Xero has become one of the most complained-about expenses in Australian small business communities. At $35-70/mo in 2026, it's priced for mid-sized businesses — not the solo tradie or freelancer sending 10 invoices a month. Here are the best alternatives.
Quick Answer
The best cheap Xero alternative for sole traders is SAB Account AI at $9/mo. For small businesses needing more features, MYOB Essentials ($27/mo) or QuickBooks ($25/mo) are solid options.
Xero's pricing has increased dramatically. The Starter plan — which limits you to 20 invoices and 5 bills per month — now costs $35/mo. The Standard plan (unlimited invoices) is $70/mo. For a sole trader earning $80k/year, that's $840/year on accounting software alone.
The frustration is understandable: most sole traders use maybe 20% of Xero's features and pay for the other 80% they'll never touch.
Best for: Sole traders, freelancers, contractors
Pros
✓ Built specifically for Australian sole traders
✓ ATO-compliant invoicing with GST
✓ Payslips + PAYG withholding on Pro
✓ Simple — no accountant required
Cons
✗ Not for businesses with complex inventory needs
Best choice for Australian sole traders who want ATO-compliant invoicing without the Xero price tag.
Best for: Small businesses with employees
Pros
✓ Australian-made
✓ Strong payroll features
✓ STP reporting built in
Cons
✗ More expensive than purpose-built sole trader tools
✗ Interface feels dated
Good for businesses with staff. Overkill for solo operators.
Best for: Small businesses wanting a Xero-like experience
Pros
✓ Clean interface
✓ Good mobile app
✓ Strong reporting
Cons
✗ Still pricey for sole traders
✗ US-focused features sometimes don't map to Australian tax
A genuine Xero competitor at a slightly lower price, but still more than most sole traders need.
Best for: Freelancers who just need invoicing
Pros
✓ Free tier available
✓ Good invoice templates
Cons
✗ Limited Australian tax features
✗ No payroll
✗ BAS tracking is manual
Fine for simple invoicing but lacks the Australian-specific tax features most sole traders need.
The whole process takes about an hour. Most people wish they had done it sooner.
Switch to SAB Account AI — $9/mo
ATO-compliant invoicing built for Australian sole traders. No lock-in contract.
Start free trialSAB Account AI at $9/mo is one of the cheapest ATO-compliant alternatives to Xero in Australia. It covers invoicing, GST tracking, expense records, and payslips — everything a sole trader needs without the $50-70/mo Xero price tag.
MYOB Essentials starts at around $27/mo, which is cheaper than Xero's Starter plan ($35/mo). However, both are more expensive than purpose-built sole trader tools like SAB Account AI.
Yes. Most accounting platforms let you export your data as CSV or PDF. You can export your invoices, contacts, and transaction history from Xero before switching. The process takes about an hour.
Xero has increased prices significantly since 2022. As of 2026, the Starter plan is $35/mo and the Standard plan is $70/mo. Many sole traders are now looking for alternatives that offer the core features at a fraction of the price.