforms on the market, and it shows.

The web interface is clean, bank reconciliation (usually) flows well, and the dashboard gives a clear overview of your financial position at a glance.

That said, Xero has a lot of complex accounting features, and sole traders often find themselves overwhelmed.

The recent retirement of the classic invoicing interface also introduced friction for long-term users, with many reporting a less intuitive experience in the updated version.

As with MYOB, most sole traders using Xero will benefit from having their accountant help with initial setup and ongoing reporting.

Customer support

MYOB customer support

MYOB offers phone support alongside online chat, which is helpful if you prefer to speak to someone when something goes wrong. That said, experiences with support can be mixed, and wait times during busy periods like End of Financial Year are a common complaint. 

Solo users are limited to online support only.

Here's what some recent users have said:

"When something goes wrong (and it frequently does) then to reach their support you will be stuck on hold for at least 3 hours. They might be able to help you, but more likely they will transfer you through at least 4 different departments and finally they say they will organise someone to call you back within 3-4 business days."

- Stephen

"Trying to cancel is IMPOSSIBLE!!! Their website CLAIMS you can cancel online or by contacting support, but guess what? When you actually log in, there is NO CANCEL BUTTON, no link, NOTHING. I clicked EVERYWHERE and wasted so much time. Then they force you to CALL SUPPORT, so I tried that, and literally NO ONE ANSWERS. Just a stupid automated message saying nobody is free. No queue. No callback. Just NOTHING. Are you kidding me??? This is a COMPLETE JOKE."

- John

Xero customer support

Xero's support is online only on all plans and experiences seem to vary, based on customer reviews and posts in Xero communities.

Support goes through the Xero help centre, with a large library of guides, tutorials, and community discussions.

For tech-confident users this can work well. But when something urgent goes wrong, the lack of real-time help is a genuine limitation.

Here's what some recent users have said:

"Xero only offers ticket-based support, which can be helpful but is often slow and not ideal when something urgent goes wrong. Other accounting platforms offer immediate live assistance, and having that option here would make a big difference."

- Aziza

"Absolutely loathe this software - and it’s all due to the abominable customer support and sloooooooow responses. I had to get out an urgent invoice yesterday, and needed to renew my subscription. I followed the prompts to deduct the $35 AUD from my account, and… nothing happened. Locked out, no phone number to call and no resolution. I resorted to manually creating an invoice as a PDF, and reconcile it later."

- John

Looking for a sole trader accounting app that prioritises support? 

On average, you'll hear from a Rounded team member within 30 seconds of sending an in-app message, and have your issue resolved in under 90 minutes.

Xero vs MYOB: Pros and cons to consider when deciding which accounting software to choose

MYOB pros and cons

✅ Cheapest sole trader accounting option

✅ Unlimited invoicing, even at the entry level

✅ Scan and store receipts on all plans

✅ Built-in business banking and Tap to Pay (via Solo Money)

✅ Australian-built with deep local tax compliance knowledge

✅ AI BAS preparation

❌ Learning curve for most sole traders (often need accountant support)

❌ Can only connect up to 2 bank accounts on Solo and Lite plans (not ideal for those who have different accounts for savings, tax, spending, etc.)

❌ Solo is app-only (no desktop or browser access)

❌ No quotes, time tracking, or recurring invoices on Solo

❌ Solo can't be upgraded, so outgrowing it means starting fresh with a new system

❌ Fewer third-party integrations than Xero

❌ Steep price jump once introductory offer expires 

❌ Mixed support experiences

Xero pros and cons

✅ Widely used by accountants and bookkeepers, making collaboration simple

✅ Polished, intuitive web interface

✅ 1,000+ third-party app integrations 

✅ Strong BAS and ATO compliance tools

✅ Scalable as your business grows 

✅ Payroll included for 1 user (for those who pay themselves via a company structure)

❌ No dedicated sole trader plan

❌ Generally more expensive than MYOB

❌ Steep price jump once introductory offer expires

❌ Repeated price hikes over the last 5 years make long-term costs hard to predict

❌ Learning curve for most sole traders (often need Xero training from accountant)

❌ Ignite plan limited to 20 invoices and 5 bills per month

❌ No phone support on any plan and mixed support experiences

What do accountants say?

"I exclusively work with Xero and Rounded. Xero is like the creme de la creme... and you pay accordingly for that. They are industry leaders and always have been in terms of tech development, and are a great choice if you have a Company, Partnership, Trust, or are GST registered, or have big growth goals, because you know the tech will be able to keep up with you and handle whatever you need.

Lauren Thiel, CA | Founder and CEO at The Real Thiel

Verdict: Should I use Xero or MYOB?

Ultimately, finding the right accounting software for your business depends on your business size, how you work, your business needs, and how much you're willing to spend each month. 

If you're planning on staying solo 

Solo by MYOB is the cheapest option if you're comfortable working only from your phone. It covers many of your basic accounting and invoicing needs without the complexity or cost of a full online accounting software.

Just know going in that there's no desktop version, no way to upgrade to MYOB's other plans for small businesses, and that you'll be missing out on some important functionality that makes running your business much easier.

Choose MYOB Business Lite if you need desktop access, more complex tools like inventory or project management, and you're prepared to invest the time (or accountant fees) to get set up properly.

Choose Xero over MYOB if you:

• Use tools that only integrate with Xero (or you want to access a broader ecosystem of third-party apps)

• Are willing to pay a premium for software that's the "creme de la creme" (to borrow our accountant's words)

• Your accountant only works in Xero, and you don't want to find a new accountant

If you're planning to shift to a company structure or hire employees

Choose Xero's Grow plan if you need unlimited invoicing or payroll, and can afford $78/month for a comprehensive platform that can grow with your business.

What if neither Xero or MYOB suits your business?

Xero or MYOB makes sense for small business owners that need a full accounting and payroll system with features like inventory management, employee access, and advanced reporting. 

But if you're a sole trader who wants a simple, reliable tool to manage your money and stay on top of tax, neither is really built with you in mind.

Solo does come close in some aspects, although it currently lacks many of the tools experienced sole traders need to run their businesses. 

That's why we built Rounded as an alternative to both Xero and MYOB, designed specifically for Australian freelancers and sole traders.

"Rounded is built for sole traders who don't need all the bells and whistles, so don't want to pay for them. It is sleek, user friendly, does everything a sole trader really needs."

Lauren Thiel, CA | Founder and CEO at The Real Thiel

How does Rounded compare to Xero and MYOB?

Polished quotes and invoices

Rounded lets you create clean, Australian-compliant invoices in minutes, with your ABN and GST applied automatically. 

“Putting quotes together is very quick. I have all my services and materials saved so I don’t have to rewrite what I’m providing for that service or figure out how much it’ll cost. Say someone wants a switchboard upgrade. I find that service, put it in, and then tailor everything in a few seconds. It’s all itemised and the customer can see what they’re paying for - it works really nicely.”

David, Builder

Unlike Solo, you can create and send quotes, convert them to invoices in one click, set up recurring invoices for retainer clients, and get notified when a client opens your invoice. 

Your invoices are fully customisable with your own branding, fonts, and layouts. With customisable headings, quantity types, and labels, you can create templates that suit any type of work you do.

Bill by the hour? The built-in time tracker converts every second worked into an invoice without any double-handling, and is available on all plans. 

And for those thinking about upgrading to one of Xero's pricier plans for multi-currency invoicing, Rounded has you covered there too. 

Expense tracking built for sole traders

With bank feeds and AI-powered expense categorisation, your income and expenses stay organised with minimal manual effort. Connect as many accounts as you need – there's no two-account cap like Solo.

Expenses feed directly into your tax position as you go, which means your BAS prep is largely done before you even start it.

Full BAS and tax readiness

Rounded automatically calculates your BAS figures throughout the quarter so you always know where you stand.

You can also track voluntary superannuation contributions for tax deductions, and share clean, organised financials with your accountant through a dedicated accountant portal. Unlike Solo, your accountant can access your data directly without you needing to export and email anything across.

Works seamlessly on desktop and mobile

Rounded works across browser and mobile app, so you can work however suits you — whether that's invoicing from your phone on a job site or doing a proper end-of-quarter review at your desk.

No mobile-only restrictions, no features locked to one device.

Why sole traders choose Rounded

"After trying out a few competitors (including the big one that starts with X) and finding them way too OTT for my needs, I'm so glad I came across Rounded. It's made my finance admin so much easier."

Tess McCabe, Graphic Designer

"I found Xero far too complicated and expensive for more than 5 invoices per week. Rounded has it all for just a small yearly fee: instant help online chat, simple user interface and they take suggestions seriously and update the program as they go."

Sarah Turner, Camera Assistant

"I tried MYOB and all that sort of stuff. Way too hard. It required specific training and education in accounting. With Rounded, you open it up and you start clicking... it’s much easier for a business like mine.”

David, Builder

 "Rounded has saved me so much time! Turning quotes to invoices and receipts is simple. With Rounded, I feel like I have a colourful and brilliant personal assistant."

Dr Sonja Vanderaa, Consultant

See if Rounded is the best accounting software for your business

Try Rounded for free for 14 days. No credit card needed.