Running a business as a sole trader means managing more than invoices and expenses.
Your business profit forms part of your individual taxable income. Salary or wages, investment income, rental properties, deductions and capital gains may also contribute to the same final tax position.
The best tax app for sole traders should therefore do more than record business transactions. It should help you stay organised, understand your obligations and prepare for tax throughout the year.
We compared six popular options for Australian sole traders:
- TaxTank
- Hnry
- Xero
- QuickBooks Online
- Rounded
- Solo by MYOB
Each takes a different approach. Some focus on bookkeeping, some provide accounting services and others connect business activity with personal tax.
Here is how they compare.
Best tax app for sole traders: options at a glance
There is no single solution that will suit every business. Finding the best tax app for sole traders depends on whether you want accounting software, personal tax calculations or a service that handles lodgement for you.
| Tax app | Best suited to | Standard pricing* | Individual tax calculation | Tax return lodgement |
|---|---|---|---|---|
| TaxTank | Sole traders who want accounting connected with their complete individual tax position so they know how much tax to pay | $108 per year | Yes, automatically calculated | No |
| Hnry | Sole traders who want tax payments and lodgement handled as a service | 1% plus GST of self-employed income, capped at $1,500 plus GST per year | Yes | Yes |
| Xero | Businesses needing traditional accounting, payroll or room to scale | From $37 per month | No | No |
| QuickBooks Online | Small businesses wanting established cloud accounting tools | From approximately $35 per month | No | No |
| Rounded | Freelancers and sole traders wanting straightforward invoicing and bookkeeping | From $29.95 per month | Tax estimates and tracking | No |
| Solo by MYOB | Mobile-first sole operators with relatively simple accounting needs | $99 per year after the introductory offer | Tax and GST tracking | No |
*Pricing was checked in August 2026 and may change. Introductory discounts, payment fees and optional add-ons are excluded unless stated.
What should a tax app for sole traders do?
As a sole trader, the net income you earn from carrying on your business forms part of your assessable income. The Australian Taxation Office explains how business income is reported as part of your individual tax return.
Depending on your circumstances, useful features may include:
- Income and expense tracking
- Quotes and invoicing
- Bank feeds
- Receipt and document storage
- GST tracking
- BAS information
- Business asset and depreciation records
- Profit and Loss reports
- Estimated tax calculations
- Support for multiple business activities
- Access for your accountant
- Tax-time reports
The right choice also depends on whether you want software to manage yourself or a service that handles tax obligations and lodgement for you.
1. TaxTank: The best tax app for sole traders to connect business accounting with personal tax
TaxTank is Australian tax software for sole traders designed specifically around accounting and individual tax.
It includes the everyday tools needed to manage a sole trader business, including:
- Income and expense tracking
- Quotes and invoices
- Australian bank feeds via Open Banking
- GST and BAS information
- Cash and accrual Profit and Loss reports
- Business assets and depreciation calculation
- Personal services income records
- Business and non-commercial loss tracking
- Business loans
- Receipt and document storage
- Accountant collaboration
The key difference is what TaxTank does with that information.
Traditional accounting software usually calculates business profit and stops there. TaxTank brings your sole trader result into your estimated individual tax position alongside other supported income, deductions, properties and investments.
This gives you access to an ongoing sole trader tax calculator that updates as your income, expenses and other financial information change.
Manage multiple businesses
TaxTank allows you to manage up to six sole trader businesses under your ABN.
Learn more about how ABN tax is calculated for sole traders
Income, expenses and reports can be kept separate for each business, while their combined results are included in your total calculated individual tax position.
You can also add companies or other business activities and exclude them from your personal tax calculation. This lets you retain separate records and reports without treating company profit as personal income.
What TaxTank does not do
TaxTank does not lodge tax returns or connect directly to the ATO (not yet anyway 😉).
Instead, it organises your records and produces reports that can help you prepare to self-lodge through myTax or provide the relevant information to your accountant.
It also does not provide payroll, inventory management or complex company reporting. Businesses requiring these features may be better suited to a traditional accounting platform.
TaxTank pricing
Sole Tank costs $108 per year, equivalent to $9 per month when paid annually.
A 14-day free trial is available without a credit card.
TaxTank is best for
TaxTank is a strong choice for sole traders who want to:
- Manage their own business records
- Calculate an estimated tax position throughout the year
- Account for employment and self-employed income together
- Include properties or investments in their broader tax position
- Manage several businesses from one account
- Collaborate with an accountant
- Pay a predictable annual subscription
No credit card required
2. Hnry: best for sole traders who want tax handled for them
Hnry combines software with an accounting and tax service for sole traders.
Instead of charging a fixed subscription, Hnry deducts a percentage from self-employed income paid into a dedicated Hnry account that must be opened separately from your other bank accounts. It then calculates and pays amounts for tax, GST, Medicare levy and student loan repayments where applicable.
The service also includes invoicing, expense claims, tax return preparation and lodgement.
Hnry pricing
Hnry charges 1% plus GST of self-employed income, capped at $1,500 plus GST per financial year.
This percentage-based model can be attractive when income is low or irregular. As income grows, however, the annual cost can become considerably higher than a fixed-price software subscription.
Hnry is best for
Hnry may suit sole traders who:
- Want someone else to handle tax payments and lodgement
- Are comfortable receiving business income through a dedicated account
- Prefer a service rather than managing their own tax records
- Have relatively straightforward sole trader circumstances
It may be less suitable if you want direct control over tax planning, have several businesses or need to connect your sole trader activity with other income types, properties, investments and other parts of your financial life.
If you are comparing the two platforms more closely, see our full TaxTank and Hnry comparison.
3. Xero: best for traditional business accounting and growth
Xero is one of Australia’s best-known cloud accounting platforms.
It provides established business accounting features such as:
- Invoicing and quotes
- Bank reconciliation
- Bills and supplier management
- GST tracking and BAS preparation
- Financial reports
- Payroll on eligible plans
- Inventory and project tools on selected plans
- Accountant and bookkeeper access
- A broad app integration marketplace
Xero is designed around the accounting records of a business. This makes it a capable option for sole traders who need traditional bookkeeping features or expect to employ staff and expand their operations.
It does not calculate your complete individual tax position. Your sole trader profit generally needs to be combined with salary, deductions, investments and other personal tax information elsewhere.
Xero pricing
Xero’s Ignite plan starts from $37 per month at standard pricing. Higher plans provide additional invoicing, payroll, reporting and business-management features.
Promotional discounts are frequently available to new customers, but the subscription generally returns to the standard monthly price when the offer ends.
Xero is best for
Xero may suit sole traders who:
- Need traditional double-entry accounting
- Employ staff or require payroll
- Want extensive integrations
- Work closely with an accountant already using Xero
- Expect to grow into a larger business structure
It may provide more functionality than a sole operator needs, particularly when personal tax calculations must still be managed separately.
You can also compare the best Xero alternatives for Australian sole traders.
4. QuickBooks Online: best for established cloud bookkeeping tools
QuickBooks Online is another established business accounting platform.
Its features vary by plan but can include:
- Income and expense tracking
- Invoicing
- Bank feeds
- GST tracking
- Cash flow tools
- Receipt capture
- Financial reports
- Project and inventory features on higher plans
- Accountant access
Like Xero, QuickBooks is designed primarily to manage the accounting records of a business.
It can calculate business profit and organise GST information, but it does not bring your business result together with your complete Australian individual tax position.
QuickBooks pricing
QuickBooks Online starts from approximately $35 per month at standard pricing, although introductory offers can reduce the initial cost.
Check the inclusions carefully, as features such as bills, inventory, projects and multiple users may require a higher plan.
QuickBooks is best for
QuickBooks may suit sole traders who:
- Want an established bookkeeping platform
- Need detailed business reporting
- May require inventory or project tools
- Have an accountant familiar with QuickBooks
- Do not need personal tax calculations within the same platform
5. Rounded: best for straightforward freelance bookkeeping
Rounded is Australian accounting software created for freelancers, contractors and sole traders.
It focuses on simplifying the regular administrative tasks of running a solo business, including:
- Quotes and invoicing
- Expense tracking
- Bank feeds
- Receipt capture
- GST and tax tracking
- Time tracking
- Profit and Loss reporting
- Accountant access
Its interface and feature set are designed to be more approachable than traditional small-business accounting platforms.
Rounded can help users set aside and prepare for tax, but it does not calculate a complete individual tax position that incorporates employment income, properties, shares, cryptocurrency and capital gains.
Rounded pricing
Rounded Pro starts from $29.95 per month. Its pricing is fixed rather than based on business income.
Rounded is best for
Rounded may suit sole traders who:
- Primarily need invoicing and expense tracking
- Work as freelancers or independent contractors
- Want straightforward bookkeeping without payroll or inventory
- Prefer a platform designed around a solo business
- Manage their broader individual tax position separately
6. Solo by MYOB: best for mobile-first business administration
Solo by MYOB is a mobile accounting app designed for sole operators.
It includes:
- Unlimited quotes and invoices
- Income and expense tracking
- Receipt capture
- Tax and GST tracking
- Simple cash flow graphs
- Connections for up to two existing bank accounts
- An optional Solo Money business account
- Online and in-person payment options
- Accountant or tax agent access
Solo is entirely app-based and is designed for one user. It does not offer the broader accounting functionality found in MYOB Business Lite, Pro or AccountRight.
See how the features compare in our guide to TaxTank as an alternative to Solo by MYOB.
Solo by MYOB pricing
The standard annual price is $99 after the introductory offer period.
Payment processing and other premium features may attract additional fees.
Solo by MYOB is best for
Solo may suit sole traders who:
- Prefer to manage their business from a phone
- Need simple invoicing and expense tracking
- Want integrated payment options
- Operate one relatively straightforward business
- Do not need desktop access, payroll or advanced accounting
How to choose the best tax app for sole traders
Choosing the best tax app for sole traders starts with deciding whether you want to manage your own records, work with your accountant or pay for a service that handles tax lodgement.
Choose TaxTank if you want the complete tax picture
TaxTank is the strongest option for sole traders who want accounting software that connects business activity with their broader individual tax position.
It is particularly useful if you:
- Also earn salary or wages
- Operate several sole trader businesses
- Own investment properties
- Invest in shares or cryptocurrency
- Want to monitor estimated tax throughout the year
- Prefer to self-manage your records or work with your own accountant
Choose Hnry if you want tax lodged for you
Hnry may be the better choice if your priority is outsourcing tax payments and return lodgement.
You pay more as your self-employed income increases, but the fee includes an accounting service rather than software alone.
Choose Xero or QuickBooks if you need traditional business accounting
Xero and QuickBooks are better suited to businesses requiring features such as payroll, inventory, advanced reporting or extensive integrations.
They are capable accounting platforms, but your individual tax position will generally need to be calculated elsewhere.
Choose Rounded if you mainly need freelance bookkeeping
Rounded provides a focused set of tools for freelancers and independent contractors who want invoicing, expense tracking and tax preparation without the complexity of larger accounting platforms.
Choose Solo by MYOB if you want a mobile-only app
Solo by MYOB is an accessible option for one-person businesses that want to manage invoices, expenses, payments and basic tax tracking from a phone.
Tax app, accounting software or accounting service?
These terms are often used interchangeably, but they describe different types of products.
Tax app
A tax app helps you track information relevant to tax and may calculate an estimated tax position.
TaxTank fits within this category because it applies Australian individual tax calculations to the information recorded in your account.
Accounting software
Accounting software records and reports financial activity.
TaxTank, Xero, QuickBooks, Rounded and Solo by MYOB all provide accounting functions, although their intended users and reporting capabilities differ.
Accounting service
An accounting service includes professional help with tax obligations or lodgement.
Hnry combines its software with an accounting service. TaxTank does not provide tax return lodgement, but it allows you to invite your own accountant to collaborate.
Understanding this distinction can prevent you from choosing an app that handles only one part of what you need.
Frequently asked questions
What is the best tax app for sole traders in Australia?
TaxTank is the best tax app for sole traders who want to manage business accounting and understand how much tax they have to pay.
It includes income and expense tracking, invoices, bank feeds, GST records, business assets, Profit and Loss reports and estimated individual tax calculations.
Can a tax app calculate sole trader tax?
Some can.
TaxTank calculates your individual tax position using the income, deductions and other supported information recorded in your account.
Most traditional accounting apps calculate business profit but do not combine it with employment income, properties, investments and other personal tax information.
Does TaxTank lodge sole trader tax returns?
No. TaxTank does not lodge tax returns or connect directly to the ATO.
It organises your information and produces reports that can help you prepare to self-lodge through myTax or provide the relevant details to your accountant.
Can I use TaxTank instead of Xero?
TaxTank may be a more suitable alternative if you are a sole trader who does not require payroll, inventory or complex company accounting.
It includes the core accounting features many sole traders need while also calculating an estimated individual tax position.
Xero may be more appropriate if your business employs staff, requires advanced integrations or needs broader traditional business accounting features.
Is Hnry or TaxTank better?
Hnry and TaxTank solve different problems.
Hnry is an accounting service that collects 1% plus GST of self-employed income and handles eligible tax payments and lodgement.
TaxTank is fixed-price accounting and individual tax software. You manage your own records or invite your accountant, while TaxTank helps calculate your tax position throughout the year.
TaxTank may suit people who want more control, have multiple income types or need to connect business activity with properties and investments. Hnry may suit people who prefer to outsource more of their tax administration.
Can I manage multiple businesses in one tax app?
TaxTank allows you to manage up to six sole trader businesses under your ABN.
Each business can have separate income, expenses and reports, while their combined results contribute to your estimated individual tax position.
Companies and other business activities can also be recorded and excluded from your personal tax calculations.
How much does TaxTank cost for a sole trader?
Sole Tank costs $108 per year, equivalent to $9 per month when paid annually.
A 14-day free trial is available without entering a credit card.
Find the tax app that fits your financial life
The best tax app for sole traders should reflect how your business and personal tax actually work together.
A basic accounting app can show what your business earned and spent. For a sole trader, that is not always enough.
Your business result may be only one part of your individual tax position. Salary, deductions, properties, investments and capital gains can all change the final outcome.
TaxTank brings these areas together so you can manage your business records and monitor your estimated tax position throughout the year.
You don’t need to know every tax rule. TaxTank applies the relevant calculations for you.
Read verified TaxTank reviews from Australians already using the platform to manage their tax and finances.
No credit card required.
