Best sole trader accounting software 2025

What to look for in accounting software as a sole trader

Sole traders have unique accounting needs. Unlike larger businesses, sole traders often work independently, meaning there is no accounting department to manage finances. The ideal accounting software should be intuitive, cost-effective, and tailored to meet specific requirements such as tracking income, managing expenses, and lodging tax returns.

Key features to consider

• Ease of use: The platform should be simple to navigate and use, even for someone without a background in accounting. A clutter-free interface and intuitive workflows are essential.
• Automation: Automating repetitive tasks like invoicing, expense categorisation, and tax calculations can save significant time and reduce human error.
• Tax compliance: The software must adhere to Australian tax laws, including GST reporting and BAS lodgements, ensuring accuracy and avoiding penalties.
• Integration: Compatibility with other tools, such as banking platforms, e-commerce systems, and payment gateways, can streamline workflows and reduce manual effort.
• Support: Reliable customer support ensures that any issues are resolved quickly, minimising downtime and disruptions.
• Cost: Affordable pricing without compromising essential features is crucial for sole traders operating on tight budgets.
• Mobile access: With many sole traders working on the go, a robust mobile app can be invaluable for managing finances anytime, anywhere.

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Top accounting software for sole traders in 2025

Below is a detailed analysis of the best accounting software options for sole traders in Australia this year:

1. Thriday

Thriday is a game-changer for sole traders seeking an all-in-one financial management solution. Unlike traditional accounting software, Thriday goes beyond bookkeeping by integrating banking, accounting, and tax into one seamless platform.

Key features of Thriday:

• Automated accounting: Thriday uses advanced automation to categorise transactions, track expenses, and calculate tax obligations. This reduces manual work and ensures accuracy.
• Banking integration: The platform includes a built-in bank account, eliminating the need for external bank integrations. Transactions are automatically recorded and categorised, streamlining bookkeeping.
• Tax compliance: Thriday ensures BAS lodgements and GST calculations are accurate and easy to manage. It simplifies tax time, ensuring sole traders meet all obligations.
• Time-saving tools: Features like invoice generation, payment tracking, and real-time financial insights help reduce the time spent on administrative tasks.
• Customisation: Thriday allows users to tailor the platform to suit their unique business needs, offering flexibility and scalability.
• Security: With robust security measures, Thriday protects your financial data from cyber threats.

I believe Thriday is unmatched in providing a comprehensive, efficient, and user-friendly experience for sole traders.

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2. Xero

Xero remains a popular choice for small businesses and sole traders. It offers many features, including invoicing, payroll management, and financial reporting. Its app marketplace also supports integrations with other tools.

Pros:

• Intuitive interface with a clean design
• Strong reporting features for financial insights
• Access to over 1,000 integrations with third-party tools

Cons:

• Monthly fees can add up, especially for premium plans
• Some advanced features may be unnecessary for sole traders with more straightforward needs
• Requires an accountant to lodge your BAS and taxes
• There are limits on certain feature usage depending on the package you use
• Interface can feel outdated compared to newer platforms

3. MYOB

MYOB has been a trusted name in Australian accounting for decades. Its solutions cater to small businesses and sole traders, providing tools for BAS lodgement, expense tracking, and payroll.

Pros:

• Localised for Australian tax requirements
• Reliable customer support with local expertise

Cons:

• Interface can feel outdated compared to newer platforms
• Limited automation features compared to competitors
• Separate apps required for different features

4. QuickBooks

QuickBooks Online is known for its flexibility and scalability. It offers a range of plans catering to sole traders and growing businesses.

Pros:

• Robust mobile app for on-the-go financial management
• Strong invoicing and payment tracking tools
• Access to a wide variety of financial reports

Cons:

• Steeper learning curve for new users
• Subscription fees can become expensive as your business grows

5. Reckon

Reckon focuses on affordability and simplicity, making it a suitable choice for sole traders on a tight budget.

Pros:

• Cost-effective plans with basic accounting features
• Easy to use for those new to accounting software

Cons:

• Limited advanced features for growing businesses
• The interface feels less modern and intuitive

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Why Thriday is the best accounting software for sole traders

After exploring various options, Thriday is the best accounting software for sole traders in 2025. Here's why:

1. All-in-one solution: Thriday combines banking, accounting, and tax into a single platform. This integration eliminates the need to juggle multiple tools and reduces the risk of errors.
2. Automation that saves time: Thriday automates repetitive tasks, such as categorising expenses and calculating GST, giving sole traders more time to focus on their business.
3. Built-in bank account: Thriday's banking feature allows sole traders to manage their finances without relying on external banking apps. Transactions are automatically recorded and categorised, streamlining bookkeeping.
4. Fractional accounting support: Thriday has a team of expert accountants and tax agents available on call when you need help or have any questions. This removes the need to pay for expensive accountants.
5. Tailored for Australian businesses: Thriday's features are designed to comply with Australian tax laws, making it easier to stay compliant and avoid penalties.
6. Affordable pricing: Thriday offers excellent value for money, providing premium features at a price point that makes sense for sole traders.
7. Exceptional customer support: Thriday's team is known for being responsive and helpful, ensuring users receive assistance whenever needed.
8. Forward-thinking innovation: Thriday continuously evolves its platform to incorporate the latest technology, ensuring users access cutting-edge tools.

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Choosing the right software for your business

When choosing accounting software, you must consider your specific needs as a sole trader. Think about the features you value most, such as automation, integration, and cost-effectiveness. Look for software that simplifies your workflows and helps you manage your finances.

Thriday's ability to combine multiple financial management tools into one platform makes it an obvious choice for sole traders who want to save time and reduce stress. Automating tasks and offering user-friendly features empower users to focus on growing their business rather than getting bogged down by administrative work.

Key takeaways

The right accounting software can make a world of difference for sole traders. It simplifies financial management, ensures tax compliance, and saves valuable time. While many excellent options are available in 2025, Thriday's comprehensive and innovative approach sets it apart as the best choice for sole traders in Australia. If managing your finances feels overwhelming, give Thriday a try. It's designed to make life easier for sole traders, so you can spend more time doing what you love and less time worrying about accounting. Sign up today and experience the difference Thriday can make.