Invoicing

Best Invoicing Software for Sole Traders in Australia 2026

If you're a sole trader in Australia, you need invoicing software that handles GST correctly, keeps the ATO happy, and doesn't cost more than your first invoice. Here's a straight comparison of the best options in 2026.

Quick Answer

For most Australian sole traders, SAB Account AI ($9/mo) or Invoice Ninja (free) are the best options in 2026. Xero and MYOB are powerful but cost $50-70/mo — far more than a sole trader needs.

What sole traders actually need from invoicing software

Before comparing tools, it helps to be clear on what you actually need as a sole trader. Most sole traders don't need inventory management, multi-currency payroll, or enterprise reporting. They need:

ATO-compliant invoices with ABN and GST
The ability to track what's paid and what's overdue
GST tracking for BAS time
PDF export for clients
Something that doesn't take 30 minutes to learn

Comparison: Best invoicing software for Australian sole traders

Software	Price/mo	GST Tracking	Payslips	Best For
SAB Account AI	$9	✓	✓	Sole traders, freelancers
Xero Starter	$35	✓	✓	Growing businesses
MYOB Essentials	$27	✓	✓	Established businesses
Invoice Ninja	Free	✓	✗	Very simple invoicing only
Wave	Free	Limited	✗	US-focused, limited AU support

SAB Account AI — Best for sole traders

Built specifically for Australian sole traders and small businesses. At $9/month it includes ATO-compliant invoicing, GST tracking, client management, income and expense records, and payslip generation. The Pro plan ($19/mo) adds full payroll, PAYG withholding, and super calculations.

The key difference from Xero and MYOB is simplicity — it's built for one-person businesses, not mid-sized companies with accounting teams.

Xero — Powerful but expensive for sole traders

Xero is excellent software — but at $35-70/mo in 2026, it's expensive for a sole trader who sends 5 invoices a month. The Starter plan limits you to 20 invoices and 5 bills per month, which catches many people out. If you're a growing business with employees and a bookkeeper, Xero is worth it. If you're solo, you're paying for features you'll never use.

What to look for in ATO-compliant invoices

Under Australian law, a valid tax invoice must include:

The words "Tax Invoice"
Your ABN
Date of issue
Description of goods or services
GST amount (or a statement that the price includes GST)
Total amount payable

Any reputable invoicing software will generate compliant invoices automatically. Always double-check your ABN is displayed correctly.

Bottom line

If you're a sole trader sending invoices to clients in Australia, you don't need to spend $50/mo on Xero. A purpose-built tool at $9/mo handles everything the ATO requires and won't overwhelm you with features built for businesses 10x your size.

Try SAB Account AI free

ATO-compliant invoicing for Australian sole traders. $9/mo — no lock-in.

Start free trial

Frequently asked questions

What invoicing software do most Australian sole traders use?

Xero and MYOB are the most widely used, but many sole traders are switching to cheaper alternatives like SAB Account AI ($9/mo) because Xero now costs $50-70/mo — far more than most sole traders need.

Does invoicing software need to be ATO compliant in Australia?

Yes. Australian invoices must include the supplier ABN, date, description of goods/services, GST amount (if registered), and total amount. Any good invoicing software will handle this automatically.

Is free invoicing software good enough for sole traders?

Free tools can work if you have very few clients and simple needs. However, most sole traders who invoice regularly need features like GST tracking, recurring invoices, and overdue reminders — which typically require a paid plan.

Can I use invoicing software to prepare my BAS?

Yes. Good invoicing software tracks GST collected and paid, making BAS preparation much faster. SAB Account AI includes a records and BAS overview feature specifically for this.